Hannover Re has booked a 43% increase in net profit, due partly to a €165 million ($274 million) benefit from German corporate tax reform.  

The world’s fourth-largest reinsurer booked a full-year net profit of €734 million ($1.2 billion), despite an 11% decline in gross written premium.

The combined ratio stood at 99.7%, indicating slim margins from premiums. Investment income increased 8.4% to €859 million ($1.4 billion).

Hannover Re was well insulated from the US subprime crisis, sustaining writedowns of just €10 million ($17 million).

The company has forecast a 5% increase in premiums this year.