Quarterly Report • May 15, 2017
Quarterly Report
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Quarterly Statement as at 31 March 2017
| unit | Q1 2017 | Q1 2016 | +/–% | ||
|---|---|---|---|---|---|
| Gross written premiums | EUR million | 9,752 | 8,995 | +8.4 | |
| by region | |||||
| Germany | % | 33 | 36 | –3.0 | pt. |
| United Kingdom | % | 7 | 8 | –1.0 | pt. |
| Central and Eastern Europe (CEE), including Turkey | % | 8 | 7 | +1.0 | pt. |
| Rest of Europe | % | 17 | 16 | +1.0 | pt. |
| USA | % | 15 | 13 | +2.0 | pt. |
| Rest of North America | % | 2 | 2 | — | pt. |
| Latin America | % | 8 | 7 | +1.0 | pt. |
| Asia and Australia | % | 9 | 9 | — | pt. |
| Africa | % | 1 | 2 | –1.0 | pt. |
| Net premiums earned | EUR million | 6,692 | 6,266 | +6.8 | |
| Underwriting result | EUR million | –415 | –422 | –1.6 | |
| Net investment income | EUR million | 1,011 | 1,022 | –1.1 | |
| Net return on investment1) | % | 3.5 | 3.7 | –0.2 pt. | |
| Operating profit (EBIT) | EUR million | 576 | 573 | +0.5 | |
| Net income (after financing costs and taxes) | EUR million | 398 | 381 | +4.4 | |
| of which attributable to shareholders of Talanx AG | EUR million | 238 | 222 | +7.2 | |
| Return on equity2) | % | 10.3 | 10.6 | –0.3 pt. | |
| Earnings per share | |||||
| Basic earnings per share | eUR | 0.94 | 0.88 | +6.8 | |
| Diluted earnings per share | eUR | 0.94 | 0.88 | +6.8 | |
| Combined ratio in property/casualty primary insurance and Property/Casualty Reinsurance3) |
% | 96.3 | 96.3 | — pt. | |
| Combined ratio of property/casualty primary insurers4) | % | 97.6 | 98.4 | –0.8 | pt. |
| Combined ratio of Property/Casualty Reinsurance | % | 95.6 | 94.7 | +0.9 | pt. |
| EBIT margin primary insurance and Reinsurance | |||||
| EBIT margin primary insurance4) | % | 6.0 | 6.6 | –0.6 | pt. |
| EBIT margin Property/Casualty Reinsurance | % | 14.6 | 15.8 | –1.2 | pt. |
| EBIT margin Life/Health Reinsurance | % | 5.5 | 6.5 | –1.0 | pt. |
| 31.3.2017 | 31.12.2016 | +/–% |
| Policyholders' surplus | EUR million | 17,115 | 16,671 | +2.7 |
|---|---|---|---|---|
| Equity attributable to shareholders of Talanx AG | EUR million | 9,368 | 9,078 | +3.2 |
| Non-controlling interests | EUR million | 5,764 | 5,610 | +2.8 |
| Hybrid capital | EUR million | 1,983 | 1,983 | — |
| Assets under own management | EUR million | 107,810 | 107,174 | +0.6 |
| Total investments | EUR million | 119,696 | 118,855 | +0.7 |
| Total assets | EUR million | 160,061 | 156,571 | +2.2 |
| Carrying amount per share at end of period | EUR | 37.06 | 35.91 | +3.2 |
| Share price at end of period | EUR | 33.06 | 31.77 | +4.1 |
| Market capitalisation of Talanx AG at end of period | EUR million | 8,357 | 8,031 | +4.1 |
| Employees | Full-time equivalents |
19,862 | 20,039 | –0.9 |
1) Ratio of annualised net investment income excluding interest income on funds withheld and contract deposits and profit on investment contracts
to average assets under own management (31 March 2017 and 31 December 2016).
2) Ratio of annualised net income for the reporting period excluding non-controlling interests to average equity excluding non-controlling interests.
3) Combined ratio taking into account interest income on funds withheld and contract deposits, before elimination of intra-Group cross-segment transactions.
4) Excluding figures from the Corporate Operations segment.
Guideline on Alternative Performance Measures – for further information on the calculation and definition of specific alternative performance measures please refer to http://www.talanx.com/investor-relations/ueberblick/midterm-targets/definitions_apm?sc_lang=en
| EUR million | ||
|---|---|---|
| -- | ------------- | -- |
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross written premiums | 9,752 | 8,995 | +8.4 |
| Net premiums earned | 6,692 | 6,266 | +6.8 |
| Underwriting result | –415 | –422 | +1.6 |
| Net investment income | 1,011 | 1,022 | –1.1 |
| Operating profit/loss (EBIT) | 576 | 573 | +0.5 |
| Combined ratio (net, property/ casualty only) in % |
96.3 | 96.3 | — |
| % | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Gross premium growth (adjusted for currency effects) |
7.4 | –3.0 | +10.4 pt. |
| Group net income in EUR million | 238 | 222 | +7.2 |
| Return on equity 1) | 10.3 | 10.6 | –0.3 pt. |
| Net return on investment 2) | 3.5 | 3.7 | –0.2 pt. |
1) Ratio of annualised net income for the reporting period excluding
non-controlling interests to average equity excluding non-controlling interests. 2) Annualised ratio of net investment income excluding interest income on funds withheld and contract deposits and profit on investment contracts to average assets under own management.
The gross premiums written for the Talanx Group increased by 8.4% (adjusted for currency effects: by 7.4%) in the first quarter, and amounted to EUR 9.8 (9.0) billion. The Retail International Division recorded strong premium growth of 29.2%, followed by the Property/ Casualty Reinsurance segment (+12.5%). Higher premium income from branches outside Germany contributed to moderate premium growth in the Industrial Lines Division (4.3%). Premium income in the other segments remained almost constant. The net premiums earned were EUR 6.7 (6.3) billion; they were therefore 6.8% higher year-on-year. The retention ratio increased to 85.6% (85.2%).
The underwriting result increased by 1.6% to EUR –415 (–422) million. The major loss burden in the Group was EUR 153 (123) million which was higher than in the previous year; however, it stayed within the budget for the period of EUR 243 million. In the Property/ Casualty Reinsurance segment, major losses were particularly high at EUR 134 (56) million: Cyclone "Debbie" in Australia was one of the largest single losses and was reflected in the budget at around EUR 50 million. A single loss in Chile in the Retail International Division also impacted earnings. The net loss ratio, which increased by 0.3%, was offset by a slightly improved net expense ratio; the Group's combined ratio remained at the same level year-on-year, at 96.3% (96.3%).
Net investment income fell by 1.1% to EUR 1,011 (1,022) million. An increase in the ordinary net investment income was unable to offset declining extraordinary investment income as well as a lower interest income on funds withheld and contract deposits. The Group net return on investment was 3.5% (3.7%) in the first quarter of 2017, and was therefore only slightly lower than in the same period of the previous year.
The operating profit (EBIT) increased slightly by 0.5% to EUR 576 (573) million; the slightly declining investment income was offset by the improved underwriting result amd improved other income/ expenses. The Group net income increased by 7.2% to EUR 238 (222) million; the most significant portion came from the Industrial Lines Division. Although the return on equity of 10.3% (10.6%) was slightly below the figure for the same quarter the previous year, it was above the 8% figure forecast for the entire 2017 year.
At a strategic level, Talanx divides its business into seven reportable segments: Industrial Lines, Retail Germany – Property/Casualty Insurance and Life Insurance – Retail International, Property/ Casualty Reinsurance, Life/Health Reinsurance and Corporate Operations. Please refer to the section entitled "Segment reporting" in the Notes of the 2016 Annual Report to the consolidated financial statements for details of these segments' structure and scope of business.
EUR million
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross written premiums | 2,004 | 1,921 | +4.3 |
| Net premiums earned | 552 | 537 | +2.8 |
| Underwriting result | 19 | 13 | +46.2 |
| Net investment income | 69 | 50 | +38.0 |
| Operating profit/loss (EBIT) | 80 | 74 | +8.1 |
MANAGEMENT METRICS FOR THE INDUSTRIAL LINES DIVISION
%
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross premium growth (adjusted for currency effects) |
3.1 | 2.5 | +0.6 pt. |
| Retention | 56.4 | 55.5 | +0.9 pt. |
| Combined ratio (net) 1) | 96.5 | 97.6 | –1.1 pt. |
| EBIT margin2) | 14.6 | 13.8 | +0.8 pt. |
| Return on equity 3) | 10.8 | 9.2 | +1.6 pt. |
1) Including net interest income on funds withheld and contract deposits.
2) Operating profit (EBIT)/net premiums earned.
3) Ratio of annualised net income for the reporting period excluding
non-controlling interests to average equity excluding non-controlling interests.
Gross written premiums for the division amounted to EUR 2.0 (1.9) billion as at 31 March 2017, an increase of around 4.3% (3.1% after adjustment for currency effects). The international branches of HDI Global SE in France and in Belgium in particular recorded increases in premiums. The US subsidiary HDI Global Insurance Company also made a significant contribution to the development of premiums.
The retention ratio in the division was above the level of the previous year, at 56.4% (55.5%). This development was largely due to lower payments to external reinsurers in the liability insurance line. Net premiums earned rose by 2.8% compared with the previous-year quarter to EUR 552 (537) million, corresponding to the gross growth.
