Talanx TLX.DE
What does Talanx do?
Talanx is an internationally active insurance group headquartered in Hanover. The company offers primary insurance and reinsurance, covering property and casualty insurance, life and health insurance as well as specialty lines such as marine, aviation, credit and surety. Profits arise from the underwriting result, that is, the difference between premium income and claims and expenses, and from investment income.
The business is divided into several segments: industrial lines insurance for corporate customers, retail and corporate business in Germany and international markets, for example through bank partnerships and distribution in Europe and Latin America, as well as reinsurance through its subsidiary Hannover Re, which is among the largest reinsurers in the world. Talanx is thus broadly diversified by line of business and region. The group competes with Allianz, Munich Re and AXA as well as international industrial insurers. The majority of shares is held by the mutual insurance association HDI V.a.G.
Score profile
Rank vs. Insurance - Diversified (9 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Talanx ranks below average in the group Insurance - Diversified (3.6/10). On growth, the company ranks below average in the group Insurance - Diversified (2.2/10). On valuation (higher = cheaper), the stock ranks below average in the group Insurance - Diversified (3.0/10). On financial strength, Talanx ranks in the middle in the group Insurance - Diversified (5.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 11.2x | 11.0x | better than 31 % |
| Trailing P/E | 13.0x | 12.5x | better than 39 % |
| PEG ratio | 3.4x | 1.2x | better than 17 % |
| EV/EBITDA | 4.7x | 5.4x | better than 58 % |
| Price/sales | 0.8x | 1.5x | better than 72 % |
| Price/book | 2.3x | 1.7x | better than 19 % |
| Revenue growth | -21.6% | 11.2% | better than 6 % |
| Earnings growth | -5.9% | 16.1% | better than 39 % |
| Gross margin | 16.9% | 26.6% | better than 17 % |
| Operating margin | 8.3% | 13.7% | better than 28 % |
| Net margin | 6.1% | 11.8% | better than 17 % |
| Return on equity | 20.4% | 18.7% | better than 83 % |
| Debt/equity | 40.4% | 33.2% | better than 39 % |
| Current ratio | 16.3x | 1.8x | better than 94 % |
| Free cash flow yield | 7.8% | 5.3% | better than 61 % |
| Dividend yield | 2.8% | 2.8% | – |
| Payout ratio | 35.7% | 35.7% | – |
| Beta | 0.30 | 0.47 | – |
Valuation: what is Talanx worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Talanx a model range of 93.42 EUR to 129.03 EUR per share.
7 analysts, average rating “—”, average price target 131.43 EUR (+0.4%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The underwriting result depends on premium growth, market price levels and disciplined risk selection.
- Income from the extensive investment portfolio, mainly bonds, is strongly influenced by interest rate levels.
- The stake in Hannover Re provides a substantial, broadly diversified earnings contribution from global reinsurance.
Risks
- Natural disasters and large losses may sharply weigh on the underwriting result in the short term, particularly in reinsurance and industrial lines insurance.
- Insufficient reserving may lead to reserve strengthening if claims turn out higher over the long term than originally assumed.
- Capital market fluctuations, credit defaults and currency effects affect investment results and equity of the internationally active group.
What to look for with Talanx
The combined ratio shows whether the insurance business operates profitably before investment income and reveals differences in underwriting discipline.