Hannover Re grows premium on improved prices in 1 January treaty renewals and confirms guidance for 2021

• Renewals as at 1 January 2021 deliver premium increase of 8.5% adjusted for exchange rate effects
• North America, the United Kingdom and specialty lines show particularly marked price gains
• Reinsurers benefit from significantly higher prices in primary insurance under proportional covers
• Average price increase of 5.5% on renewed business
• Further improvements in prices and conditions expected over the course of the year
• Guidance for 2021 confirmed - Group net income of EUR 1.15 billion to EUR 1.25 billion
• Group net income for 2020 reaches EUR 883 million based on preliminary key figures

Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re said: "All in all, we can look back on a thoroughly satisfactory round of treaty renewals. The pricing momentum of the past year held up in the 1 January renewals. The sustained trend reversal in prices continues. We secured further improvements in prices and conditions to a varying extent across all lines and regions. Particularly in times of crisis, robustly capitalised reinsurers such as ourselves are highly sought-after."

The Group net income generated by Hannover Re reached a level of EUR 883 million (EUR 1.28 billion) in the 2020 financial year based on preliminary key figures. Gross premium increased by about 12% adjusted for exchange rate effects to EUR 24.8 billion (EUR 22.6 billion). The return on investment booked from assets under own management amounted to 3.0% for the financial year just ended. The combined ratio deteriorated to 101.6% (98.2%) and is thus higher than the full-year target of no more than 97%.

"Our extremely robust result in the 2020 pandemic year shows that we can deal well with such extreme situations thanks to our diversified business model, our risk management and our capital strength," Henchoz said. "We are well placed to achieve our targets for the 2021 financial year."

Source: www.hannover-re.com