9M 2023 results and outlook

13 November 2023

Jan Wicke, CFO

9M 2023 results and outlook 2023

. Primary Insurance drives improved profit outlook 2023

9M 2023 Primary Insurance results

Group outlook 2023

Revenue growth

Net income growth

Group net income

>1,5001

>10%

>50%

published

>1,400

Previously

Note: Financial targets are subject to large losses not exceeding the large loss budget, no turbulences on capital markets and no material currency fluctuations.

In addition, the targets may be subject to fluctuations due to the application of the new IFRS 9 accounting standard for the valuation of the investment portfolio.

1 As announced on 23 October 2023

2

9M 2023 Results, 13 November 2023

Outlook 2024

. Delivering and exceeding 2025 target one year ahead of schedule

Group return on equity

Group net income

>1,700

~1,600

Previously published

>>10%

Outlook 2024

Outlook 20251

Note: Financial targets are subject to large losses not exceeding the large loss budget, no turbulences on capital markets and no material currency fluctuations. In addition, the targets may be subject to fluctuations due to the application of the new IFRS 9 accounting standard for the valuation of the investment portfolio. 1 As communicated on Capital Markets Day on 6 December 2022

3 9M 2023 Results, 13 November 2023

Agenda

  1. Group financials
  2. Segments
  3. Capital & Investments
  4. Outlook 2023 and 2024
  5. Appendix

4 9M 2023 Results, 13 November 2023

9M 2023 overview

1 Strong performance across all segments

Group

Group

Group

insurance revenue

net income

return on equity

in EURm

in EURm

+8%1

+38%

+4.6%

pts.

29,871

32,274

1,279

18.4%

926

13.9%

CR

CR3

13.8%2

17.9%2

95.5%

93.5%

9M 2022

9M 2023

9M 2022

9M 2023

9M 2022

9M 2023

Primary Insurance with double digit

Significantly improved insurance

Rising RoE despite

growth rate driving group insurance

service result leads to strong rise

retained earnings and

revenues

in profitability

EUR 300m capital increase

1 Currency adjusted: 11%

2

Return on equity adjusted for net income impact from fair value through p&l (FVPL) assets

3

Impact of interest rate changes on CR due to discounting: 1.7%-pts (Discount rate 9M23: 4.6% vs 2.9% in 9M2022)

5

9M 2023 Results, 13 November 2023

1 Large losses down and well within budget

Net large losses

in EURm

in % of insurance revenue gross (P/C business only)

-277

Large losses

lower (EUR -277m) than last year due to high Ukraine war-related reserves (EUR 361m) in 2022

1,867

3611,589

153398

1.3541.192

1,693

Ukraine war Man-made NatCat

6.5%

6.1%

1,5%

4,6%

Large losses EUR 103m below budget (EUR 1,693m) despite increased number of events in Q3

Largest 2023 NatCat losses:

▪ Türkiye earthquake EUR 329m

▪ Italy storm / hail EUR 132m

9M 2022

9M 2023

pro-rata large

loss budget

9M 2023 pro-rata large loss budget

▪ Hawaii "Maui" fires EUR 87m

Note: Definition "large loss": In excess of EUR 10m gross in either Primary Insurance or Reinsurance

6 9M 2023 Results, 13 November 2023

Accelerated growth in Primary Insurance lifts

1 earnings contribution to almost 50%

Primary Insurance

Reinsurance

Total net income

net income

net income

split

in EURm

+51%

624

413

9M 2022

9M 2023

in EURm

in % of total1

Primary Insurance

Reinsurance

+26%

704

559

47%

53%

9M 2022

9M 2023

Note: Primary Insurance is the sum of Industrial Lines, Retail Germany and Retail International

1 Percentages are calculated in percent of Group net income adjusted for Corporate Operations and Consolidation

7 9M 2023 Results, 13 November 2023

1 Raising net income outlook 2023

Insurance revenue

Group net income

Return on equity

in EURm

in EURm

> 42,000

> 1,5001

32,274

1,279

>1,400

Previously

published

9M 2023

Outlook 2023

9M 2023

Outlook 2023

18.4%

>> 10%

9M 2023

Outlook 2023

Insurance revenue target confirmed

Delivering ahead

Fully on track to significantly

with focus on profitable growth

of targets

exceed 10% RoE target

Note: All targets are subject to large losses not exceeding the large loss budget, no turbulences on capital markets, and no material currency fluctuations. In addition, the targets may be subject to fluctuations

due to the application of the new IFRS 9 accounting standard for the valuation of the investment portfolio.

8

1 As announced on 23 October 2023

9M 2023 Results, 13 November 2023

Agenda

  1. Group financials
  2. Segments
  3. Capital & Investments
  4. Outlook Outlook 2023 and 2024
  5. Appendix

9 9M 2023 Results, 13 November 2023

Primary Insurance

2 Bottom line growth exceeds top line growth

Primary Insurance

Primary Insurance

Primary Insurance

insurance revenue

net income

return on equity

in EURm

in EURm

+13%

+51%

+4.2%

pts.

12,513

14,132

624

13.0%

413

8.8%

CR

CR2

9.4%1

13.2%1

95.8%

93.8%

9M 2022

9M 2023

9M 2022

9M 2023

9M 2022

9M 2023

Retail International and Industrial

Benefit from change in discount

Increased return on equity driven

Lines with strongest top line

rate partially used for reserve

by improved insurance service

contribution

strengthening

result

1 Return on equity adjusted for net income impact from fair value through p&l (FVPL) assets

2 Impact of interest rate changes on CR due to discounting: 2.0%-pts (Discount rate 9M23: 4.6% vs 2.6% in 9M2022)

10

9M 2023 Results, 13 November 2023

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Talanx AG published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 09:14:10 UTC.