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HDI-Gerling parent makes gains despite ‘significant’ losses

Talanx, the parent of HDI-Gerling Industrial Insurance, says net profit totalled €530 million ($758 million) in the first nine months of this year, little changed from €528 million ($755 million) in the corresponding period last year.

“Business performance was in line with our expectations, despite significant large losses in the industrial lines division and the absence of the one-off effects seen in the previous year,” CEO Herbert Haas said.

Large losses almost halved to €242 million ($346 million) in the reinsurance division, but they grew to €259 million ($370 million) from €221 million ($316 million) in the primary insurance business after “another unusual accumulation of mid-sized and major cases of property damage”.

Gross written premium (GWP) grew 1.6% to €21.7 billion ($31 billion) while the combined operating ratio in property and casualty insurance and non-life insurance was 97.7%, compared with 97.6% a year ago.

The Hannover-based company forecasts full-year GWP growth of 2-3% based on constant exchange rates, mostly driven by the international markets.

Australia Branch MD Stefan Feldmann says HDI-Gerling’s Australian operations continue to enjoy solid premium growth and profitable underwriting results.

“On the back of this success, HDI-Gerling is expanding its staff numbers in Australia,” he told insuranceNEWS.com.au. “This will help us generate further profitable growth in the future through selective underwriting.”

He says the company has launched an Australian graduate program to help young talent learn the industrial insurance business from experienced underwriters.