HDI Global SE posts 10% revenue growth in Q1 2025

May 22 - (The Insurer) - Germany-based corporate and specialty insurer HDI Global SE reported robust growth in both revenue and earnings in the first quarter of 2025 on the back of a surge in new business premiums and inflation-linked price adjustments, the company said on Thursday.

Insurance revenue for Q1 grew 10% year-on-year to 2.6 billion euros ($2.9 billion), up from 2.3 billion euros in Q1 last year.

Operating profit, also known as earnings before interest and taxes, jumped to 195 million euros from 140 million euros, while net income climbed to 141 million euros compared to 104 million euros in the same period last year.

HDI Global’s CEO Dr Edgar Puls said: “Despite a significant number of large losses, we have made a promising start into 2025 and are confident for the remainder of the year.”

The group's combined ratio improved to 91.1% from 91.8% in the prior-year quarter.

The Talanx group-owned insurer said that the higher number of large losses during the period remained below the firm’s budget. Large losses in Q1 2025 rose to 105 million euros, compared with 17 million euros last year.

The insurance service result, which reflects underwriting performance before investment income, jumped 19% to 229 million euros, driven largely by an improved frequency loss ratio.

Alongside the earnings announcement, the insurer highlighted its growing focus on climate-related risks. Referring to natural catastrophes like the California wildfires, Puls underlined the importance of climate resilience.

“The first quarter clearly underpinned the increased severity of natural catastrophes,” the CEO said. He said January's LA wildfires called attention to the importance of prevention to mitigate the consequences of these events for companies and societies alike.

On the firm’s climate consulting service, which the insurer launched in 2024, Puls said: “We can play a pivotal role in making companies more resilient.”

The consulting service offers corporates tailored risk analyses and strategies to improve resilience against climate change and extreme weather events.