Hannover Re sells its stake in HDI Global Specialty to HDI Global

11 November 2021 — Daniela GHETU
Hannover Re is selling its 49.8% stake in the joint venture HDI Global Specialty SE to the majority shareholder HDI Global SE, effective 31 December 2021, thus underscoring its strategic positioning as a pure reinsurer also freeing up previously committed risk capital to be used for the company's core business growth.

Through this acquisition HDI Global is further expanding its specialty insurance business and at the same time reducing complexity in this strategic growth segment with a view to simplifying further development. Since the launch of the joint venture in 2019, the premium volume booked by HDI Global Specialty has grown from more than EUR 1 billion in 2018 to currently EUR 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, Chief Executive Officer of Hannover Re. "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 program."

"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 Dr 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."

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.

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