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

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI/Talanx group or the group) (Germany) and a number of its insurance subsidiaries. AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of Talanx AG (Germany), the intermediate operating holding company for all HDI/Talanx group companies. AM Best also has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” of a debt instrument issued by Talanx Finanz (Luxembourg) S.A., and guaranteed by Talanx AG. Additionally, AM Best has affirmed the Mexico National Scale Rating of “aaa.MX” of HDI Global Seguros, S.A. (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of companies and the debt instrument).

The ratings reflect HDI’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

AM Best expects HDI’s consolidated risk-adjusted capitalisation to be maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), underpinned by a prudent capital management approach that supports its growth plans. The group maintains a conservative investment portfolio that is underpinned by good liquidity. Financial leverage and coverage ratios are supportive of the balance sheet strength assessment and financial flexibility is considered excellent due to the group’s good access to capital markets. HDI’s risk-adjusted capitalisation has a moderate reliance on soft capital elements, including economic value from life operations and utilisation of hybrid debt instruments to support its capital buffers. However, AM Best notes that the use of such components is in line with the group’s European peers.

HDI has a track record of relatively strong and stable operating performance, demonstrated by a five-year weighted average return-on-equity ratio of 9.1% (2015-2019), as calculated by AM Best. The group’s resilient investment income continues to provide a strong source of income. Underwriting performance is expected to remain strong over the cycle, with a clear trend of improved earnings contributions from the previously weaker performing segments of industrial lines and the German retail segment (excluding the impact of the COVID-19 pandemic). In 2019, the group achieved a net combined ratio for its non-life segment of 98.8% (2018: 98.7%), as calculated by AM Best. As of half-year 2020, the group reported a net profit of EUR 325 million, supported by a good level of investment income.

The group also benefits from a strong franchise and leading position in its core markets. HDI’s market profile expanded by 13.8% to reach gross written premiums of EUR 38.6 billion in 2019, excluding savings elements of premiums from unit-linked life and annuity insurance. This is reflected through a good diversification of primary and reinsurance operations and enhanced by its very strong competitive position in the global reinsurance market and German industrial segment. AM Best expects the group to benefit from higher product demand from its specialty niche lines and a hardening reinsurance market and commercial lines.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with a stable outlook for the following subsidiaries of HDI Haftpflichtverband der Deutschen Industrie 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

The following Long-Term IR has been affirmed with a stable outlook—

Talanx Finanz (Luxembourg) S.A.

— “a” on EUR 500 million 8.367% subordinated fixed to floating rate notes, due 2042.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Konstantin Langowski
Senior Financial Analyst
+31 20 308 5431

Dr. Angela Yeo
Senior Director, Analytics
+31 20 308 5421

Inger Rodriguez
Associate Financial Analyst
+52 55 1102 2720, ext. 108

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communucations
+1 908 439 2200, ext. 5644

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