Talanx Group reported a record 2025 net profit of €2.48 billion, split equally between primary insurance and reinsurance, reflecting the company’s “diversified and balanced” structure.
Torsten Leue, Chairman of the Management Board of Talanx, commented: “2025 has been an extraordinary year. In the first quarter we experienced the largest natural disaster losses in the history of the Group, while the following three quarters saw unusually few natural disasters.
“The momentum generated by our operating strength and positive claims experience enabled us to deliver record group net profit and further improve the quality of our net profit: we continue to strengthen our balance sheet in 2025 through asset management policies and increased resilience.”
At the same time, the group’s insurance revenue will increase to 49 billion euros in 2025, and insurance service performance will increase by 11% to 5.7 billion euros.
Although the group suffered its highest natural disaster losses in history in the first quarter of 2025 due to the impact of the Los Angeles wildfires, huge loss payments were reported to normalize during the remainder of the year, totaling €2.19 billion, well below the €2.82 billion budget.
All in all, huge losses caused by natural disasters amounted to 1.375 billion euros, and huge man-made losses totaled 815 million euros. Talanx’s combined ratio improved to 89.1% in 2025 from 90.3%.
Taking a closer look at Talanx’s reinsurance division (mainly formed and managed by Hannover Re), insurance revenue increased 5% to 26.8 billion euros in 2025, adjusted for currency effects, while insurance services results increased 16% to 3.5 billion euros.
Insurance income in the Property/Casualty Reinsurance segment increased by 4% on a currency-adjusted basis to €18.8 billion, slightly higher than the previous year’s €18.7 billion.
Meanwhile, in the life/health reinsurance segment, insurance revenue increased 7% after adjusting for currency effects.
L&H Reinsurance’s insurance services results increased by 2% to 903 million euros, exceeding the target of more than 875 million euros.
This growth was driven in part by continued strength in the Financial Solutions and Longevity Risk businesses.
Looking ahead, Talanx reiterated its 2026 net profit target of approximately €2.7 billion, first announced in November 2025.
Achieving this target would mean the group meets and exceeds its previously proposed 2027 net profit forecast a year ahead of schedule. Talanx also expects a return on equity of approximately 19% in 2026.
“As always, the target presupposes that currency and capital markets do not destabilize and that large losses remain in line with expectations. The current geopolitical and macroeconomic situation is another source of uncertainty,” Talanx concluded.
Torsten Leue concludes: “Our strategy, based on diversification, decentralization, cost leadership and a culture of trust, has once again proven its value, including for our investors.
“Accordingly, we propose to the Supervisory Board a 33% increase in the dividend to €3.60. This means that the growth of our dividend will once again exceed the growth of the Group’s net profit – and we will keep our commitment to continuously increase the dividend.
“Our business performance also makes us optimistic about 2026: we are confident of achieving a group net profit of approximately 2.7 billion euros, thereby reaching and exceeding our 2027 profit target one year earlier than originally planned.”
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