Q2 2026 Talanx AG Earnings Call

August 14, 2026

Speaker #1: Good morning. Good morning, and welcome from Hanover. We are here at our little studio at HDI Place in Hanover, and thank you for the time you're spending with us this morning.

Bernd Sablowsky: Good morning, and welcome from Hanover. We are here at our little studio at HDI-Platz in Hanover. Thank you for the time you are spending with us this morning to go through our numbers for Q2 of the financial year 2026 and the first six months of the financial year. I am next to my CFO, Jan Wicke, who will, as always, take you through our numbers in more detail. After his presentation, we are happy to answer all the questions you have in relation to our numbers. We are on Microsoft Teams today, so if you want to pose a question to us after Jan's presentation, please use the hand raise feature, and I will slot you into our Q&A. All the supplementary information material to our presentation is published on our website, including, but not limited to, our comprehensive financial data supplement.

Bernd Sablowsky: Good morning, and welcome from Hanover. We are here at our little studio at HDI-Platz in Hanover. Thank you for the time you are spending with us this morning to go through our numbers for Q2 of the financial year 2026 and the first six months of the financial year. I am next to my CFO, Jan Wicke, who will, as always, take you through our numbers in more detail. After his presentation, we are happy to answer all the questions you have in relation to our numbers. We are on Microsoft Teams today, so if you want to pose a question to us after Jan's presentation, please use the hand-raise feature, and I will slot you into our Q&A. All the supplementary information material to our presentation is published on our website, including, but not limited to, our comprehensive financial data supplement.

Speaker #1: To go through our numbers for the second quarter of the financial year 2026, since the first six months of the financial year, I'm next to my CFO, Jan Wicker, who will, as always, take you through our numbers in more detail.

Speaker #1: And after his presentation, we are happy to answer all the questions you have in relation to our numbers. We are on MS Teams today, so if you want to pose a question to us after Jan's presentation, please use the hand raise feature and I will slot you into our Q&A.

Speaker #1: All the supplementary information material related to our presentation is published on our website, including but not limited to our comprehensive financial data supplement. With that, I hand over to you, Jan.

Bernd Sablowsky: With that, I hand over to you, Jan.

Speaker #2: Thank you, Bernd, and good morning, everybody. Thank you for attending our earnings call. I'm glad to provide you with some insight into how Talanx has performed during the course of the first six months.

Jan Wicke: Thank you, Bernd, and good morning, everybody, and thank you for attending our earnings call. I am glad to provide you with some insights how Talanx has performed during the course of the first six months. To start with, we were able to achieve a net income of roughly EUR 1.5 billion after six months, which is the highest result in Talanx history. Even better than that, we have record results in each and every segment, in all the four of them. 52% of our profits were derived from primary insurance, 48% from reinsurance. This is a well-balanced mix. This has driven our confidence to increase the guidance already after Q2. We now expect to deliver a net income significantly above EUR 2.7 billion for the full year. As usual, let me start to provide you with an overview about top line and bottom line.

Jan Wicke: Thank you, Bernd, and good morning, everybody. Thank you for attending our earnings call. I am glad to provide you with some insights how Talanx has performed during the course of the first six months.

Speaker #2: And to start with, we were able to achieve a net income of roughly €1.5 billion after six months, which is the highest result in Talanx history.

Jan Wicke: To start with, we were able to achieve a net income of roughly EUR 1.5 billion after six months, which is the highest result in Talanx's history. Even better than that, we have record results in each and every segment, in all the four of them. 52% of our profits were derived from primary insurance, 48% from reinsurance. This is a well-balanced mix. This has driven our confidence to increase the guidance already after Q2. We now expect to deliver a net income significantly above EUR 2.7 billion for the full year.

Speaker #2: And even better than that, we have record results in each and every segment—in all four of them. 52% of our profits were derived from primary insurance; 48% from reinsurance.

Speaker #2: So this is a well-balanced mix, and this has driven our confidence to increase the guidance already after the second quarter. We now expect to deliver a net income significantly above €2.7 billion for the full year.

Speaker #2: As usual, let me start by providing you with an overview of the topline and bottom line. Topline: we were able to keep insurance revenues stable in euro terms, and currency-adjusted we are growing by 3%.

Jan Wicke: As usual, let me start to provide you with an overview about top line and bottom line. Top-line insurance revenues are stable in Euro terms, and currency-adjusted, we are growing by 3%. The net income is up 9% to EUR 1.5 billion. The high profitability of our business is displayed in a return on equity of 21.5%. The slight decrease in the return on equity on this outstanding level is driven by a higher equity, which I will explain later a little bit more.

Jan Wicke: Top line, insurance revenues are stable in euro terms, and currency adjusted, we are growing by 3%. The net income is up 9% to EUR 1.5 billion. The high profitability of our business is displayed in a return on equity of 21.5%. The slight decrease in the return on equity on this outstanding level is driven by a higher equity, which I will explain later a little bit more. Looking at the top line, where is the growth derived from? Primary insurance is growing currency adjusted by 4%, reinsurance by 1%, and this combines then to a currency-adjusted growth of the group of 3%. The bottom line. With regard to the bottom line, primary insurance was able to increase their contribution to the group net income by 12% to EUR 780 million. Reinsurance is up 7% to slightly above EUR 700 million.

Speaker #2: Net income is up 9% to €1.5 billion. The high profitability of our business is reflected in a return on equity of 21.5%.

Speaker #2: And the slight decrease in the return on equity at this outstanding level is driven by higher equity, which I will explain a little bit more later.

Speaker #2: Looking at the topline, where is the growth derived from? Primary insurance is growing currency-adjusted by 4%, reinsurance by 1%, and this combines then to a currency-adjusted group growth of 3%.

Jan Wicke: Looking at the top line, where is the growth derived from? Primary insurance is growing currency adjusted by 4%, reinsurance by 1%, and this combines then to a currency-adjusted growth of the group of 3%.

Speaker #2: And the bottom line: With regard to the bottom line, primary insurance was able to increase their contribution to the group net income by 12% to €780 million.

Jan Wicke: The bottom line. With regard to the bottom line, primary insurance was able to increase their contribution to the group net income by 12% to EUR 780 million. Reinsurance is up 7% to slightly above EUR 700 million.

Speaker #2: Reinsurance is up 7%, to slightly above €700 million. And for the group, this then adds up to €1,499 million, to be precise.

Jan Wicke: For the groups, this adds up to EUR 1,499 million, to be precise in the numbers, for the H1. Looking at the diversification in the groups, there has not very much changed. We are very well diversified with regard to both top line and bottom line. On the left side of the chart, you see the split of the insurance revenue, which is very well diversified throughout the world. On the right side, you see the earnings contribution by segments, where we also have a nice diversification. Looking at one source of our results is the development of large losses. We want to draw your attention to the fact that we have had a very benign H1 with regard to large losses. So far, we have just reported losses of EUR 942 million.

Speaker #2: For the half year, looking at the diversification in the group, not very much has changed. So we are very well diversified with regard to both topline and bottom line.

