HANOVER (dpa-AFX) - Insurance group Talanx (HDI) has raised fresh money from investors following its recent record high on the stock market. A capital increase announced on Tuesday evening raised 300 million euros, the MDax-listed company announced shortly before midnight in Hanover. In addition, majority shareholder HDI, a mutual insurance company, threw additional securities on the market for 100 million euros. This brings its stake down from 78.9 to 76.7 percent and increases the proportion of shares in free float. On the stock exchange, however, the news was met with a slide in the share price.

The Talanx share lost more than eight percent to 60.45 euros by midday on Wednesday. The share price thus fell below the price of 61.50 euros at which the Group was able to place its almost 4.9 million new shares with institutional investors. Only on Monday, the Talanx share price had climbed to 65.85 euros, its highest level since the Borsengang in 2012. Existing shareholders had no subscription rights in the capital increase.

"This is our response to the repeatedly expressed wish of investors to increase the free float of the Talanx share and to create the conditions for improved tradability of the share," CFO Jan Wicke had said when announcing the capital increase, according to the statement. "The bottom line is that we are creating the conditions for more investors to be able to invest in our share."

Meanwhile, Talanx reaffirmed its business forecasts. For the current year, management continues to target a net profit of more than 1.4 billion euros and plans to pay a dividend of more than 2 euros per share to shareholders. By 2025, profits are expected to rise to 1.6 billion euros. This does not yet include the positive effects of the acquisition of Liberty Mutual's business in Latin America, it said.

Possible further acquisitions are conceivable. The company said that the new financial resources would also increase its capital resources for possible further acquisitions and business growth under its own steam./stw/knd/mis