NU Online News Service
Hannover Re reported a net loss of EUR126 million ($162 million U.S. at the current exchange rate) for 2008 primarily from investment losses for the year, but all of the loss came from the first three quarters of the year.
The Hannover, Germany-based reinsurer reported income for 2008 dropped from the previous year net income of EUR722 million ($921 million), a drop of 118 percent. However, while the first three quarters showed a loss of EUR143 million ($182 million), the fourth quarter reported a profit of 16 million ($20 million). The company did not give comparison figures to 2007.
Gross written premium for the group was off slightly, by less than 2 percent, or EUR138 million ($176 million), to EUR8.12 billion ($10.4 billion).
On the property-casualty side of the ledger, Hannover Re reported gross written premium for 2008 dropped 4 percent, or EUR202 million ($258 million), to EUR5 billion ($6.4 billion). The company's combined ratio improved 4.3 points to 95.4 for the year.
In a statement, Hannover Re Chief Executive Officer Wilhelm Zeller said, "For our company, the crisis in financial markets is at once a curse and a blessing. Now that the negative repercussions are behind us, we can profit from the positive effects. We enjoyed a very pleasing treaty renewal season as [of Jan. 1, 2009]–with prices moving higher again–in non-life reinsurance, and thanks to our robust financial strength we are in a position to benefit accordingly from the available business opportunities."
The company noted that capital depletion among primary insurers because of losses in their investment portfolios strengthened the demand for reinsurance and, consequently, the demand led to higher prices.
The situation for p-c reinsurance "is significantly brighter than in the previous year," the company said. The company added it is looking forward "to very favorable business development with 10 percent growth on the p-c side. Life and health insurance is viewed as similarly favorable.
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