Industrial insurer HDI Global says its Australian business grew profitably in a competitive market last year and the outlook is positive.

Asia-Pacific Head and Australia MD Stefan Feldmann says the business, combined with the specialty division, has well above $1 billion gross premium in Australia. 

“As a long-term reliable partner offering a consistent and stable market, we’ve evolved and are continuously expanding our offering in Australia and the region in the corporate and now growing mid-market segment across all lines,” he said.

Mr Feldmann says a motor fleet product has achieved double its initial expectations, accident and health continues to grow, and the insurer has brought its expertise across lines including property, engineering, marine and liability to brokers with mid-market clients, which now make up more than a third of the book. 

HDI Global Specialty MD Mark Fleiser says conditions for specialty lines have been favourable, despite areas of increased capacity due to some new players entering the market.

The company grew in professional indemnity, aviation and sports, leisure and entertainment, expanded with some new managing general agent relationships and maintained a strong pipeline of delegated authority business opportunities, he says. 

“The results reflect the prevailing strong market environment, coupled with a benign catastrophe season and the focus of the teams to ensure that we maintain underwriting discipline and pricing adequacy,” Mr Fleiser said. 

Worldwide, HDI Global, the industrial lines division of the German Talanx Group, says insurance revenue rose 10% to €9.1 billion ($15 billion) last year, or 12% adjusted for currency effects. 

The combined operating ratio improved to 91.5% from 93% and operating profit rose to €446 million ($734 million) from €430 million ($707 million). 

HDI Global’s contribution to Talanx Group net income grew 13% to €351 million ($577 million).