Talanx Raises Profit Target After Swiss Life Stake SaleNicholas Comfort
Talanx AG, the German insurer that sold stock in an initial public offering last year, raised its profit goal for 2013 after the sale of shares in Swiss Life Holding AG boosted earnings.
Talanx is “cautiously optimistic” that net income will rise to about 700 million euros ($929 million) this year from 630 million euros in 2012, the Hanover, Germany-based insurer said in a statement today. The company said in May that 2013 profit would be more than 650 million euros.
The floods that inundated parts of Germany, Austria and the Czech Republic in May and June resulted in net claims of 232 million euros in the second quarter. Talanx said it booked a gain of 74 million euros in the period after reducing its stake in Swiss Life, Switzerland’s biggest life insurer.
“The first half of the year was marked by pleasing growth,” Chief Executive Officer Herbert Haas said in the statement. “The positive effects predominate overall.”
Net income advanced to 204 million euros in the second quarter from 147 million euros a year ago, according to the statement.
Talanx said on June 17 it expects a net burden from the floods of less than 250 million euros, including losses reported by Hannover Re, of which Talanx owns 50.2 percent. The reinsurer said on Aug. 7 that second-quarter profit rose 29 percent with the floods resulting in net claims of 136.9 million euros.
Talanx began trading last October after its IPO.
The insurer said it is sticking to a plan to pay out 35 percent to 45 percent of net income as a shareholder dividend.
Talanx shares have risen 14 percent this year, compared with an 18 percent gain for the Bloomberg Europe 500 Insurance Index.