Hannover Re 1H Net Pft EUR648.7M

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By Ed Frankl
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Hannover Rueck SE said Thursday that second-quarter profit rose despite higher-than-expected nonlife losses including new provisions for the war in Ukraine, and raised its full-year targets for premium growth and return on investment.

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Net profit in the three months to the end of June ticked up slightly to 385.1 million euros ($391.5 million), from EUR364.7 million in the same period last year.

Gross written premiums rose to EUR8.01 billion from EUR6.66 billion last year, as property & casualty premiums rose 26% and life & health premiums rose 7.4%.

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However, operating profit declined 5.3% to EUR522.9 million.

Hannover Re said it had sustained price improvements at its P&C business, though major loss expenditures were higher than expected, including EUR186.2 million in second-quarter provisions for possible losses from the war in Ukraine.

In total, the company set aside EUR316.2 million for Ukraine in the first half of the year. Net expenditure for large losses in nonlife in the first half came to EUR850 million, higher than its budgeted expectation of EUR611 million, it added.

But the reinsurer said pandemic-related losses came in lower in the second quarter than anticipated.

The company raised its full-year targets for adjusted gross premium growth to 7.5%, up from 5% previously, and its return-on-investment guidance to more than 2.5%, up from 2.3%, but kept its 2022 net-profit guidance of EUR1.4 billion-EUR1.5 billion.

Write to Ed Frankl at [email protected]

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Credit: www.marketwatch.com /

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