Talanx-owned HDI Global reported a 93% combined ratio and an underwriting profit of €141m.

HDI Global has revealed a first quarter operating profit of €86m and €69m net income contribution to the Talanx Group.

Insurance revenue generated for the first quarter of 2023 totalled €2.1bn.

The Frankfurt-based insurer said its combined ratio of 93.2% came in below the stated medium-term target of 95%.

Results - positive

The underwriting result increased to €141m thanks to a modest volume of large losses and an improved frequency loss ratio. The largest individual loss event was the earthquake in Turkey and Syria at a cost of €15m.

Total payments for large losses were less than in the comparable period, coming in at €34m.

The combined ratio was below a medium-term target of 95%, further assisted by a low volume of frequency losses and the rise in the interest rate level.

Edgar Puls, chief executive officer of HDI Global, said: “The good numbers demonstrate the quality of our underwriting, but they also underscore how we consider ourselves a partner for our clients: We stand ready to support them over the long term, including in a preventive advisory role with our range of services aimed at ensuring that many losses do not even occur in the first place.”

Puls added: “This success is a testimony to the effectiveness of our optimisation programmes implemented since 2019. We have completed the turnaround and are now in a phase where the focus is on consistently reinforcing worldwide our claim to be a leading international industrial insurer by supporting our clients with tailor-made solutions. With this goal in mind, we have put in place a robust foundation in recent years.”

The net insurance finance and investment result before currency effects amounted to €21m, reflecting reduced income from investments under own management and higher interest accretion on technical reserves owing to the rise in interest rates.

The transition to the new financial reporting standards IFRS 17 for insurance contracts and IFRS 9 for investments also had a slightly positive effect.

This development, HDI Global said can be attributed to liability business as well as the fire and engineering lines. Specialty business also played a part in the positive result, delivering insurance revenue of €681m.

In other news, the firm announced last week that it had hired Finn Christoffersen to be its new managing director of HDI Global and HDI Global Specialty in Denmark.

Prior to joining HDI Global, Christoffersen held senior positions at Marsh, Willis, Chubb, XL, and Swiss Re Corporate Solutions before joining HDI Global as head of sales and business development in June 2021. The firm said his appointment as managing director is subject to approval by the responsible regulatory authorities.

Christoffersen replaces Rasmus Jorgensen, whom the firm said was pursuing ‘professional opportunities outside the HDI Group’.

Ralph Beutter, member of the Board of HDI Global and CEO of HDI Global Specialty, said: “I thank Rasmus Jorgensen for his great commitment to HDI Global. He has been instrumental in uniting HDI Global and HDI Global Specialty in Denmark under one roof and strengthening the cooperation between the two companies. I wish him all the very best in his personal and professional life.”