Talanx results boosted by HDI Global’s 43% jump in net income

Talanx group’s corporate and specialty lines written by HDI Global saw net income jump by 42.6% in 2024 to €501m as rate increases averaged 6.5%. Talanx said all divisions, including Hannover Re, contributed to a 25% increase in group net income of €1.98bn in 2024, which exceeded the targets originally set for 2025 and increased at twice the rate of insurance revenue. HDI Global’s corporate and specialty lines insurance revenue increased by 10% in 2024 – its first double-digit growth – to €10.01bn, as Talanx noted the unit continued to leverage the hard market cycle and pushed through rate increases above inflation. Rates were running 10.1% higher for motor, while casualty saw rate increases of 8.5% (excluding cyber) and property rates were up 8.1%. Engineering rates recorded an increase of 7.9% over 2024 while marine rates increased 7.5% and specialty lines saw increases of 2.8%. HDI Global’s corporate and specialty saw its insurance service result, up 30.4% to €1bn, benefit from a lower frequency loss ratio. Large loss payments for the unit increased to €402m from €334m but were below budget of €468m. At group level, Talanx increased insurance revenue by 11% to €48.15bn in 2024, while operating profit jumped 60.1% to €4.91bn. Primary insurance, which includes HDI Global as well as retail Germany and retail international lines, increased its share of group net income from 46% to 49% after it recorded a 41% increase in net income to €1.11bn, with HDI Global’s corporate and specialty business accounting for 22% of group net income. The group reported a combined ratio of 90.3% from 94.3% after improved underwriting across all property and casualty segments, with corporate and specialty 1.5pp lower at 90%. Large losses incurred by the group totalled €2.2bn in 2024, within budget of €2.4bn and in line with 2023, including €1.6bn from natural disasters. The group said Hurricane Milton was the largest single loss incurred by the group at €290m, with other large losses including floods in Eastern Europe and Brazil and Hurricane Helene. The group’s primary insurance units recorded large losses of €517m, while reinsurance booked €1.63bn of the total bill. Talanx said its integration of the Liberty Seguros acquisition has put its retail international operations on track for a 50/50 split between Latin America and European operations, with insurance revenue from its retail international operations currently 48% from Latin America and 52% from Europe. “In 2024, we not only exceeded our targets and further increased our resilience in a challenging market environment, but also drove forward our diversification: our group net income rose at more than twice the rate of our insurance revenue, while our primary insurance now contributes almost half of our group net income,” said Torsten Leue, Talanx AG’s CEO, as the group targets net income of more than €2.1bn in 2025. Hannover Re reported a 28% jump in net income to €2.33bn last week. HDI Global will issue its own results performance in an update next week following the publication of Talanx group results.

Talanx results boosted by HDI Global’s 43% jump in net income

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