A strong start to the year has increased Talanx’s confidence of “clearly exceeding” its annual net income target of more than €1.7 billion ($2.78 billion).

First-quarter net income rose 35% to €572 million ($931.62 million), and the combined operating ratio improved to 90.9% from 93.5% a year earlier.

“Our strong start to 2024 underscores the sustainable and profitable path we are on,” chairman Torsten Leue said. “Potential large-loss events such as the hurricane season ... may impact net income over the course of the year. Nevertheless, we are increasingly confident.”

The largest single loss in the quarter was the collapse of the Francis Scott Key Bridge in Baltimore in March. Talanx says it “cannot yet be quantified precisely”, but costs will be within its large loss budget.

Natural disaster losses were “unusually small” at €48 million ($78.17 million) from January to March, compared with €354 million ($576.56 million) a year earlier. An earthquake in Japan in January cost €25 million ($40.71 million) and forest fires in Chile in February cost €22.6 million ($36.78 million).

Insurance revenue at the group, which includes HDI Global and reinsurer Hannover Re, rose 9% to €11.7 billion ($19.05 billion). Primary insurance revenue – which includes industrial lines, retail in Germany and retail international but not reinsurance – jumped 23% and expanded its share of group net income to almost half.