Third-quarter losses for Hannover Re
The worsening financial crisis and higher than average catastrophe losses have taken their toll on Hannover Re.
The German reinsurer had a net loss of €142.8 million ($271.6 million) in the third quarter compared to a surplus of €577.3 million ($1.1 billion) the previous year while operating profit fell from €678.3 million ($1.3 billion) to €32.5 million ($61.8 million).
CEO Wilhelm Zeller says despite its conservative investment strategy, the reinsurer has again had to take significant writedowns in the quarter.
“Unfortunately, as a major institutional investor, we were unable to escape the turmoil on capital markets unscathed,” he said.
The reinsurer is still optimistic, saying it will break even in the fourth quarter and is predicting substantial rate increases.
The German reinsurer had a net loss of €142.8 million ($271.6 million) in the third quarter compared to a surplus of €577.3 million ($1.1 billion) the previous year while operating profit fell from €678.3 million ($1.3 billion) to €32.5 million ($61.8 million).
CEO Wilhelm Zeller says despite its conservative investment strategy, the reinsurer has again had to take significant writedowns in the quarter.
“Unfortunately, as a major institutional investor, we were unable to escape the turmoil on capital markets unscathed,” he said.
The reinsurer is still optimistic, saying it will break even in the fourth quarter and is predicting substantial rate increases.