Talanx A.G., parent of Hannover Re and one of Germany’s largest insurance groups, is consolidating specialty operations into a new company, HDI Global Specialty S.E., beginning Jan. 1, 2019, Talanx, Hannover Re and HDI Global said in a joint statement Friday.
HDI Global will write lines including errors and omissions liability insurance, directors and officers liability insurance, legal expenses insurance, sports and entertainment, aviation, offshore energy and animal insurance, the statement said.
The new specialty venture will have initial premium volume in excess of €1 billion ($1.19 billion), the statement said.
No job losses will be involved, according to an email from a spokeswoman, who added that the venture plans “to generate more jobs due to the growth perspectives.”
HDI Global will acquire the majority of the shares in International Insurance Co. of Hannover S.E., a subsidiary company of Hannover Re, for roughly €100 million, the statement said, after which Inter Hannover will be renamed HDI Global Specialty S.E., the statement said.
HDI Global, which will contribute its specialty portfolio to the new company, will hold 50.2% of the new company and Hannover Re 49.8%, the statement said.
“The joint venture enables us to bring together the cross-business segment expertise we have in the area of specialty in one place within the group and concentrate our know-how,” Torsten Leue, chairman of the board of management of Talanx A.G., said in the statement. “This allows us to focus on particularly profitable and high-growth market segments.”
“The specialty business has attractive above-average margins and is growing faster every year than classic industrial business,” Christian Hinsch, chairman of the board of management of HDI Global, said in the statement. “This highlights the demand and we want to benefit from that.”
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