Sunday 3 April 2016

Talanx annual report 2015

Talanx, annual, 2015, front page

My German insurance company Talanx arrived with their annual report and generally since mid February the share price for Talanx have kept increasing. Back then it dipped down as deep as to 24 € but are now up around 30 € per share again. I no longer remember how the market responded on the day of the release.

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 Q3 2015 and to find out more regarding Talanx then go to analysis of Talanx 2015 (a new one will arrive soon).

For this short summary I decided only to push the financial highlights forward which in my opinions shows the development of Talanx fairly well. Each year the gross written premiums have kept increasing (which is not good news on its own) but since they have managed to keep the combined ratio at around 96 -> 97 % it is good with increasing written premiums that are now up at 31.8 billion €. In the end the result is however a bit of a disappointment since the result was only 2.9 € per share which is almost -5% compared to in 2014. However many insurance companies have complained about the current environment and to me this can be seen. The earnings are decreasing with increased competition.

Talanx, 2015, financial highlight

Conclusion: It was an ok year for Talanx with no major natural disasters to burden the result but still they were forced to pay out close to their maximum expected amount. As long as the competition and interest rates remain low the insurance companies will have a tough to show some earnings growth. In the meantime they do however pay out an acceptable dividend and they will now propose to pay 1.3 € per share. I will remain as a shareholder in Talanx.

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