Hannover Re increased profit more than fourfold in the first quarter to €261 million ($333 million) as it rebounded from last year’s severe catastrophe losses. The result compared with €52 million ($66 million) profit in the first quarter of 2011.

CEO Ulrich Wallin says the result is “exceptionally good” after last year, when reinsurers carried heavy losses from floods, earthquakes, US tornadoes and the Japan tsunami.

“Key drivers here were the highly satisfactory underwriting results in non-life and life/health reinsurance as well as a very good investment income,” said Mr Wallin.

Hannover is forecasting 5-7% premium growth this year.

Gross written premium (GWP) grew 11.7% to €3.5 billion ($4.5 billion) in the quarter and net major losses were well below expected at €60.6 million ($77 million) compared with €572 million ($730 million) for the corresponding period last year.

The largest event in the quarter was a €45 million ($57 million) loss from the sinking of the Costa Concordia cruise ship.

GWP from non-life reinsurance rose 10% to €2.1 billion ($2.7 billion) after significant price increases at the January treaty renewals.

The division’s profit leapt to €173 million ($220 million) from €17.3 million ($22 million) and the combined ratio improved to 96.8% from 123.8%.

Life and health reinsurance GWP rose 14% to €1.4 billion ($1.8 billion), with net profit rising to €100 million ($127 million) from €41.5 million ($53 million).

Hannover Re says non-life reinsurance conditions are “highly advantageous” with the January 1 renewals reinforced and sometimes surpassed in April, when Japan, Korea and US catastrophe business had significant rises.

The group expects the June renewals to be favourable and the price increases to stick in the medium term.

Hannover Re says investments ere highly satisfactory despite a difficult environment, with investment income growing 12% to €440 million ($562 million).