7 March 2013 News

SCOR and Hannover Re post healthy results

Two of Europe’s biggest reinsurers – Hannover Re and SCOR – have posted solid results for 2012 benefiting from rate increases on the back of the heavy catastrophe losses of 2011 and a relatively benign loss environment in 2012.

Hannover Re posted a record profit of €858.3 million for 2012 compared with €606 million the year before. It said the result was thanks to solid growth, a good underwriting result on its non-life book of business and better than expected investment returns.

Its gross written premiums increased by 13.9 per cent to €13.8 billion and its combined ratio for the year was 95.8 per cent compared with 104.3 per cent in 2011. It proposed an increase in its dividend to €2.60 per share compared with €2.10 in 2011.

“Not least owing to the major losses in 2011, we were able to push through price increases for most business segments,” said Ulrich Wallin, chief executive of Hannover Re. “As a result, the rate level for our company in 2012 was significantly better than in the previous year. Markets in Asia and Australia that had suffered losses in 2011 were particularly important drivers of growth. In addition, gratifying growth rates were recorded in North America and in global facultative reinsurance.”

Wallin also said he was positive about 2013 despite growing competition in the industry. “Thanks to our comparatively low expense ratio and our long-standing good business relations we are well equipped for the present competitive environment. The key is maintaining a disciplined focus on writing business that meets our margin requirements, while making allowance for the declining interest rate level,” he said.

SCOR posted a profit of €418 million for 2012, a 26.7 per cent increase on 2011. It too said the improved result was largely due to fewer big catastrophe losses last year and rate increases at the renewals. Its gross written premiums increased by 25.2 per cent to €9.5 billion, its non-life book increasing by 16.8 per cent to €4.65 billion and its life book by 34.4 per cent to €4.8 billion. Its combined ratio for the year was 94.1 per cent.

The group’s continued growth combined with its acquisition of Transamerica Re also means that the majority of its business activities now lie outside Europe.

“The group continues to grow, particularly with further very strong increases during the P&C renewals and the successful integration of the Transamerica Re business, and now conducts around 60% of its activities in Asia-Pacific and the Americas,” said Denis Kessler, its CEO.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk