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AM Best Affirms Credit Ratings of HDI Haftpflichtverband der Deutschen Industrie V.a.G. and Its Rated Insurance Subsidiaries

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.) (Germany) and its rated insurance subsidiaries. The outlook of these Credit Ratings (ratings) is stable. Additionally, AM Best has affirmed the Mexico National Scale Rating of “aaa.MX” (Exceptional) of HDI Global Seguros, S.A. (Mexico City, Mexico). The outlook of this rating is stable. (Please see below for a detailed listing of the subsidiaries and ratings.)

The ratings of HDI V.a.G. reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

AM Best expects HDI V.a.G.’s consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), to be maintained at the strongest level, supported by strong earnings generation and a prudent capital management approach. The group’s asset-liability and liquidity management capabilities are expected to help it withstand current external headwinds associated with financial market volatility and uncertain macroeconomic prospects. Financial leverage and coverage ratios are supportive of the group’s balance sheet strength assessment, and financial flexibility is considered excellent due to its good access to capital markets. In addition, the group continues to focus on further enhancing its prudent reserving approach and is taking actions as needed to account for current inflationary pressures.

HDI V.a.G. and the Talanx Group have a track record of relatively strong and stable operating performance, demonstrated by their solid five-year (2018-2022) weighted average return-on-equity (ROE) ratios of 9.5% and 10.6%, respectively, as calculated by AM Best (under IFRS 4). The Talanx Group, which combines all operating group companies of HDI V.a.G., reported an ROE of 18.4% for the first nine months of 2023 under IFRS 17 (as calculated by HDI). AM Best sees improving earnings diversification with increasing contributions from primary segments, underpinning robust overall group income. The group's industrial lines and retail Germany segments continue to demonstrate a clear overall trend of underlying underwriting improvements, resulting from successful restructuring measures, pricing actions and prudent risk selection. AM Best expects the group’s earning profile diversification to improve further with the acquisition of Liberty Mutual’s primary insurance operations in Latin America, which is currently being undertaken (final closing expected in the first half of 2024, with the acquisition of Liberty Seguros S.A. in Brazil already completed on Nov. 22, 2023). The group’s resilient investment income also continues to provide a significant source of income.

HDI V.a.G. benefits from a strong franchise and leading position in its core markets. Gross written premium has grown by an average annual rate of 10.5% over the past five years (2018-2022), as calculated by AM Best, reaching EUR 52.5 billion in 2022, excluding savings elements of premiums from unit-linked life insurance. This growth is supported by good diversification of primary and reinsurance operations and enhanced by its very strong competitive position in the global reinsurance market and the German industrial segment.

HDI V.a.G. benefits from a strong risk culture across the group that is underpinned by an embedded risk framework and sound risk controls.

The FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) have been affirmed, with a stable outlook, for the following subsidiaries of HDI V.a.G.:

  • Talanx AG
  • HDI Global Seguros, S.A.
  • HDI Global SE
  • HDI Global Specialty SE
  • HDI Global Network AG
  • HDI Global Insurance Company
  • HDI Lebensversicherung AG
  • HDI Specialty Insurance Company
  • HDI Reinsurance (Ireland) SE

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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