HDI Global Specialty lifted its gross written premium (GWP) by more than 30% to €1.43 billion ($2.62 billion) last year, and parent Talanx expects growth to around €2.1 billion ($3.85 billion) by 2022.

HDI’s underwriting combined ratio was 95.4% last year.

Talanx also says the NSW bushfires in December resulted in a net loss of €49.9 million ($91.38 million), while Queensland’s January and February floods lost it €34.1 million ($62.48 million).

Addressing the global coronavirus pandemic, the German insurer reaffirmed guidance for 2020 even as it said further cuts to interest rates would likely shave €25 million from investments.

The 2020 targets are subject to the proviso “that no greater turbulence occurs on the currency and capital markets than is currently being seen as a result of the coronavirus”.

Talanx gross written premium grew 13% to €39.5 billion ($72.34 billion) last year while earnings before interest and tax (EBIT) jumped by a fifth to €2.4 billion ($4.4 billion).

“The main reason for the rise in premium income was the acquisition of a majority interest in HDI Global Specialty, which is experiencing rapid growth,” Talanx Chairman Torsten Leue said.

In the fourth quarter, GWP rose 18% to €9.17 billion ($16.85 billion) while the combined ratio widened to 97.8%, from 97.2% in the last three months of 2018, on above-budget large losses in the second half.