Talanx AG, the group behind HDI and Hannover Re, reported a record group net income of €2,480 million for fiscal year 2025, a 25% increase from €1,977 million the previous year.

The German insurer also proposed raising its dividend per share by 33% to €3.60, up from €2.70, subject to approval at its Annual General Meeting.

Insurance revenue grew 2% in euro terms - or 5% when adjusted for currency effects - to €49.0 billion from €48.1 billion. The combined ratio, a key measure of underwriting profitability, improved to 89.1% from 90.3%, while the return on equity rose to 19.7% from 17.9%.

Operating profit, or EBIT, increased 8% to €5.3 billion, and the insurance service result rose 11% to €5.7 billion.

“2025 was an exceptional year,” said Torsten Leue (pictured), chairman of Talanx AG’s board of management. “We experienced the highest loss from natural disasters in the group’s history in the first quarter, while the following three quarters saw unusually few natural disasters. Our operating strength and the tailwind from our positive claims experience allowed us both to generate record group net income and to further increase our net income quality.”

Leue added that the company planned to continue its policy of consistently increasing the dividend. “The growth in our dividend will again outstrip the rise in group net income,” he said.

Total large loss payments for the year were €2,190 million, well below the budget of €2,820 million. The Los Angeles forest fires represented the largest single loss at €612 million, followed by Hurricane Melissa in Jamaica at €340 million, the Myanmar earthquake at €118 million, and severe hailstorms in Australia at €102 million.

Division results

All four of Talanx’s business divisions contributed to earnings growth.

Reinsurance division: The group’s largest by revenue, it lifted insurance revenue 5% on a currency-adjusted basis to €26.8 billion. Its contribution to group net income rose 13% to €1,319 million.
Corporate & specialty division: Posted insurance revenue of €10.3 billion, up 5% in currency-adjusted terms, with net income contribution climbing 10% to €551 million.
Retail international division: Saw the steepest growth among divisions, with insurance revenue rising 10% on a currency-adjusted basis to €9.7 billion, driven by organic growth in Poland and Türkiye and the motor vehicle business in Mexico. Net income contribution surged 36% to €611 million.
Retail Germany division: Reported a decline in insurance revenue to €3.3 billion from €3.6 billion, largely due to the expiration of its partnership with Targobank at the end of 2025. Despite this, net income contribution rose 6% to €173 million.

Outlook and sustainability

Talanx confirmed its 2026 net income target of approximately €2.7 billion, first announced in November 2025. The group also expects a return on equity of around 19% for 2026.

“We are confident of generating group net income of approximately €2.7 billion, and hence of reaching and exceeding this earnings target for 2027 a year earlier than originally planned,” Leue said.

On sustainability, CFO Dr. Jan Wicke noted that the group had already surpassed its 2025 emissions reduction goal. “After exceeding our 2025 reduction target in our own operations, we have formulated new ambitions for the period up to 2030,” Wicke said. The group cut its greenhouse gas emissions from operations in Germany by 41% compared to 2019 levels, exceeding its original 25% target. It has now set a new goal of reducing global operations emissions by 25% by 2030 compared to 2024 levels.

Talanx also grew sustainable investment volumes by 10% to €15.4 billion in 2025.

The group noted that its targets are conditional on no major disruptions in currency or capital markets and that large losses remain within expectations. It acknowledged that the current geopolitical and macroeconomic environment adds uncertainty.