HDI Global grew its premium income in FY22 by 17.9% to a whopping EUR 8.9 billion, with a currency-adjusted increase of 12.9%. Key growth areas during the period were liability and property insurance and specialty lines, driven by business and rate adjustments, partly due to inflation.
Meanwhile, HDI Global Specialty grew its premium income by EUR 660 million year-on-year to EUR 3.1 billion, with its commercial lines rising by EUR 693 million.
HDI Global CEO Dr. Edgar Puls said the company took advantage of the challenging markets worldwide.
“Since 2018, we almost doubled our gross written premiums. To its rise in 2022, both commercial lines and specialty lines contributed almost equally. Our growth results from new business as well as rate changes in the existing business, which underlines the strengthening of our portfolio quality,” Dr. Puls said.
HDI Global reported that the combined ratio for FY22 dropped to 95.7% (from 98.7% in FY21) due to a drop in frequency losses – in line with the insurer’s strategy, despite an increase in total large losses and the inflation’s impacts. As a result, the insurer has nearly reached its mid-term goal of 95% ahead of schedule.
“With a combined ratio of 95.7%, we almost reached our strategic goal of a combined ratio of 95% two years ahead of plan. Though we exceeded our large loss budget for 2022 due to natural catastrophes and man-made losses, we nevertheless improved our combined ratio by three percentage points compared to 2021. We achieved that with a strong underwriting result and lower loss ratio from successful portfolio measures and profitable new business,” Dr. Puls said.
High large loss claims due to natural disasters such as Hurricane Ian, Hurricane Fiona, and the Australian floods impacted HDI Global by EUR 270 million in FY22.
During the same period, reserves for losses concerning the Russia-Ukraine conflict totalled EUR 36 million. With an amount slightly below EUR 17 million, the low level of losses incurred from Winter Storm “Elliot” in the fourth quarter reflected a strict restructuring of the property portfolio.
For the 2023 financial year (FY23), HDI Global aims to continue growing its profit levels and improve its combined ratio despite expected challenges along the way.
“Global inflation, the war in Ukraine, the consequences of the Corona pandemic, and natural disasters will continue to test the global economy this year. Companies are increasingly recognising the importance of prevention and identifying their risks at an early stage, which is the basis for the growth trend of recent years to continue,” Dr. Puls said.