HDI Global SE announced impressive financial results for 2024, alongside strategic plans for future growth, according to a recent report. The company, part of the Talanx Group, achieved double-digit billions in revenue for the first time, totaling €10.0 billion for the year.
Key Financial Highlights
Beyond the revenue milestone, HDI Global SE demonstrated strong performance across several key metrics:
- Combined Ratio: Improved to 90.0% from 91.5% the previous year.
- Operating Profit (EBIT): Rose significantly to €702 million, up from €446 million.
- Return on Equity: Increased by 3.3 percentage points to reach 17.6%.
- Insurance Service Result: Increased to €1.004 billion from €770 million.
The company attributed the positive results to expansion of new business and strategic price adjustments, partially reflecting inflationary impacts. While large loss payments grew to €402 million from €334 million, they remained below the budgeted figure due to fewer man-made losses.
Additionally, favorable investment performance contributed to a rise in the net insurance financial and investment result before currency effects, which grew to €83 million from €11 million.
HDI Global’s contribution to Talanx Group’s net income reached €501 million, an increase from €351 million. This strong financial performance led to an upgrade to AA- by S&P Ratings, which HDI Global said reflects its long-term position in the market.
Continued Growth Trend
The strong 2024 results are part of a continuing upward trend. In the first nine months of 2024, the corporate and specialty insurer reported insurance revenue of €7.3 billion, an 11% increase compared to €6.6 billion in the prior-year period (before and after currency adjustments). In 2023, insurance revenues increased by 10%, reaching €9.1 billion. Operating profits rose by 4%, totaling €446 million, and net income increased by 13%, reaching €351 million.
US Expansion and Strategic Initiatives
HDI Global Insurance Company, the US arm of HDI Global SE, reached $1 billion in gross written premiums in 2024. The company is driving growth through strategic partnerships, such as the collaboration with Hallmark Insurance, and expanding its product offerings, including a Cyber facultative facility and specialized teams in Life Science and Environmental insurance, according to CEO Jim Clark.
HDI Global SE CEO Jim Clark.
Looking ahead, Clark noted that the company will implement the Guidewire Policy Center system in 2025, aiming to streamline and improve underwriting processes, especially in the face of market challenges such as tort reform and the impact of substantial verdicts.