The division's net underwriting result increased to EUR 19 (13) million. At 20.6% (20.2%), the net expense ratio was slightly higher year-onyear, whereby this was due to higher project expenditure resulting from the growth recorded. The loss ratio (net) improved to 75.9% (77.3%). Losses declined noticeably, particularly in the marine line. The combined ratio for the Industrial Lines Division amounted to 96.5% (97.6%).
Net investment income rose by 38.0% to EUR 69 (50) million. It was possible to over-compensate for the lower interest rates for new and reinvestments through higher income from private equity vehicles. In comparison to the previous-year period, higher net gains from the disposal of investments were generated at HDI Global SE at the same time.
As a result of the developments stated above, the division's operating profit was higher in the first three months of 2017 (EUR 80 million) than in the first quarter of the prior year (EUR 74 million). Group net income amounted to EUR 59 (48) million.
Since the second quarter of 2016, the Talanx Group has managed the Retail Germany Division on the basis of the Property/Casualty and Life segments, and has reported accordingly about the performance of these two segments.
PROPERTY/CASUALTY INSURANCE
EUR million
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross written premiums | 759 | 749 | +1.3 |
| Net premiums earned | 340 | 341 | –0.3 |
| Underwriting result | –6 | –13 | +53.8 |
| Net investment income | 25 | 22 | +13.6 |
| Operating profit/loss (EBIT) | 13 | 6 | +116.7 |
| % | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Gross premium growth | +1.3 | –1.7 | +3.0 pt. |
| Combined ratio (net) 1) | 101.7 | 103.8 | –2.1 pt. |
| EBIT margin2) | 3.8 | 1.6 | +2.2 pt. |
1) Including net interest income on funds withheld and contract deposits. 2) Operating profit (EBIT)/net premiums earned.
Continued growth of up to 2.8% is to be assumed in property/ casualty insurance for the current year. Increases are expected in particular in motor insurance and comprehensive homeowners insurance.
A 1.3% increase in premium income to EUR 759 (749) million was recorded in the Property/Casualty Insurance segment. The higher premium income was in particular due to the expansion of unemployment insurance in the context of residual debt business. Overall, the share of the total Retail Germany Division attributable to the property/casualty insurers therefore increased to 39.8% (39.3%).
The underwriting result increased from EUR –13 million to EUR –6 million in the current financial year. This was due to positive loss trends. Burdens from natural catastrophes and major losses remained at the same level year-on-year.
The positive trend in the underwriting result resulted in a 2.1 percentage point decline in the combined ratio (net), from 103.8% to 101.7%
Net investment income increased to EUR 25 (22) million due to higher disposal gains.
At EUR 13 (6) million, the EBIT was higher year-on-year due to the improvement with respect to losses compared with the previous year. In line with this, the EBIT margin increased to 3.8% (1.6%).
LIFE INSURANCE SEGMENT
| EUR million | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Gross written premiums | 1,147 | 1,155 | –0.7 |
| Net premiums earned | 844 | 876 | –3.7 |
| Underwriting result | –416 | –465 | +10.5 |
| Net investment income | 435 | 513 | –15.2 |
| Operating profit/loss (EBIT) | 21 | 41 | –48.8 |
| New business measured in annual premium equivalent |
94 | 97 | –3.1 |
| Single premiums | 345 | 312 | +10.6 |
| Regular premiums | 59 | 66 | –10.6 |
| New business by product in annual premium equivalent |
94 | 97 | –3.1 |
| Capital-efficient products 1) | 33 | n.a. | |
| Capital-inefficient products 1) | 27 | n.a. | |
| Biometric products 1) | 34 | n.a. |
1) Comparison with prior year not possible due to new product structure.
| Q1 | Q1 | +/–% |
|---|---|---|
| –0.7 | –15.8 | +15.1 pt. |
| 2.5 | 4.7 | –2.2 pt. |
| 2017 | 2016 |
1) Operating profit (EBIT)/net premiums earned.
The current financial year continues to be influenced by persistently low and even negative capital market interest rates and a low tendency for consumers to save. Due to these circumstances, a decline in premiums in life insurance of around –0.5% and an increase in premiums for new business measured in APE of approximately +0.2% is expected.
The Life Insurance segment registered a slight decline in premiums of 0.7% down to EUR 1.1 (1.2) billion in the first three months of the year – including the savings elements of premiums from unit-linked life insurance. As was expected, there was a decline in regular premiums due to an increase in policies maturing in 2016, by EUR 42 million. In contrast, single premium business increased by EUR 33 million due to growth in residual debt insurance. The retention ratio in the Life Insurance business remained stable at 95.5% (95.6%). Allowing for the savings elements under our unitlinked products and the change in the unearned premium reserve, the net premiums earned in the Life segment decreased by 3.7% to EUR 844 (876) million. The Life Insurance segment share in the overall Retail Germany Division declined slightly to 60.2% (60.7%).
New business in life insurance products – measured in the internationally applied metric of the annual premium equivalent (APE) – reduced slightly from EUR 97 million to EUR 94 million due to the switch to capital-efficient and risk products. The APE for capitalinefficient products was EUR 27 million in the first quarter of 2017, and is influenced by the dynamic in the existing stock.
In the current financial year, the underwriting result improved to EUR –416 (–465) million. This was partly due to the unwinding of discounts on technical provisions and policyholder participation in net investment income. These expenses are offset by investment income, which is not recognised in the underwriting result.
Net investment income fell by 15.2% to EUR 435 (513) million. The decline results in particular from the year-on-year lower realisation of unrealised gains to finance the additional interest reserve. The extraordinary net investment income decreased accordingly by –56.1% to EUR 71 (161) million.
The operating profit (EBIT) in the life insurance segment in the Retail Germany Division reduced to EUR 21 (41) million, particularly due to lower investment income.
| % | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Return on equity 1) | 3.0 | 4.4 | –1.4 pt. |
non-controlling interests to average equity excluding non-controlling interests.
After adjustment for taxes on income, financing costs and non-controlling interests, Group net income decreased to EUR 19 (29) million, causing the return on equity to fall by 1.4 percentage points to 3.0%.
KEY FIGURES FOR THE RETAIL INTERNATIONAL DIVISION
EUR million
| Q1 | Q1 | ||
|---|---|---|---|
| 2017 | 2016 | +/–% | |
| Gross written premiums | 1,483 | 1,148 | +29.2 |
| Net premiums earned | 1,217 | 986 | +23.4 |
| Underwriting result | 7 | 8 | –12.5 |
| Net investment income | 87 | 80 | +8.8 |
| Operating profit/loss (EBIT) | 63 | 61 | +3.3 |
MANAGEMENT METRICS FOR THE RETAIL INTERNATIONAL DIVISION
| % | |||
|---|---|---|---|
| Q1 2016 |
Q1 2015 |
+/–% | |
| Gross premium growth (adjusted for currency effects) |
25.8 | 3.5 | +22.3 pt. |
| Combined ratio (net, property/casualty only) 1) |
96.6 | 96.2 | +0.4 pt. |
| EBIT margin2) | 5.1 | 6.2 | –1.1 pt. |
| Return on equity 3) | 7.5 | 7.3 | +0.2 pt. |
1) Including net interest income on funds withheld and contract deposits.
2) Operating profit/loss (EBIT)/net premiums earned.
3) Ratio of annualised net income for the reporting period excluding non-controlling interests to average equity excluding non-controlling interests.
This division bundles the activities of the international retail business in the Talanx Group and is active in both Europe and Latin America.
The division's gross written premiums (including premiums from unit-linked life and annuity insurance) increased by 29.2% compared to the first quarter of 2016 to EUR 1.5 (1.1) billion. Adjusted for currency effects, gross premiums increased by 25.8% on the comparison period.
The premium volume increased in both regions in the reporting period. In the Latin America region, the gross written premiums increased by 27.4% compared to the same period in the previous year to EUR 414 million. There was an increase of 12.9% when adjusted for currency effects, which was essentially due to the Mexican company, HDI Seguros S.A. The premium volume for the company increased, particularly in motor insurance and from bank sales, which resulted both from an increased number of insured vehicles and from higher average premiums. Chile, where the premium volume was similarly increased in motor insurance as well as through a new bank sales channel, also had positive effects on the gross written premiums for the Latin America region. In addition, there was also increased demand here for building insurance as a result of natural disasters. Of the premium volume generated in the region, 54% was attributable to the Brazilian company HDI Seguros S.A. The performance of the Brazilian motor insurance market was heavily defined in the first quarter of 2017 by the continued decline in the sales of new cars in the country. However, taking into account currency effects, gross premiums written for HDI Seguros S.A. increased by 29.5% to EUR 223 million, primarily in the course of ongoing price rises; after adjustment for currency effects, the increase was 1.4%. According to local accounting, the company increased its gross written premiums from motor insurance by 8.4% as at the end of February 2017, while the Brazilian motor insurance market gained 3.3%.
In the Europe region, there was growth in gross written premiums of 30.2%, to EUR 1.1 billion; this was driven primarily by taking into account the life insurance premiums for the Italian company CBA Vita S. p. A., acquired on June 30, 2016, at around EUR 148 million for the first quarter of 2017. The decline in the premium volume from life insurance in the Italian company HDI Assicurazioni was therefore more than compensated for as a result of the declining trend in single premium business from other bank sales channels. The Polish motor insurance market has been in a "hard" market cycle since the second half of 2016; this has resulted in an increase in average premiums in motor liability insurance. Together with the increase in the number of insured vehicles to more than 4 (around 3.6) million, this resulted in premium growth of 35.0% to EUR 296 million with the Polish property insurer TUiR Warta S.A. Turkey also reported positive effects on the gross written premiums for the region; as well as increasing the number of insured vehicles, it was possible here to increase the average premiums for motor insurance. Adjusted for currency effects, the growth in premium volume in Europe stood at 31.4%.
