Hannover Re Posts $518 Million 9-Month Net Income

Germany’s Hannover Re expressed satisfaction with the Group’s net income for the first 9 months of 2011, as it posted a profit of €381.7 million [$518.34 million].

Chief Executive Officer Ulrich Wallin noted that Hannover Re had achieved the good result “despite loss expenditure overshadowed by the severe natural catastrophe losses of the first quarter as well as a challenging capital market environment.” He also confirmed that the Group was on track to reach its full year profit target of “at least €500 million [$680 million].”

Other earnings highlights were listed as follows:
— Gross premium: + 6.0 percent (+ 8.1 percent at constant exchange rates) — Net burden of major losses: €743.2 million [$1.01 billion] (€554.1 million [$752.5 million] in 2010)
— Combined ratio in non-life reinsurance: 105.0 percent; for the third quarter in isolation 95.2 percent.
— Net investment income: €950.8 million [$1.29 billion] (€872.2 million [$1.184 billion] in 2010)
— Average return on investments under own management: 3.6 percent
–Operating profit (EBIT): €487.8 million [$662.5 million] (€862.0 [$1.17 billion] in 2010)
— Earnings per share: €3.16 [$4.29] (€4.83 [$6.56] in 2010)

Gross written premium as of September 30, 2011 were €9.1 billion [$12.36 billion], compared to €8.6 billion [$11.68 billion] for the first nine months of 2010. “At constant exchange rates growth would have come in at 8.1 percent,” said the bulletin.

The level of retained premium was virtually unchanged at 90.7 percent (91.0 percent in 2010). Net premium climbed 5.5 percent to €7.9 billion [$10.73 billion], compared to €7.5 billion [$10.185 billion] in 2010). The rported noted that the “increase would have amounted to 7.5 percent at constant exchange rates.”

The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: www.hannover-re.com .

Source: Hannover Re

Topics Profit Loss