Hannover Re says it is happy with the January treaty renewals despite weaker prices amid tough business conditions, and it is confident of meeting its profit targets for the year.

“The price decline in many markets was significant compared with the previous year,” CEO Ulrich Wallin said. “Thanks to our good rating and long-standing customer relationships, we nevertheless achieved a rather pleasing outcome.”

Hannover Re had total non-life premium volume of €6.18 billion ($9.09 billion) booked the previous year, with almost €4 billion ($5.88 billion) up for renewal at January 1.

Total renewed premium volume was €4.02 billion ($5.9 billion).

Capital inflow from alternative markets placed extra pressure on prices, particularly in the natural catastrophe business.

However, Hannover Re says it achieved rate increases in programs that suffered losses last year.

In North America, treaty renewals passed off satisfactorily, although rates in the general liability business came under pressure.

Marginal rate rises were achieved in Canada due to losses last year and in 2013.

“All in all, the rate level in the US continued to be commensurate with the risks, thereby enabling us – in part also through targeted new business acquisition – to grow the premium volume in North America by… 5%,” Hannover Re said.

In its home market of Germany, further price rises were obtained for non-proportional motor own damage covers, based on losses from wind and hailstorms in recent years.

In marine reinsurance, the Costa Concordia and Rena incidents prevented a sharp drop in prices.

As expected, rates fell for US property catastrophe business due to the absence of market-changing major losses.

Hannover Re remains confident of turning in a good set of underwriting results.

It expects group net income of about €875 million ($1.29 billion) this financial year.

“Based on anticipated stronger profitability in life and health reinsurance, as well as stable income expected from investments under own management, Hannover Re is confident of achieving its declared profit targets,” the reinsurer says.