Hannover Re shares slump on €127 million loss
German reinsurer Hannover Re has posted an annual loss of €127 million ($250.6 million) due mainly to a €641 million ($1.26 billion) writedown in equity losses.
Tumbling investment values sent net investment income down 75% from €1.12 billion ($2.2 billion) in 2007 to just €278.5 million ($549.4 million) last year, while net profit plunged 118% from €721.7 million ($1.4 billion).
Catastrophe losses and major claims for 2008 climbed to €457.8 million ($903.2 million), against €285.4 million ($563.2 million) in the previous period. Gross written premium declined 1.7% to €8.1 billion ($16 billion).
Despite the sea of red ink, Hannover Re’s non-life reinsurance combined ratio improved from 99.7% to 95.4% thanks to positive results from previous years.
Hannover Re expects greater demand for reinsurance and rising rates to restore profitability in the months ahead and has forecast net premium growth of around 10%.
Tumbling investment values sent net investment income down 75% from €1.12 billion ($2.2 billion) in 2007 to just €278.5 million ($549.4 million) last year, while net profit plunged 118% from €721.7 million ($1.4 billion).
Catastrophe losses and major claims for 2008 climbed to €457.8 million ($903.2 million), against €285.4 million ($563.2 million) in the previous period. Gross written premium declined 1.7% to €8.1 billion ($16 billion).
Despite the sea of red ink, Hannover Re’s non-life reinsurance combined ratio improved from 99.7% to 95.4% thanks to positive results from previous years.
Hannover Re expects greater demand for reinsurance and rising rates to restore profitability in the months ahead and has forecast net premium growth of around 10%.