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 debt instrument.)

The ratings reflect the group’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.

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

The group has a track record of relatively good and stable underwriting profits, as well as resilient investment income, demonstrated by a five-year weighted average return on equity of 9.3% (as calculated by AM Best). In 2018, the group achieved a robust net combined ratio for its non-life segment of 98.7% (2017: 101.0%) (as calculated by AM Best), which was underpinned by an improved earnings contribution from its non-life reinsurance division (Hannover Rück SE), as well as from good underwriting results of its international retail segment. AM Best believes that prospective earnings will continue to display reliance on the excellent earnings contribution of the group’s reinsurance division. Furthermore, following effective management actions on pricing and risk selection, the group’s core operations of industrial lines and German retail segment have demonstrated an improving trend of underwriting results for the first six months of 2019.

The HDI/Talanx group benefits from a strong franchise and leading position in its core markets. The group’s market profile expanded by 6% to reach gross written premiums of EUR 33.9 billion (excluding savings elements of premiums from unit-linked life and annuity insurance) in 2018, reflecting a good diversification of primary and reinsurance operations and enhanced by its very strong competitive position in the reinsurance markets and German industrial segment. AM Best expects the group’s expansion in its core lines to benefit from higher product demand from its international and specialty niche 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.:

  • 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
  • Talanx AG

The Long-Term IR of “a” has been affirmed with a stable outlook for the following:

Talanx Finanz (Luxembourg) S.A.—

— 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 Understanding 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 and information provider with an exclusive focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Konstantin Langowski
Financial Analyst
+31 20 308 5431

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

Jacqalene Lentz, CPA
Director, Analytics
+1 908 439 2200, ext. 5762

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

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


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