German insurance and reinsurance group Talanx, the majority shareholder of Hannover Re, reported an improved combined ratio of 89% for the first nine months of 2026, compared with 89.8% a year earlier, as its insurance service result increased by 11% to €4.4 billion and group net income rose by 12% to €2.2 billion.
According to Talanx, large loss payments totalled €1.7 billion during the period, compared with €1.5 billion a year earlier, remaining approximately €750 million below the group’s pro rata large loss budget, which was recognised in full.
The company identified the earthquake in Colombia as its largest individual natural catastrophe loss, at €270 million, followed by Atlantic storms affecting the Iberian Peninsula and Morocco at €137 million, and Winter Storm Fern in the US and Canada at €109 million.
Talanx also recognised €200 million in reinsurance reserves during the second quarter for potential losses associated with the war in Iran.
The group reported a 3% increase in insurance revenue to €37 billion from €36 billion, representing growth of 4% after adjusting for currency effects.
On the investment side, Talanx reported a 52% increase in its net insurance financial and investment result before currency effects to €1.5 billion from €1 billion, supported by its previous shift from lower-yielding to higher-yielding investments and larger realised gains from investment sales.
The group’s operating profit increased by 13% to €4.6 billion from €4.1 billion, while group net income rose by 12% to a record €2.195 billion from €1.964 billion.
Talanx stated that all divisions contributed to earnings growth, with Primary Insurance accounting for 53% of group net income, compared with 51% in the corresponding period last year.
The group’s return on equity stood at 20.6%, compared with 21.5% a year earlier, while its Solvency II ratio was 241% as at 30 September 2026, compared with 243% at the end of 2025.
Turning to reinsurance, Talanx’s majority-owned subsidiary Hannover Re reported an 8% increase in its insurance service result to €2.6 billion, while operating profit rose by 17% to €2.9 billion. Within property/casualty reinsurance, the combined ratio improved to 83.7% from 86%, with large losses remaining below budget, as previously reported.
Within Talanx’s Corporate & Specialty division, the combined ratio improved to 90.3% from 91.6%, benefiting from lower frequency losses, while the insurance service result increased by 15% to €733 million from €638 million.
Insurance revenue in the division remained stable at €7.6 billion, which Talanx attributed to disciplined underwriting. Meanwhile, its net insurance financial and investment result before currency effects increased to €243 million from €147 million, supported by higher investment volumes and increased current interest income.
Corporate & Specialty’s operating profit rose by 6% to €584 million from €551 million, while its contribution to group net income increased by 11% to €455 million from €409 million.
In Retail International, Talanx reported an unchanged combined ratio of 91.4%, despite higher large losses in the third quarter, while the division’s insurance service result increased by 16% to €757 million from €650 million.
Insurance revenue in Retail International rose by 9% to €7.8 billion from €7.1 billion, primarily driven by organic growth in Poland, Türkiye, Brazil and Mexico. The division’s operating profit increased by 16% to €882 million, while its contribution to group net income rose by 18% to €561 million.
Meanwhile, Retail Germany’s combined ratio increased to 92.2% from 87.4%, reflecting higher large loss payments compared with the unusually low level recorded in the prior-year period. However, its insurance service result increased by 4% to €332 million, while operating profit rose by 15% to €283 million.
Retail Germany’s insurance revenue remained stable at €2.5 billion, with Talanx noting that the reduction in revenue following the end of its partnership with Targobank in 2025 was almost entirely offset.
Commenting on the group’s performance, Torsten Leue, CEO of Talanx AG, added: “After nine months of 2026, we have both lifted our net income by double digits to a new record level and further increased its quality: our asset management policy and the continued extension of our resilience have strengthened our balance sheet yet again. We also clearly undershot our large loss budget, which was recognised in full, by roughly EUR 750 million.
“Our diversification strategy paid off yet again, with all divisions contributing to profit growth. Our strong operations and cost leadership strategy have made us extremely optimistic for the rest of the year and for 2027: we are lifting our full-year forecast to more than EUR 2.8 billion and are now expecting Group net income of more than EUR 3.0 billion for 2027.”
Following its nine-month performance, Talanx raised its full-year 2026 group net income forecast to more than €2.8 billion, having previously increased its guidance to clearly more than €2.7 billion at the half-year stage.
The company said the revised forecast would see it exceed its original 2027 net income target of more than €2.5 billion a year earlier than planned.
For 2027, Talanx is now targeting group net income of more than €3 billion for the first time, while maintaining its expectation of a return on equity of approximately 19% for 2026.
The group added that it intends to further strengthen its balance sheet if large losses remain substantially below expectations during the remainder of 2026.
Talanx is scheduled to announce its new medium-term financial targets alongside its annual results on 18 March 2027. The company noted that its forecasts remain subject to large loss developments, currency and capital market conditions, and geopolitical and macroeconomic uncertainty.
