Daily Insurance Industry News
Daily Insurance Industry News
Tuesday 20th of February 2018
May 6, 2009

Hannover Re declares €219m Q1 profit

by David Masters

Story link: Hannover Re declares €219m Q1 profit

Hannover Re this week reported first quarter profits up 43%, aided by one-off gains from reinsurance contracts acquired in January from ING Groep NV.

Net income increased to €219 million, compared to €158 million in the first quarter of 2008.

Pre-tax profits grew 27% to €287 million, whilst premiums increased 17% to €2.66 billion.

Operating profit rose 25% to €306 million.

Despite the positive result, shares in the company fell by nearly 2% because it announced cautious guidance for its 2009 return on investments and earnings per share.

The company now expects an RoI of between 3.4% and 3.8%, down from the previous forecast of 4.1%.

Chief Financial Officer Roland Vogel said the company has become ‘pessimistic’ about investment returns and added that its former RoI forecast had been unrealistic.

“We have gotten more pessimistic regarding investment returns for 2009 than we have been at the beginning of the year,” Vogel said.

Analysts said the new RoI target should be taken as a ‘well communicated profit warning’.

Chief executive Wilhelm Zeller said the company has steered a safe course through the financial crisis and can now start to think about the future.

“The adverse effects of the financial market crisis are largely behind us,” Zeller said.

“We are now in a position to profit from the positive developments in both non-life reinsurance and life/health reinsurance.”


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