The combined ratio from property insurance companies increased by 0.4 percentage points year-on-year to 96.6%, whereby a major loss in Chile at the beginning of 2017 had a 0.4 percentage point impact on the loss ratio. Overall, the loss ratio increased by 2.0 percentage points, essentially driven by higher costs for foreign replacement parts in the course of the devaluation of local currencies against the US dollar and the euro, and therefore increased claims inflation in Mexico and Turkey in particular. In contrast, the expense ratio for the division was 1.6 percentage points lower than the previous year (31.2%), at 29.6%. This resulted from a decline in both the acquisition expense ratio and the administrative expense ratio (by 1.0 percentage points to 5.6%, from 6.6% in the prior year) due to cost optimisations, primarily in the Polish company TUiR Warta S.A. as well as in Brazil.
Overall, the underwriting result recorded in this division was EUR 7 million, which was slightly below the level of the prior year (EUR 8 million).
The division's net investment income amounted to EUR 87 million in the first quarter of 2017, a year-on-year rise of 8.8%. The investment portfolios, which were higher overall year-on-year, were offset by the decline in average returns from assets under own management of 0.3 percentage points to 3.7%. The division's ordinary net investment income increased accordingly by 9.0%. Net investment income includes EUR –1 (+2) million in net income from investment contracts. These are policies that provide insufficient risk cover to be classified as insurance contracts in accordance with IFRS.
In the first quarter of 2017, operating profit (EBIT) in the Retail International Division rose by 3.3% compared with the prior-year period to EUR 63 million. While the Europe region, with an EBIT that was stable year-on-year, contributed EUR 47 (47) million to the operating profit of the segment, EUR 15 (16) million of the EBIT was generated in the Latin America region. The decline in the EBIT in Latin America resulted primarily from the major loss in Chile, specified above. Group net income after minority interests rose by 11.1% to EUR 40 (36) million. The return on equity rose by 0.2 percentage points to 7.5% compared to the same period in the previous year.
EUR million
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross written premiums | 1,483 | 1,148 | +29.2 |
| Property/casualty | 934 | 758 | +23.2 |
| Life | 549 | 390 | +40.8 |
| Net premiums earned | 1,217 | 986 | +23.4 |
| Property/casualty | 754 | 640 | +17.8 |
| Life | 463 | 346 | +33.8 |
| Underwriting result | 7 | 8 | –12.5 |
| Property/casualty | 25 | 24 | +4.2 |
| Life | –18 | –16 | +12.5 |
| Others | — | — | — |
| Net investment income | 87 | 80 | +8.8 |
| Property/casualty | 54 | 45 | +20.0 |
| Life | 34 | 35 | –2.9 |
| Others | –1 | — | — |
| New business by product in annual premium equivalent (life) |
61 | 54 | +13.0 |
| Single premiums | 434 | 329 | +31.9 |
| Regular premiums | 18 | 21 | –14.3 |
| New business by product in annual premium equivalent (life) |
61 | 54 | +13.0 |
| Capital-efficient products 1) | 28 | n.a. | |
| Capital-inefficient products 1) | 17 | n.a. | |
| Biometric products 1) | 16 | n.a. |
1) Comparison with prior year not possible due to new product structure.
| Q1 | Q1 | ||
|---|---|---|---|
| 2017 | 2016 | +/–% | |
| Gross written premiums | 1,483 | 1,148 | +29.2 |
| of which Europe | 1,064 | 817 | +30.2 |
| of which Latin America | 414 | 325 | +27.4 |
| Net premiums earned | 1,217 | 986 | +23.4 |
| of which Europe | 856 | 685 | +25.0 |
| of which Latin America | 361 | 301 | +19.9 |
| Underwriting result | 7 | 8 | –12.5 |
| of which Europe | –1 | 1 | –200.0 |
| of which Latin America | 2 | 7 | –71.43 |
| Net investment income | 87 | 80 | +8.8 |
| of which Europe | 60 | 60 | — |
| of which Latin America | 28 | 21 | +33.3 |
| Operating profit/loss (EBIT) | 63 | 61 | +3.3 |
| of which Europe | 47 | 47 | — |
| of which Latin America | 15 | 16 | –6.25 |
PROPERTY/CASUALTY REINSURANCE
EUR million
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross written premiums | 2,815 | 2,502 | +12.5 |
| Net premiums earned | 2,166 | 1,961 | +10.5 |
| Underwriting result | 91 | 100 | –9.0 |
| Net investment income | 250 | 213 | +17.4 |
| Operating profit/loss (EBIT) | 315 | 310 | +1.6 |
%
| Q1 2017 |
Q1 2016 |
+/–% | |
|---|---|---|---|
| Gross premium growth (adjusted for currency effects) |
11.3 | –3.7 | +15.0 pt. |
| Combined ratio (net) 1) | 95.6 | 94.7 | +0.9 pt. |
| EBIT margin2) | 14.6 | 15.8 | –1.2 pt. |
1) Including net interest income on funds withheld and contract deposits.
2) Operating profit/loss (EBIT)net premiums earned.
The situation in the global property/casualty reinsurance market changed little year-on-year. The higher number of losses recorded in 2016 only had a positive effect on ceded written premiums on the local level, which means the fierce competition on markets largely continued. The supply of reinsurance capacity continues to far exceed demand, although the drop in prices was less pronounced than in the prior year. This was also reflected in the treaty renewal round as at 1 January 2017 in which we renegotiated around 64% of our
Property/Casualty Reinsurance portfolio. Here we continued with our strict underwriting discipline and focused on our high-value existing business, which we supplemented with new opportunities from niche and specialised areas. We were also able to benefit once again from our excellent financial ratings and our long-standing customer relationships. Attractive opportunities for expanding our portfolio presented themselves in North America in particular – for example in the area of cyber-risk cover. In general, the pressure on rates in North America subsided and indications of a bottoming out could be observed across all lines. The development of treaty renewals was very positive in Canada, where significant rate increases were achieved in nearly all property business programmes. This development was mainly due to the large losses resulting from the devastating fires in the Canadian province of Alberta in the prior year.
We reduced our market share in the aviation business and in parts of Eastern Europe and China due to inadequate prices. Developments in the treaty renewal round for credit and surety reinsurance were positive on the other hand. In the area of credit reinsurance in particular, we were able to expand our large-scale existing customer relationships and acquire new major customers, which led to an increase in premium volumes in this line. Demand in the area of structured reinsurance for reinsurance solutions that improve solvency developed very positively. Here, we recorded significant premium growth in Europe, North America and Latin America.
Given these developments, gross premiums in the Property/Casualty Reinsurance segment rose by 12.5% to EUR 2.8 (2.5) billion. At constant exchange rates, growth would have amounted to 11.3%. Retention increased to 88.6% (87.9%). Net premiums earned increased by 10.5% to EUR 2.2 (2.0) billion; adjusted for currency effects, growth would have amounted to 8.8%.
The first quarter of 2017 was much more loss-intensive than the same period in the prior year. The net major loss burden amounted to EUR 134 (56) million, which was below the allocated quarterly budget, however. The largest single loss (approx. EUR 50 million) was Cyclone "Debbie", which caused devastation and flooding in Australia.
The insurance industry was also negatively affected by the decision of the British government to reduce the discount rate for compensation payments for personal injury ("Ogden Rate") from 2.5% to –0.75% from March 2017. This will lead to a significant increase in compensation payments in cases where a one-time payment is made to the injured party to settle a compensation claim marked by a continual financial burden – e.g. to cover care measures. Cases of serious personal injury (e.g. following a car accident) might therefore become substantially more expensive, leading to higher payments from liability insurance coverage, which will have a particularly strong impact on non-proportional reinsurance. This aspect relates not only to future damage claims but also to past claims not yet processed, which means substantial additional reserves will have to be established at the primary insurers and reinsurers. In the first quarter we booked additional loss reserves of EUR 126 million for this purpose. In view of the very adequate IBNR reserves, however, this did not result in run-off losses. It can be assumed that additional reserves will be required later in the year in response to the change in the Ogden Rate, but these should also be absorbed by the IBNR reserves established.
Due to higher claims, the underwriting result for the Property/ Casualty Reinsurance segment was below the very good figure recorded in the first quarter of 2016 and stood at EUR 91 (100) million as at 31 March 2017. The combined ratio amounted to 95.6% (94.7%) and thus lies within our forecast of a figure below 96%.
Net investment income in the Property/Casualty Reinsurance segment rose by 17.4 % to EUR 250 (213) million.
EBIT in the Property/Casualty Reinsurance segment once again increased slightly from the very good figure recorded in the first quarter of 2016 and stood at EUR 315 (310) million as at 31 March 2017. The EBIT margin reached 14.6% (15.8%), thus exceeding the forecast of at least 10%.
| EUR million | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Gross written premiums | 1,732 | 1,761 | –1.6 |
| Net premiums earned | 1,567 | 1,581 | –0.9 |
| Underwriting result | –114 | –68 | –67.6 |
| Net investment income | 148 | 157 | –5.7 |
| Operating profit/loss (EBIT) | 86 | 103 | –16.5 |
| Q1 2017 |
Q1 2016 |
+/–% |
|---|---|---|
| –1.7 | 0.3 | –2.0 pt. |
| 33.0 | 17.9 | +15.1 pt. |
| 2.0 | 3.2 | –1.2 pt. |
| 0.9 | 5.3 | –4.4 pt. |
1) Operating profit (EBIT)/net premiums earned.
