Talanx warns on 2017 profits following H2 cat losses
21st September 2017
Talanx, the largest shareholder in Hannover Re and Germany’s third-largest insurance group by premium income, said it may miss its 2017 profits target following the roll call of heavy cat events in the second half of this year experienced by Hannover Re.
Hannover Re cited recent losses from the natural catastrophes in the Caribbean, southern US and Mexican earthquakes as to why its Eur825mn major loss budget for the year may now be exceeded.
Hannover Re had predicted a profit in excess of Euro 1 billion euros ($1.2 billion) this year. However, this morning’s statement warned damage from Hurricane Maria, coupled with this week’s 7.1 magnitude earthquake in Mexico could see that Eur825mn reserve figure exceeded.
“The extent to which Talanx AG will be able to achieve its profit target of 850 million Euros for the financial year 2017, depends on the development of the large loss burden up to the end of the year,” said Talanx.
Earlier in this week analysts at Barclays warned the market would come under increasing pressure to deliver on profits due to the natural catastrophes of recent weeks.
Talanx’s share price was broadly flat in trading this morning, up 0.77 percent at Eur 34.53. Hannover Re was down slightly, at Eur 100.5. re