Major European insurance group Talanx is looking like a rare breed during this particularly challenging time, recording a €223 million (around SG$341.6 million) group net income in the first quarter of the year despite all its divisions being impacted by the coronavirus outbreak.
Described as “roughly on a par” with last year’s result, the Q1 net income signifies a slight decline from the €235 million (around SG$360.0 million) posted in the same three-month span in 2019. Operating profit slid 9.3% to €559 million (around SG$856.4 million) while net investment income went down 8.6%.
According to Talanx, large losses for the first quarter rose to €435 million (around SG$666.4 million). Of this sum, €313 million (around SG$479.5 million) related to large loss expenses from the COVID-19 pandemic before application of the pro rata large loss budget for the period. The group’s reinsurance activities accounted for the bulk of the figure.
“We entered this crisis in a position of strength,” stated Talanx AG’s board of management chair Torsten Leue, who pointed to how we have not seen a crisis like this since the Second World War.
“Now we are focussing on maintaining this strength and resilience so as to be able to continue supporting our policyholders, business partners and employees and the people in the countries in which we do business, and to go on providing insurance, both now and in the future.”