AM Best Revises Outlooks to Positive for HDI Haftpflichtverband der Deutschen Industrie V.a.G. and Its Rated Subsidiaries

AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.) (Germany) and its insurance subsidiaries. AM Best also has revised the outlooks to positive from stable and affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) of a debt instrument issued by Talanx Finanz (Luxembourg) S.A., and guaranteed by Talanx AG (Germany), the intermediate operating holding company for all HDI V.a.G. group companies, which combined form the Talanx Group. (See below for a detailed list of companies and the debt instrument.)

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 Credit Rating (rating) is stable.

The ratings reflect HDI V.a.G.’s 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 (ERM).

The revision of the outlooks to positive reflects AM Best’s expectation that HDI V.a.G.’s prudent risk culture and strong and stable operating performance, supported by improved profitability of its primary business segment, will further enhance the resilience of its balance sheet.

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, underpinned by strong earnings generation and a prudent capital management approach. 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. The group’s balance sheet strength further benefits from excellent liquidity. A minor offsetting factor is a modest reliance on soft capital components to support its capital position, which include the value of in-force life business and credit for hybrid debt.

HDI V.a.G. has a track record of relatively strong and stable operating performance, demonstrated by a solid five-year (2016-2020) weighted average return on equity of 8.5%, as calculated by AM Best. HDI V.a.G.’s resilient investment income continues to provide a significant source of income. Talanx Group, which writes nearly the entirety of HDI V.a.G.’s gross written premium, demonstrated solid performance in the first half of 2021, reporting a net combined ratio of 96% (year-end 2020: 101%), compared with a weaker performance in 2020 due to adverse COVID-19 pandemic effects. Furthermore, earnings diversification is expected to continue to improve over the medium term, supported by underlying underwriting improvements in the Industrial Lines and Retail Germany segments.

The group benefits from a strong franchise and leading position in its core markets. HDI V.a.G.’s gross written premium has grown by an average annual rate of 5.6% over the past five years (2016-2020), reaching EUR 40.2 billion in 2020, 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 German industrial segment.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed, with the outlook revised to positive from stable, 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 the outlook revised to positive from stable:

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 use of Best’s Credit Ratings, 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 © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Konstantin Langowski
Senior Financial Analyst
+31 20 308 5431

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

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

Jim Peavy

Director, Communications
+1 908 439 2200, ext. 5644

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

Thank you for donating to

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation