Quarter “somewhat benign” close to giant losses, CEO explains
Hannover Re has introduced a 15% enhance in group web earnings for the primary quarter of 2024, totaling €558 million, aligning with the corporate’s steerage for the complete monetary yr.
The corporate reported 1.6% progress in reinsurance income, reaching €6.7 billion, up from €6.6 billion the earlier yr. The reinsurance service end result noticed a major enhance of 27% to €720 million. The working revenue (EBIT) additionally rose by 13% to €811 million. Earnings per share elevated from €4.02 to €4.63.
As per its financials, Hannover Re’s shareholders’ fairness stood at €10.9 billion as of March 31, 2024, with an annualized return on fairness of 21.3%. The capital adequacy ratio beneath Solvency II was reported at 266.8%, effectively above the goal of 200%.
Within the property and casualty reinsurance section, expenditures for disaster losses have been beneath expectations, serving to keep a cushty funds. Renewal season noticed enhancements in risk-adjusted costs and situations, contributing to a gross reinsurance income enhance of three.1% to €4.7 billion. The mixed ratio improved considerably to 88.0%.
In life and well being reinsurance, Hannover Re continued to fulfill expectations with sturdy demand in monetary options and longevity threat safety. The reinsurance service end result for this section contracted to €211 million however remained at a passable degree for reaching the annual goal.
Complete funding earnings was €498 million, pushed by sturdy returns from the fixed-income portfolio. The general return on funding was 3.3%, surpassing the full-year goal of not less than 2.8%.
Hannover Re – outlook for 2024
Waiting for the remainder of 2024, Hannover Re expects reinsurance income to develop by greater than 5% based mostly on fixed trade charges, with stronger progress anticipated in property and casualty reinsurance than in life and well being.
The corporate forecasts a gaggle web earnings of not less than €2.1 billion, assuming no unexpected market distortions and enormous loss expenditures inside funds.
Jean-Jacques Henchoz, chief govt officer of Hannover Re, commented on the quarter’s efficiency.
“We will look again on a somewhat benign quarter as regards giant losses. We had an excellent begin into the yr, placing us on observe to attain our full-year revenue goal,” he mentioned. “On the similar time, with the latest treaty renewals, now we have put in place a strong basis for additional worthwhile progress given the continued demand for high-quality and dependable threat safety in what’s a difficult panorama.”
“The 1 April renewals supplied additional affirmation that the market atmosphere has stabilized on a excessive degree after the substantial enhancements in costs and situations recorded in prior years,” Henchoz mentioned. “We’re optimistic that this degree might be sustained within the coming renewals as effectively. It stays the case that our shoppers worth our high quality as a robust companion and our give attention to our core experience, particularly reinsurance.”
Hannover Re additionally expects continued average progress in its asset portfolios and goals for a return on funding of not less than 2.8%.
The corporate anticipates a rise within the strange dividend over the 2024-2026 technique cycle, supplemented by a particular dividend if capitalization and revenue targets exceed expectations.
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