HDI Global has posted a decreased operating result (EBIT) of EUR 109m for the 2017 financial year, down from EUR302m in FY16. The decrease was caused by “exceptionally high burden arising from natural catastrophes,” The company said. Partially making up for the industrial insurer's large loss burden was the robust premium growth in Australia, the UK, France, and Japan.
Over the financial year 2017, the Talanx Group-owned insurer saw its underwriting result drop to EUR -207 (73) m, owing to losses due to man-made and natcat events, including hurricanes Harvey, Irma, and Maria. HDI Global's combined ratio deteriorated to 108.5%, from the previous year's 96.8%.
Partially compensating for the losses were the insurer's improved investment result and significant increase in premium income.
In spite of the sustained low-interest phase, net investment income rose by 14.5% to EUR 277 (242) m, due to higher income from alternative investments and from increased unscheduled income.
Meanwhile, HDI Global's premium income increased by 4.4% to roughly EUR 4.5 (4.3) bn; or by 5.2% after adjustment for exchange-rate effects, with some 62% of premium income coming from its foreign businesses, including its Australian branch.
“Our business in Australasia continued to grow very nicely in 2017 with a gross written premium growth of over 20% year-on-year,” said Stefan Feldmann, regional head ASEAN and Australasia at HDI Global and managing director of HDI Global Australia. “The underwriting result deteriorated in the second half of 2017 particularly due to large losses in engineering insurance. However, the Australian branch still contributed a positive net-underwriting result to the group.”
