FRANKFURT (Reuters) - Germany's Hannover Re stuck by its aim of earning around 850 million euros ($1.15 billion) in net profit this year after securing acceptable margins on reinsurance contracts it renewed with insurance companies in January.
“We are well placed to achieve our 2014 profit target despite challenging conditions in non-life reinsurance,” Chief Executive Ulrich Wallin said in a statement on Thursday.
Reinsurers, which help insurers shoulder risks in exchange for part of the profit, have had a buoyant few years, but are now facing one of the biggest market-wide price declines since the late 1990s as their customers press for a better deal.
Wallin said Hannover attained margins that were adequate for the risks it was taking on its books as of January, walking away from business where the prices were too low.
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