HDI’s industrial lines posts strong H1 growth

HDI Global’s industrial lines business generated “clear growth” in both revenue and earnings in the first half of 2024 as the parent group Talanx reported strong numbers and exceeded the €1bn net income mark for the first time.

Industrial lines insurance revenue rose 14% year on year in the first half of 2024 to €4.8bn, up from €4.2bn in the first half of 2023.

The figure after adjustment for currency effects was also 14%. “The main drivers for this encouraging trend were the growth in new business and inflation-related price adjustments in the property, liability and specialty insurance business,” said the group.

The insurance service result (underwriting result) jumped 47% to €429m, up from €292m, on the back of an improved loss ratio for frequency losses.

Large loss payments in the industrial lines segment amounted to €128m, down from €134m in the first half of 2023. The pro rata budget for the period, which was recognised in full, was undershot by a clear €86m, pointed out Talanx.

The combined ratio for industrial lines improved to 91.1%, down from 93.1%. The net insurance financial and investment result before currency effects rose to €68m, up from €49m, due to higher investment volumes and an increase in current interest income.

Operating profit climbed to €305m, up from €190m. The division’s contribution to group net income rose to €223m from €151m.

The group recorded strong growth in both insurance revenue and group net income in the first half of 2024. Insurance revenue rose by 13% year on year to €23.6bn, while group net income climbed by as much as 32% to €1.1bn, up from €827m in the first half of 2023.

As a result, H1 group net income at the Talanx Group exceeded €1bn for the first time. Operating profit (EBIT) jumped 28% to €2.5bn up from €2bn. “In addition to a strong showing by the group’s reinsurance operations, the main driver for the encouraging trend was primary insurance, which lifted its insurance revenue by 23% and its share of group net income to 48%,” said the group.

“We are continuing to reap the rewards of our focused strategy. We are generating strong, profitable growth both in our organic business and at our acquisitions,” said Torsten Leue, chairman of the board of management of Talanx AG.

“Despite the higher large losses seen in Q2, we have a cushion for the hurricane season in the third quarter, which experts are forecasting will be unusually intense. As a result, we are highly confident of clearly exceeding our group net income target for 2024 of more than €1.7bn, and will review our forecast after the third quarter,” he added.