Talanx announced its financial results for the first quarter of 2026. Net profit increased by 28% year-on-year to 774 million euros, and the combined ratio improved to 88.7%.
Compare these figures to net profit of €604 million in the first quarter of 2025 and a combined ratio of 92.8%.
In the first quarter of 2026, Talanx also reported that its insurance revenue increased to 12.1 billion euros, adjusted for currency effects, from 12.4 billion euros in the same period last year.
Operating profit (EBIT) increased by 27% in the quarter to 1.6 billion euros, and return on equity increased to 22.3%.
Insurance services results reached €1.5 billion, an increase of 34% from the €1.1 billion reported in the first quarter of 2025.
The year-over-year improvement comes after unusually high payments for huge losses from wildfires in California during the same period last year.
Huge loss payments totaled €289 million in the first quarter of 2026, significantly lower than the €881 million reported a year ago and well below the pro-rated budget of €676 million.
Natural disaster losses amounted to 205 million euros, including 128 million euros from the winter storm “Fern” in the United States and Canada. Other significant losses include Atlantic storms Christine and Leonardo in the Iberian Peninsula and Morocco (€34 million) and the Australian bushfires (€19 million).
The amount of compensation for huge losses caused by natural disasters amounted to 205 million euros, and the total amount of huge man-made losses amounted to 84 million euros.
Talanx reported growth in net profit across all divisions and positive claims experience after unusually high loss payments in the previous quarter.
Major insurance contributed 53% to the group’s net profit. Adjusted for currency effects, three-month insurance revenue increased by 3% to EUR 1.21 (12.4 billion).
Insurance revenue for the reinsurance segment was €6.5 billion in the first quarter of 2026, up from €7.0 billion in the first quarter of 2025. Despite the decline in revenue, insurance services results normalized to €890 (515) million.
The recovery comes after unusually high losses from wildfires in California during the previous quarter.
The group strengthened its balance sheet in 2025 and expanded the elasticity of its loss reserves by around 1.2 billion euros to 5.9 billion euros, based on its own estimates.
Torsten Leue, Chairman of the Management Board of Talanx Group, said: “Looking back after the first three months of 2026, we can say that we achieved a record quarterly net profit and strengthened our profitability. At the same time, we still have a buffer of almost €400 million against the large loss budget for the remaining months of the year.”
“I am therefore very confident that we will achieve our full-year net profit target of approximately €2.7 billion. This success, despite geopolitical and macroeconomic challenges, is further evidence that our diversified business model, diversification strategy, resilience and cost leadership are paying off.”
Talanx noted that its 2026 revenue target of 2.7 billion euros would allow it to meet and exceed its original 2027 profit forecast a year earlier than originally planned.