Hannover Re, Q1 2019: Gross written premium climbed by 19.2%

Hannover Re net income increased by 7.4% in the first quarter of 2019, compared to first quarter of 2018 level, reaching EUR 294 million. The operating profit (EBIT) grew by more than EUR 16 million (+3.7%) to EUR 450 million.

Key figures

  • Gross written premium (GWP): EUR 6,373.3 million (+19.2%, compared to Q1 2018 results), of which:
    • GWP P&C: EUR 4,394.5 million (+22.8%)
    • GWP L&H: EUR 1,978.8 million (+12.0%)
  • Total investment income: EUR 398.9 million (+1.9%)
  • Operating profit:EUR 450.0 million (+3.7%)
  • Group net income: EUR 293.7 million (+7.4%)
  • Earnings per share: EUR 2.43 (+7.4%)
  • Book value per share: EUR 81.69 (+12.2%)
  • Combined ratio (P&C): 95.7% (-0.2 pp)
  • Retention: 90.4% (-0.9 pp)
  • EBIT margin: 9.8% (-1.0 pp)

The gross written premium for the Hannover Re Group rose by 19.2% as at 31 March 2019 to EUR 6.4 billion. Adjusted for exchange rate effects, growth would have reached 16.1%. The retention decreased to 90.4% (91.3% in Q1 2018). Net premium earned climbed by 15.3% to EUR 4.6 billion. At constant exchange rates growth of 12.7% would have been booked.

The operating profit (EBIT) posted by Hannover Re increased by 3.7% to EUR 450.0 million. Group net income reached EUR 293.7 million, surpassing the previous year's figure by 7.4%. Earnings per share amounted to EUR 2.43 (EUR 2.27 in Q1 2018).

The underwriting result for property and casualty reinsurance including interest on funds withheld and contract deposits was well about the level of the previous year at EUR 124.8 million (EUR 99.6 million in prior-year first quarter). The combined ratio improved slightly to 95.7%. The operating profit (EBIT) in property and casualty reinsurance was virtually unchanged at EUR 334.4 million (EUR 338.9 million in Q1 2018). Group net income for P&C contracted by 6.7% to EUR 219.0 million (EUR 234.8 million).

The operating result (EBIT) for life and health reinsurance improved by 21.3% to EUR 116.3 million (EUR 95.9 million). Group net income grew to EUR 88.5 million (EUR 51.1 million) for L&H business lines.

Ulrich WALLIN, Chief Executive Officer, said:

"We made the most of opportunities on the property and casualty reinsurance markets and have grown our portfolio by a double-digit percentage so far. We are pleased with the result in life and health reinsurance, where the healthy underlying profitability is now becoming evident after the strains associated with treaty recaptures in 2018. The return on investment is roughly stable at 3.0%. All in all, with Group net income of EUR 293.7 million we are well on track to achieving our year-end target in the order of EUR 1.1 billion."

Full report can be found here: Hannover Re Q1 2019 report

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