Speaker #2: On the left side of the chart, you see the split of the insurance revenue, which is very well diversified throughout the world. On the right side, you see the earnings contribution by segments, where we also have a nice diversification.

Speaker #2: Looking at one source of our results is the development of large losses. And there, we want to draw your attention to the fact that we have had a very benign first half year with regard to large losses.

Speaker #2: So far, we have just reported losses of €942 million. We have booked, as usual, the higher of large loss budget or reported losses. So we have booked €1.4 billion in our accounts.

Jan Wicke: We have booked, as usual, the higher of a large loss budget or reported losses. We have booked EUR 1.4 billion in our account. This means there is a difference of EUR 474 million, and this would translate into a net income effect of EUR 265 million. Very benign large loss development during the course, but not yet reflected in the bottom line numbers. Obviously, this drives also our confidence to increase our guidance to significantly more than EUR 2.7 billion for the full year. This would translate into a return on equity of slightly above 19%. Let's dig a little bit into the segments. As usual, we start with Corporate & Specialty, HDI Global SE. With regard to the top line in euro terms, we have a decrease of 2%. Currency adjusted, we are nearly flat, above EUR 5 billion.

Speaker #2: This means there is a difference of €474 million, and this would translate into a net income effect of €265 million. So, very benign large loss development during the course, but not yet reflected in the bottom-line numbers.

Speaker #2: And obviously, this also drives our confidence to increase our guidance to significantly more than €2.7 billion for the full year. This would translate into a return on equity of slightly above 19%.

Speaker #2: Let's dig a little bit into the segments and, as usual, we start with Corporate and Specialty. HDI Global: With regard to the topline, in euro terms, we have a decrease of 2%.

Speaker #2: Currency-adjusted, we are nearly flat, above €5 billion. The group net income, despite super prudent accounting, is up 7%. We have very strong technical results, which is reflected in the combined ratio of 90.7%.

Jan Wicke: The group net income, despite a super prudent accounting, is up 7%. We have very strong technical results, which is reflected in the combined ratio of 90.7%. We have a growing investment income, which is driven by that we have sold in the past some fixed income with lower coupons and bought some with higher ordinary income. So we see a growing investment income here as the second driver of the earnings increase. Return on equity stands at 16.5%, and we are very, very confident that this segment, who's really performing very well, will deliver a return on equity in this area also for the full year. Coming to Retail International, which had an outstanding H1 of 2026. Here we see in euro terms a growth of 9%, currency adjusted even above 10%.

Speaker #2: And we have a growing investment income, which is driven by the fact that we have sold in the past some fixed income with lower coupons and bought some with higher ordinary income.

Speaker #2: And so we see growing investment income here as a second driver of the earnings increase. Return on equity stands at 16.5%, and we are very, very confident that this segment, which is really performing very well, will deliver a return on equity in this area also for the full year.

Speaker #2: Coming to Retail International, which had an outstanding first half year of 2026, here we see, in euro terms, a growth of 9%. Currency-adjusted, even above 10%.

Speaker #2: For the first time, they have already achieved more than €5 billion in insurance revenue after the first half of the year. And we now expect them to hit the €10 billion mark by the end of the year.

Jan Wicke: For the first time, they have already achieved more than EUR 5 billion insurance revenue after the H1, and we now expect them to hit the EUR 10 billion mark by the end of the year in this regard to insurance revenues. Even a higher growth rate is seen in the bottom line. The net income is up 16% to EUR 387 million. The drivers of this really outstanding development is a very strong technical result with a combined ratio of 91.2% and also rising investment income, which supports the profitability of the segment. The return on equity stands at 20.8%, and even if we adjust it for the buyout of the Polish minorities at the beginning of this year, then it's 19.9%.

Speaker #2: With regard to insurance revenues, an even higher growth rate is seen in the bottom line. Net income is up 16% to €387 million.

Speaker #2: And the drivers of this really outstanding development are a very strong technical result, with a combined ratio of 91.2%, and also rising investment income, which supports the profitability of the segments.

Speaker #2: The return on equity stands at 20.8%, and even if we adjust it for the buyout of the Polish minorities at the beginning of this year, then it's 19.9%.

Speaker #2: This is a really very good number for the retail business. And Wim Langenbach and his team, they are really proud of what they have delivered so far.

Jan Wicke: This is a really very good number for retail business, and Wilm Langenbach and his team, they are really proud on what they have delivered so far. Coming to our smallest segment, Retail Germany, which accounts for slightly below 7% of the overall net income. With regard to the insurance revenue, we would have expected a stronger decrease of the numbers, but, given that they are quite successful in the distribution, in non-life and also in the other life areas, it is just a decrease by 1%, despite the fact that we had to compensate for the end of the Targobank agreement. The group net income is up 19%, to roughly EUR 100 million. This is despite the fact that they had EUR 15 million large loss budget overshoot. In this segment, then we have booked the reported large losses.

Speaker #2: Coming to our smallest segment, Retail Germany, which accounts for slightly below 7% of the overall net income. With regard to the insurance revenue, we would have expected a stronger decrease of the numbers, but given that they are quite successful in the distribution in non-life and also in the other life areas, it's just a decrease by 1%, despite the fact that we had to compensate for the end of the Targobank agreement.

Speaker #2: The group net income is up 19%, to roughly €100 million. And this is despite the fact that they had a €15 million large loss budget overshoot.

Speaker #2: And in this segment, then, we have booked the reported large losses. This also translates into a very good combined ratio of 93%. Return on equity stands at a very good 13%.

Jan Wicke: This translates also in a combined ratio of a very good 93%. Return on equity stands at a very good 13%. Coming to our biggest, by far biggest segment, Hannover Re, the reinsurance. Here we have a decrease in insurance revenue of 3%. Currency adjusted, we are growing close to 1%. The group net income contribution to the Talanx group result has been increased by 7% to more than EUR 700 million. This is driven by an outstanding low combined ratio of 83% here. Return on equity stands at 21.9%. As most of you might have listened to the call of Clemens and their colleagues, I do not have to comment further, but Hannover Re is constantly delivering good results. Coming to capital management. With regard to the solvency ratio, we are standing at 246, so we have a very good solvency situation.

Speaker #2: Coming to our biggest—by far, our biggest—segment, Hannover Re, the reinsurance. Here, we have a decrease in insurance revenue of 3%. Currency-adjusted, we are growing close to 1%.

Speaker #2: The group net income contribution to the Talanx Group result has been increased by 7%, to more than €700 million. This is driven by an outstandingly low combined ratio.

Speaker #2: Of 83% here. Return on equity stands at 21.9%. As most of you might have listened to the call of claimants and their colleagues, I do not have to comment further. But Hannover Re is constantly delivering good results.

Speaker #2: Coming to capital management: with regard to the solvency ratio, we are standing at 246. So, we have a very good solvency situation. The net income development, as I already told you, was very pleasing.

