The latest update from HDI Global for you;
Corporate & Specialty insurer HDI Global reports continued growth in operating profit and net income for its three-month (3m) results. The main drivers behind these results were disciplined underwriting, favourable large loss experience, and a strong contribution from investment income. Top-line development showed slight growth on a currency-adjusted basis. HDI Global maintains a healthy profitability level and made a significant contribution to the 3m results of the Talanx Group.
Insurance revenue at HDI Global remained broadly level with the prior-year period at EUR 2.5 (2.6) billion. The insurance service result held steady at EUR 224 (229) million. At EUR 58 (105) million, large loss payments were significantly below the pro rata budget for the period, which had been fully recognised, undershooting it by EUR 92 million. The combined ratio improved slightly to 91.0 (91.1) percent and remains in line with the expectation of a full-year figure below 92 percent.
The net insurance financial and investment result before currency effects increased markedly to EUR 99 (49) million, supported by positive one-off measurement effects, higher recurring interest income and an expanded investment base. HDI Global’s return on equity stood at 17.9 (18.4) percent. Operating profit rose by 6 percent to EUR 207 (195) million, while the division’s contribution to Group net income increased by 8 percent to EUR 152 (141) million.
“Overall, our first-quarter performance reflects a profitable start to the year in a demanding market environment. Top-line development reflects our disciplined and selective underwriting approach and was also affected by currency movements, particularly from the US dollar. Alongside this, our profitability remains robust, supported by a strong insurance service result, solid investment income and a favourable large loss experience. The underutilisation of our large loss budget provides an additional buffer as we move into the upcoming natural catastrophe season.”
Puls elaborated: “We are fully on track to meet our full-year result guidance and enter the remainder of the year with confidence. At the same time, HDI Global will maintain a disciplined and prudent approach in an environment marked by ongoing uncertainties. With the recent evolution of our Board responsibilities and the clear focus on excellence under our Xcelerate29 strategy, we are well positioned to deliver tangible added value to clients worldwide. We constantly achieve this by combining our global reach, a forward-thinking mindset, and strong technical excellence at the core of our business. My sincere thanks go to our employees for their great dedication, and to our clients and broker partners for their continued trust in us as their reliable and preferred Partner in Transformation.”
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