Hannover Re’s Wallin ‘optimistic’ about growth in annual results
Hannover Re defies “burden of heavy losses” to secure “pleasing growth” in 2018 and forecast further growth for 2019, its chief executive officer Ulrich Wallin said today as the company unveiled its annual results.
The preliminary gross written premium figure for 2018 had increased to €19 billion up from €17.8 billion in 2017, which is equivalent to an increase of 11 percent adjusted for exchange rate effects, the results showed.
Hannover Re saw its group net income rise to around €1.05 billion up from €958.6 million the year before, again based on preliminary figures. The reinsurer said that around 83 percent of the 2018 figure was attributable to its property and casualty reinsurance business and 17 percent to life and health reinsurance.
A combined ratio for 2018 has not yet been reported, although this figure is expected next month (March 2019). In 2017 the combined ratio for the P&C reinsurance business was 99.8 percent.
Wallin said: "In the face of another burden of heavy losses, demand from both existing and new clients was solid. Thanks to our good market positioning we were thus able to generate pleasing growth in the renewed portfolio at adequate conditions."
He added: "In view of the favourable outcome of our main renewal season, we take an optimistic view of movements in prices and conditions in the current year and see good prospects for profitable growth in our property and casualty reinsurance portfolio.
"We have put in place a solid foundation for achieving the targets for the 2019 financial year."
In November 2018, Hannover Re forecast that group net income for 2019 will be around EUR 1.1 billion. It said that based on constant exchange rates, the firm’s growth in gross premium income should be in the single-digit percentage range and the return on investment should reach at least 2.8 percent.
The audited annual financial statement will be published on 7 March 2019.
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