Jan Wicke: The net income development, as I already told, was very pleasing. We have an increase of the net. Sorry, not the net income development. The equity development is very pleasing. We have an increase of the equity despite paying a dividend of EUR 930 million by roughly a little bit less than EUR 1 billion. So overall, from a shareholder perspective, we were able to create roughly EUR 1.9 billion value through the H1 of 2026. This translates into more than €7 per share. Also, we see a very good development in the other shareholders' capital components. So overall, if we add to the equity, the CSM, and the risk adjustment after minorities, after taxes, then this adds up to roughly €23 billion for Talanx as a whole. So, this is not too bad.

Speaker #2: We have an increase of the net—sorry, not the net income development. The equity development is very pleasing. We have an increase of the equity, despite paying a dividend of €930 million, by roughly a little bit less than €1 billion.

Speaker #2: So, overall, from a shareholder perspective, we were able to create roughly €1.9 billion in value through the first half of 2026. This translates into more than €7 per share.

Speaker #2: Also, we see very good development in the other shareholders' capital components. So overall, if we add to the equity, the CSM, and the risk adjustment after minorities, after taxes, then this adds up to roughly €23 billion for Talanx as a whole.

Speaker #2: So this is not too bad. Coming to the investment portfolio, we can report that we haven't changed a lot. We are still predominantly investing in fixed income; more than 80% of our assets are in fixed income.

Jan Wicke: Coming to the investment portfolio, we can report that we haven't changed a lot, so we are still predominantly investing into fixed income. More than 80% of our assets are in fixed income, and out of that, more than 90% in investment grade. So it is a low beta investment portfolio approach, and we added some other asset classes, which are on the pie chart on the right side of the chart, in order to achieve a little bit yield pickup here overall. Nevertheless, looking in the accounts, you will see that we have increased our investment income quite substantially. The investment income for own risk is up 15%, return on investment, 40 basis points, and the finance and investment result, which also takes into account the unwind of the claims reserves, is even up 21%.

Speaker #2: And out of that, more than 90% is in investment grade. So it's a lower beta investment portfolio approach. And we added some other asset classes, which are on the pie chart on the right side of the charts, in order to achieve a little bit of yield pickup here overall.

Speaker #2: Nevertheless, looking at the accounts, you will see that we have increased our investment income quite substantially. The investment income for own risk is up 15%.

Speaker #2: Return on investment: 40 basis points. And the finance and investment result, which also takes into account the unwind of the claims reserves, is even up 21%.

Speaker #2: And what is reflected in this development is—and you are all aware of it—in the last year we have sold fixed income with low coupons out of the low interest rate phase.

Jan Wicke: What is reflected in this development is, and you are all aware of it, in the last year, we have sold fixed income with low coupons out of the low interest rate phase and bought some new fixed income for it with higher coupons. Therefore, we have now a higher ordinary investment income, which we can report, and which flows here through the results of the Talanx balance sheet. Coming to our outlook. Overall, we are pretty confident with regard to the Talanx business model. Looking at the dividends model in more detail with regard to diversification, at the beginning of the presentation, you have seen our split of revenues and earnings. So we are very well diversified. We have a P&C focus. More than 80% of our business is in P&C.

Speaker #2: And bought some new fixed income for it with higher coupons. And therefore, we now have a higher ordinary investment income, which we can report and which flows through here in the results of the Talanx balance sheet.

Speaker #2: Coming to our outlook, overall, we are pretty confident with regard to the Talanx business model. And looking at the dividends model in more detail, with regard to diversification, at the beginning of the presentation, you have seen our split of revenues and earnings.

Speaker #2: So, we are very well diversified. We have a P&C focus; more than 80% of our business is in P&C. And looking at the quality of the portfolio, I just want to draw your attention to the fact that we are always booking the higher of large losses incurred and reported.

Jan Wicke: Looking at the quality of the portfolio, I just want to draw your attention that we are always booking the higher of large losses incurred and reported, and the large loss budget. We have booked the budget. Despite the fact that we have booked the budget, the combined ratio is below 90%. So we have a very high quality in our P&C book. Thirdly, we are cost leader. May I draw your attention to the appendix of this presentation. On page 31, we have updated our cost advantage towards the peer with the year-end figures by 2025. There you can easily find out that we have a significant cost leadership compared to our peers, and this gives us a competitive edge in an increasingly competitive market.

Speaker #2: And the large loss budget, and we have booked the budget. And despite the fact that we have booked the budget, the combined ratio is below 90%.

Speaker #2: So, we have a very high quality in our P&C book. Thirdly, we are a cost leader. And I may draw your attention to the appendix of this presentation.

Speaker #2: On page 31, we have updated our cost advantage towards the peer with the year-end figures for 2025. And there, you can easily find that we have a significant cost leadership compared to our peers.

Speaker #2: And this gives us a competitive edge in an increasingly competitive market. And last but not least, we are all living in a world of uncertainty.

Jan Wicke: Last but not least, we are all living in a world of uncertainty, and therefore it is really useful to have a lot of resiliency to cope with this uncertainty. As you are also well aware of, we have a super strong balance sheet, and this drives also our confidence with regard to our outlook. We now expect to deliver for 2026, significantly more than EUR 2.7 billion net income, and this translates into a return on equity from slightly above 19% for the full year 2026. With that, Bernd, I hand over to you for the Q&A.

Speaker #2: And therefore, it's really useful to have a lot of resiliency to cope with this uncertainty. And as you are also well aware, we have a super strong balance sheet.

Speaker #2: And this also drives our confidence with regard to our outlook. We now expect to deliver for 2026 significantly more than €2.7 billion net income.

Speaker #2: And this translates into a return on equity of slightly above 19% for the full year 2026. And with that, Bernd, I hand over to you for the Q&A.

Speaker #1: All right, pleasure to do so. So, let's dive into our Q&A section. The first question comes from Kamran Hossein from JP Morgan. Kamran, good morning.

Bernd Sablowsky: All right. It is a pleasure to do so. So let us dive into our Q&A section. The first question comes from Kamran Hussain from JP Morgan. Kamran, good morning. Fire your questions at us.

Bernd Sablowsky: All right. It is a pleasure to do so. So let us dive into our Q&A section. The first question comes from Kamran Hussain from J.P. Morgan. Kamran, good morning. Fire your questions at us.

Speaker #1: Fire your questions at us.

Speaker #3: Hi, good morning. Hi again. Hi, Bernd, and congrats on a record first half. The first question is probably something lots of people are going to ask about, but the guidance outlook is very good.

Kamran Hussain: Hi, good morning. Hi, Jan. Hi, Bernd, and congrats on a record H1. The first question is probably something lots of people are going to ask about, but the guidance outlook is very good. Can I just ask, this time last year, you increased the guidance. That went from EUR 2.1 billion to EUR 2.3 billion. You were confident enough to put a number on it this time last year, and then it increased again at Q3 last year. What is driving your, not reluctance, but what is driving the rationale to not give another number at this stage in the year? Is there anything behind that? Do you think the upside is probably even more than we might have seen last year? Just interested in kind of what does significant mean, and why didn't you put a number on it this time around?

