Fourth-quarter lag can't keep Hannover Re from record 2013Reprints
Hannover Re S.E. posted net income of €265.2 million ($364.5 million) for the fourth quarter of 2013, up from €178.8 million ($245.8 million) in the fourth quarter of 2012, the company announced Tuesday.
For the final quarter of 2013, Hannover Re recorded gross written premiums of €3.43 billion ($4.71 billion), down from €3.48 ($4.78 billion) for the fourth quarter of 2012.
The Hanover, Germany-based reinsurer posted investment income of €358.6 million ($496.2 million) for the fourth quarter of 2013, down from €446.9 million ($614.3 million) for the fourth quarter of 2012.
Hannover Re said that for non-life reinsurance it posted a combined ratio of 94.6% in the fourth quarter of 2013, compared with 94.1% for the fourth quarter of 2012.
For the full 2013 year, Hannover Re posted a record profit of €895.5 million ($1.23 billion), up from €849.6 million ($1.17 billion) for 2012.
CEO Ulrich Wallin said in a statement that the profit was boosted, in part, by a strong underwriting result in non-life reinsurance.
The company said in the statement that while rates came under pressure in many non-life reinsurance lines, it was able to maintain discipline.
It noted that while major loss expenditure for the year was lower than expected, the company's business in Canada and Germany disproportionately were affected by losses from natural catastrophes.
The company said that Hailstorm Andreas in Germany was the most expensive event for the company in 2013 causing a loss of €99.3 million (136.5 million), while floods in central Europe cost the company €92.5 million. (127.1 million)
For 2013, Hannover Re posted a combined ratio of 94.9%, compared with 95.8% in 2012.
Gross written premiums for 2013 totalled €13.96 billion ($19.19 billion), up from €13.77 billion ($18.92 billion) in 2012.
Hannover Re's investment income for 2013 was €1.41 billion ($1.93 billion), down from €1.66 billion ($2.28 billion) in 2012.
Separately, Hannover Re announced Tuesday that Sven Althoff will join the company's executive board Aug. 1.
Mr. Althoff, currently managing director responsible for aviation and marine business worldwide and nonlife treaty reinsurance in the United Kingdom and Ireland, will succeed André Arrago, the board member responsible for worldwide nonlife treaty reinsurance, who is retiring.