Business

HDI Global acquires full ownership of its Global Specialty lines

Following the acquisition, cooperation agreement ensures continued close partnership between Hannover Re and HDI Global Specialty.

HDI Global has acquired full ownership of its Global Specialty lines as Hannover Re sells its 49.8% stake in the joint venture to the majority shareholder HDI Global SE, effective 31 December 2021.

In reaching this agreement, Hannover Re said the company is “underscoring its position as a pure reinsurer” and the transaction “frees up previously committed risk capital that will be available for future growth” in the company’s core business. 

Additionally, through this acquisition, HDI Global is further expanding its specialty insurance business and “reducing complexity” in this growth segment with a “view to simplifying further development”. 

Since the launch of the joint venture in 2019, the premium volume booked by HDI Global Specialty has reportedly grown from more than €1bn (£85.4m) in 2018 to currently €2.5bn (£2.1bn). 

Jean-Jacques Henchoz, CEO of Hannover Re, said: “The reinsurance market continues to see improved prices and conditions. By selling our stake we are freeing up capital for profitable growth in our core business.

“Under our cooperation agreement we shall continue to support HDI Global Specialty with our expertise as a long-term reinsurance partner, which also means that we can still share substantially in the growth of the portfolio through our participation in the reinsurance programme.” 

Dr Edgar Puls, CEO of HDI Global SE, said: “With our acquisition of the remaining shares we are another step closer to achieving our goal of building one of the best and most profitable specialty insurers on the world market.” 

“Going forward, as the sole shareholder of HDI Global Specialty we will be able to act on our opportunities in this promising market even more easily and quickly than was previously the case. Among other things, we will be very flexible in our ability to decide on potential M&A projects and take appropriate action.”

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