Kamran Hossain: Hi, good morning. Hi, Jan. Hi, Bernd, and congrats on a record H1. The first question is probably something lots of people are going to ask about, but the guidance outlook is very good. Can I just ask, this time last year, you increased the guidance. That went from EUR 2.1 billion to EUR 2.3 billion. You were confident enough to put a number on it this time last year, and then it increased again at Q3 last year. What is driving your, not reluctance, but what is driving the rationale to not give another number at this stage in the year? Is there anything behind that? Do you think the upside is probably even more than we might have seen last year? Just interested in kind of what does significant mean, and why didn't you put a number on it this time around?

Speaker #3: Can I just ask, this time last year you increased the guidance. So that went from €2.1 billion to €2.3 billion. So you were confident enough to put a number on it this time last year.

Speaker #3: And then it increased again in Q3 last year. What's driving your—not reluctance, but what's driving the rationale to not give another number at this stage in the year?

Speaker #3: Is there anything behind that? Do you think the upside is probably even more than we might have seen last year? So, just interested in kind of what the 'significant' means and why you didn't put a number on it?

Speaker #3: This time around. The second question is, when I look at the earnings, clearly, investment income was a benefit. And you've highlighted that in the slides.

Kamran Hussain: The second question is, when I look at the earnings, clearly investment income was a benefit, and you have highlighted that in the slides. How much of the beats versus being significantly above EUR 2.7 billion is sustainable into 2027? I think quite a bit of it will be, but just interested in your take on that. Thank you.

Kamran Hossain: The second question is, when I look at the earnings, clearly investment income was a benefit, and you have highlighted that in the slides. How much of the beats versus being significantly above EUR 2.7 billion is sustainable into 2027? I think quite a bit of it will be, but just interested in your take on that. Thank you.

Speaker #3: How much of the beats versus being significantly above $2.7 billion is sustainable into 2027? I think quite a bit of it will be, but just interested in your take on that.

Speaker #3: Thank you.

Speaker #1: Okay. First, with regard to the outlook, I have to admit, it is very unusual that we are already reassessing our guidance after the second quarter.

Jan Wicke: Okay. First, with regard to the outlook. First, I have to admit, it is very unusual that we already reassess our guidance after the Q2. As you are all aware, the Q3 is a hurricane quarter. With the largest consumption with regard to large losses. We have a lot of confidence that we have already increased above 2.7 or significantly above 2.7 at this stage in the year. We will reassess our guidance after the Q3 when we have more knowledge about the usage of the large or what has happened with regard to large losses in the Q3. Then we can put that into comparison to our last large loss budget.

Speaker #1: As you are all aware, the third quarter is a hurricane quarter, with the largest consumption with regard to large losses. And so we have a lot of confidence that we are already increased above 2.7, or significantly above 2.7, at this stage in the year.

Speaker #1: We will reassess our guidance after the third quarter, when we have more knowledge about the usage of the large, or what has happened with regard to large losses in the third quarter.

Speaker #1: And then we can put that into comparison to our last large loss budget. In the current outlook, obviously, it includes a full consumption of the large loss budget for the full year, despite the fact that we have a huge buffer if you look at the numbers after. And I just want to highlight also, we haven't set above €2.8 billion.

Jan Wicke: In the current outlook, obviously, it is included a full consumption of the large loss budget for the full year, despite the fact that we have a huge buffer, if you look at the numbers after the Q2. I just want to highlight also, we haven't set above 2.8. At the current stage, we feel comfortable to say clearly or significantly above 2.7, and we will reassess this after the Q3, and then we will also deliver an outlook for 2027. Second question with regard to the investment income, how much is sustainable in this investment income? I believe the higher coupon, which we see in the ordinary investment income, is sustainable. Let's assume the following, we have not a very high large loss consumption in the Q3. Let's just assume it for a while.

Speaker #1: At the current stage, we feel comfortable to say clearly or significantly above 2.7. We will reassess this after the third quarter, and then we will also deliver an outlook for 2027.

Speaker #1: Second question: With regard to the investment income, how much is sustainable in this investment income? I believe the higher coupon, which we see in the ordinary investment income, is sustainable.

Speaker #1: And let's assume the following: we do not have a very high large-loss consumption in the third quarter. Let's just assume it for a while.

Speaker #1: Then it could also be used to realize a little bit more hidden losses on the bond portfolio in order to ensure that we can show earnings growth also in the years to come.

Jan Wicke: Then it could be also used to realize a little bit more hidden losses on the bond portfolio in order to ensure that we can show earnings growth also in the years to come. This is also in our mindset on how to steer year-end results, and this comes down to our priorities. The first priority for Talanx is dividends always up, and we will deliver on that one. The second priority is we want to provide our investors with earnings growth with lower volatility. This is what we always keep in mind when we are steering our results.

Speaker #1: So, this is also in our mindset on how to steer year-end results. And this comes down to our priorities. The first priority for Talanx is: dividends always up.

Speaker #1: And we will deliver on that one. The second priority is, we want to provide our investors with earnings growth with lower volatility. And this is what we always keep in mind when we are steering our results.

Speaker #3: Thanks very much.

Kamran Hussain: Thanks very much.

Kamran Hossain: Thanks very much.

Speaker #1: Okay. So, next in line is Hedley Kuhn from Morgan Stanley. Good morning, Hedley. What questions do you have in mind?

Bernd Sablowsky: Okay, next in line is Hadley Cohen from Morgan Stanley. Good morning, Hadley. What questions do you have in mind?

Speaker #4: Good morning, everyone. Thanks very much. I think I'm ready. But if I could just ask, on the CNS combined ratio, I mean, you're still building buffers there, I think.

Hadley Cohen: Morning, everyone. Thanks very much. I think Kamran's asked the key question already, but if I could just ask, on the Corporate & Specialty combined ratio, you are still building buffers there, I think, but at a slower pace than you were, which means more is flowing through to the combined ratio, and the bottom line. How should we think about the outlook from here? Are you basically saying that because you are building buffers at a slower pace incrementally, the combined ratio should continue to get better from here? Or should we assume that the slower pace to buffer build is effectively offsetting pricing pressure that you are seeing in those lines, so the combined ratio remains broadly stable? That is my first question. Second question is on Retail International, please. Very strong, around 10% top-line growth there.

Speaker #4: But at a slower pace than you were, which means more is flowing through to the combined ratio and the bottom line. How should we think about the outlook from here?

Speaker #4: Are we—basically, are you basically saying that because you're building buffers at a slower pace, incrementally, the combined ratio should continue to get better from here?

Speaker #4: Or should we assume that the slower pace of buffer build is effectively offsetting the pricing pressure that you're seeing in those lines, so the combined ratio remains broadly stable?

Speaker #4: So that's my first question. Second question is on Retail International. We saw very strong, around 10% top-line growth there. Can you give us a sense of the mix of volume versus price in that respect, please?

