Friday, August 14, 2015

Talanx report Q2 2015


Talanx, Q2, 2015, front page, report

My mutual insurance company Talanx arrived with their Q2 report for 2015. Personally I was not very impressed with the report but the market found it fully ok by the look of the share price movement.


The report in full you can find here (open the interim reports to find it), to read my latest summary then click on Talanx report Q1 2015 and to find out more regarding Talanx then go to analysis of Talanx 2015.

As can be seen below things are looking good up until a certain point but then things start to fall apart a little. The combined cost ratio is still high above 96% and they took a goodwill impairment cost of 155 million € due to German life insurances this quarter. This means that even though they have a nice development of gross premiums they have much worse margins and they lost a lot of ground on their home market Germany. The letter to the shareholders were also not very up beat this time as it were the last time. Looking below at the ROE that value was indeed awful for Q2 with only 2.8%.


Talanx, Q2, 2015, highlights


Conclusion: Talanx ended up having a more difficult quarter after their first one that was good. They also reported that the German market would remain difficult for the coming six months also so as a shareholder I now should at the very best expect a similar result to last year and most likely it will even be a bit worse. I am fine with that and will remain as a shareholder.

No comments: