HDI Global Canada expanded its cyber and specialty capabilities in the first half of 2026. The branch added a primary cyber product to its existing offering and grew its marine and aviation books in a competitive market. The branch contributed to the group's positive H1 result as HDI Global reported an improved combined ratio and lower large loss payments globally.
At the group level, the combined ratio improved to 90.7 per cent from 91.6 per cent a year earlier. Large loss payments fell to €92 million from €142 million over the same period. These are group-level results reported under IFRS 17/9.
"The first half of 2026 has underlined the strength and resilience of our Canadian business," said Klaus Navarrete (pictured), managing director of HDI Global Canada. "We continued to see strong development across marine, cyber and aviation, while expanding our cyber offering with the introduction of a primary cyber product. We also made meaningful progress in our mid-market growth strategy, expanding our focus in key sectors such as secondary wood products, where we see strong demand for specialized underwriting expertise and tailored risk solutions."
Insurance revenue held broadly stable at €5 billion, against €5.1 billion a year earlier. Currency effects and disciplined underwriting were cited as the primary factors. The insurance service result rose 8 per cent to €465 million from €430 million. Large loss payments came in €209 million below the pro rata budget, which the company said was recognised in full. Natural catastrophe losses remained below budget in the first half of the year, though man-made losses stayed elevated across all industries.
At the Talanx group level, total large loss payments of €942 million came in below the group's pro rata budget of €1.416 billion. That figure includes €200 million in reinsurance reserves recognised for potential losses linked to the Iran war, according to Talanx's H1 2026 results.
The net insurance financial and investment result before currency effects climbed to €169 million from €99 million. Higher investment volumes and increased current interest income drove the gain. Earnings before interest and tax held steady at €381 million.
HDI Global's contribution to Talanx Group net income rose 7 per cent to €292 million from €274 million.
"The first half of 2026 demonstrated the strength and resilience of HDI Global's business model," said Edgar Puls, chief executive officer of HDI Global SE. "Strong operational performance and disciplined execution enabled us to further improve our results, underscoring our strategic focus on underwriting excellence. The improvement in our insurance service result, combined ratio, and net income reflects the quality of our portfolio, prudent underwriting, and the commitment of our teams worldwide."
The parent group, Talanx, reported record first-half 2026 net income of €1.50 billion, up 9 per cent from €1.37 billion a year earlier. The Solvency II ratio strengthened to 246 per cent from 224 per cent. Talanx now anticipates full-year net income significantly above its original guidance of approximately €2.7 billion.
Canada outlook under Xcelerate29
Navarrete said market conditions in Canada remain competitive across several lines, with continued pricing pressure and increased capacity. He said the branch would remain disciplined in its underwriting approach while continuing to grow its portfolio and maintain client retention.
For the second half, Navarrete said the branch plans to expand its international capabilities and invest in data and operational efficiencies. Broker and client education initiatives are also a priority.
He pointed to the recently launched environmental impairment liability product as a sign of the branch's specialty build-out under the group's Xcelerate29 strategy. The group carries an S&P financial strength rating of AA-/stable and an AM Best rating of A+/stable.
