The industrial insurer HDI Global SE part of the Talanx Group has reported that insurance revenue rose by a clear 10% to €4.2 billion in the first half of the year, compared to €3.8 billion from the same period last year.
According to the firm, this solid performance was partly due to growth in the property and liability business, as well as an increase in the specialty risks business, which generated insurance revenue of €1.4 billion.
At the same time, HDI Global SE’s combined ratio improved by 1% compared to the same period last year, which now stands at 93.1%, below the stated medium-term target of 95%.
In addition, HDI Global SE’s net insurance financial and investment result before current effects dipped to €49 million for H123, compared to €103 million from the same period last year. The company noted that this decrease was largely due to higher interest accretion in the loss reserves.
The division’s operating profit also rose to €190 million, compared to last years €174 million. Its contribution to Group net income climbed 22% to €151 million.
“While the effects of inflation and high claims inflation are still being felt, it has been a positive first half of 2023 for HDI Global. With the talent and entrepreneurial culture in our Group, we are set up to face the variety of ongoing challenges in the remainder of the year with confidence”, commented Dr Edgar Puls, CEO HDI Global SE.
Puls continued: “The results have been achieved in difficult times. To name just a few of the challenges, social inflation continues to rise in liability claims, we are seeing an ongoing high number of cyber-attacks, and NatCat events continue to occur with considerable frequency all around the world. On a positive note, we have noticed the amount of man-made high-volume losses returning to a more normal level.”
Furthermore, HDI Global SE’s insurance service result rose from €226 million to €292 million on the back of lower frequency losses, lower large loss payments and higher interest rates, which ultimately resulted in positive discounting effects in loss reserves. Large loss payments for H123 were €134 million, down from last year’s €174 million.
Puls, added: “Our business development and positive results show that the measures taken in the past were appropriate. Although we are now seeing global supply chains stabilising, many challenges remain. The accelerated transformation towards carbonfree technologies poses new risks for our clients. We consider it part of our purpose to partner up with them during such transformational times and to be at the forefront of insuring new technologies.
“This means staying close to our clients’ business on site and putting the emphasis on risk management and prevention with our tailor-made solutions and leading expertise, e.g. in Risk Consulting and International Programmes. We will continue to serve our broker partners and our clients reliably and predictably wherever they conduct their business.”
