Hannover Re Profit Up 33 Percent

NU Online News Service, March 29, 1:15 p.m.EST? Hannover Re said its net profit soared by 33 percentin 2003 as rate hikes and improved terms and conditions offset acontraction in premium income caused in part by the weak U.S.dollar.[@@]

For the year ending 2003, profits rose to 354.8 million euros($432.1 million U.S.) up from 267.2 million euros ($325.4 million)reported in 2002.

The Hanover, Germany-based reinsurer's gross written premiumincome contracted by 9 percent to 11.34 billion euros ($13.81billion) from 12.46 billion euros ($15.17 billion) reported in2002.

The company attributed this decline to depreciation of the U.S.dollar against the euro as well as restructuring activities, mostlyin its property-casualty reinsurance business. Without thedepreciation of the dollar, gross written premiums would have risenby 1.9 percent, Hannover Re said.

Net premiums earned increased by 6 percent to 8.16 billion euros($9.98 billion), up from 7.69 billion euros ($9.37 billion) in2002, due to the higher level of retained premiums.

The company said that it is "relatively satisfied" with its 2003net investment income.

In its p-c reinsurance group, the combined ratio improved to96.0 percent from 96.3 percent in 2002.

Wilhelm Zeller, chairman of the Hannover Re executive board,said in a statement that independently of the company's normalcycle management, "we used the hard market to optimize ourportfolio in light of long-term profitability considerations and toscale back specific acceptances."

Hannover Re also noted that in 2003, the company sawsignificantly fewer insured major losses in its p-c reinsuranceoperations compared with 2002.