HDI Global SE Reports Strong 2024 Financial Performance
In a recent report, HDI Global SE announced robust financial results for the full year of 2024, marking a significant achievement with its insurance revenue reaching €10.0 billion for the first time, exceeding the double-digit billion mark. The company, a part of the Talanx Group, also demonstrated strong operational efficiency, with a combined ratio of 90.0%, a decrease from 91.5% the previous year. This financial success is attributed to several factors, including new business growth and strategic price adjustments.
Operating profit (EBIT) saw a substantial increase, reaching €702 million compared to €446 million in the prior year. Return on equity also improved, increasing by 3.3 percentage points to 17.6%. The company’s insurance service result rose to €1.004 billion, up from €770 million, supported by an improved loss ratio.
While large loss payments increased to €402 million from €334 million, they remained below the budgeted amount of €468 million due to fewer man-made losses. However, the natural catastrophe budget was exceeded. Net insurance financial and investment results before currency effects also improved, rising to €83 million from €11 million, driven by increased investment volumes and higher interest income. HDI Global’s contribution to the Talanx Group’s net income was €501 million, up from €351 million. These figures reflect a continuing positive trend for the company.
S&P Ratings recently upgraded HDI Global to AA-, a testament to its strong market position.
Continued Growth in 2024
For the nine months of 2024, the corporate and specialty insurer recorded insurance revenue of €7.3 billion, an 11% increase from €6.6 billion in the prior-year period, both before and after currency adjustments. The previous year, 2023, also saw significant growth, with insurance revenues increasing by 10%, reaching €9.1 billion, and with operating profits totaling €446 million, and a 13% increment in net income, which amounted to €351 million.
HDI Global United States Expansion
In the United States, HDI Global Insurance Company, the US arm of HDI Global SE, achieved $1 billion in gross written premiums in 2024. CEO Jim Clark highlighted the importance of new partnerships and product expansions in driving this growth. These include collaborations with companies like Hallmark Insurance and the introduction of solutions like a Cyber facultative facility, as well as specialized teams in Life Science and Environmental insurance.
Clark stated that in 2025, the company would implement the Guidewire Policy Center system to enhance underwriting processes, thus improving their service delivery despite facing certain challenges in the US market. He emphasized the company’s ongoing commitment to growth and service delivery in the face of market challenges like tort reform and high-value verdicts.
