Industrial insurer HDI Global SE, part of the Talanx Group, has reported positive financial results for the first half of 2023. The combined ratio improved by 1.0 percent compared to the same period last year. Now standing at 93.1 percent, it is below the stated medium-term target of 95 percent. The insurance revenue generated totalled EUR 4.2 billion. The operating profit (EBIT) increased by 9.7 per cent to EUR 190 million, while the return on equity improved by 1.9 percent, now coming in at 12.8 percent.

“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”, says Dr Edgar Puls, CEO HDI Global SE.
The industrial insurer again lifted its insurance revenue and further improved its underwriting activities. Insurance revenue rose by a clear 10 percent to EUR 4.2 (3.8) billion in the first half of the year, or 11 percent after adjustment for currency effects. This positive performance was partly due to growth in the property and liability business, as well as to an increase in the specialty risks business, which generated insurance revenue of EUR 1.4 (1.3) billion. The combined ratio improved to 93.1 (94.1) percent, clearly below the strategic target of 95 percent. The net insurance financial and investment result before currency effects was EUR 49 (103) million. The decrease was largely due to higher interest accretion in the loss reserves. The division’s operating profit rose to EUR 190 (174) million. Its contribution to Group net income climbed 22 percent to EUR 151 (124) million.
Puls elaborates: “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.”
The insurance service result rose to EUR 292 (226) million on the back of lower frequency losses, lower large loss payments and higher interest rates leading to positive discounting effects in loss reserves. Large loss payments were EUR 134 (174) million, down on the volume for the prior-year period.

“Our business development and positive results show that the measures taken in the past were appropriate”, says Puls as he shifts the focus to the future: “Although we are now seeing global supply chains stabilising, many challenges remain. The accelerated transformation towards carbon-free 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”, concludes Puls.

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