Hannover Re posts further double-digit growth and confirms profit target

Hannover Re again posted double-digit growth in premium income in the first quarter and at the same time delivered modestly improved group net profit.

The gross written premium booked by Hannover Re rose by 11.9 percent as at 31 March 2021 to €7.8 billion, up from €7 billion in Q1 2020. Group net profit increased by 1.7 percent to €305.9 million, up from €300.9 million in Q1 2020.

For property and casualty reinsurance its combined ratio improved to 96.2 percent, as compared to 99.8 percent for Q1 2020.

"We are off to a good start in the current financial year," said Jean-Jacques Henchoz, chief executive officer of Hannover Re. "Hannover Re is superbly placed to benefit from the sustained improvements in prices and conditions in our market. Even though the pandemic has now been with us for more than a year, our robust capital resources remain unchanged thanks to our outstanding risk management."

Henchoz added that the first quarter puts in place a solid basis for achieving the goals that the company set for the full 2021 financial year.

"Hannover Re already dealt with the bulk of the expected pandemic-related strains in the 2020 financial year,” he said. “With increasingly widespread vaccinations we will be able to progressively return to a more normal life. For us, as a reinsurer, this means that we only need to anticipate further losses from the pandemic on a manageable scale. As an additional factor, prices and conditions in property and casualty reinsurance are continuing to improve. All this gives me confidence that we will achieve our full-year targets."

On the group level Hannover Re continues to expect net income in the range of €1.15 billion to €1.25 billion for the 2021 financial year.

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