Hannover Re reports higher first-half profit, revenue
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Hannover Re S.E. on Thursday reported a profit of €555.3 million ($642.4 million) for the first half of 2018, a 3.8% increase over the same period last year.
The Hanover, Germany-based reinsurer’s gross premium for the first half increased 11% to €10 billion.
The increases were in part due to higher rates for property/casualty reinsurance, the reinsurer said in a statement.
Gross written premium on its property/casualty reinsurance book increased 19.2% to €6.5 billion.
“The main factors here were the continued rise in demand for structured reinsurance solutions in Europe and North America as well as rate increases in traditional reinsurance,” the reinsurer said.
However, the U.S. property catastrophe market remains competitive, Hannover Re said: “U.S. catastrophe business saw a continued abundant supply of additional capacity from alternative capital markets, which prevented a stronger response on the pricing side in traditional reinsurance.”
The reinsurer’s combined ratio improved slightly to 95.7% compared with 96.5% in the first half of 2017.
Looking forward, Hannover Re said it expects to report a profit of more than €1 billion for 2018.
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