HDI Global has reported robust growth in revenue and earnings for the first nine months of the 2023 financial year.
The industrial insurer recorded a notable improvement in its combined ratio, reaching 92.7% compared to the same period last year. The insurer's generated insurance revenue totalled €6.6 billion, with a return on equity of 13.4% after nine months, surpassing its strategic target of over 10%.
Year-on-year insurance revenue saw a 10% increase to €6.6 billion, or 12%, when adjusted for currency effects. This growth is primarily attributed to expansion in the property and liability business segments. The insurance service result improved significantly to €481 million from €275 million, benefiting from reduced frequency and size of losses, as well as positive effects from rising interest rates on loss reserves.
Large losses decreased to €267 million from €316 million compared to the previous year and were €16 million under the pro-rata budget. Consequently, the combined ratio improved from 95.4% to 92.7%. The net insurance financial and investment results, before currency effects, decreased to €22 million from €169 million, largely due to increased interest in loss reserves.
However, operating profit grew to €293 million from €271 million, and the contribution to the group net income rose to €243 million from €199 million. The return on equity after nine months stood at 13.4%, exceeding the company's strategic goal.
“Thank you to our clients and business partners for maintaining our longstanding, good relationships and furthering the continued trust. The results show that we are a continuously predictable, and financially strong partner in times of transformation. With our tailor-made solutions and expertise, we focus on prevention and risk management so that risks are minimised, and damage does not occur in the first place. In the event of a claim, our top priority is to ensure the future viability of the insured company by limiting the extent of the damage,” HDI Global CEO Dr Edgar Puls said.
HDI Global’s latest results follow a “positive first half” for the industrial insurer, reporting a combined ratio improvement of 1% year-on-year to 93.1%, which is below its stated medium-term target of 95%.
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