HDI Global holds double digit growth in 2023; loss ratios tighten
Industrial insurer and Talanx unit HDI Global managed a 10% growth in insurance revenues for fiscal year 2023 then leveraged improving trends in both attritional claims and large losses to eke out a gain in its underwriting margins.
IFRS17's margin-inclusive top line measure of insurance revenues grew 10% or 12% on a fixed-currency basis, with management only broadly pointing to “property and liability business” as the key drivers of growth.
Margins improved to take 1.5 points off the group's combined ratio to 91.5%, with management citing a “low level” of attritional loss along with a 12% decline in large losses to a below-budget €334 million. An unspecified boost from IFRS17 discounting also helped the reading.
That put the IFRS17 proxy for underwriting income, the insurance service result, up 34% to €770 million.
HDI Global realized an investment loss on a deliberate shift into higher-yielding longer tenors in its investment portfolio, but was still showing a moderate 3.7% year on year gain in operating profit to €446 million.
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