HDI Global reports strong 2023 results

Industrial insurer HDI Global SE, part of the Talanx Group, has reported positive financial results for 2023. The combined ratio improved by 1.5 percentage points compared to the same period last year, now standing at 91.5 percent. The insurance revenue increased by 10 percent and totalled EUR 9.1 billion. The operating profit increased by 4 percent to EUR 446 million, while net income rose by 13 percent to EUR 351 million.

"Overall, 2023 has been a strong year for HDI Global", says Dr Edgar Puls. "While the effects of inflation played their part in the first half of the year, we were able to increase our insurance service result and minimise the impact of large losses on our balance sheet thanks to prudent and disciplined underwriting. With these positive results and the worldwide performance culture in our group, we can confidently act as our clients' Partner in Transformation. I am thankful for their continuous trust in us."

HDI Global lifted insurance revenue by 10 percent to EUR 9.1 (8.2) billion in the fiscal year 2023, or 12 percent after adjustment for currency effects. The growth is primarily driven by property and liability business, which resulted in a good insurance service result of EUR 770 (574) million, on the back of higher interest rates, a low level of frequency losses, and low large losses. Large loss payments were within budget at EUR 334 (381) million. Consequently, the combined ratio for HDI Global improved to 91.5 (93.0) percent.

Puls elaborates: "The results have been achieved in times of constant change for the global industry. Be it the transformation to a carbon-free world, increased digitalisation, autonomous vehicles, offshore wind farms, new fuels and energy sources as well as the need for climate risk prevention in general: We enable the global industry in light of emerging new risks by acting as their close partner, offering tailor-made insurance solutions and additional services. We are also a leading player in International Programmes and Alternative Risk Transfers such as captives. The continued growth in both areas in 2023 is a testament to our expertise and our strong global network."

The net insurance financial and investment result before currency effects amounted to EUR 11 (169) million; this was due among other things to higher interest rates and the conscious decision to accept disposal losses when rebalancing from lower-yield investments to higher-yield ones. The operating profit rose to EUR 446 (430) million, and HDI Global's contribution to the Talanx Group's net income climbed by 13 percent to EUR 351 (311) million.

"It takes resilience, reliability and trust to act as a true partner," explains Puls. "Most of our client relationships are long-term. In 2023 we paid out more than EUR 6 billion in claims, proving that we are there for our clients when it really matters. Our positive results encourage this approach of continuous client centricity and the aspiration of constant progress in our solutions. To offer leading expertise is a must, and with the talent in our group, I am confident that we will continue to satisfy our clients' needs."

Source: HDI Global SE