Filed Under:Markets, Reinsurance

Hannover Re considers higher payout ratio after record profit

Hannover Re is led by Ulrich Wallin, 61. (Photo: Hannover Re)
Hannover Re is led by Ulrich Wallin, 61. (Photo: Hannover Re)

(Bloomberg) -- Hannover Re, the world’s fourth-largest reinsurer, may increase the proportion of profit distributed to shareholders after full-year earnings increased by 17%.

The company may raise the payout from the current 35% to 40% of net income “if the present comfortable level of capitalization remains unchanged,” Hannover Re said in a statement on Thursday.

Reinsurers help primary insurers shoulder risks for events such as natural disasters. While they have seen earnings squeezed by record low interest rates, below-average losses from natural disasters have helped bolster earnings. 

Related: Hannover Re fourth-quarter profit beats analyst estimates

Hanover Re, led by Ulrich Wallin, 61, proposed a dividend of 3.25 euros ($3.57) a share plus a special dividend of 1.50 euros for 2015, according to the statement. That’s the second extra payout in a row. Full-year net income rose 17% to a record 1.15 billion euros last year, beating the company’s target of about 950 million euros. For this year, profit is expected to reach at least 950 million euros.

Hannover Re has lost about 11% in Frankfurt trading this year, giving the company a market value of more than 11 billion euros.

Related: Munich Re jumps most in four years after dividend beats forecast

We’re on Facebook, are you?

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Video

Most Recent Videos

Video Library ››

Top Story

15 new vehicles you should avoid

Despite the recent spate of recalls in the auto industry, finding catastrophic fault with today’s new cars is rather difficult.

Top Story

Multiple tornadoes hit Indiana and Ohio Wednesday [photos]

Damage is still being assessed across the Midwest after a series of tornadoes struck Indiana and Ohio Wednesday afternoon and evening.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.