The Life/Health Reinsurance segment developed as expected in the first quarter of 2017. The insurance market environment in Germany remained challenging in terms of both life and health and longevity coverage. The guaranteed interest rate, which had last been adjusted in 2015, was lowered from 1.25% to 0.9% on 1 January 2017, which led to a further decline in the attractiveness of traditional life insurance products. A new long-term care system with five care degrees was introduced in Germany at the beginning of 2017. During the 2016 reporting year, we worked extensively on the development of a new care chart, which we were able to present to our customers to coincide with the introduction of the new system. As a result of the stricter solvency regulations stipulated by Solvency II, several primary insurers continue to require financing for the additional interest reserves they need to accumulate. We have been conducting a dialogue with our primary insurance customers concerning the use of reinsurance solutions for the purpose of obtaining capital relief.
During the reporting period, policies from past underwriting years in our US mortality business once again had a negative effect on earnings due to higher than expected mortality rates. On the other hand, our financial solutions business developed very well, as was expected, and made a significant positive contribution to earnings. In the UK, price pressures continued to dominate the life insurance market, particularly in the mortality business. Nevertheless, our longevity business developed positively in the UK. We were able to close new contracts while at the same time securing further new business with our existing portfolio. Demand by British primary insurers and pension funds remains high as a result of the obligation to meet the high Solvency II capital requirements for the longevity business. At the same time, the market is also extremely competitive and price-sensitive. On the international level, we have been seeing numerous enquiries on the part of life and pension insurers in need of capital relief. The longevity market developed very dynamically in Canada and Japan in particular. We have also noticed increased interest in the Scandinavian countries, Germany, Israel, South Korea and South Africa. Our many years of experience and accumulated expertise – particularly in the longevity business – have enabled us to successfully transfer reinsurance solutions to international markets in the past, and we expect the global longevity business to develop positively in future.
We have observed extremely dynamic development in the various insurance markets in Asia. Demand and business opportunities in the morbidity segment look very promising in Malaysia and Shanghai, among other places. We were able to successfully underwrite life insurance business in South Korea. Our new branch in India has now launched its business operations.
From a holistic perspective, our Life/Health Reinsurance operations have developed in the expected manner in Australia, Africa, the Middle East and Scandinavia. We have also received very positive feedback from our customers on our hr|ReFlex and hr|Quirc underwriting tools.
Gross premium income in the Life/Health Reinsurance segment amounted to EUR 1.7 (1.8) billion as at 31 March 2017. This corresponds to a slight decrease of 1.6%; at constant exchange rates, the decrease would have amounted to 1.7%. Retention amounted to 91.3% (90.5%). Net premiums earned thus declined slightly, by 0.9% to EUR 1.6 (1.6) billion. At constant exchange rates, the decline would have amounted to 1.3%.
Net investment income fell by 5.7% to EUR 148 (157) million. At EUR 68 (79) million, income from capital investments held on our behalf by cedants was slightly lower than the figure recorded in the first quarter of the prior year.
Operating profit (EBIT) declined by 16.5% from the solid figure recorded in the prior year, amounting to EUR 86 (103) million as at 30 March 2017. This decline was mainly due to the comparatively poorer results of our mortality business in the USA. At 33.0%, the financial solutions business significantly exceeded the EBIT margin forecast of 2%. The longevity business achieved the 2% EBIT margin forecast figure by recording a 2.0% EBIT margin. The mortality and morbidity business recorded an EBIT margin of 0.9% and thus failed to achieve the forecast figure of 6%.
| % | |||
|---|---|---|---|
| Q1 2017 |
Q1 2016 |
+/–% | |
| Return on equity1) | 12.0 | 14.8 | –2.8 pt. |
1) Ratio of annualised net income for the reporting period excluding non-controlling interests to average equity excluding non-controlling interests.
Group net income in the Reinsurance Division declined by 7.0% in the first quarter to EUR 132 (142) million. This also led to a decline in return on equity of 2.8 percentage points to 12.0% (14.8%).
Group assets under own management up 0.6%
The operating profit in the Corporate Operations segment increased in the first three months of 2017 to EUR 5 (–2) million. On the one hand, the underwriting result for the section of the Talanx Reinsurance Plc., Dublin business shown here, increased due to lower losses. On the other, a write-down on equities was undertaken in the corresponding quarter of the prior year. Group net income attributable to shareholders of Talanx AG for this segment amounted to EUR –14 (–24) million in the first three months of 2017.
The total investment portfolio increased by 0.7% over the course of the first quarter of 2017 and amounted to EUR 119.7 (118.9) billion. The portfolio of assets under own management rose by 0.6% to EUR 107.8 (107.2) billion, while the funds withheld by ceding companies increased by 1.6% to EUR 10.8 (10.6) billion. Growth in the portfolio of assets under own management was largely due to cash inflows from underwriting business, which were reinvested in accordance with the respective corporate guidelines.
Fixed-income investments were again the most significant asset class in the first quarter of 2017. Most reinvestments were made in this class, reflecting the existing investment structure. This asset class contributed EUR 0.7 (0.7) billion to earnings, which was reinvested as far as possible in the year under review.
The equity allocation ratio after derivatives (equity ratio) was 1.7% (1.5%) at the end of the quarter.
| 31.3.2017 | 31.12.2016 | |||
|---|---|---|---|---|
| Investment property | 2,418 | 2% | 2,480 | 2% |
| Shares in affiliated companies and participating interests | 144 | < 1% | 139 | <1% |
| Investments in associates and joint ventures | 293 | < 1% | 290 | <1% |
| Loans and receivables | ||||
| Loans incl. mortgage loans | 549 | 1% | 567 | 1% |
| Loans and receivables due from government or quasi-governmental entities, together with fixed-income securities |
28,695 | 27% | 28,858 | 27% |
| Financial instruments held to maturity | 577 | 1% | 744 | 1% |
| Available for sale | ||||
| Fixed-income securities | 65,852 | 61% | 65,435 | 61% |
| Variable-yield securities | 2,705 | 2% | 2,615 | 2% |
| Financial assets at fair value through profit or loss | ||||
| Financial liabilities classified at fair value through profit or loss | ||||
| Fixed-income securities | 1,181 | 1% | 1,087 | 1% |
| Variable-yield securities | 43 | < 1% | 19 | <1% |
| Financial assets held for trading | ||||
| Fixed-income securities | 0 | < 1% | 3 | <1% |
| Variable-yield securities | 148 | < 1% | 174 | <1% |
| Derivatives 1) | 104 | < 1% | 69 | <1% |
| Other investments | 5,101 | 5% | 4,694 | 4% |
| Assets under own management | 107,810 | 100% | 107,174 | 100% |
1) Only derivatives with positive fair values.
The portfolio of fixed-income investments (excluding mortgage and policy loans) remained at nearly the prior year's level in the first quarter of 2017 to total EUR 96.3 (96.1) billion at the quarter's end. At 80% (81%) of total investments, this asset class continues to represent the most significant share of our investments by volume. Fixed-income investments were primarily divided into the investment categories of "Loans and receivables" and "Financial assets available for sale".
"Fixed-income securities available for sale", whose volatility impacts equity, increased further by EUR +0.5 billion to EUR 65.9 (65.4) billion, or 68% (68%) of total investments in the fixed income portfolio. German covered bonds (Pfandbriefe) and corporate bonds accounted for the majority of these investments. Valuation reserves – i.e. the balance of unrealised gains and losses – have declined from EUR 3.8 billion to EUR 3.4 billion since the end of 2016 due to the further increase in interest rates for long terms.
In the "Loans and receivables" category, investments were primarily held in government securities or securities with a similar level of security. Pfandbriefe still represent the largest item in the portfolio. Total holdings in fixed-income securities within the category "Loans and receivables" amounted to EUR 29.2 (29.4) billion at the end of the quarter and thus represent 30% of total holdings in the asset class of fixed-income investments. Off-balance-sheet valuation reserves of "Loans and receivables" (including mortgage and policy loans) decreased from EUR 4.9 billion to EUR 4.6 billion.
Investments in fixed-income securities continue to focus in 2017 on government bonds with good ratings or securities from issuers with a similar credit quality. At the reporting date, holdings of AAA-rated bonds amounted to EUR 39.5 (39.0) billion. This represents 41% (40%) of the total portfolio of fixed-income securities and loans.
The Group pursues a conservative investment policy. As a result, 75% (76%) of instruments in the fixed-income securities asset category have a minimum A rating.
The Group has only a small portfolio of investments in government bonds from countries with a rating lower than A–. These holdings have a fair value of EUR 4.5 (4.4) billion.
As far as matching currency cover is concerned, US dollar-denominated investments continue to account for the largest share (20%/20%) of the Talanx Group's foreign currency portfolio. Sizeable positions are also held in pound sterling and Australian dollars, totalling 5% (7%) of all investments. The total share of assets under own management in foreign currencies was 33% (33%) as at 31 March 2017.
Net unrealised gains and losses on equity holdings within the Group (excluding "Other investments") increased by EUR 87 million to EUR 338 million.
Investment property totalled EUR 2.4 (2.5) billion at the reporting date. An additional EUR 827 (830) million is held in real estate funds, which are recognised as "Financial assets available for sale".
Depreciation of EUR 12 (11) million was recognised on investment property in the reporting period. There were no impairment losses. Depreciation on real estate funds stood at EUR 5 (1) million. These impairments were not offset by any reversals of impairment losses.
The real estate ratio including investments in real estate funds was unchanged at 3%.
In the reporting period, Talanx again expanded its direct investments in infrastructure. The portfolio comprises both equity and external funding investments in wind farms, electricity networks, water companies, solar parks and public-private partnership projects (PPP) in Germany and the rest of Europe. Currently, Talanx has approximately EUR 1.5 (1.5) billion invested in total. We are aiming for an investment volume in the amount of about EUR 2 billion by the end of 2017.
| EUR million | ||
|---|---|---|
| Q1 2017 | Q1 2016 | |
| Ordinary investment income | 867 | 783 |
| of which current income from interest |
705 | 690 |
| of which gain/loss on investments in associates |
5 | 2 |
| Realised net gains on disposal of investments |
137 | 221 |
| Write-downs/reversals of write-downs of investments |
–32 | –40 |
| Unrealised net gains from investments | 25 | 31 |
| Other investment expenses | 54 | 54 |
| Income from assets under own management |
943 | 941 |
| Net interest income from funds withheld and contract deposits |
69 | 79 |
| Net income from investment contracts | –1 | 2 |
| Total | 1,011 | 1,022 |
Net investment income for the first quarter was EUR 1.0 billion, down slightly on the previous year. Current interest income, which amounted to EUR 0.7 billion, continues to account for the majority of investment income. Realised gains/losses on disposal of investments was EUR 137 million. In addition, impairment losses amounting to EUR 32 million were made.
Ordinary investment income totalled EUR 867 million at the end of the first quarter, an increase of EUR 84 million from the first quarter of 2016. This development is in part due to income from private equity and real estate funds, which was very high for a first quarter result. Falling interest rates on the capital markets led to an average coupon in the fixed-income securities portfolio of 3.1%, down on the previous year's value of 3.3%.
Total realised net gains on the disposal of investments in the first quarter of the financial year were down on the previous-year figure, amounting on balance to EUR 137 million. The positive net gains resulted from regular portfolio turnover in all segments, as well as from the requirement to realise unrealised gains in order to finance the additional interest reserve for life insurance and occupational pension plans required by the HGB.
In comparison to the previous year, lower depreciations on balance were required in the first quarter of this year. These amounted to EUR 32 million in total, net of reversals of write-downs.
Unrealised net gains/losses declined on balance from EUR 31 million to EUR 25 million.
Net interest income from funds withheld and contract deposits totalled EUR 69 (79) million.
1) After elimination of intra-Group transactions between the segments.
| Changes in equi ty |
||||
|---|---|---|---|---|
| EUR million | ||||
| 31.3.2017 | 31.12.2016 | Change | +/–% | |
| Subscribed capital | 316 | 316 | — | — |
| Capital reserve | 1,373 | 1,373 | — | — |
| Retained earnings | 6,906 | 6,668 | 238 | +3.6 |
| Accumulated other comprehensive income and other reserves | 773 | 721 | 52 | +7.2 |
| Group equity | 9,368 | 9,078 | 290 | +3.2 |
| Non-controlling interests | 5,764 | 5,610 | 154 | +2.7 |
| Total | 15,132 | 14,688 | 444 | +3.0 |
The slight increase in Group equity of EUR 290 million (+3.2 %) particularly relates to the net profit for the period, EUR 238 (222) million of which is attributable to our shareholders and was allocated in full to retained earnings. The increase in accumulated other comprehensive income of EUR 52 million is due to a number of partially offsetting effects. On the one hand, in line with the slight increase in interest rates, the unrealised gains on investments declined by EUR 355 million and the reserve for cash flow hedges decreased by a further EUR 43 million. On the other hand, this effect was significantly overcompensated primarily by the positive development of policyholder participations/shadow accounting (+EUR 412 million), the improvement to cumulative currency translation gains (+EUR 21 million) and the decline in pension provisions (+EUR 15 million).
| EUR million | ||
|---|---|---|
| 31.3.2017 | 31.12.2016 | |
| Industrial Lines | 2,215 | 2,189 |
| of which non-controlling interests | — | — |
| Retail Germany | 2,518 | 2,558 |
| of which non-controlling interests | 48 | 51 |
| Retail International | 2,374 | 2,263 |
| of which non-controlling interests | 224 | 206 |
| Reinsurance | 10,001 | 9,702 |
| of which non-controlling interests | 5,493 | 5,354 |
| Corporate Operations | –1,994 | –2,041 |
| of which non-controlling interests | — | — |
| Consolidation | 18 | 17 |
| of which non-controlling interests | –1 | –1 |
| Total equity | 15,132 | 14,688 |
| Group equity | 9,368 | 9,078 |
| Non-controlling interests in equity | 5,764 | 5,610 |
1) Equity per division is defined as the difference between the assets and liabilities of each division.
We are making the following assumptions:
We provide forecast figures at year-end for the key figures at the Talanx Group and its divisions that the Group uses to control its business operations. With this outlook, we are basically confirming the forecasts for 2017 for the Talanx Group and its divisions that were published in the 2016 Group Annual Report.
| % | ||
|---|---|---|
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
| Gross premium growth (adjusted for currency effects) |
> 1 | > 1 |
| Group net income in EUR million | approx. 800 | approx. 800 |
| Net return on investment | ≥ 3 | ≥ 3 |
| Payout rate | 35–45 | 35–45 |
| Return on equity | > 8 | > 8 |
Management metrics for the Industrial Lines Division
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
|---|---|---|
| Gross premium growth (adjusted for currency effects) |
≥ 2 | ≥ 2 |
| Retention | > 53 | > 53 |
| Combined ratio (net) | ~ 96 | ~ 96 |
| EBIT margin | ~ 10 | ~ 10 |
| Return on equity | 7–8 | 7–8 |
Management metrics for the Retail Germany Division – Property/Casualty Insurance segment
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
|---|---|---|
| Gross premium growth | –1 to –2 | –1 to –2 |
| Combined ratio (net) | ~103 | ~103 |
| EBIT margin | 1–2 | 1–2 |
Management metrics for the Retail International Division
Management metrics for the Retail Germany Division – Life Insurance segment
%
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
|---|---|---|
| Gross premium growth | 0 | 0 |
| EBIT margin | 2–3 | 2–3 |
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
|---|---|---|
| Gross premium growth (adjusted for currency effects) |
~10 | ~10 |
| Growth in value of new business (life) 1) |
5–10 | 5–10 |
| Combined ratio (net, property/casualty) |
~96 | ~96 |
| EBIT margin | 5–6 | 5–6 |
| Return on equity | 6–7 | 6–7 |
1) Excluding non-controlling interests
Reinsurance segment
| % | ||
|---|---|---|
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
| Gross premium growth (adjusted for currency effects) |
slight growth | slight growth |
| Combined ratio (net) | < 96 | < 96 |
| EBIT margin | ≥ 10 | ≥ 10 |
%
| Outlook for 2017 on the basis of Q1 2017 |
Forecast for 2017 from the 2016 Annual Report |
|
|---|---|---|
| Gross premium growth (adjusted for currency effects) |
moderate growth |
moderate growth |
| Value of new business 1) in EUR million |
> 110 | > 110 |
| EBIT margin financial solutions | ≥ 2 | ≥ 2 |
| EBIT margin longevity solutions | ≥ 2 | ≥ 2 |
| EBIT margin mortality/morbidity | ≥ 6 | ≥ 6 |
1) Excluding non-controlling interests.
