HDI-Gerling Industrie set to receive Talanx IPO boost

It is also thought that part of the proceeds will be used to help continue the expansion of HDI-Gerling Industrie’s global network and therefore further add to its capabilities in the international market. Talanx announced this week that its Board of Management passed a resolution to list the group on the Prime Standard of the Frankfurt Stock Exchange in autumn of this year through an IPO that will consist of primary shares only. The group said that the proceeds from the capital increase will be used to finance growth and further strengthen the group’s capital position. Through the deal, the sole shareholder of Talanx—HDI V.a.G.—intends to remain majority shareholder of Talanx AG ‘permanently,’ said the group.hide“The market environment has improved and Talanx is very well prepared. If the conditions remain stable we plan to seek a stock exchange listing this autumn,” stated Talanx. “We will keep in view both the aspirations of the company and of our existing shareholder HDI V.a.G. as well as the interests of our new shareholders,” continued the statement. The announcement was made as Talanx also reported decent first half results. “Our strong first half year results confirm the strength of the Group, and in the current market situation we are pursuing our goal of a successful listing with confidence,” commented Herbert Haas, Chief Executive Officer of Talanx AG. Talanx said that it intends to use the proceeds of the IPO to finance growth and further strengthen its capital position. The Hanover-based insurance group said that its strategic partner, Meiji Yasuda Life Insurance, will convert its €300m convertible bond that it has held since November 2010 into shares of Talanx AG at the IPO price. In addition to the listing in Frankfurt, Talanx will also seek a listing on the Hannover Stock Exchange. Talanx was the third-largest German insurance Group and the eleventh-largest European insurance group in 2011 based on gross written premiums, it sated. In 2011, Talanx generated premium income of roughly €23.7bn. Talanx said that it aims to expand mainly through organic growth but also by ‘selective’ acquisitions in its strategic target markets of Latin America, and Central and Eastern Europe (CEE). “The focus of this expansion is to build out the Group’s international retail and corporate insurance platforms. The industrial lines business aims at further expanding its global reach,” stated the group. Overall Talanx targets an international primary insurance premium income of 50% of the group’s entire primary insurance premium total. In line with this strategy Talanx has recently acquired the Polish insurance groups TU Europa and TUiR Warta. The industrial lines business recently expanded its global presence with new branch offices in Singapore and Bahrain and a joint venture in India. During the first six months of the year, the group generated operating profit (EBIT) of €855m, and therefore almost doubled the EBIT achieved in the first half of 2011. Group net profit after non-controlling interests grew by 65% to €354m. Talanx’s gross written premiums increased by approximately 9% compared to the first six months of 2011 and reached €13.6bn in the first six months of 2012.

HDI-Gerling Industrie set to receive Talanx IPO boost

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