Talanx, Hannover Re’s parent company, announced a €177 million net profit in the third quarter of 2021, boosting the business’s total for the first nine months of the year to €723 million.
Even though the Q3 figure is marginally lower than the €194 million recorded in the same quarter last year, the 9M total is up 39.2% from the previously announced €520 million.
Operating profit followed a similar pattern, declining 7.2 percent to €506 million in the first quarter then rising 42.5 percent to €1.84 billion in the second.
Meanwhile, gross written premiums climbed by 11.9 percent in Q3 to €11.1 billion, and by 10.2 percent in 9M to €35.2 billion.
The reinsurance segment’s GWP increased by 12.0% to €21.6 billion while operating profit increased from €915 million to €1.29 billion and the contribution to group net income increased from €334 million to €427 million.
The underwriting result for P&C reinsurance business improved dramatically to €219 million from a loss of €187 million in Q3 2020, while the combined ratio increased by 3.5 percentage points to 97.9%.
Overall, Talanx experienced net big losses from natural disasters of €1.1 billion from July to September, with additional substantial man-made losses of €394 million.
Large losses in the reinsurance segment were €1.1 billion, while primary insurance losses totaled €39 million.
Large losses surpassed the pro-rata nine-month budget of €1.2 billion and came close to exceeding the full-year budget of €1.5 billion.
Interestingly, the third quarter accounted for nearly two-thirds of all substantial losses for the reporting period, with €956 million.
In the first nine months of the year, the coronavirus pandemic remained a major concern in the life and health reinsurance market, particularly in terms of mortality coverage.
As of the end of September, pandemic-related impacts in life and health reinsurance totaled €404 million, with roughly half of pandemic claims relating to sickness and death in the United States.