HDI Global half-year 2023 results – UK & Ireland business set for further growth
Reporting on the first half of 2023, Industrial insurer HDI Global SE has announced double-digit growth in insurance revenue and a further improved combined ratio. The results are backed by strong performances in the liability and property lines, as well as robust growth in specialty line portfolios. HDI Global’s UK & Ireland branch showed solid premium growth and contributed to the positive overall result of the Germany based multi-national industrial insurer belonging to the Talanx Group.
On a worldwide scale, HDI Global 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 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. 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. HDI Global’s operating profit rose to EUR 190 (174) million. Its contribution to Group net income climbed 22 percent to EUR 151 (124) million.
In the second quarter, insurance revenue rose to EUR 2.1 (2.0) billion. Operating profit was EUR 104 (113) million, while the contribution to Group net income was EUR 82 (89) million.
Looking back on the first half of 2023, Richard Taylor (pictured), CEO of HDI UK & Ireland, emphasizes the “strong reputation we have with our broker partners. We increased our visibility in the market further by offering tailor-made solutions for both specialty and commercial business.” As the market is becoming increasingly competitive, Taylor feels well prepared: “Our positive financial results are based on a strong performing portfolio of well risk-managed clients in our commercial business. For specialty business, we have sizeable portfolios in most lines of business which makes HDI a very attractive partner overall.”
HDI has recently announced several additions in its senior management to keep delivering on its ambitions, says Taylor: “While we defend existing business, we want to keep growing as well. We welcomed a new Director of Underwriting in Commercial and a Lead Underwriter in Cyber. These appointments will be core to our client and broker proposition. I am very much looking forward to the full year results as we can build on a solid platform that is trusted by our brokers and clients.”
Authored by HDI Global
