In property and casualty reinsurance, GWP surged by 25.9% to EUR 12.9 billion (EUR 10.3 billion). Net expenditure for large losses in the first half-year came to EUR 850 million (EUR 326 million), a figure in excess of the previous year's comparatively modest level and higher than the expectation of EUR 611 million for the first six months. This was due to the reserve established for possible losses in connection with the war in Ukraine in the amount of EUR 316 million.
The largest individual losses were the floods in Australia caused by heavy rainfall with net expenditure of EUR 186 million and winter storm Ylenia, which impacted Central Europe in February at a cost of EUR 126 million.
Additional IBNR reserves of EUR 130 million were also established for last year's drought in Brazil due to late claims reporting.
The underwriting result in property and casualty reinsurance dropped to EUR 96 million (EUR 317 million), while the combined ratio increased to 99.0% (96.0%).
The operating profit (EBIT) in property and casualty reinsurance totaled EUR 586 million (EUR 778 million). Net income amounted to EUR 399 million (EUR 592 million).
Gross written premium in life and health reinsurance rose by 5.3% to EUR 4.4 billion (EUR 4.2 billion).
Hannover Re incurred pandemic-related losses of EUR 194 million (EUR 263 million) in the first six months. Of this total amount, EUR 72 million was attributable to the second quarter.
The operating result (EBIT) in life and health reinsurance improved by 86% to EUR 334 million (EUR 179 million). Net income was sharply higher at EUR 280 million (EUR 105 million).
For the 2022 financial year Hannover Re expects gross premium for the Group to grow by more than 7.5% adjusted for exchange rate effects, a return on investment of more than 2.5% and Group net income of EUR 1.4 billion to EUR 1.5 billion. "This is conditional on large loss expenditure not significantly exceeding the budgeted level of EUR 1.4 billion and assumes that the Covid-19 pandemic does not have a major unexpected influence on the result in life and health reinsurance and that there are no unforeseen downturns on capital markets".
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