Net income up slightly for Hannover Re in first half

Hannover Re has reported a group net income of 407.7 million euros for the first half of the year, a slight increase from 405.3 million euros last year.

“The modest rise in group net income to 408 million euros was driven mainly by an 85% increase in the underwriting profit for non-life reinsurance,” CEO Ulrich Wallin noted. “This more than made up for the reduced profitability in life and health reinsurance and somewhat lower investment income.”

Investment income for the first half of 2013 was down 2.9% to 689 million euros, the company reported. At print time, 1 euro was worth $1.37.

Gross written premium for the group increased 4.9% to 7.2 billion euros as of June 30, the company reported. Net premium earned climbed 6.3% to 6.2 billion euros. Gross premium in non-life reinsurance increased only slightly, rising 0.4% to 4.1 billion euros.

“The pace of growth in gross and net premium has slowed in non-life reinsurance,” the company said. “This is due in part to increased competition, but also to the disciplined underwriting policy practised by Hannover Re.”

The underwriting result in non-life reinsurance was 183.6 million euros, versus 99.2 million euros for the same period of 2012.

Operating profit for the first six months of 2013 was “thoroughly pleasing,” the company said, rising 12.3% to 670.7 million euros.

The company’s net burden of major losses totaled 259.5 million euros, compared with 132.4 million euros in 2012.

Hannover Re also reported a combined ratio of 94.4%, compared with 96.8% for the same time last year.

“In view of its strong positioning and the development of business to date, Hannover Re expects to post a result in the region of the declared year-end targets in both non-life and life/health reinsurance for the full 2013 financial year,” it said.

“Based on constant exchange rates the company continues to anticipate growth of around 5% in gross premium.”

The company’s targeted return on investment for the full year remains unchanged at 3.4%.