Talanx Cranks Up Earnings and Dividends by 2027: Aggressive Growth Plans Revealed
Hamburg
American Market Welcomes Insurance Company Talanx for Acquisitions
In an exclusive interview with Börsen-Zeitung, insurance titan Talanx announced an aggressive strategy to skyrocket its profits and dividends over the next five years. CEO Torsten Leue shared insights into their acquisition ambitions, particularly in Mexico and the United States' profitable niches.
Through strategic acquisitions, Talanx surged to become the second-largest property insurer in South America, ahead of Zurich—after sealing the €1.4 billion purchase of Liberty Seguros' private and corporate insurance business in 2023. Whether this hefty purchase will be eclipsed remains uncertain, according to Leue. Organic growth is also in the works, as Talanx boasts a mid-double-digit billion-euro war chest for acquisitions. Leue prefers five €1 billion acquisitions rather than one gargantuan one worth €5 billion.
New Financial Landscape
Talanx presented fresh mid-term financial targets, independently of additional acquisitions, says Leue. Expectant shareholders, including majority owner HDI V.a.G., should brace for a net profit surge by 30% to €2.5 billion by 2027. The company's return on equity will soar above 12%, up from the current >10%. By 2027, the dividend per share is slated to reach €4.00—a significant increase from the current €2.70.
Investors Show Appreciation
Investor reaction to the ambitious plans has been overwhelmingly positive, with Talanx's share price reaching new all-time highs, surging up to 3.2% to €86.30.
Talanx's Success Recipe
Talanx's impressive business model encompasses both primary insurance and reinsurance. This diversity has fortified the company's resilience during challenging market periods. In 2024, Talanx's Group net income expanded by 25% to €1.977 million, shattering targets. The company started 2025 off strong, despite substantial natural disaster losses, by generating a record quarterly net income.
Looking Ahead
Talanx aspires to hit Group net income above €2.5 billion by 2027 and increase the dividend per share to €4.00. Exciting times lie ahead for investors in Talanx.
- To achieve these ambitious growth targets, Talanx is considering strategic acquisitions primarily in Mexico and the United States' profitable niches, as well as organic growth, with a mid-double-digit billion-euro war chest available for acquisitions.
- Forward-looking investors recognizing Talanx's potential earning potential will be rewarded, as the company aims to surpass a net profit of €2.5 billion by 2027, with a return on equity climbing above 12%, and a projected increase in the dividend per share to €4.00.
