Talanx faces weaker pricing after 23% rally, BNP Paribas says

BNP Paribas has lowered its rating on Talanx to 'neutral' from 'outperform', pointing to a 23% gain in the German insurer's shares since the bank first upgraded the stock in June.

The downgrade came within a wider sector research note, in which BNP Paribas adopted a more cautious stance on the insurance industry, saying it found it difficult to justify prevailing valuations across large parts of the market even though second-quarter results were broadly strong.

BNP Paribas has assigned a €120 target price to Talanx. The bank trimmed its 2026 earnings-per-share forecast for the company by 4% and its 2027 projection by 3%.

As of the report, Talanx was trading at price-to-earnings ratios of 11.5 for 2026 and 10.6 for 2027, with price-to-tangible-net-asset-value multiples of 2.54 and 2.24 for those years, respectively. The company's market capitalization was €32.85 billion.

Analysts Iain Pearce and Meera Sheth of BNP Paribas noted that second-quarter results provided 'increased evidence of a slowdown in pricing feeding into the results,' with reinsurance combined ratios now expected to surpass targets next year, and commercial results exhibiting flat or negative top-line development during the quarter.