Hannover Re likely to surpass 2011 profit target

Hannover Re has said that preliminary figures indicate that the group will post a net income of €600 million for 2011.

If this comes to pass, it means that the company will have beaten its profit target by €100 million.

In a statement Hannover Re said that investment income had delivered a ‘particularly pleasing’ performance and played ‘a vital part’ in this increased profit.

It also said that the balance of realised gains and losses improved further in the fourth quarter as the reinsurer continued to use the low interest rate level to generate disposal gains on high-quality government bonds.