Industrial insurer HDI Global SE has reported double-digit growth in Gross Written Premiums and a further improved combined ratio for 2022, underpinned by strong performances in the liability and property lines as

well as robust new business growth in specialty line portfolios.

On a worldwide scale, HDI Global grew its premium income by 17.9 percent in financial year 2022 to EUR 8.9 (7.6) billion – a clear double-digit rise. The currency-adjusted increase was 12.9 percent. Key growth areas were liability and property insurance and specialty lines. Growth was driven both by new business and by rate adjustments, partly as a result of inflation. HDI Global Specialty continued its successful development, growing premium income by EUR 660 million year-on-year to EUR 3.1 billion. Commercial Lines rose by EUR 693 million. Dr Edgar Puls, Chief Executive Officer HDI Global, comments the results: “HDI Global took advantage of the hard markets worldwide and grew profitably. Since 2018 we almost doubled our gross written premiums. To its rise in 2022, both commercial lines and specialty lines contributed almost equally. Our growth results from new business as well as rate changes in existing business, which underlines the strengthening of our portfolio quality.”

A drop in frequency losses pushed down the combined ratio for the industrial insurer to 95.7 (98.7) percent, in line with the strategy, despite an increase in total large losses and inflation effects. As a result, HDI Global has almost reached its mid-term target of 95 percent well ahead of schedule. This reflects the positive effects of the measures taken to increase profitability since 2019. “With a combined ratio of 95.7 percent, we almost reached our strategic goal of a combined ratio of 95 percent two years ahead of plan. Though we exceeded our large loss budget for 2022 due to natural catastrophes and man-made losses, we nevertheless improved our combined ratio by three percentage-points compared to 2021. We achieved that with a strong underwriting result and lower loss ratio resulting from successful portfolio measures and profitable new business”, says Dr Puls. High large loss claims due to natural disasters such as Hurricane “Ian”, Hurricane “Fiona” and the floods in Australia impacted business by EUR 270 million. In addition, reserves for losses in relation to Russia’s war of aggression against Ukraine totalled EUR 36 million. With an amount slightly below EUR 17 million, the low level of losses incurred from Winter Storm “Elliot” in the fourth quarter reflects the strict restructuring of the property portfolio

Operating profit for HDI Global climbed to EUR 252 (196) million in the financial year. The division contributed EUR 177 (143) million to the Talanx Group’s net income.

In 2023, HDI Global has the ambition to continue the path of profitable growth and improve the combined ratio further. As in 2022, there will be challenges along the way. “Global inflation, the war in Ukraine, the consequences of the Corona pandemic and natural disasters will continue to test the global economy this year. Companies are increasingly recognising the importance of prevention and identifying their risks at an early stage, which is the basis for the growth trend of recent years to continue," says Dr Edgar Puls.