Talanx says its global industrial lines strategy is paying off and an acquisition by its retail division will make it the second-largest property and casualty insurer in Latin America by revenue. 

The group, which includes HDI Global and reinsurer Hannover Re, has released full financial results for last year, confirming previously reported net income of €1.58 billion ($2.63 billion). That compares with €706 million ($1.2 billion) a year earlier, adjusted for accounting standards. 

“We generated record group net income while also enhancing our resilience despite macroeconomic and geopolitical challenges,” Chairman Torsten Leue said. “This demonstrates the high quality of our earnings and makes us optimistic for the coming years.” 

Industrial lines insurance revenue rose 10% to €9.1 billion ($15.1 billion), as the property and liability business benefited from higher interest rates and a low level of frequency losses and large losses. 

The division’s operating profit rose to €446 million ($741 million) from €430 million ($715 million), while its contribution to group net income rose 13%. 

Retail international division insurance revenue rose 33% to €7.1 billion ($11.8 billion), supported by acquisitions and organic growth. 

The division signed a contract to buy Liberty Mutual’s personal and small commercial business operations in Brazil, Chile, Colombia and Ecuador last year, in one of the group’s largest-ever acquisitions. 

Reinsurance revenue rose to €24.5 billion ($40.7 billion) from €24 billion ($39.9 billion) as the property and casualty segment benefited from improved prices and terms, while the division made a stronger contribution to group net income. 

Operating profit eased to €2 billion ($3.3 billion) from €2.2 billion ($3.7 billion), with a rise in life and health unable to fully offset a property and casualty decline caused by higher resilience in the reserves. 

The largest single losses were the summer storm in Italy and the earthquakes in Turkey and Syria. Other large loss payments were attributable to Hurricane Otis in Mexico, forest fires on Hawaii and the earthquake in Morocco. 

Talanx confirmed its outlook for net income of more than €1.7 billion ($2.83 billion) this year, and says it is targeting €1.9 billion ($3.2 billion) for next year.