Profit up in first quarter for Hannover Re

Hannover Re has reported a group net income of 233 million euros for the first quarter of 2014, up from 231.2 million euros in the same period of 2013.

That profit “was driven by a very pleasing underwriting result in non-life reinsurance and good investment income,” Ulrich Wallin, the company’s CEO, said in a statement.

“This shows that we have adjusted well to the challenging business environment. On the basis of this successful start to 2014, Hannover Re reaffirms its net income guidance in the order of 850 million euros for the full financial year.”

Gross written premium for the group decreased slightly to 3.6 billion euros, from 3.8 billion in Q1 of 2013. Net premium earned also declined to 2.9 billion euros, from 3.1 billion euros in the first quarter last year.

Total gross premium for non-life reinsurance declined to 2.1 billion (2.2 billion in Q1 of 2013).

“Major loss expenditure was below average in the first three months of 2014, just as it had been in the corresponding quarter of the previous year,” the firm said Wednesday.

“The only major loss resulted from the crash of the Malaysian passenger plane, wreckage of which had still to be located at time of going to press. Hannover Re has set aside reserves 30.6 million euros for that event.

The non-life underwriting result for the quarter was 87.6 million euros (98.1 million euros in 2013), and the combined ratio was 94.4% (94.0% last year).

“Based on constant exchange rates, the company continues to expect stable to slightly higher gross premium and net income after tax in the order of 850 million euros for the full 2014 financial year,” it said.