NU Online News Service, Nov. 10, 3:49 p.m. EST
Hannover Re said it is raising its full financial year profit forecast by over EUR100 million ($138 million at current exchange rate) after posting 2010 third quarter net income of EUR271.4 million ($374.4 million), a 66.4 percent increase compared to the same period last year.
The Hannover, Germany-based reinsurer said its profit forecast was EUR600 million ($827.8 million), but is now more than EUR700 million ($965.8 million).
For the first nine months of 2010, net income declined 2.4 percent to EUR582 million ($803 million).
In the 2010 third quarter, gross written premiums climbed 18.6 percent to EUR2.9 billion ($4 billion), of which EUR1.6 billion ($2.2 billion) came from non-life reinsurance. Net income from non-life reinsurance in the quarter was EUR222.5 million ($307 million), up 105.9 percent from a year ago.
Hannover Re said it benefitted from not only its strong earnings, but from a court decision in Germany on a tax issue that improved net income by EUR100 million ($138 million).
Regarding the non-life reinsurance market, Hannover Re said it is "very largely satisfied with the state of international reinsurance markets, despite a discernible trend towards gradual market softening."
The company added, "Prices and conditions are nevertheless broadly commensurate with the risks."
In a statement to shareholders, Hannover Re Chief Executive Officer Ulrich Wallin said the market softening "is not equally evident across all lines. In loss-affected sectors, the markets are still able to obtain the necessary improvements in conditions."
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