"With the result for the first three months we have achieved more than a quarter of the full-year guidance of at least EUR 1.7 billion and are thus very much on course", commented Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re. "At the same time, we have further strengthened our resilience. In the face of the current challenges we are thereby remaining a reliable partner for our clients".
Hannover Re is reporting its results for the first time based on the new financial reporting standards IFRS 17 and IFRS 9, both of which have been applicable since 1 January 2023.
Return on equity of 20.8% remained above minimum target; continued robust capital adequacy ratio under Solvency II. Large losses in property and casualty reinsurance were within the bounds of expectations in the first quarter. Expenditures from large losses in the first three months of the year came to EUR 334 million (EUR 336 million). This was within the large loss budget of EUR 356 million estimated for the first quarter.
The result for the first quarter in life and health reinsurance surpassed expectations. Net income from investments in life and health reinsurance, which had benefited from two sizeable special effects in the previous year, consequently contracted by 53% to EUR 83 million (EUR 177 million).
The key takeaways are:
- Reinsurance revenue reaches EUR 6.6 billion
- Large losses in property and casualty reinsurance within the bounds of expectations
- Result in life and health reinsurance well on track
- Return on investment ahead of target at 2.7%
- Group net income of EUR 484 million very well on track for 2023 full-year target
- Return on equity well above minimum target at 20.8%
- Guidance for 2023 Group net income confirmed
- Contractual service margin amounts to EUR 7.4 billion
Full report can be found here.