HDI Global Achieves Milestone: Dubai Business Exceeds Market Performance
Highlighting HDI’s strategic growth and robust market presence in the region, demonstrating effective risk management and business acumen.
HDI Global SE, a leading corporate and specialty insurer, has announced impressive financial results for 2024, achieving significant growth in both revenue and earnings. The company's strong performance was driven by a surge in new business and strategic price adjustments in response to inflation.
“In 2024, HDI Global Dubai made remarkable strides, transforming from a nascent operation to fully meeting our set targets, thanks to the robust support from the broker community and the swift embrace of the HDI brand”, says Willem van Wyk, Managing Director HDI Global Dubai. “Our team's collaboration, enriched by our Hannover colleagues, has powered our success in the dynamic DIFC market. This venture marks a pivotal step in HDI Global's ambition to be clients’ preferred Partner in Transformation, providing tailored solutions and services and strengthening our role as a key player in the international insurance landscape.”
Successful Expansion in Dubai
The insurer’s Dubai office marked a highly successful first year, surpassing growth expectations. This strong performance played a crucial role in contributing to the overall positive financial results of the Germany-based multinational insurer, which operates under the Talanx Group umbrella.
Global Revenue Milestone Achieved
On a global scale, HDI Global recorded a notable rise in revenue and earnings. Insurance revenue increased by 10% year-over-year, reaching EUR 10.0 billion for the first time (compared to EUR 9.1 billion in 2023). When adjusted for currency fluctuations, the revenue growth stood at 11%. This increase was primarily fuelled by expanding new business opportunities and price adjustments in existing policies due to inflation.
Improved Profitability Despite Large Losses
The company’s insurance service result grew substantially to EUR 1,004 million, up from EUR 770 million, largely due to a better loss ratio for frequent claims. Although large loss payments rose to EUR 402 million (from EUR 334 million), they remained below the budgeted EUR 468 million, owing to a decrease in man-made losses. However, the budget for natural catastrophe (NatCat) losses was exceeded, reflecting the ongoing trend of rising claims in this category.
Enhanced Financial and Investment Performance
HDI Global’s combined ratio improved to 90.0%, compared to 91.5% in the previous year, demonstrating increased efficiency. The net insurance financial and investment result before currency effects also saw a sharp increase, reaching EUR 83 million (up from EUR 11 million), driven by higher investment volumes and increased interest income.
Strong EBIT and Increased Contribution to Talanx Group
The combined impact of strong underwriting performance and improved asset management boosted earnings before interest and taxes (EBIT) to EUR 702 million, compared to EUR 446 million in the prior year. Return on equity (RoE) also rose to 17.6% from 14.3%, further strengthening the company’s financial position. Additionally, HDI Global’s contribution to Talanx Group’s net income surged to EUR 501 million, up from EUR 351 million.
Given HDI Global’s robust worldwide results, Willem van Wyk remains optimistic for the current year: “HDI Global Dubai is poised for growth amidst the flourishing economy of the Middle East. Expanding our team and capabilities remains a central focus, and by leveraging our conservative underwriting strategy, we're ready to meet the region's demands, particularly in transforming energy landscapes. The Middle East's commitment to renewable projects aligns perfectly with our vision of being a reliable, long-term partner. Our position as an emerging force allows us to offer enhanced value to clients and brokers, navigating changes with resilience and foresight.”
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