Coronavirus: HANNOVER Re withdraws the end-year profit guidance despite the announced increasing Q1 net profit

22 April 2020 — Andrei Victor
Based on preliminary figures for the first quarter of 2020, HANNOVER Re anticipates Group net income of about EUR 300 million (Q1 2019: EUR 293.7 million) and an operating profit (EBIT) of about EUR 426 million (EUR 450.0 million).

According to preliminary estimates, the solvency ratio at the end of the first quarter - and hence allowing for considerable volatility in interest rates and credit spreads - remains comfortably above the limit and threshold of 180% and 200% respectively. At year-end 2019 the solvency ratio amounted to 251%.

In view of the ongoing COVID-19 crisis and the associated increased uncertainty surrounding both the claims development and the capital market environment, HANNOVER Re announced is withdrawing its profit guidance for the current year.

The reinsurer mentioned the figures for the first quarter were not significantly affected by the worldwide spread of the virus as they also benefitted from lower other charges. "Therefore they cannot be used to draw conclusions about the full financial year. It is still too soon to estimate the expected negative impacts of the COVID-19 crisis over the course of the year in light of the prevailing uncertainties at this point in time. Particularly the investment result as well as property and casualty reinsurance may see increased burdens".



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