Hadley Cohen: Can you give us a sense of the mix of volume versus price in that respect, please? Just to get a sense of the sustainability of the growth trajectory there. Jan, you've been very useful in the past with respect to giving us some guidance around full-year earnings for this division and what have you. Now the restructuring costs are largely behind us from the integration of the acquisition. Is the H1 print, for example, a good proxy for something that we should extrapolate into the H2? Is the sort of volume growth a good indication for the earnings trajectory from here? Thank you.

Speaker #4: And just to get a sense of the sustainability of the growth trajectory there. And Jan, you've been very useful in the past with respect to giving us some guidance around full-year earnings for this division and what have you now that restructuring costs are largely behind us from the integration of the acquisition.

Speaker #4: Is the first half print, for example, a good proxy for something that we should extrapolate into the second half? And is the sort of volume growth a good indication for the earnings trajectory from here?

Speaker #4: Thank you.

Speaker #1: Yeah, thanks, Hedley. So, the first question was with regard to the resiliency, development, and combined ratio. Development at Corporate Specialty—obviously, we try to deliver a stable combined ratio through the cycles.

Jan Wicke: Yeah, thanks, Hadley. First question was with regard to the resiliency development and combined ratio development at Corporate & Specialty. Obviously, we try to deliver a stable combined ratio through the cycles. In this area to have a combined ratio below 92% is already a good number. We shouldn't forget about that. We are currently in a very benign environment, but this is also already a very good number. With regard to the resiliency building, I come back of something with what Christian at Hannover Re has said. There are three phases of resiliency building. Strong resiliency building, what you have seen in the last year. Then there is mid building, a little bit building of resiliency. This is what you should expect for the current year. Then there is a phase where there's no resiliency building.

Speaker #1: And in this area, to have a combined ratio below 92 is already a good number. We shouldn’t forget about that. We are currently in a very benign environment.

Speaker #1: But this is also already a very good number. With regard to resiliency building, I come back to something that Christian at Hannover Re has said.

Speaker #1: There are three phases of resiliency building: strong resiliency building, which you have seen in the last year. Then there is mid-building, a little bit building of resiliency.

Speaker #1: This is what you should expect for the current year. Then there is a phase where there is no resiliency building, but I want to assure you we are still building.

Jan Wicke: But I want to ensure you we are still building some resiliency, not at the level of 2025. So it's not too bad. Second question was with regard to Retail International, which had really an outstanding development in the H1 of the year. You asked for mix and volume, and to provide you a little bit, I guess, some more color on where the growth was coming from. Looking at the H1 of the year, the growth was derived from Poland, from Brazil, from Mexico, from Turkey. Those were the main growth drivers in the HDI International portfolio. Also there's a little bit balance in the markets in terms of softening and hardening from the markets. My view on retail business is if you deliver a combined ratio around 93%, you're already very good in the retail business. They are now currently in outstanding, very good.

Speaker #1: Some resiliency, but not at the level of 2025, so it's not too bad. The second question was with regard to Retail International, which had a really outstanding development in the first half of the year.

Speaker #1: And you asked for mix and volume and I should provide you, I guess, a little bit more color on where the growth was coming from.

Speaker #1: Looking at the first half of the year, the growth was derived from Poland. This was the main growth driver in the P&C portfolio.

Speaker #1: The markets there also, there's a little bit of balance in the markets in terms of softening and hardening. From the markets, my view on retail business is if you deliver a combined ratio around 93%, you're already very good.

Speaker #1: In the retail business, they are now currently outstanding—very, very good. Should we... what is the earnings projection for Retail International?

Jan Wicke: What is the earnings trajectory for Retail International? If we look at the current run rates, that looks really very pleasing. Obviously, we will try also to manage the earnings volatility in the segment, so I'm a little bit reluctant to multiply it with two. As usual, also, if you look at the Talanx history in the last years, the H2 was always a little bit weaker than the H1. Keep that in mind. We are a little bit trying to steer the results here, but the underlying trend of what Wilm Langenbach and his team is doing is very good, and you are absolutely right. We are behind the curve with regard to the cost for migration. They are achieving and working on cost advantages here.

Speaker #1: So, if we look at the current run rates, those look really very pleasing. Obviously, we'll also try to manage the earnings volatility in the segment.

Speaker #1: So I'm a little bit reluctant to multiply it by two. As usual, also if you look at Talanx's history in the last years, the second half-year was always a little bit weaker than the first half-year.

Speaker #1: Keep that in mind. We are, a little bit, trying to steer the results here. But the underlying trend of what Willem Langenbach and his team are doing is very good.

Speaker #1: And you are absolutely right. We are behind the curve with regard to the cost for migration. They are achieving and working on cost advantages here.

Speaker #1: And these cost advantages will provide us with a competitive edge, which will also be useful for the years to come. But we will provide you with some more insights on the outlook for 2027 in the next quarterly call, as usual, when we provide you with the full-year outlook on 2027.

Jan Wicke: And this cost advantages, they will provide us with a competitive edge, which will be also useful for the years to come. But we will provide you with some more insights on the outlook for 2027, in the next quarterly call, as usual, when we provide you with the full year outlook on 2027.

Speaker #4: Thank you.

Hadley Cohen: Thank you.

Speaker #1: Okay, next question from Michael Hattler from Würmberg. Michael, good morning.

Bernd Sablowsky: Okay. Next question from Michael Huttner from Berenberg. Michael, good morning.

Speaker #5: Good morning. Thank you very much. And yeah, congratulations—seriously, congratulations. You must be very happy. Just on Germany: so, top line beat in a funny way.

Michael Huttner: Good morning. Thank you very much. And yeah, congratulations. Seriously, congratulations. You must be very happy. Just on Germany, so top line beat in a funny way. I just wondered if you can talk a little bit more about that. And then the EUR 15 million, kind of, excess large losses. When I spoke to wonderful IR team, they said it was mostly SME claims. So I am just wondering, is it like, what I would call recession claims? When you have an insurance policy, you can transform it into cash, by having a claim. And then, if I may have a third one. So top line currency adjusted 3% in H1. You are saying you are still maintaining the 5%, I mean, kind of 5% for the full year. And just doing the math, it would imply 7% in H2. Where would that growth come from? Thank you.

Speaker #5: I just wondered if you can talk a little bit more about that. And then the €15 million kind of excess large losses—when I spoke to your wonderful IR team, they said it was mostly SME claims.

Speaker #5: So I'm just wondering, is it like what I would call recession claims? When you have an insurance policy, you can virtually—you can transform it into cash by having a claim.

Speaker #5: And then, if I may have a third one: so, top line currency-adjusted, 3% in H1. You're saying you're still maintaining the 5%—I mean, kind of 5% for the full year?

Speaker #5: And just doing the math, it would imply 7% in the second half. Where would that growth come from? Thank you.

Speaker #1: So to start with Germany, top-line development. We had to compensate in the first half-year roughly for €80 million insurance revenue of Targo.

