Hannover Re built quality at 1.1, sees ‘extremely attractive’ market in ‘23

Global reinsurer  Hannover Re believes it improved the overall quality of its book through the 1.1 renewals with no change in the weight of nat cat in the portfolio.

“On the back of last year’s strong growth, we have managed to remain disciplined and focused on further improving the quality of our P&C portfolio, which I believe we have achieved quite effectively in the recent renewal,” CFO Clemens Jungsthöfel (pictured) told analysts during a conference call.

The reinsurance market looks “extremely attractive” amid conditions “not seen in many years if not decades,” the CFO said. “And we have taken advantage of this.”

But the group did not lean excessively towards property cat, the CFO insisted. “I think our nat cat exposure has grown in line with our overall book, so you should not expect a huge increase in our nat cat exposure,” he said. Details on the renewals results are due in one week.

Thus an increase in Hannover Re’s large-loss budget for 2023 to €1.75 billion from €1.4 billion, as announced earlier in the day, results rather from “substantial” 2022 growth above initial estimate “so there is kind of a catch-up effect here as well.”

The growth stance will continue through the pending treaty deadlines. “We are fully prepared to take advantage of the market in the upcoming renewals,” Jungsthöfel added.

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