Talanx withdraws profit outlook; reaffirms dividend proposal for 2019

Written by Adam Cadle

22/04/2020

Talanx Group has withdrawn its outlook for the financial year 2020, in view of the ongoing COVID-19 pandemic and the considerable uncertainty around how the economic and capital markets environment will develop.

“From today’s standpoint, the existing net income target of between “more than €900m” and €950m is subject to too many uncertainties to be maintained,” it said.

“The preliminary consolidated net income for the first quarter 2020 of €223m is roughly in line with the previous year (€235m). To project the full-year results for 2020 based on the results for the first quarter appears impossible because the corona-related impact on our investment results and on our insurance business is only reflected in one out of three reporting months.”

Despite the significant changes in equity prices, interest rates and risk premiums, the Talanx Group expects the Solvency II ratio net of transitional to remain comfortably within the target range of 150% to 200% as at 31 March 2020 (31 December 2019: 211%).

Talanx has confirmed the intention to pay a dividend of €1.50 per share for the financial year 2019 as proposed. Details of the first quarter 2020 results will be reported as scheduled on 7 May 2020.

Related Articles