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UPDATE 1-Talanx sees net profit above 650 mln euros in 2013
November 14, 2012 / 8:01 AM / in 5 years

UPDATE 1-Talanx sees net profit above 650 mln euros in 2013

* Sees net profit of slightly more than 600 mln eur in 2012

* Sees dividend of 1.05 eur/shr to 1.10 eur/shr for 2012

* Sees storm Sandy damage claims within budget

* Share up 0.6 pct on Frankfurt stock exchange (Adds CEO comments)

FRANKFURT, Nov 14 (Reuters) - German insurer Talanx said it expected to post net profit of at least 650 million euros ($826 million) next year, up from slightly more than 600 million anticipated for 2012.

Germany’s third-biggest insurance group, which made its stock-market debut last month, also said on Wednesday it expected to pay a dividend for 2012 of between 1.05 euros per share and 1.10 euros per share.

Strong underwriting and investment income bolstered earnings in the first nine months, helping to push group net income up nearly 70 percent to 549 million euros, compared with the same period last year. Property sales boosted investment income.

“We have moved significantly closer to our goal of generating half the premium income in primary insurance from foreign markets,” following acquisitions in Poland and Mexico, Chief Executive Herbert Haas said in a conference call with journalists, adding the group was planning to consolidate that position.

Talanx, which owns a 50.2 percent stake in the world’s third-largest reinsurer, Hannover Re, said losses from superstorm Sandy in the United States were expected to remain within the group’s budget for major damage claims.

Talanx pencilled in a budget of 640 million euros for big damage claims in 2012, of which 560 million euros is earmarked for Hannover Re.

Big claims at the reinsurer used only around one third of that budget in the first nine months.

“There’s still a bit of room left,” said Haas.

$1 = 0.7867 euros Reporting by Jonathan Gould; Editing by Mark Potter

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