Life & health drives up profits at Hannover Re

Reinsurer Hannover Re posted a jump in profits and growth in the first quarter of 2015, as its life and health reinsurance division experienced a good quarter.

Its profits hiked 20.1 percent to €297.7 million in the first quarter of 2015, compared with €233 million in the first quarter of 2014, while its combined ratio deteriorated slightly to 95.7 percent in the quarter, compared with 94.4 percent in the first quarter of 2014.

Hannover Re’s gross written premiums increased 21.4 percent to €4.4 billion in the quarter, compared with €3.6 billion in the prior year quarter.

This was mainly driven by its life and health division, where GWP increased 17.6 percent to €1.8 billion in the quarter, compared with €1.5 billion in the same period of the prior year. At constant exchange rates growth would have amounted to 6.5 percent.

Hannover Re said the result in the division was partly due to an improved underwriting experience in the first quarter of 2015.

Within the division, profits soared to €127.5 million in the quarter, compared with €43.4 million in the first quarter of 2014.

Its property/casualty division also posted growth for the first quarter. Its GWP hit €2.6 billion, compared with €2.1 billion in the same period of the prior year, despite intense competition. The reinsurer said growth was driven by the strong US dollar and business opportunities with attractive, large-volume treaties.

Additionally, Hannover Re said it expects to achieve its profit guidance in the order of €875 million for the full 2015 financial year.

Ulrich Wallin, chief executive officer of Hannover Re, said: ”The fact that we were able to boost our net income by a further 20.1 percent compared to the previous year's quarter can be attributed in particular to the outstanding contribution from life and health reinsurance and another satisfactory underwriting result in property and casualty reinsurance. Investment income also fully lived up to our expectations.”