Hannover Rück SE
- WKN: 840221
- ISIN: DE0008402215
- Land: Deutschland
Nachricht vom 07.05.2018 | 07:15
Hannover Re makes good start to 2018 financial year
DGAP-News: Hannover Rück SE / Key word(s): Quarter Results
Hannover Re makes good start to 2018 financial year
Hannover, 7 May 2018: Hannover Re is satisfied with its start to the new financial year. Both business groups, namely property & casualty and life & health reinsurance, as well as the investments performed favourably and supported attainment of the goals set for the full year. "We made the most of the available opportunities on the reinsurance markets and substantially expanded our portfolio. With Group net income of EUR 273.4 million we have taken the first step towards achieving our year-end target of more than EUR 1 billion", Chief Executive Officer Ulrich Wallin affirmed.
Gross premium shows significant growth
Growth driven by property and casualty reinsurance
With net expenditure on large losses of EUR 73.4 million (EUR 133.7 million), the first quarter was impacted less heavily than the comparable period and thus came in below the quarterly budget of EUR 167 million. Amounting to EUR 31.5 million, the largest single loss event was cyclone Friederike, which caused extensive damage in several European countries.
The underwriting result for property and casualty reinsurance was on the level of the previous year (EUR 90.7 million) at EUR 91.8 million. The combined ratio stood at 95.9% (95.6%). The operating profit (EBIT) in property and casualty reinsurance climbed by 9.4% to EUR 338.9 million (EUR 309.8 million). Group net income closed 9.0% higher than in the previous year at EUR 234.8 million (EUR 215.4 million). Earnings per share amounted to EUR 1.95 (EUR 1.79).
Life and health reinsurance meets expectations
The operating result (EBIT) for life and health reinsurance improved by 6.9% to EUR 95.9 million (EUR 89.8 million). The tax load rose sharply owing to a one-time special charge associated with tax reform in the United States. Group net income consequently fell short of the figure for the comparable period at EUR 51.1 million (EUR 60.6 million). Earnings per share stood at EUR 0.42 (EUR 0.50).
Investment income above expected return
The part of the North American treaty portfolio due for renegotiation was renewed at adequate prices. Property business here was expanded slightly in light of advantageous conditions, especially under loss-impacted programmes. In Japan rates for liability business improved on the back of previous losses. The premium declined slightly, however, owing to a planned reduction in the share written in a large-volume treaty. In South Korea, too, some shares were not renewed because competition in the market meant that prices and conditions were not sufficiently attractive. Hannover Re enjoyed pleasing growth in the area of agricultural risks.
For its total property and casualty reinsurance business Hannover Re expects to surpass the strategic, currency-adjusted growth target of
Hannover Re sees attractive opportunities in life and health reinsurance, especially in the area of financial solutions. The company expects to book annual, currency-adjusted growth in gross premium of between 3% and 5%. In terms of EBIT, an annual growth rate of at least 5% is forecasted.
Based on constant exchange rates, Hannover Re now expects total business to show an increase in gross premium of more than 10%. The company anticipates a return on investment of at least 2.7% for 2018. It remains the company's expectation that Group net income in the current financial year will amount to more than EUR 1 billion. This is conditional upon major loss expenditure not significantly exceeding the budgeted level of EUR 825 million and assumes that there are no unforeseen distortions on capital markets. Hannover Re envisages a payout ratio for the dividend in the range of 35% to 40% of its IFRS Group net income. This figure may increase in light of capital management considerations if the comfortable level of capitalisation remains unchanged.
Hannover Re, with gross premium of EUR 17.8 billion, is the third-largest reinsurer in the world. It transacts all lines of property & casualty and life & health reinsurance and is present on all continents with around 3,300 staff. Established in 1966, the Hannover Re Group today has a network of more than 140 subsidiaries, branches and representative offices worldwide. The Group's German business is written by the subsidiary E+S Rück. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior".
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|Company:||Hannover Rück SE|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; Luxemburg|
|End of News||DGAP News Service|
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