Hannover Re saw the volume of its renewal book in Asia, Australia and the Middle East increase by 8.6% at the January 1 2020 renewals.
The reinsurer said it had “substantially expanded its position with a number of clients at largely stable prices and conditions in various markets, especially China.”
On average treaty premiums across these regions climbed from €1.33 billion (US$1.46 billion) on January 1 2019 to €1.44 billion (US$1.58 billion) this year.
The German firm said it has “substantially expanded its position with a number of clients at largely stable prices and conditions in various markets, especially China.”
Hannover Re grew its global premium volume in traditional P&C reinsurance by 14% (adjusted for exchange rate effects) while prices increased for renewed business by 2.3%. Altogether for traditional P&C, premium volume of €6.3 billion (US$6.9 billion) was renewed, while treaties worth €1.66 billion (US$1.83 billion) were either cancelled or renewed in modified form.
Jean-Jacques Henchoz, chief executive of Hannover Re, commented: “We can look back on a solid main renewal season that largely lived up to our expectations.”
He added: “Thanks to our very good position as one of the world’s leading reinsurers, we generated pleasing growth in our renewed portfolio at generally slightly improved prices and conditions. Nevertheless, it remains the case that the rate level for natural catastrophe covers in particular, and here above all in Japan, Latin America and the Caribbean, is too low and there is a need for further improvement.”
The premium volume in nat cat business grew by 7.8%, with price increases for the most part coming in lower than expected as a result of fierce competition despite a reduction in ILS capacity.
He added the firm expects further heavy loss expenditure incurred in the 2019 financial year from typhoons Hagibis and Faxai as well as Hurricane Dorian.
“The positive trend that emerged from the January 1 renewals should become more pronounced in the subsequent rounds of renewals during the year, not least because these also concentrate more on the loss-affected programmes”, Henchoz noted. “With this in mind, we are confident with this in mind, we are confident of achieving all the goals that we have set ourselves for the 2020 financial year [a €1.2 billion net profit].”
The reinsurer’s preliminary estimate is that net profits improved in the 2019 financial year to around €1.28 billion (US$1.41 billion), up from €1.05 billion in 2018.
Gross written premiums increased to roughly €22.6 billion from €19.2 billion in 2018; Hannover Re will publish its audited annual financial statement on March 11.

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