HDI Insurance AG Reflects on 2024: Focus on Selective Growth, Innovation, and Sustainability

HDI Insurance AG has concluded its business year with a focus on selective growth, innovation, and sustainability amidst challenges such as natural disasters and evolving legal requirements. The company reported a 6.4% increase in premiums in Austria, totaling EUR289 million for 2024, compared to EUR272 million in 2023. The gross combined ratio stood at 90.5%, a rise from the previous year's 72.8%. Notably, S&P Global Ratings upgraded HDI's credit rating from 'A' to 'A+' (Strong) with a stable outlook, following the upgrade of the Talanx primary insurance group's rating to 'AA-' (Very Strong) in early 2025, which reflects HDI's strategic importance within the Talanx Group.

The company's investment returns demonstrated significant growth, with capital gains reaching approximately EUR6.1 million, an increase from EUR2.2 million in the prior year. Furthermore, the net combined ratio improved from 89.4% in 2023 to 85.3% in 2024, while the net profit rose to around EUR31.9 million, up from EUR22.4 million in 2023.

In the commercial and industrial insurance market, HDI successfully increased premiums across its operations in Austria, the Czech Republic, Hungary, and Slovakia, particularly in the fire, motor liability, motor comprehensive, and technical insurance sectors. In the personal insurance segment, premiums rose by 3.3% year-over-year, aided by a resurgence in new car registrations.

To better navigate future developments and challenges, HDI restructured its operations in 2024 by establishing a central sales department aimed at leveraging the synergies between personal and corporate services. The reorganization of sales regions within Austria has also enhanced operational efficiency. The CEO emphasized that this new structure has already led to noticeable improvements in internal processes.

In line with its digital transformation strategy, HDI implemented the Digital Operational Resilience Act (DORA) in 2024. The company revised its internal processes and governance structures to comply with new legal requirements, thereby enhancing its operational resilience. Notably, HDI has initiated the use of artificial intelligence in various applications and optimized data exchange using the OMDS 3.0 interface standard.

Environmental sustainability remains a core priority for HDI. In 2024, the company succeeded in reducing energy and fuel consumption across its facilities and fleet. The energy output from photovoltaic systems in Vienna was significantly increased, and the transition to electric vehicles in its fleet resulted in savings of approximately 3,000 liters of fuel and around 10.9 tons of CO2 equivalents. The photovoltaic installation on the roof of HDI's headquarters was so efficient that excess energy was fed back into the grid. HDI surpassed its goal of reducing CO2 intensity by 30% by 2025 compared to 2019 levels.

Additionally, HDI adopted the Corporate Sustainability Reporting Directive (CSRD) in 2024, which mandates comprehensive sustainability reporting for companies. This initiative included the implementation of further quality assurance processes to reinforce the company's commitment to transparency in its sustainability efforts.

In response to severe weather events in September 2024, which led to significant flooding in parts of Eastern Austria, HDI established a rapid assessment procedure to assist affected policyholders promptly. This proactive approach garnered positive feedback from clients and partners.

In a testament to its quality offerings, HDI secured first place in the 'Private Legal Protection' category at the Insurance Award Austria 2024, an accolade based on evaluations from independent intermediaries. The HDI Legal Protection tariff, 'HDI Recht§vorteil', offers a variety of coverage options and benefits, including unrestricted lawyer selection and waived deductibles.

Looking ahead to 2025, HDI anticipates low growth rates in the Eurozone due to prevailing economic forecasts. Nevertheless, the company expects a positive business trajectory, particularly in the corporate sector across Austria, the Czech Republic, Hungary, and Slovakia.