Hannover Re announces interim earnings

Hannover Re announces interim earnings | Insurance Business Canada

Insurance News

Hannover Re announces interim earnings

CEO cites what’s behind stronger demand for reinsurance

Insurance News

By
Terry Gangcuangco

Hannover Re has published its financial results for the second quarter and first half of 2023.

Here’s how the reinsurer performed in the three and six months ended June 30:

Metric

Q2 2023

Q2 2022

H1 2023

H1 2022

Reinsurance revenue

€5.7 billion

€5.2 billion

€12.3 billion

€11.8 billion

Reinsurance service result

€510.4 million

€272.1 million

€1.1 billion

€693.5 million

Net income from investments

€469.9 million

€431.7 million

€850.7 million

€824.6 million

Operating profit

€632.3 million

€519.9 million

€1.4 billion

€1.1 billion

Group net income

€475.6 million

€387 million

€960 million

€814.9 million

Of the group’s operating profit in the half year, €829 million came from property & casualty; €525 million from life & health. Both segments posted an increase – by 28% and 11%, respectively.

Commenting on the numbers, Hannover Re chief executive Jean-Jacques Henchoz said in a release: “We closed the first half with a good result and are thus still on track to achieve our year-end targets. In the recent renewals we were also able to secure further – sometimes appreciable – improvements in prices and conditions, as reflected in another increase in the new business value.

“A selective underwriting approach remains the order of the day for us, in part because experience shows that the more eventful months of the year are still ahead of us. This prudence is exactly what sets us apart as a financially strong and reliable reinsurance partner.”

Henchoz added that the increasing losses from natural disasters and persistently high inflation in some regions are driving stronger demand for reinsurance protection.

“With our focus on the long-term profitability of our portfolio, I remain optimistic – despite all the challenges – that we can sustain the positive development of Hannover Re’s business in the second half of the year and achieve the goals we have set,” he said.

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