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HUK-Coburg delivers "a stellar year" with record profits and market gains
At a glance
- •HUK-Coburg posted record pre-tax profit and net income for 2025, with profit before tax up 83% to nearly €1bn.
- •Gross written premiums increased about 10% to around €11bn, driven by improved motor underwriting performance.
- •Combined Ratio improved from 101.7% to 96.2%, helped partly by lower natural-hazard losses.
- •New motor policies reached a record 1.9 million in 2025; HUKs overall motor portfolio rose to about 14.5 million vehicles.
- •Investment result rose 36% to €1.1bn, with net investment yield up to 2.7% and realized gains helping offset other impairments.
- •Management expects motor insurance prices to rise roughly 8% in the current year due to higher repair costs, and aims to expand market leadership.
HUK-Coburg posts record results and plans to press advantage
HUK-Coburg said 2025 was "a stellar year," reporting record profits and stronger market positions across its auto-insurance business. Speaking at the annual results press conference in Munich, CEO Jürgen Heitmann described an exceptional operating year in which pre-tax profit and net income rose to new highs, and the mutual insurer strengthened what it regards as its leadership in the German motor-insurance market.
The company reported an 83% increase in profit before tax to just under €1 billion, while gross written premiums rose about 10% to roughly €11 billion. A key driver was the return to underwriting profitability in motor insurance: the Combined Ratio improved markedly from 101.7% to 96.2%. HUK-Coburgs motor-insurance board member Jörg Rheinländer noted that roughly two percentage points of the Combined Ratio improvement reflected unusually low losses from natural hazards, such as hail, but warned that repair-cost inflation remains a headwind. Rheinländer expects motor rates to rise by around 8% again this year to offset rising repair and claims costs.
Growth in policies, stronger investment returns
Heitmann emphasized a strong start to the new year and said new business volumes are healthy: the number of new third-party liability motor contracts rose 7% in the first two months of the year, and measured by gross premiums the increase was about 5.3%. HUK-Coburg said new motor business grew from 1.7 million to a record 1.9 million policies in 2025. That total left HUK behind Allianz in new-business units for the yearAllianz has said it reached two million vehicles across its German operations for the first timebut Heitmann pointed out that HUK-Coburgs churn was comparatively low. As a result the companys total motor portfolio expanded by around 540,000 vehicles to 14.5 million policies, leaving it comfortably the largest insurer by overall motor book in Germany.
On the investment side, HUK-Coburgs investment result rose 36% to €1.1 billion. Chief Financial Officer Thomas Sehn highlighted an increase in net investment yield from 2.1% to 2.7%. Sehn said gains of about €134 million from equity disposals helped absorb impairments elsewhere, including property write-downs, supporting the stronger overall result.
Conclusion
HUK-Coburgs 2025 figures underline the mutuals return to robust profitability and its ability to expand market share even as competitors report strong new-business flows. Managements message is one of cautious optimism: the group plans to use its stronger financial footing to press its leadership in motor insurance, while remaining vigilant on claims inflation and the implications of higher repair costs for pricing and underwriting discipline.
