Hannover Re benefits from below-budget P&C large losses in 2016

Hannover Re benefitted from lower than expected large losses in its property/casualty (P&C) division in 2016, although volumes grew compared to the previous year.

Total net loss expenditure for the company amounted to €626.6 million in the P&C division, up from €572.9 million in 2015. However, Hannover Re had budgeted for large losses of €825 million in 2016, according to its annual report.

The largest single loss in 2016 for Hannover Re was the wildfires in the Canadian province of Alberta, with a net strain of €127.9 million. Hurricane Matthew caused a net loss of €70.3 million.

Gross premium volume in P&C reinsurance fell 1.4 percent to €9.2 billion in 2016.

Overall, the combined ratio improved slightly 93.7 percent from 94.4 percent over the period. The operating profit in the division was flat year-on-year at €1.34 billion in 2016.