Hannover Re refocuses as ‘pure reinsurer’ as it sells 49.8% stake in HDI

Hannover Re wants to refocus on positioning itself as a “pure reinsurer” by selling its stake in  HDI’s speciality business. The strategic move aims to free up committed risk capital to target profitable growth in an “improved” market environment. For HDI, this would mean more ‘flexibility to decide on potential M&A projects’.

Germany-based Hannover Re, the third-largest reinsurer in the world with gross premium of more than €24 billion, has reached an agreement with HDI Global SE to sell its 49.8 percent stake in their joint venture HDI Global Specialty SE.

HDI Global Specialty SE writes agency and specialty insurance business including financial & professional lines, D&O, legal expenses, sport and entertainment, aviation, offshore energy and animal insurance. Since the launch of the joint venture in 2019, the premium volume booked by HDI Global Specialty has grown from more than €1 billion in 2018 to currently €2.5 billion.

“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,” said Jean-Jacques Henchoz (pictured), chief executive officer of Hannover Re.

The acquisition will enable HDI Global to further expand its specialty insurance business and at the same time reduce complexity in this strategic growth segment with a view to simplifying further development.

“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,” said 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 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,” Puls added.

Henchoz stated: “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.”

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