HDI Global parent Talanx says it will beat previous earnings forecasts after a strong performance during January-September.  

Net income rose 38% to €1.28 billion ($2.14 billion) during the first nine months of 2023, while the combined ratio improved to 93.5% and insurance revenue reached €32.3 billion ($54.08 billion).  

Damage from Cyclone Gabrielle in New Zealand cost Talanx’s reinsurance division €66 million ($110.14 million). 

For the full year, Talanx now expects net income of “significantly more” than €1.5 billion ($2.51 billion), exceeding a previous target of €1.4 billion ($2.34 billion).  

Next year, it expects net income of more than €1.7 billion ($2.84 billion) and says new 2025 targets will be set in March. 

“We shall exceed our ambitious financial targets for 2023 and have lifted our earnings forecast,” Chairman Torsten Leue said, adding it had been "an extremely successful nine months”. 

“This demonstrates our continued resilience even in a challenging market environment.” 

Third-quarter insurance revenue rose 7% to €11.4 billion ($19.08 billion), while the combined ratio improved to 93.3% from 96.4%. 

Primary insurance made up 47% of group net income while large loss payments declined year-on-year to €1.6 billion ($2.67 billion) during January-September. 

Events impacting the large loss budget alongside Cyclone Gabrielle were an earthquake in Turkey and Syria, severe storms in northern Italy, forest fires in Hawaii, earthquake in Morocco, and Hurricane Idalia in the US. 

In the Property/Casualty insurance segment, the combined ratio improved slightly to 94.6% in the third quarter, from 94.7%. The reinsurance combined ratio improved to 93.1%, from 95.1%.