Talanx Group annual earnings have topped €1 billion ($1.6 billion) for the first time and ahead of forecast despite historically high net claims expenses, the insurer says.

Group net income increased 50% to €1.01 billion ($1.63 billion) last year, while operating profit rose 46% to €2.45 billion ($3.96 billion), according to results released ahead of the full financial figures on March 14.

Gross written premium increased 10.7% to €45.5 billion ($73.57 billion).

The Hannover-based insurer, which owns HDI Global, says the earnings growth reflects improvement programs in the industrial lines and retail Germany divisions, while the retail international division also remained “highly profitable”.

“As a result, the share of group net income accounted for by primary insurance has risen from 31% in 2018 to approximately 45%,” the group says.

Hannover Re, which is 50.2% owned by Talanx, also saw an increase in earnings.

Talanx last November forecast earnings at the upper end of a €900-950 million ($1.46-1.54 billion) range and that the result this year would increase to €1.05-1.15 billion ($1.70-1.86 billion).