Talanx Group has announced that its underwriting and investments in the first quarter of 2020 have been negatively “impacted” by the ongoing pandemic.
Large losses in primary insurance and reinsurance rose from €137m (£120m) in the same period of the previous year to €435m (£382m), “substantially” in excess of the €278m (£244m) pro rata large loss budget for the period.
Nonetheless, the group said that it demonstrated a “high level of resilience in a crisis when faced with the exceptional challenges caused by the coronavirus lockdown”.
Gross written premiums rose by 6.4% to €12.5bn (£10.9bn), while operating profit was €559m (£491m). Group net income was €223m (£196m), “roughly on a par” with the previous year.
Overall, the coronavirus pandemic impacted group net income by €133m (£117m) after taxes. Large losses for the first quarter 2020 were up year-on-year at €435m (£382m), with €313m (£275m) related to large loss expenses from the coronavirus pandemic before application of the pro rata large loss budget for the period.
Torsten Leue, chairman of Talanx AG’s board of management, said: .“The coronavirus pandemic has stretched people and enterprises in many countries of the world to their limits. We haven’t seen a crisis like this since the Second World War.
“In this difficult time, our thoughts are with everyone who has lost loved ones or is suffering personally from the effects of the pandemic. As a major European insurance group, Talanx has also been impacted by this crisis, both in its underwriting activities and in its investments.”
He added: “We entered this crisis in a position of strength. Now we are focusing 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.
“This is in line with our Talanx Purpose: ‘Together we take care of the unexpected and foster entrepreneurship’.”