Hannover Re targets pure-play reinsurance growth as it sells HDI stake

Hannover Re targets pure-play reinsurance growth as it sells HDI stake

International reinsurance firm Hannover Re is highlighting its position as a pure-play reinsurer by selling its stake in joint venture HDI Global Specialty SE and targeting further growth.Hannover Re has actually revealed that it is offering its 49.8% stake in the commercial insurer back to the majority shareholder, HDI Global SE, efficient December 31st 2021.
The reinsurer stated that by offering the stake it will maximize previously committed threat capital, making it readily available for future growth in the companys core reinsurance company.
A key driver seems the opportunity Hannover Re sees in the international reinsurance market at this time, with conditions and rates improved and development prospective increasing as an outcome.
Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re discussed, “The reinsurance market continues to see improved costs and conditions. By offering our stake we are releasing up capital for rewarding growth in our core organization.”
Hannover Re expects to continue taking advantage of the strong-relationship it has cultivated with HDI, by remaining an essential reinsurer to the business.
” Under our cooperation arrangement we shall continue to support HDI Global Specialty with our knowledge as a long-lasting reinsurance partner, which also means that we can still share significantly in the growth of the portfolio through our participation in the reinsurance program,” Henchoz said.
By obtaining back the shares in itself, HDI Global is will further expand its specialized insurance coverage service, also lowering intricacy in what it sees as a tactical development segment.
” With our acquisition of the staying shares we are another step better to attaining our objective of building one of the finest and most profitable specialty insurers on the world market,” included Dr Edgar Puls, a member of the Board of Management of the Talanx Group and Chief Executive Officer of HDI Global SE. “Going forward, as the sole shareholder of HDI Global Specialty we will be able to act on our chances in this promising market a lot more easily and rapidly than was previously the case. To name a few things, we will be really versatile in our capability to decide on prospective M&A projects and take suitable action.”
HDI Global Specialty has grown its service because the join-venture came into result in 2019, from more than EUR 1 billion of premiums in 2018 to currently EUR 2.5 billion today.
The refocusing of its dedication as a pure-play reinsurer ends up being a point of distinction for Hannover Re, given its biggest rivals are all very active in developing out more direct premium business under their industrial and specialty insurance coverage arms.

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