Germany-based Talanx AG lowered its 2018 group net income outlook to approximately €700 million due to several large losses and an "unusually large" accumulation of frequency losses in industrial property insurance at its industrial lines division.
Talanx also revised its return on equity projection to 8%. In August, the company said it expected group net income of about €850 million and ROE of 9% for 2018.
The company expects a loss before taxes of more than €100 million for its industrial lines division in the third quarter, and a large loss burden of more than €260 million for the line in the January-September period.
The company assured a dividend payout for 2018 "at least equal" to the prior year and projects group net income of around €900 million for 2019.