HDI Global’s parent Talanx earned net profit of €907 million ($1.28 billion) last year, up 23.6% on 2015 as all divisions performed better than expected and major loss claims came in below company estimates.

The Australasian business increased gross written premium (GWP) by more than 15%.

Talanx’s overall GWP fell slightly to €31.1 billion ($43.79 billion) from €31.8 billion ($44.77 billion), but operating profit increased 5.4% to €2.3 billion ($3.24 billion).

The combined operating ratio improved by 0.3 percentage points to 95.7%.

“All divisions exceeded their respective net income targets,” Talanx says. “A large loss burden that remained below expectations and the level of the previous year, as well as fiscal one-off effects, contributed to the positive performance.”

Canadian forest fires amounted to the largest single loss, costing Talanx €128 million ($180.23 million).

Otherwise, last year was generally benign, with the major loss burden falling by €39 million ($54.91 million) to €883 million ($1.24 billion) – below estimates of €1.13 billion ($1.59 billion).

Talanx expects challenging business conditions to persist as the global economy grapples with US President Donald Trump’s trade policies and Britain’s impending departure from the European Union.

“We achieved our good result in an environment that continues to be extremely challenging,” Chairman Herbert Haas said.

“The markets in our reinsurance and industrial lines divisions remain extremely competitive, just like the cut-throat competition in the saturated German retail business.

“These insurance-specific market conditions are coupled with geopolitical challenges such as the British vote to leave the EU and the uncertainty about the future path of the new US Government.”