HDI Global takes 100% share of specialty arm to focus on growth

HDI Global has taken 100% control of fast-growing HDI Global Specialty through the purchase of sister company Hannover Re’s 49.8% stake.

Since its formation in 2019 with roughly €1bn in premium income, HDI Global Specialty has expanded rapidly by building new teams and partnering with various managing general agencies worldwide.

The specialty insurer now has some €2.5bn in premiums and aims to increase that figure to €3.7bn by 2025.

Edgar Puls, CEO of HDI Global, said the new ownership structure will help the specialty business focus on its growth plans and in particular M&A activity.

Jean-Jacques Henchoz, CEO of Hannover Re, said the sale of its stake would free up capital for it to focus on current opportunities in the firm reinsurance market.

The move sharply differentiates Hannover Re from its leading international reinsurance rivals Swiss Re, Munich Re and SCOR, all of which have invested heavily in recent times to expand their primary industrial and specialty businesses.

“With our acquisition of the remaining shares, we are another step closer to achieving our goal of building one of the best and most profitable specialty insurers on the world market,” said Puls, who is also a member of the board of management of the Talanx Group, parent of both HDI and Hannover Re.

“Going forward, as the sole shareholder of HDI Global Specialty we will be better able to act on our opportunities in this promising market than was previously the case. Among other things, we will be very flexible in our ability to decide on potential M&A projects and take appropriate action,” added Puls.

“The reinsurance market continues to see improved prices and conditions. By selling our stake we are freeing up capital for profitable growth in our core business,” said Henchoz.

“Under our cooperation agreement, we shall continue to support HDI Global Specialty with our expertise as a long-term reinsurance partner, which also means that we can still share substantially in the growth of the portfolio through our participation in the reinsurance programme,” he added.

The move is accompanied by a senior management reshuffle. Ralph Beutter, CEO of HDI Global Specialty, will also be appointed as a board member of HDI Global SE. Claire McDonald, currently managing director of HDI Global’s branches in the UK and Ireland, will be appointed as a new board member.

McDonald will be responsible as chief underwriting officer for the property, engineering and marine portfolios, as well as HDI Risk Consulting. Beutter, as CEO of HDI Global Specialty SE, will be responsible for specialty on the board of management of HDI Global.

At the same time, David Hullin, who has been responsible on the board of management to date for property classes, will take over management of the company’s international markets, together with long-serving HDI Global board member Jens Wohlthat. Dr Mukadder Erdönmez will take over responsibility for the motor fleet business, in addition to third-party liability and cyber insurance.

Before joining HDI, McDonald was with the Allianz Group for more than 30 years in a variety of underwriting and operations roles, most recently as global head of operations at Allianz Global Corporate & Specialty.

Since joining HDI in 2019, she has steered the branch through Brexit and successfully implemented the reorganisation and restructuring of the local UK and Ireland portfolio.