Talanx AG now expects an increase of more than 5% in gross premiums for 2018, up from its previous forecast of a more than 2% increase, and reiterated its 2018 group net income target.
The Hanover, Germany-based company said gross written premiums for the first quarter rose on a yearly basis to €10.56 billion from €9.75 billion. Net premiums earned increased over the period to €6.99 billion from €6.70 billion.
Talanx reported group net income after noncontrolling interests of €218 million for the first quarter, down from €238 million in the year-ago period. The company said it continues to expect a group net income of approximately €850 million for 2018.
Return on equity was 9.9%, compared to 10.4% a year earlier. In 2018, the group expects ROE to reach about 9.0%.
Net investment income rose year over year to €1.06 billion from €1.01 billion.
The group's large loss burden decreased to €138 million from the year-ago €153 million, and is below its proportional large loss budget of €242 million. The largest loss event was storm Friederike, which represented a groupwide impact of approximately €59 million.
The combined ratio in property and casualty insurance and property and casualty reinsurance deteriorated slightly at 97.0%, compared to 96.3% a year earlier.
The group added that it aims to distribute 2018 dividends of between 35% and 45% of group net income and to ensure that dividends at least remain stable.
The comparative first-quarter 2017 figures were adjusted in accordance with IAS 8, the group noted.