HDI Global parent Talanx Group says its confident of exceeding its full-year earnings target following the increase in its first-half result. 

Talanx net income rose to €827 million ($1.4 billion) in the six-month period from €686 million ($1.2 billion) a year earlier. The company has previously targeted a full year result of €1.4 billion ($2.4 billion). 

“We have seen strong growth in insurance revenue and the highest six months group net income in the group’s history,” Talanx Board of Management Chairman Torsten Leue said. “We are therefore optimistic that we will be able to exceed our revenue and group net income targets for 2023 even though the hurricane season is not over yet.” 

Primary insurance contributed 44% of the strong earnings figure and reinsurance 56%, as results were supported by inflation-related price rises, lower large loss payments, as well as interest accretion and discounting effects resulting from new accounting standards. 

Talanx says an 18.4% return on equity also puts it on track to remain well above the strategic target of 10% for the year. All primary insurance divisions generated returns on equity in excess of 10% for the first time. 

Industrial Lines insurance revenue rose 10% to €4.2 billion ($7.1 billion), or 11% after currency adjustments. The rise reflected property and liability growth, as well as gains in the specialty risks business, which generated revenue of €1.4 billion ($2.4 billion). The combined operating ratio improved to 93.1% from 94.1%. 

Reinsurance insurance revenues rose 4% to €12.3 billion ($20.8 billion), or 6% after adjustment for currency effects. In property and casualty, revenues rose 7% to €8.4 billion ($14.2 billion) due to improved prices and conditions. 

Large loss payments amounted to €607 million ($1 billion) compared to €850 million ($1.4 billion) a year earlier. 

The most significant large loss payment of €257 million ($435 million) was for the Turkey and Syria earthquake. Other major events included Tropical Cyclone Gabrielle, recent riots in France, the January New Zealand floods and severe storms in Italy in May.