Hannover Re has posted a net profit of €221.4 million ($287.16 million) for the three months to March 31, with gross written premium (GWP) up 7% to €3.8 billion ($4.93 billion).

The company says the reinsurance market was “more competitive” in the quarter, with supply exceeding demand in many segments.

However, rate rises were seen in areas that suffered losses last year. “They were particularly marked in marine business on account of the historically high major loss expenditure caused by the wreck of the Costa Concordia cruise ship and [Superstorm] Sandy.”

Non-life reinsurance GWP was €2.2 billion ($2.85 billion), up 3.8% on the first quarter last year, while “an exceptionally untroubled major loss experience” helped the division’s underwriting profit more than double to €98.1 million ($127.24 million) from €46.8 million ($60.76 million).

The combined operating ratio improved from 96.8 % to 94%.

The result was driven by “a very good underwriting profit in non-life reinsurance and a satisfactory result in our life and health reinsurance business”, CEO Ulrich Wallin says. 

Hannover Re is on course for a full-year net profit “in the order of €800 million ($1.04 billion)”, he says.