| % | ||
|---|---|---|
| Outlook for 2017 on the |
Forecast for 2017 from the |
|
| basis of Q1 2017 |
2016 Annual Report |
|
| Return on equity | ~11 | ~11 |
| 31.3.2017 | 31.12.2016 | ||||
|---|---|---|---|---|---|
| A. Intangible assets | |||||
| a. | Goodwill | 1,060 | 1,039 | ||
| b. | Other intangible assets | 890 | 903 | ||
| 1,950 | 1,942 | ||||
| B. | Investments | ||||
| a. | Investment property | 2,418 | 2,480 | ||
| b. | Shares in affiliated companies and participating interests | 144 | 139 | ||
| c. Investments in associates and joint ventures | 293 | 290 | |||
| d. Loans and receivables | 29,244 | 29,425 | |||
| e. | Other financial instruments | ||||
| i. Held to maturity |
577 | 744 | |||
| ii. Available for sale |
68,557 | 68,050 | |||
| iii. At fair value through profit or loss |
1,476 | 1,352 | |||
| f. | Other investments | 5,101 | 4,694 | ||
| Assets under own management | 107,810 | 107,174 | |||
| g. Investments under investment contracts | 1,130 | 1,091 | |||
| h. Funds withheld by ceding companies | 10,756 | 10,590 | |||
| Investments | 119,696 | 118,855 | |||
| C. Investments for the benefit of life insurance policyholders who bear the investment risk | 11,010 | 10,583 | |||
| D. Reinsurance recoverables on technical provisions | 8,264 | 7,958 | |||
| E. | Accounts receivable on insurance business | 7,356 | 6,192 | ||
| F. | Deferred acquisition costs | 5,356 | 5,240 | ||
| G. Cash at banks, cheques and cash-in-hand | 3,200 | 2,589 | |||
| H. Deferred tax assets | 587 | 577 | |||
| I. | Other assets | 2,627 | 2,620 | ||
| J. | Non-current assets and assets of disposal groups classified as held for sale | 15 | 15 | ||
| Total assets | 160,061 | 156,571 |
| EUR million | |
|---|---|
| A. Equity a. Subscribed capital 316 Nominal value: 316 (prior year: 316) Contingent capital: 104 (prior year: 104) b. Reserves 9,052 Equity excluding non-controlling interests 9,368 c. Non-controlling interests 5,764 Total equity 15,132 B. Subordinated liabilities 1,983 C. Technical provisions a. Unearned premium reserve 9,564 b. Benefit reserve 55,003 c. Loss and loss adjustment expense reserve 42,095 d. Provision for premium refunds 5,533 e. Other technical provisions 423 112,618 D. Technical provisions for life insurance policies where the investment risk is borne by the policyholders 11,010 E. Other provisions a. Provisions for pensions and other post-employment benefits 2,157 b. Provisions for taxes 922 c. Miscellaneous other provisions 889 3,968 F. Liabilities a. Notes payable and loans 1,459 b. Funds withheld under reinsurance treaties 5,035 c. Other liabilities 6,669 13,163 G. Deferred tax liabilities 2,187 H. Liabilities included in disposal groups classified as held for sale — Total liabilities/provisions 144,929 |
31.3.2017 | 31.12.2016 | |
|---|---|---|---|
| 316 | |||
| 8,762 | |||
| 9,078 | |||
| 5,610 | |||
| 14,688 | |||
| 1,983 | |||
| 7,624 | |||
| 54,758 | |||
| 41,873 | |||
| 5,765 | |||
| 409 | |||
| 110,429 | |||
| 10,583 | |||
| 2,183 | |||
| 833 | |||
| 940 | |||
| 3,956 | |||
| 1,505 | |||
| 5,129 | |||
| 6,150 | |||
| 12,784 | |||
| 2,148 | |||
| — | |||
| 141,883 | |||
| Total equity and liabilities 160,061 |
156,571 |
| EUR million | ||
|---|---|---|
| Q1 2017 | Q1 2016 | |
| 1. Gross written premiums including premiums from unit-linked life and annuity insurance | 9,752 | 8,995 |
| 2. Savings elements of premiums from unit-linked life and annuity insurance | 281 | 261 |
| 3. Ceded written premiums | 1,366 | 1,295 |
| 4. Change in gross unearned premiums | –1,883 | –1,618 |
| 5. Change in ceded unearned premiums | –470 | –445 |
| Net premiums earned | 6,692 | 6,266 |
| 6. Claims and claims expenses (gross) | 5,966 | 5,715 |
| Reinsurers' share Claims and claims expenses (net) |
486 5,480 |
481 5,234 |
| 7. Acquisition costs and administrative expenses (gross) | 1,792 | 1,626 |
| Reinsurers' share | 173 | 162 |
| Acquisition costs and administrative expenses (net) | 1,619 | 1,464 |
| 8. Other technical income | 25 | 16 |
| Other technical expenses | 33 | 6 |
| Other technical result | –8 | 10 |
| Net technical result | –415 | –422 |
| 9. a. Investment income | 1,111 | 1,120 |
| b. Investment expenses | 168 | 179 |
| Net income from assets under own management | 943 | 941 |
| Net income from investment contracts | –1 | 2 |
| Net interest income from funds withheld and contract deposits | 69 | 79 |
| Net investment income | 1,011 | 1,022 |
| of which share of profit or loss of equity-accounted associates and joint ventures | 5 | 2 |
| 10. a. Other income | 396 | 462 |
| b. Other expenses | 416 | 489 |
| Other income/expenses | –20 | –27 |
| Profit before goodwill impairments | 576 | 573 |
| 11. Goodwill impairments | — | — |
| Operating profit (EBIT) | 576 | 573 |
| 12. Financing costs | 36 | 37 |
| 13. Taxes on income | 142 | 155 |
| Net income | 398 | 381 |
| of which attributable to non-controlling interests | 160 | 159 |
| of which attributable to shareholders of Talanx AG | 238 | 222 |
| Earnings per share | ||
| Basic earnings per share (EUR) | 0.94 | 0.88 |
| Diluted earnings per share (EUR) | 0.94 | 0.88 |
EUR million
| Q1 2017 | Q1 2016 | |
|---|---|---|
| I. 1. Net income |
398 | 381 |
| I. 2. Changes in technical provisions |
2,343 | 1,937 |
| I. 3. Changes in deferred acquisition costs |
–69 | –71 |
| I. 4. Changes in funds withheld and in accounts receivable and payable |
–1,088 | –387 |
| I. 5. Changes in other receivables and liabilities |
228 | 90 |
| I. 6. Changes in investments and liabilities under investment contracts |
12 | 4 |
| I. 7. Changes in financial assets held for trading |
–34 | 10 |
| I. 8. Gains/losses on disposal of investments and property, plant and equipment |
–145 | –221 |
| I. 9. Change in technical provisions for life insurance policies where the investment risk Is borne by the policyholders 1) |
403 | –414 |
| I. 10. Other non-cash expenses and income (including income tax expense/income) | 154 | 139 |
| I. Cash flows from operating activities 2) | 2,202 | 1,468 |
| II. 1. Cash inflow from the sale of consolidated companies |
— | 2 |
| II. 2. Cash outflow from the purchase of consolidated companies |
— | 9 |
| II. 3. Cash inflow from the sale of real estate |
73 | 1 |
| II. 4. Cash outflow from the purchase of real estate |
–28 | –12 |
| II. 5. Cash inflow from the sale and maturity of financial instruments |
5,699 | 6,077 |
| II. 6. Cash outflow from the purchase of financial instruments |
–6,362 | –6,886 |
| II. 7. Changes in investments for the benefit of life insurance policyholders who bear the investment risk |
–403 | 414 |
| II. 8. Changes in other investments |
–444 | 260 |
| II. 9. Cash outflows from the acquisition of tangible and intangible assets |
–27 | –22 |
| II. 10. Cash inflows from the sale of tangible and intangible assets | 12 | 3 |
| II. Cash flows from investing activities | –1,480 | –154 |
| III. 1. Cash inflow from capital increases |
— | — |
| III. 2. Cash outflow from capital reductions |
— | — |
| III. 3. Dividends paid |
–44 | –39 |
| III. 4. Net changes attributable to other financing activities |
–62 | –12 |
| III. Cash flows from financing activities |
–106 | –51 |
| Net change in cash and cash equivalents (I.+II.+III.) | 616 | 1,263 |
| Cash and cash equivalents at the beginning of the reporting period | 2,589 | 2,243 |
| Effect of exchange rate changes on cash and cash equivalents | –5 | –10 |
| Effect of changes in the basis of consolidation on cash and cash equivalents 3) | — | –2 |
| Cash and cash equivalents at the end of the reporting period4) | 3,200 | 3,494 |
| Additional information | ||
| Taxes paid2) | 80 | 114 |
| Interest paid5) | 96 | 79 |
| Dividends received2) | 79 | 29 |
| Interest received2) | 1,014 | 1,036 |
1) As opposed to the previous year, item I. 9 "Change in technical provisions for life insurance policies where the investment risk is borne by the policyholders" is reported separately; in the same period of the previous year, the effects were reported in item I. 10 "Other non-cash expenses and income (including income tax expense/income)".
2) Income taxes paid as well as dividends and interest received are allocated to cash flows from operating activities.
Dividends received also comprise dividend-equivalent distributions from investment funds and private equity companies.
3) This item relates primarily to changes in the basis of consolidation, excluding disposals and acquisitions.
4) "Cash and cash equivalents at the end of the reporting period" also include changes in the portfolio of disclosed disposal groups in the amount of EUR 0 (4) million.
5) EUR 20 (20) million of interest paid is attributable to cash flows from financing activities and EUR 76 (59) million to cash flows from operating activities.