Jan Wicke: To start with, Germany top-line development. We had to compensate in the H1, roughly for EUR 80 million insurance revenue of Targo. If you see this -1%, then you really can see that we have growth in the other areas of Retail Germany, and it was above our own expectations. With regard to the large losses, well, there have been fire claims. I should follow your idea whether there is anything, but it does not seem to be fraudulent. So it is normal delivery, in the property lines. We have had these losses, and we are delivering to our customers. This is key to us. The third question was on, pardon me, the third question, Mike, could you repeat it?

Speaker #1: Yeah. And if you see this minus percent, minus 1%, then you can really see that we have growth in the other areas of Retail Germany.

Speaker #1: And it was above our own expectations. With regard to the large losses, well, they have been fire claims. So I should follow your idea whether there's anything.

Speaker #1: But it doesn't seem to be fraudulent. So it's normal delivery in the property lines. We have had these losses, and we are delivering to our customers.

Speaker #1: This is key to us. And the third question was—pardon me, the third question, Mike, could you repeat it?

Speaker #5: Top line, group top line. If you maintain the 5% for the year, it means you're expecting more in the second half.

Michael Huttner: Group top line. If you maintain the 5% for the year, it means you are expecting more in the H2.

Speaker #1: When we are talking about mid-single digits, then we have a range between 3% and 7%. And this might be below the average.

Jan Wicke: When we are talking about mid-single digits, then we have a range in between 3% and 7%, and this might be below the average, 3% to 7%, despite the fact that we see some nice developments in both reinsurance and also in Corporate & Specialty, and in particular, in Retail International.

Speaker #1: 3 to 7%, despite the fact that we see some nice developments in both reinsurance and also in corporate and specialty, and in particular in Retail International.

Speaker #5: Thank you.

Michael Huttner: Thank you.

Speaker #1: Chris Hartwell from Autonomous, with more questions. Chris, good morning. What's on your mind regarding our numbers?

Bernd Sablowsky: Chris Hartwell from Autonomous with more questions. Chris, good morning. What's on your mind regarding our numbers?

Speaker #6: Good morning. Thank you for giving me the opportunity. First of all, can I come back to, I guess, Cam's question—just on the net income target.

Chris Hartwell: Good morning. Thank you for giving me the opportunity. First of all, can I come back to, I guess really Cam's question, just on the net income target. It's interesting that you've changed the phrasing around the net income target for 2026, but the return on equity target is unchanged. So if I do the maths around that, 19% ROE is just above EUR 2.7 billion. If I assume the 30 June shareholders' equity is a good proxy for average across the year. And 20% would be, I guess, closer to EUR 2.9 billion. So I'm wondering if you can help me, I guess, with the phrasing of around 19%. So I guess the around bit on the ROE guidance. Secondly, just coming back to the cost leadership point you were making.

Speaker #6: I mean, it's interesting that you've changed the phrasing around the net income sort of target for 2026, but the return on equity target is unchanged.

Speaker #6: And so, if I do the sort of the maths around that—I mean, 19% ROE is just above 2.7. If I assume, I mean, if I assume that sort of the June 30 shareholders' equity is a good proxy for the average across the year.

Speaker #6: And 20% would be, I guess, closer to €2.9 billion. So I'm sort of wondering if you can sort of help me, I guess, with the phrasing of around 19%.

Speaker #6: So, I guess the question around the ROE guidance. And secondly, just coming back to the cost leadership point you were making – I mean, how defensible do you think that is, particularly with the industry trying to embed AI and various other efficiency mechanisms across the industry?

Chris Hartwell: I guess, how defendable do you think that is, particularly with the industry trying to embed AI, and various other efficiency mechanisms across the industry. Do you think that's sustainable? And just related to that as well. Retail Germany, I guess, is the missing piece on that clean sweep of cost leadership across the group. So I'm intrigued to know why you don't have a cost advantage there. And if I can sneak just a little third one in as well. There hasn't really been a great deal of talk on dividend. I appreciate the message you gave in Q1.

Speaker #6: Do you think that's sustainable? And just related to that as well—retail Germany, I guess, is the missing piece on that sort of clean sweep of cost leadership across the Group.

Speaker #6: So, I'm intrigued to know why you don't have a cost advantage there. And if I can sort of sneak just a little third one in as well...

Speaker #6: There hasn't really been a great deal of talk on the dividend. I appreciate the message you gave in Q1. But again, if we can have a little bit of thought around the dividend outlook.

Chris Hartwell: But again, if we can have a little bit of thought around dividend outlook, and particularly, I guess, how you think about dividends, as cycles get more challenging, obviously, solvency isn't related entirely to top line growth, more exposure. But presumably, the ability to deploy capital is going to become more challenging, both in Corporate & Specialty and in reinsurance. So can we expect further acceleration of dividend over the next few years? Thank you.

Speaker #6: And particularly, I guess, how you sort of think about dividends as cycles get more challenging. Obviously, solvency isn’t related entirely to top-line growth.

Speaker #6: Sort of more exposure. But presumably, the ability to deploy capital is going to become more challenging, both in CNS and in reinsurance. So, can we expect further acceleration of the dividend over the next few years?

Speaker #6: Thank you.

Speaker #1: Well, thank you, Chris. Let's start with the net income target. You have very well calculated above €2.7 billion net income. And assuming the equity, it's above 19% if you do the math there.

Jan Wicke: Well, thank you, Chris. Let's start with the net income target. You have very well calculated above EUR 2.7 billion net income, and assuming the equity, it's above 19% if you do the maths there. We haven't adjusted this around 19% because in our calculation, it's not yet above 20%. This is why we have left this unchanged. Second question was on cost leadership. Therefore, I think I go to page 31. I hope the colleagues can. Yeah, there we are. Go to page 31. I hope it's displayed now for you as well. What you can see here is that we have quite significant cost advantages compared to our peers, and this is very difficult to achieve. I believe that AI obviously will accelerate the way how cost saving is done, but it will take some initial investments first.

Speaker #1: We haven't adjusted this, as it's around 19%, because in our calculation, it's not yet above 20%. So this is why we have left this unchanged. The second question was on cost leadership.

Speaker #1: And therefore, I think I will go to page 31. I hope the colleagues can—yeah, there we are—go to page 31. And I hope it's displayed now for you as well.

Speaker #1: What you can see here is that we have quite significant cost advantages compared to our peers, and this is very difficult to achieve. I believe that AI, obviously, will accelerate the way cost savings are done.

Speaker #1: But it will take some initial investments first. And we are starting from a better position in this race to make use of AI to become more cost-efficient.

Jan Wicke: We are starting from a better position in this race to make use of AI to become more cost-efficient. Will AI always drive cost efficiency? I'm not 100% sure on that one. Let me exchange my ideas on that one, why I'm not 100% sure. Let's assume that in the past, you need to make three offers to clients in order to achieve one contract. With AI usage on both sides, with the broker side or customer side, and on our side, there may be a future where you have to send out 10 offers to achieve one contract. So the volume which needs to be covered in the operation may increase due to AI, and therefore, the efficiency of the processes will be even more important.

