Talanx Earnings: Management Guidance Looks Conservative for 2024

Talanx has reported group net income of EUR 572 million for the first three months of 2024. The good results have mainly been driven by a strong performance in personal lines. Management maintains their EUR 1.7 billion guidance for full-year net income with confidence the business will exceed this, providing some leeway for larger second-quarter and third-quarter claims. Large losses, so far, have been light with only EUR 76 million occurring in the first quarter, EUR 28 million from human-made disasters and EUR 48 million from natural disasters, well below the full-year EUR 2.435 billion budget for large losses. We maintain our EUR 55 fair value estimate and no moat rating.