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 percent in 2003 as rate hikes and improved terms and conditions offset a contraction 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 premium income contracted by 9 percent to 11.34 billion euros ($13.81 billion) from 12.46 billion euros ($15.17 billion) reported in 2002.
The company attributed this decline to depreciation of the U.S. dollar against the euro as well as restructuring activities, mostly in its property-casualty reinsurance business. Without the depreciation of the dollar, gross written premiums would have risen by 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) in 2002, due to the higher level of retained premiums.
The company said that it is "relatively satisfied" with its 2003 net investment income.
In its p-c reinsurance group, the combined ratio improved to 96.0 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 normal cycle management, "we used the hard market to optimize our portfolio in light of long-term profitability considerations and to scale back specific acceptances."
Hannover Re also noted that in 2003, the company saw significantly fewer insured major losses in its p-c reinsurance operations compared with 2002.
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