Speaker #1: Will AI always drive cost efficiency? I'm not 100% sure about that one, and let me share my thoughts on why I'm not completely certain.

Speaker #1: Let's assume that in the past, you needed to make three offers to clients in order to achieve one contract. With AI usage on both the broker side or customer side, and on our side, there may be a future where you have to send out ten offers to achieve one contract.

Speaker #1: So, the volume which needs to be covered in the operation may increase due to AI, and therefore, the efficiency of the processes will be even more important.

Speaker #1: So I'm confident that we can keep our competitive edge on costs. And we are starting, as you can see, from a better starting point compared to our peers.

Jan Wicke: I'm confident that we can keep our competitive edge on costs, and we are starting, as you can see, from a better starting point compared to our peers. On Retail Germany, you questioned why don't you have cost advantages in Retail Germany. I think there, given that I was in the very past, seven years ago, I was also CEO of Retail Germany. Let me provide you with two insights. First, with regard to the P&C book, it's a little bit a question of scale. We had to modernize our IT system, which is done now, and we are already seeing very good progress, that we are already on average costs with regard to the P&C book.

Speaker #1: On retail Germany, your question—why don't we have cost advantages in retail Germany? I think, given that I was in the very past, seven years ago, I was also CEO of retail Germany.

Speaker #1: Let me provide you with two insights. First, in this regard, the P&C book is a little bit a question of scale. And we had to modernize our IT system, which is done now.

Speaker #1: And we are already seeing very good progress, as we are already on average costs with regard to the P&C book. With regard to the life entities, there are ongoing migrations to get all the life entities on one IT platform, which will then provide us with cost advantages towards the average market too.

Jan Wicke: With regard to the life entities, there are ongoing migrations to get all the life entities on one IT platform, which will then provide us with cost advantages towards the average markets too. This will take us another 2, 3 years. As the colleagues around Jens Warkentin, they are working consistently on that one. So we will improve our cost position also in Retail Germany, because we believe cost leadership is really key in the markets we are in. Last question, Chris, was on dividend. I just want to repeat what we have promised. We have promised a dividend of at least EUR 4, and I said well above EUR 4 last time. This is what I would expect. The solvency is very good and I'm really not at all concerned about the capital base.

Speaker #1: This will take us another two to three years. But as the colleagues around Jens Warkenting are working consistently on that one, we will improve our cost position also in retail Germany.

Speaker #1: Because we believe cost leadership is really key in the markets we are in. Last question, Chris, was on dividend. And I just want to repeat what we have promised.

Speaker #1: We have promised a dividend of at least four euros. And I said well above four euros last time. This is what I would expect.

Speaker #1: And the solvency is very good, and I'm really not at all concerned about the capital base. I do expect that we will deliver on dividends up also in the years to come.

Jan Wicke: I do expect that we will deliver on dividends up also in the years to come.

Speaker #6: Thank you very much.

Chris Hartwell: Thank you very much.

Speaker #1: So, then we have questions from EMPs, peers from BNP Paribas. Ian, good morning.

Bernd Sablowsky: Then we have questions from Iain Pearce from BNP Paribas. Iain, good morning.

Speaker #7: Hi, morning. Thanks for taking my questions. Sorry, I was just going to try again on the net income point. Just for the regulator, for a significant deviation, assumes a 10% move.

Iain Pearce: Hi, morning. Thanks for taking my questions. Sorry, I was just going to try again on the net income point. Just because the regulator for a significant deviation assumes a 10% move, and that's the requirement for a pre-announcement in Germany. So when I see the word significant, I sort of immediately jump to 10%. Is that not what you're trying to tell us with that word? I just wanted to clarify that. The second one was just on the run rate growth in German top line. That looks to be significantly ahead of the guidance for the full year. So just wondering if you want to revisit that. Also just on Germany, just to clarify, the large losses, were they 15, one five, above budget or 15?

Speaker #7: And that's the requirement for a pre-announcement in Germany. So when I see the word "significant," I sort of immediately jump to 10%. Is that not what you're trying to tell us with that word?

Speaker #7: I just wanted to clarify that. The second one was just on the run-rate growth in German top line. That looks to be significantly ahead of the guidance for the four years.

Speaker #7: So, just wondering if you want to revisit that. And then also, just on Germany, just to clarify: the large losses, were they 15—one-five—above budget, or 50?

Speaker #1: Okay. First, with regard to the net income, just to repeat what I've already said, we haven't said above 2.8. We have said significantly above 2.7.

Jan Wicke: Okay. First, with regard to the net income, just to repeat what I have already said. We have not said above EUR 2.8. We have said significantly above EUR 2.7. This is what we see as of today. After Q3, we will reassess our guidance in the light of the hurricane season and the large losses which have been occurred during the course of Q3. Second, with regard to the run rate, in Retail Germany, we are maybe a little bit defensive here. The development in H1 was really good at Retail Germany. But, there we are a little bit defensive. It could come out slightly better than initially projected. This is what we expect here. Does this answer your question?

Speaker #1: This is what we see as of today. After the third quarter, we will reassess our guidance in light of the hurricane season and the large losses which have occurred during the course of the third quarter.

Speaker #1: Second, with regard to the run rate in Retail Germany, we are maybe a little bit defensive here. The development in the first half-year was really good at Retail Germany.

Speaker #1: But there we are a little bit defensive. It could come out slightly better than initially projected. This is what we expect here. Does this answer your question?

Speaker #7: Yeah, and just a clarification on the large losses. I didn't get the number. Was it 15 or 50? Because obviously, it's quite big for the underlying combined.

Iain Pearce: Yeah. Just the clarification on the large losses, so I did not get the number, was it 15 or 15? Because obviously that is quite big for the underlying combined.

Speaker #1: In Retail Germany, it was 1.5, above the budget. The main driver was three fire claims, where more plants of SME businesses burned down.

Jan Wicke: In Retail Germany, it was 15. 15.

Iain Pearce: 15. Yeah. Okay.

Jan Wicke: Above the budget. The main driver are three fire claims, where small plants of SME businesses burnt down.

Speaker #7: Perfect. Perfect. Thank you.

Iain Pearce: Perfect. Thank you.

Speaker #1: All right. So, Roland Fender from Auto BHF. Good morning, Roland. What do you have in mind in relation to our numbers?

Bernd Sablowsky: All right. Roland Pfänder from ODDO BHF. Good morning, Roland. What do you have in mind in relation to our numbers?

Speaker #8: Yes, good morning. Thanks for taking my questions. I would like to come back to Retail International. You reported very strong revenue growth. Nevertheless, quarter over quarter, it came down, I think, from 12% to 8%.

