Speaking at Capital Markets Day in Warsaw, Poland, Talanx chief executive Herbert Haas said that "our international business is developing well. We may even achieve this goal purely on the basis of organic growth by 2018".
Haas said that Talanx anticipated an operating profit of at least €200m in retail international business in 2014, up from €185m in 2013. Of that, Polish group Warta would contribute slightly less than €80m, up from €72m in 2013. Talanx expects that figure to reach at least €100m by 2017.
Talanx also noted that its Turkish business HDI Sigorta had also reached breakeven point, which meant that all units in the segment were now operating at a profit.
Haas said that Talanx's international retail business focus was on strategic growth markets, "as well as on core competencies in motor insurance, bancassurance and the integration of new units". This year the international retail operation expects to make profit transfers to the holding company.
Over in Industrial Lines, premium income generated is at 54%, already greater than Talanx's medium-term target. The company said that "new business written with high-profile major clients as well as the launch of new HDI-Gerling branches in Toronto, Singapore and Bahrain had played "a crucial part".
Looking at medium-term objectives, Talanx said that it remained on course to generate a return on equity of at least 750 basis points above the average for 10-year German government bonds. This is currently a rate of about 1.3%.
Hannover-based Talanx generated total premium income of €28.1bn in 2013, mainly through a focus on commercial lines. Its brands include HDI, HDI-Gerling, Hannover Re, Targo, PB and Neue Leben. In 2012 it took over Poland-based Warta and TU Europa. That made Poland Talanx's second core market.