HDI Global parent Talanx says industrial lines gross written premium (GWP) grew 4% to €4.45 billion ($7.09 billion) last year, underpinned by strong underlying growth from international markets including Australia, Japan and France.

But the division’s combined operating ratio deteriorated to 108.5% from 96.8% due to natural catastrophes and higher man-made losses.

Overall group net profit fell 25.6% to €672 million ($1.07 billion) last year, in line with preliminary figures released last month.

The group combined operating ratio deteriorated to 100.4% from 95.7%.

GWP increased 6.3% to €33.1 billion ($52.73 billion) and the Germany-based company says its international diversification is progressing faster than planned.

“Both the German and international retail business developed nicely,” Chairman Herbert Haas said. “We therefore achieved our aim of generating more than 50% of premiums in primary insurance abroad, a year ahead of schedule.”

Large losses totalled €1.62 billion ($2.58 billion), compared with a budget of €1.12 billion ($1.78 billion). The reinsurance business was burdened by two-thirds of the total.

Hurricane Irma accounted for the biggest large loss, while the combined impact of North and Central American hurricanes and earthquakes was about €1 billion ($1.59 billion).

Talanx forecasts earnings will rebound to about €850 million ($1.35 billion) this year.