(Bloomberg) — Hannover Re, the world's third-biggest reinsurer, reported that first-quarter profit was little changed as rates charged by the industry remain under pressure.
Net income rose to 233 million euros ($324 million) from 231 million euros a year ago, the Hanover, Germany-based reinsurer said in a statement today. That compares with the 217 million-euro average estimate of nine analysts surveyed by Bloomberg.
Reinsurers, who help primary insurers shoulder risks, are facing pressure on their earnings as reinsurance rates decline for a second year in a row amid lower-than-average disaster claims and an influx of competition.
Prices may fall further this year and next unless "either a major catastrophe absorbs a lot of the industry's excess capital or when underwriting earnings turn into losses," Hannover Re Chief Executive Officer Ulrich Wallin said in an interview on April 8.
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