HDI Global parent Talanx has reported net income of €734 million ($1.08 billion) for last year, the second-highest sum in the company’s history.

The Germany-based group has also posted a 9.7% increase in gross written premium to €31.8 billion ($47.03 billion).

The combined operating ratio improved by 1.9 percentage points to 96%, while each division achieved a combined operating ratio below 100%.

The net return on investment was 3.6%.

Chairman Herbert Haas says the result validates the strategy to “internationalise” and diversify over recent years.

Large losses across the group totalled €922 million ($1.36 billion) – well below the large-loss budget of €980 million ($1.45 million).

Of this, €573 million ($848.3 million) was attributed to reinsurance and €349 million ($516.49 million) to primary insurance. The largest loss arose from explosions in the Chinese port of Tianjin, which cost the company €154 million ($227.74 million).

Net investment income fell 5.1% to €3.9 billion ($5.76 billion) despite an increase in ordinary investment income.

The board has raised its outlook for this year, predicting a group net income of about €750 million ($1.1 billion).