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Hannover Re releases first half 2019 financial report

Hannover Re releases first half 2019 financial report | Insurance Business

Hannover Re releases first half 2019 financial report

“In view of the business development to date we are well on track to achieve group net income in the order of €1.1 billion (around £1 billion) for 2019.”

Those were the words of Hannover Re chief executive Jean-Jacques Henchoz (pictured) when the major reinsurer published its 2019 half-yearly financial report. Here are the numbers for the Talanx Group brand in the first six months:

  • Group net income – €662.5 million (around £611 million), up 19.3%
  • Gross written premium (GWP) – €11.7 billion (around £10.8 billion), up 17.1%
  • Net underwriting result, including funds withheld – €57.5 million (around £53 million), down 73.2%
  • Net investment income – €865.6 million (around £798.2 million), up 16.4%
  • Operating profit – €942.1 million (around £868.8 million), up 3.8% 

GWP in property & casualty (P&C) reinsurance and life & health (L&H) reinsurance grew by 21.3% and 9.3%, respectively. P&C operating profit, however, went down 4.6% in the period while that for L&H rose 30.3%.

As for its full-year outlook, the reinsurance firm announced: “Hannover Re’s expectation is that gross premium in total business will grow by a single-digit percentage based on constant exchange rates. The company envisages a return on investment of at least 2.8% for 2019.

“The targeted group net income in the order of €1.1 billion – excluding the positive one-off Viridium effect – remains unchanged. This is conditional upon major loss expenditure not significantly exceeding the budgeted level of €875 million (around £806.9 million) and assumes that there are no unforeseen distortions on capital markets.”