German reinsurer HANNOVER Re increased Group net income by 32.1% at 30 September 2018 to EUR 725.3 million (EUR 548.9 million) and confirms the profit guidance of more than EUR 1 billion for 2018.
“In property and casualty reinsurance developments in the third quarter were dominated by large losses from typhoons in Japan and hurricanes in the United States”, Ulrich WALLIN, Chief Executive Officer of Hannover Re, noted.
“The resulting strains for HANNOVER Re were, however, in line with our expectations. For this reason, and thanks to the good income from our investments, we are well on track to achieve our profit target for 2018.”
The value of January-September GWP increased by 11.2% to EUR 15.0 billion (EUR 13.5 billion). “This was driven primarily by substantial expansion of structured reinsurance solutions in property and casualty reinsurance business”. The reinsurer mentioned the retention rose to 90.8% (vs. 90.1%).
Net premium earned was up by 10.7% to EUR 12.8 billion (EUR 11.5 billion), while the operating profit (EBIT) improved by 43.5% to EUR 1.16 billion (EUR 806.4 million). Group net income rose by a significant 32.1% to EUR 725.3 million (EUR 548.9 million). Earnings per share amounted to EUR 6.01 (EUR 4.55).
In property-casualty reinsurance GWP climbed by 17.8% to EUR 9.7 billion (EUR 8.2 billion) while the combined ratio improved to 96.8% (104.4%), “but was still slightly higher than the full-year target of 96% or better. This was due not only to the vigorous growth in structured reinsurance business, which operates with slimmer margins, but also an increasing frequency of smaller and mid-sized losses. The combined ratio for the third quarter in isolation was 98.7% (118.3%)”.