Hannover Re achieved a major improvement in profit for the nine months to September 30 thanks to fewer catastrophes and hardening rates.

The German reinsurer reported net profit of €670.8 million ($824 million), up 76%, and its combined ratio from non-life reinsurance improved to 96.5% from 105%.

Gross written premium rose 13.6% to €10.3 billion ($12.7 billion) and CEO Ulrich Wallin upgraded the profit forecast for the full year, saying a result over €800 million ($982.8 million) is realistic.

Mr Wallin says healthy investment income and a favourable loss experience, particularly in non-life, boosted the bottom line.

“The positive factors that have already shaped previous treaty renewals will likely also affect pricing as at 1 January 2013 and prevent market softening.”

Non-life reinsurance gross premium rose by 13% to €5.9 billion ($7.2 billion), and profit leapt 78% to €525 million ($645 million).

Gross written premium from Australasia rose 22% to €1.7 billion ($2.1 billion).

Hannover Re has previously reported double-digit rate increases in Australia and New Zealand at the July renewals, but the company says “the more exacting requirements of regulators with respect to improved capital management also had positive implications, since they prompted greater purchasing of reinsurance coverage”.