Hannover Re calm on casualty, but price gains not growth-worthy

Hannover Re is feeling relatively calm about trends in casualty vis-a-vis industry peers, claiming to have seen rate beat claims trend alongside some reinsurance pricing improvements at the 1.1 renewals.

“We have seen some risk-adjusted price increases here as well,” Hannover Re’s chief of P&C reinsurance Sven Althoff told equity market analysts in a presentation of 1.1 renewal results. Hannover Re also noted “some reductions in commissions” on proportional casualty business.

A presentation prepared for the conference had cited only “positive developments for casualty business with ceding commissions down and reinsurance rates up.” 

“From that point of view we are content with the renewal,” Althoff told analysts. 

But Hannover Re appeared to have avoided growth in the segment frequently maligned by peers for possible reserve inadequacy following a bout with economic inflation and continuing concerns over social inflation. 

“As you see from overall premium in the Americas, we have not seen these T&C and pricing environment as an opportunity to grow our US casualty business,” Althoff said. “From a volume point of view, a relatively stable renewal for us.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.