Talanx Group. Quarterly statement as at 31 March 2017 23
| EUR million | ||||
|---|---|---|---|---|
| Assets | Industrial Lines | Retail Germany | ||
| 31.3.2017 | 31.12.2016 | 31.3.2017 | 31.12.2016 | |
| A. Intangible assets | ||||
| a. Goodwill |
153 | 153 | 248 | 248 |
| b. Other intangible assets |
8 | 8 | 511 | 520 |
| 161 | 161 | 759 | 768 | |
| B. Investments |
||||
| a. Investment property |
97 | 77 | 985 | 984 |
| b. Shares in affiliated companies and participating interests |
14 | 12 | 7 | 13 |
| c. Investments in associates and joint ventures |
154 | 150 | 52 | 53 |
| d. Loans and receivables | 1,033 | 1,054 | 24,995 | 25,092 |
| e. Other financial instruments |
||||
| i. Held to maturity | 73 | 77 | 166 | 170 |
| ii. Available for sale | 5,655 | 5,625 | 21,305 | 21,420 |
| iii. At fair value through profit or loss | 118 | 72 | 328 | 346 |
| f. Other investments |
757 | 684 | 1,635 | 1,532 |
| Assets under own management | 7,901 | 7,751 | 49,473 | 49,610 |
| g. Investments under investment contracts | — | — | — | — |
| h. Funds withheld by ceding companies | 19 | 20 | 3 | 3 |
| Investments | 7,920 | 7,771 | 49,476 | 49,613 |
| C. Investments for the benefit of life insurance policyholders | ||||
| who bear the investment risk | — | — | 10,112 | 9,727 |
| D. Reinsurance recoverables on technical provisions | 5,309 | 5,014 | 2,301 | 2,170 |
| E. Accounts receivable on insurance business |
1,895 | 1,259 | 389 | 331 |
| F. Deferred acquisition costs |
81 | 45 | 2,217 | 2,179 |
| G. Cash at banks, cheques and cash-in-hand | 613 | 478 | 797 | 633 |
| H. Deferred tax assets | 71 | 69 | 81 | 78 |
| I. Other assets |
391 | 387 | 939 | 1,226 |
| J. Non-current assets and assets of disposal groups classified as held for sale |
— | — | — | — |
| Total assets | 16,441 | 15,184 | 67,071 | 66,725 |
| 31.12.2016 31.3.2017 31.12.2016 31.3.2017 31.12.2016 31.3.2017 31.12.2016 31.3.2017 31.12.2016 31.3.2017 248 639 618 20 20 — — — — 1,060 520 156 156 125 128 90 91 — — 890 768 795 774 145 148 90 91 — — 1,950 984 17 17 1,319 1,402 — — — — 2,418 13 — — 106 97 17 17 — — 144 53 — — 114 114 — — –27 –27 293 25,092 713 700 2,487 2,564 16 15 — — 29,244 170 261 305 363 485 2 2 –288 –295 577 21,420 7,663 7,373 33,766 33,478 168 154 — — 68,557 346 707 636 323 298 — — — — 1,476 1,532 293 327 3,235 3,235 472 261 –1,291 –1,345 5,101 49,610 9,654 9,358 41,713 41,673 675 449 –1,606 –1,667 107,810 — 1,130 1,091 — — — — — — 1,130 3 — — 12,106 11,844 1 1 –1,373 –1,278 10,756 49,613 10,784 10,449 53,819 53,517 676 450 –2,979 –2,945 119,696 9,727 898 856 — — — — — — 11,010 2,170 880 832 2,741 2,843 5 — –2,972 –2,901 8,264 331 1,285 1,142 3,980 3,678 14 2 –207 –220 7,356 2,179 609 589 2,219 2,198 1 — 229 229 5,356 633 579 455 1,015 814 196 209 — — 3,200 78 64 59 132 127 239 244 — — 587 1,226 460 471 1,442 1,286 490 738 –1,095 –1,488 2,627 — — — 15 15 — — — — 15 66,725 16,354 15,627 65,508 64,626 1,711 1,734 –7,024 –7,325 160,061 |
|---|
EUR million
| Liabilities | Industrial Lines | Retail Germany | ||
|---|---|---|---|---|
| 31.3.2017 | 31.12.2016 | 31.3.2017 | 31.12.2016 | |
| B. Subordinated liabilities |
200 | 200 | 161 | 161 |
| C. Technical provisions | ||||
| a. Unearned premium reserve |
2,055 | 1,094 | 1,617 | 1,160 |
| b. Benefit reserve |
— | — | 39,637 | 39,515 |
| c. Loss and loss adjustment expense reserve |
9,275 | 9,353 | 3,127 | 3,098 |
| d. Provision for premium refunds | 15 | 19 | 5,281 | 5,473 |
| e. Other technical provisions |
42 | 42 | 3 | 2 |
| 11,387 | 10,508 | 49,665 | 49,248 | |
| D. Technical provisions for life insurance policies where the investment risk is borne by the policyholders |
— | — | 10,112 | 9,727 |
| E. Other provisions |
||||
| a. Provisions for pensions and other post-employment benefits | 605 | 612 | 148 | 150 |
| b. Provisions for taxes |
121 | 97 | 133 | 118 |
| c. Miscellaneous other provisions |
88 | 84 | 331 | 372 |
| 814 | 793 | 612 | 640 | |
| F. Liabilities |
||||
| a. Notes payable and loans |
16 | 16 | 102 | 104 |
| b. Funds withheld under reinsurance treaties |
59 | 49 | 1,879 | 1,748 |
| c. Other liabilities |
1,582 | 1,257 | 1,750 | 2,251 |
| 1,657 | 1,322 | 3,731 | 4,103 | |
| G. Deferred tax liabilities | 168 | 172 | 272 | 288 |
| Total liabilities/provisions | 14,226 | 12,995 | 64,553 | 64,167 |
| Total | Consolidation | Corporate Operations | Reinsurance | Retail International | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 31.3.2017 31.12.2016 |
31.12.2016 | 31.3.2017 | 31.12.2016 | 31.3.2017 | 31.12.2016 | 31.3.2017 | 31.12.2016 | 31.3.2017 | ||
| 1,983 1,983 |
–633 | –631 | 530 | 530 | 1,683 | 1,681 | 42 | 42 | ||
| 9,564 7,624 |
–171 | –200 | 1 | 12 | 3,341 | 3,735 | 2,199 | 2,345 | ||
| 55,003 54,758 |
–171 | –170 | — | — | 10,290 | 10,204 | 5,124 | 5,332 | ||
| 42,095 41,873 |
–1,341 | –1,300 | 41 | 41 | 28,130 | 28,296 | 2,592 | 2,656 | ||
| 5,533 5,765 |
— | — | — | — | — | — | 273 | 237 | ||
| 423 409 |
–7 | –6 | — | — | 362 | 373 | 10 | 11 | ||
| 112,618 110,429 |
–1,690 | –1,676 | 42 | 53 | 42,123 | 42,608 | 10,198 | 10,581 | ||
| 11,010 10,583 |
— | — | — | — | — | — | 856 | 898 | ||
| 2,157 2,183 |
— | — | 1,219 | 1,200 | 181 | 182 | 21 | 22 | ||
| 922 833 |
— | — | 100 | 106 | 409 | 431 | 109 | 131 | ||
| 889 940 |
— | –1 | 185 | 174 | 199 | 201 | 100 | 96 | ||
| 3,968 3,956 |
— | –1 | 1,504 | 1,480 | 789 | 814 | 230 | 249 | ||
| 1,459 1,505 |
–981 | –925 | 1,535 | 1,475 | 810 | 770 | 21 | 21 | ||
| 5,035 5,129 |
–2,363 | –2,550 | — | — | 5,532 | 5,481 | 163 | 166 | ||
| 6,669 6,150 |
–1,696 | –1,281 | 161 | 165 | 2,425 | 2,536 | 1,752 | 1,917 | ||
| 13,163 12,784 |
–5,040 | –4,756 | 1,696 | 1,640 | 8,767 | 8,787 | 1,936 | 2,104 | ||
| 2,187 2,148 |
21 | 22 | 3 | 2 | 1,562 | 1,617 | 102 | 106 | ||
| 144,929 141,883 |
–7,342 | –7,042 | 3,775 | 3,705 | 54,924 | 55,507 | 13,364 | 13,980 | ||
| 15,132 14,688 |
Equity 1) | |||||||||
| 156,571 | Total equity and liabilities | |||||||||
| 160,061 |
1) Equity attributable to Group shareholders and non-controlling interests.
EUR million
| Industrial Lines | Retail Germany | |||
|---|---|---|---|---|
| Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 | |
| 1. Gross written premiums including premiums from unit-linked life and annuity insurance |
2,004 | 1,921 | 1,906 | 1,904 |
| of which attributable to other divisions/segments |
27 | 19 | 11 | 15 |
| with third parties | 1,977 | 1,902 | 1,895 | 1,889 |
| 2. Savings elements of premiums from unit-linked life and annuity insurance | — | — | 203 | 219 |
| 3. Ceded written premiums | 875 | 856 | 81 | 71 |
| 4. Change in gross unearned premiums | –958 | –914 | –456 | –408 |
| 5. Change in ceded unearned premiums | –381 | –386 | –18 | –11 |
| Net premiums earned | 552 | 537 | 1,184 | 1,217 |
| 6. Claims and claims expenses (gross) | 703 | 693 | 1,322 | 1,433 |
| Reinsurers' share | 279 | 275 | 17 | 14 |
| Claims and claims expenses (net) | 424 | 418 | 1,305 | 1,419 |
| 7. Acquisition costs and administrative expenses (gross) | 240 | 232 | 327 | 298 |
| Reinsurers' share | 126 | 124 | 26 | 26 |
| Acquisition costs and administrative expenses (net) | 114 | 108 | 301 | 272 |
| 8. Other technical income | 11 | 3 | 8 | 6 |
| Other technical expenses | 6 | 1 | 8 | 10 |
| Other technical result | 5 | 2 | — | –4 |
| Net technical result | 19 | 13 | –422 | –478 |
| 9. a. Investment income |
79 | 70 | 544 | 600 |
| b. Investment expenses |
10 | 20 | 80 | 61 |
| Net income from assets under own management | 69 | 50 | 464 | 539 |
| Net income from investment contracts | — | — | — | — |
| Net interest income from funds withheld and contract deposits | — | — | –4 | –4 |
| Net investment income | 69 | 50 | 460 | 535 |
| of which share of profit or loss of equity-accounted associates | ||||
| and joint ventures | — | 2 | 1 | 4 |
| 10. a. Other income |
29 | 59 | 54 | 62 |
| b. Other expenses |
37 | 48 | 58 | 72 |
| Other income/expenses | –8 | 11 | –4 | –10 |
| Profit before goodwill impairments | 80 | 74 | 34 | 47 |
| 11. Goodwill impairments | — | — | — | — |
| Operating profit (EBIT) | 80 | 74 | 34 | 47 |
| 12. Financing costs | 2 | 2 | 2 | 3 |
| 13. Taxes on income | 19 | 24 | 13 | 13 |
| Net income | 59 | 48 | 19 | 31 |
| of which attributable to non-controlling interests | — | — | — | 2 |
| of which attributable to shareholders of Talanx AG | 59 | 48 | 19 | 29 |
1) With the exception of the Retail Germany Division and the Reinsurance Division,
the statements of income of the other divisions are the same as those of the reportable segments.
| Retail Germany Retail International Reinsurance Corporate Operations Consolidation Total Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 1,904 1,483 1,148 4,547 4,263 20 14 –208 –255 9,752 15 — — 149 209 20 14 –208 –257 –1 1,889 1,483 1,148 4,398 4,054 — — — 2 9,753 219 78 42 — — — — — — 281 71 141 127 471 471 6 7 –208 –237 1,366 –408 –88 –24 –400 –303 –12 –8 31 39 –1,883 –11 –41 –31 –57 –53 –5 –5 32 41 –470 1,217 1,217 986 3,733 3,542 7 4 –1 –20 6,692 1,433 1,011 776 3,012 2,917 2 1 –84 –105 5,966 14 78 37 193 261 — — –81 –106 486 1,419 933 739 2,819 2,656 2 1 –3 1 5,480 298 288 251 991 906 1 1 –55 –62 1,792 26 20 20 55 55 — — –54 –63 173 272 268 231 936 851 1 1 –1 1 1,619 6 5 6 1 — — — — 1 25 10 14 14 2 3 — — 3 –22 33 –4 –9 –8 –1 –3 — — –3 23 –8 –478 7 8 –23 32 4 2 — 1 –415 600 104 93 394 373 3 3 –13 –19 1,111 61 16 15 69 86 20 23 –27 –26 168 539 88 78 325 287 –17 –20 14 7 943 — –1 2 — — — — — — –1 –4 — — 73 83 — — — — 69 535 87 80 398 370 –17 –20 14 7 1,011 4 — — 4 1 — — — –5 5 62 40 31 261 298 184 181 –172 –169 396 72 71 58 235 287 166 165 –151 –141 416 –10 –31 –27 26 11 18 16 –21 –28 –20 47 63 61 401 413 5 –2 –7 –20 576 — — — — — — — — — — 47 63 61 401 413 5 –2 –7 –20 576 3 1 1 20 19 20 21 –9 –9 36 13 16 17 95 102 –1 1 — –2 142 31 46 43 286 292 –14 –24 2 –9 398 2 6 7 154 150 — — — — 160 29 40 36 132 142 –14 –24 2 –9 238 |
|
|---|---|
Condensed consolidated statement of income for the reportable segments Retail Germany – Property/Casualty and Life – as well as Property/Casualty and Life/Health Reinsurance for the period from 1 January to 31 March 2017
| EUR million | ||||||||
|---|---|---|---|---|---|---|---|---|
| Retail Germany – Property/Casualty |
Retail Germany – Life |
Property/Casualty Reinsurance |
Life/Health Reinsurance |
|||||
| Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 | |
| 1. Gross written premiums including premiums from unit linked life and annuity insurance |
759 | 749 | 1,147 | 1,155 | 2,815 | 2,502 | 1,732 | 1,761 |
| of which attributable to other segments |
— | — | 11 | 15 | 113 | 174 | 36 | 35 |
| with third parties | 759 | 749 | 1,136 | 1,140 | 2,702 | 2,328 | 1,696 | 1,726 |
| 2. Savings elements of premiums from unit-linked life and annuity insurance |
— | — | 203 | 219 | — | — | — | — |
| 3. Ceded written premiums | 38 | 30 | 43 | 41 | 320 | 303 | 151 | 168 |
| 4. Change in gross unearned premiums |
–400 | –392 | –56 | –16 | –386 | –291 | –14 | –12 |
| 5. Change in ceded unearned premiums |
–19 | –14 | 1 | 3 | –57 | –53 | — | — |
| Net premiums earned | 340 | 341 | 844 | 876 | 2,166 | 1,961 | 1,567 | 1,581 |
| 6. Claims and claims expenses (gross) |
223 | 232 | 1,099 | 1,201 | 1,524 | 1,418 | 1,488 | 1,499 |
| Reinsurers' share | 4 | 1 | 13 | 13 | 51 | 102 | 142 | 159 |
| Claims and claims expenses (net) | 219 | 231 | 1,086 | 1,188 | 1,473 | 1,316 | 1,346 | 1,340 |
| 7. Acquisition costs and administrative expenses (gross) |
129 | 125 | 198 | 173 | 646 | 588 | 345 | 318 |
| Reinsurers' share | 4 | 3 | 22 | 23 | 44 | 43 | 11 | 12 |
| Acquisition costs and | ||||||||
| administrative expenses (net) | 125 | 122 | 176 | 150 | 602 | 545 | 334 | 306 |
| 8. Other technical income | 1 | 1 | 7 | 5 | 1 | — | — | — |
| Other technical expenses | 3 | 2 | 5 | 8 | 1 | — | 1 | 3 |
| Other technical result | –2 | –1 | 2 | –3 | — | — | –1 | –3 |
| Net technical result | –6 | –13 | –416 | –465 | 91 | 100 | –114 | –68 |
| 9. a. Investment income |
28 | 26 | 516 | 574 | 294 | 278 | 100 | 95 |
| b. Investment expenses | 3 | 4 | 77 | 57 | 49 | 69 | 20 | 17 |
| Net income from assets under own management |
25 | 22 | 439 | 517 | 245 | 209 | 80 | 78 |
| Net income from investment contracts |
— | — | — | — | — | — | — | — |
| Net interest income from funds withheld and contract deposits |
— | — | –4 | –4 | 5 | 4 | 68 | 79 |
| Net investment income | 25 | 22 | 435 | 513 | 250 | 213 | 148 | 157 |
| of which share of profit or loss of equity accounted asso ciates and joint ventures |
— | 1 | 1 | 3 | 4 | 1 | — | — |
| 10. a. Other income |
15 | 19 | 39 | 43 | 41 | 202 | 220 | 96 |
| b. Other expenses |
21 | 22 | 37 | 50 | 67 | 205 | 168 | 82 |
| Other income/expenses | –6 | –3 | 2 | –7 | –26 | –3 | 52 | 14 |
| Profit before goodwill impairments | 13 | 6 | 21 | 41 | 315 | 310 | 86 | 103 |
| 11. Goodwill impairments | — | — | — | — | — | — | — | — |
| Operating profit (EBIT) | 13 | 6 | 21 | 41 | 315 | 310 | 86 | 103 |
This document is a quarterly statement in accordance with section 51a of the Exchange Rules for the Frankfurter Wertpapierbörse.
The consolidated balance sheet, the consolidated statement of income, the consolidated statement of comprehensive income and the consolidated cash flow statement were prepared in accordance with the International Financial Reporting Standards (IFRSs), as adopted by the European Union. The statement was prepared in compliance with the requirements of IAS 34 "Interim Financial Reporting". The same accounting policies were applied as for the consolidated financial statements as at 31 December 2016.
The interim financial statements were prepared in euros (EUR). The amounts shown have been rounded to millions of euros (EUR million). This may give rise to rounding differences in the tables presented in this report. As a rule, amounts in brackets refer to the previous year.
Prepared by the Board of Management and hence authorised for publication in Hannover on 4 May 2017.
Talanx AG's reporting currency is the euro (EUR).
Exchange rates for our key foreign currencies
| EUR 1 corresponds to | (reporting date) | Balance sheet | Statement of income (average) |
||||
|---|---|---|---|---|---|---|---|
| 31.3.2017 | 31.12.2016 | Q1 2017 | Q1 2016 | ||||
| AUD | Australia | 1.3969 | 1.4591 | 1.4136 | 1.5103 | ||
| BRL | Brazil | 3.3652 | 3.4292 | 3.3547 | 4.2830 | ||
| CAD | Canada | 1.4259 | 1.4191 | 1.4116 | 1.5001 | ||
| CNY | China | 7.3604 | 7.3206 | 7.3381 | 7.1914 | ||
| GBP | United King dom |
0.8559 | 0.8553 | 0.8562 | 0.7701 | ||
| MXN Mexico | 20.0246 | 21.7854 | 21.2927 | 19.5518 | |||
| PLN | Poland | 4.2204 | 4.4097 | 4.3181 | 4.3222 | ||
| TRY | Turkey | 3.8908 | 3.7194 | 3.8795 | 3.2150 | ||
| USD | USA | 1.0685 | 1.0540 | 1.0640 | 1.1031 | ||
| ZAR | South Africa | 14.2357 | 14.4632 | 14.2317 | 17.1500 | ||
On 5 April 2017, Talanx Infrastructure France 2 GmbH (Retail Germany Division) concluded a purchase agreement for 100% of the shares of the wind farm company Le Louveng S. a.r.l., Lille, France (acquisition price: approx. EUR 22 million). The transaction is expected to be completed in the second half of 2017.
Riethorst 2 30659 Hannover Germany Telephone +49 511 3747-0 Telefax +49 511 3747-2525 www.talanx.com
14 August Interim Report as at 30 June 2017
13 November Quarterly Statement as at 30 September 2017
23 November Capital Markets Day
Andreas Krosta Telephone +49 511 3747-2020 Telefax +49 511 3747-2025 [email protected]
Carsten Werle Telephone +49 511 3747-2231 Telefax +49 511 3747-2286 [email protected]
This is a translation of the original German text; the German version shall be authoritative in case of any discrepancies in the translation.
Quarterly Statement online: www.talanx.com/investor-relations
Follow us on Twitter:
@talanx @talanx_en
Talanx AG Riethorst 2 30659 Hannover Germany Telephone +49 511 3747-0 Telefax +49 511 3747-2525 www.talanx.com
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