Hannover Re has reported “significant price increases” at the January 1 reinsurance treaty renewals, which it says has been affected by losses resulting from Superstorm Sandy.

CEO Ulrich Wallin says the storm had a stabilising effect on prices, while losses from the sinking last year of the Costa Concordia led to price increases in marine business.

Demand for high-quality reinsurance protection in North America continued to rise, even though some clients raised their retentions appreciably, he says.

“Loss-impacted programs, above all those affected by Sandy, achieved price increases ranging between 10% and 30%. Premiums in US casualty business are trending higher.”

About 40% of Hannover Re’s portfolio renews on January 1.

Mr Wallin anticipates a good financial result this year on the back of strong increases in non-life treaties.

He says marine rates surged following losses from the Costa Concordia and Sandy, with increases of 25-40% on loss-affected programs.

“Even under treaties that had been spared major losses, Hannover Re was able to achieve premium increases averaging 10%.”

The group expects net income of about €800 million ($1.04 billion) this financial year.