HDI Global and Hannover Re have established a specialty joint venture that will begin operating at the start of next year in countries including Australia.

The reinsurer’s International Insurance Company of Hannover (Inter Hannover) business will be renamed HDI Global Speciality under the deal.

The joint venture will write agency and specialty business in lines such as errors and omissions, directors’ and officers’, legal expenses, sports and entertainment, aviation, offshore energy and animal insurance.

“HDI Global Specialty will operate in Australia, as Inter Hannover does at the moment,” a spokesman told insuranceNEWS.com.au. “In Australia we have premium of about $100 million.”

More details on the global joint venture will be announced at a capital markets day in Frankfurt in October.

“The bundled know-how of the new joint venture will help us to expand our position in the specialty market,” HDI Global Chairman Christian Hinsch said.

“The specialty business has attractive, above-average margins and is growing faster every year than classic industrial business. This highlights the demand and we want to benefit from that.”

Hannover Re Chairman and CEO Ulrich Wallin says the group has a number of reasons for bringing together the agency and specialty primary insurance business of Inter Hannover in the joint venture, including strengthening the focus on its core business.

“At the same time, reinsuring the portfolio enables us to derive even more benefit from the growth opportunities available in specialty business,” he said.

“We can then make use of the capital that becomes available as a result to grow the business further.”