Roland Pfänder: Yes, good morning. Thanks for taking my questions. I would like to come back to Retail International. You reported very strong revenue growth. Nevertheless, quarter-over-quarter, it came down, I think, from 12% to 8%. Is there anything you could point at? Secondly, could you comment a little on claims inflation in Retail International and what you see here? Maybe you could also compare it to Corporate & Specialty. Is it different momentum, for example? Then regarding Retail International, I think you had the target to increase your non-motor business over the years. Maybe you could provide an update to these targets. Thank you.

Speaker #8: Is there anything you could point to? Secondly, could you comment a little bit on claims inflation in Retail International and what you see there?

Speaker #8: And maybe you could also compare it to CNS. Is it a different momentum, for example? Then regarding Retail International, I think you had the target to increase your non-motor business over the years.

Speaker #8: Maybe you could provide an update to this target. Thank you.

Speaker #1: Okay. So first of all, with regard to the revenue development, what we see in the revenue development is this, right? A little bit, there is a very strong growth in the first quarter, and then it came down.

Jan Wicke: Okay. First of all, with regard to the revenue development, what we see in the revenue development is this, right? A little bit, the very strong growth of the Q1 came down, and the Q2 was particularly driven by Poland. Nevertheless, Poland is still the main driver or one of the biggest driver of the revenue, the positive revenue development in Retail International. The development in Poland is due to higher competition. We have gained a lot of market share in the last 18 months in Poland, and this is a main driver. With regard to the claims inflation, that is a difficult question to answer because claims inflation largely depends on the currency exchange rate in the various countries we are in. Therefore, it is always claims and price adaption, which you have to see in parallel, when looking at those markets.

Speaker #1: In the second quarter, this was particularly driven by Poland. Nevertheless, Poland is still the main driver, or one of the biggest drivers, of the positive revenue development in Retail International.

Speaker #1: And the development in Poland is due to higher competition. So we have gained a lot of market share in the last 18 months in Poland.

Speaker #1: And this is a main driver. With regard to the claims inflation, is that a difficult question to answer because claims inflation largely depends on the currency exchange rate in the various countries we are in.

Speaker #1: And therefore, it's always claims and price adaptation, which you have to see in parallel when looking at those markets. And then, obviously, the claims inflation in local currency terms in Brazil is different from Poland.

Jan Wicke: The claims inflation in local currency terms in Brazil are different from Poland, are different from Italy, are different from Turkey. I am sorry that I just can provide you a little bit more noise on that. Overall, looking at the combined ratio, we are very happy the way we can adapt to claims inflation in our pricing so far. The combined ratio of Retail International is really at a very, very good level. With regard to the non-motor business, I am unfortunately also the team which is supporting me is currently short of this answer. We will provide you the answer after we have analyzed it later.

Speaker #1: They are different from Italy; they are different from Turkey. So I'm sorry that I can just provide you with a little bit more noise on that one.

Speaker #1: But overall, looking at the combined ratio, we are very happy with the way we can adapt to claims inflation in our pricing so far. The combined ratio of Retail International is really at a very, very good level.

Speaker #1: And with regard to the non-motor business, unfortunately, the team supporting me is currently unable to provide this answer. But we will provide you with the answer after we have analyzed it later.

Speaker #8: Thank ank you.

Roland Pfänder: Thank you.

Speaker #1: Then there's a follow-up question from Michael—Michael Hattner. Michael?

Bernd Sablowsky: Then there is a follow-up question from Michael Huttner. Michael?

Speaker #8: Fantastic. Thank you so much. Just to try, seeing in Germany, and motor—well, motor line is most interesting. But generally, and also, what kind of firepower would you have for deals?

Michael Huttner: Fantastic. Thank you so much. Just to pricing in Germany, in motor. Well, motor's most line are most in slim, but generally. Also, what kind of firepower would you have for deals?

Speaker #8: Looking up. Thank you.

Jan Wicke: Looking at. Thank you. So with regard to motor, the pricing in the whole market is still very disciplined, and I would expect some more price increases due to the claims inflation. Yeah. So a lower single-digit price increase is what I would expect. But we will see. The renewal rate starts in October. So then after the Q3, I can provide you with more insights from the market because this matters then for the market. With regard to deal capacity. So, that's a difficult one. But I can give you EUR 5 billion, yeah, as a number, which is feasible, but the question is whether we want to do a deal of EUR 5 billion or whether we rather would like to have a few deals in a lower range. But we do have the capacity to do the deals, to capture opportunities when they are there.

Speaker #1: So, with regard to motors, the pricing in the whole market is still very disciplined. And I would expect some more price increases due to the claims inflation.

Speaker #1: So, a lower single-digit price increase is what I would expect. But we will see. The renewal rate starts in October, so after the third quarter, I can provide you with more insights from the market, because this matters then for the market.

Speaker #1: And with regard to deal capacity, that's a difficult one. But I can give you $5 billion as a number which is feasible.

Speaker #1: But the question is whether we want to do a deal of $5 billion, or whether we would rather have a few deals in a lower range. But we do have the capacity to do the deals to capture opportunities when they are there.

Speaker #1: But this opportunity is, they have to meet certain yardsticks with regard to return on equity, with regard to some other criteria, and we are very disciplined with that one.

Bernd Sablowsky: But these opportunities, they have to meet certain yardsticks with regard to return on equity, with regard to some other criterias. And we are very disciplined with that one. The reason for this EUR 5 billion, just to give some more color, is that we also have lending facilities with the mutual. So it's not about having EUR 5 billion of war chests within Talanx, but we also can make use of some agreements with the mutual, which is willing to support the further growth of Talanx. Yeah. Thank you very much. Okay, then final call for questions. At the screen, no more questions at the moment. Then, Jan, I would ask you for some concluding remarks. First of all, thank you for your questions and thank you for attending our earnings call. Overall, Talanx had a very good H1 in 2026.

Speaker #1: So, the reason for this €5 billion, just to give some more color, is that we also have lending facilities with the mutual. So, it's not about having €5 billion awarded shares within Talanx, but we also can make use of some agreements with the mutual, which is willing to support the further growth of Talanx.

Speaker #8: Yes. Thank you very much.

Speaker #1: Okay. So then, final call for questions at the screen. No more questions at the moment. So then, Jan, I would ask you for some concluding remarks.

Speaker #1: First of all, thank you for your questions and for attending our earnings call. Overall, Talanx had a very good first half of the year in 2026.

Speaker #1: We have delivered a record result. We have had a very benign environment, with very low large losses. This provides us with a lot of confidence that we will deliver more than €2.7 billion, and significantly more than €2.7 billion net income for the full year 2026.

Jan Wicke: We have delivered the record results. We had had a very benign environment with very low large losses. This provides us with a lot of confidence that we will deliver more than EUR 2.7 billion and significantly more than EUR 2.7 billion net income for the full year 2026. With the next quarterly call, we will update our guidance, and we will provide you with the guidance for 2027. So thank you for attending this call. Thanks. Bye-bye. See you soon.

Speaker #1: With the next quarterly call, we will update our guidance, and we will provide you with guidance for 2027. So, thank you for attending this call.

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Q2 2026 Talanx AG Earnings Call

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Earnings