The gross written premium for the Group increased by 10.9% as at 30 September 2020 to EUR 19.3 billion. Growth would have come in at 12.3% at constant exchange rates. Net premium earned climbed by 9.6% to EUR 15.8 billion, equivalent to 11.1% adjusted for exchange rate effects.
The capital adequacy ratio stood at 222% as at the end of September. This level is above the internal limit of 180% and the threshold of 200%.
The operating profit (EBIT) in property and casualty reinsurance declined by 36.0% to EUR 588.5 million. The contribution made by property and casualty reinsurance to Group net income fell by 34.7% to EUR 418.2 million. The combined ratio in property and casualty reinsurance consequently came in at 101.4% (9M2019: 98.6%).
Life and health reinsurance operating result (EBIT) decrease by 34.0% as at the end of September to EUR 315.5 million. The contribution made by life and health reinsurance to Group net income contracted by 26.4% to EUR 296.6 million. In life and health reinsurance the total burden associated with the Covid-19 pandemic as at the end of September came to EUR 160 million, with concrete loss advices amounting to EUR 91 million. The bulk of this was attributable to payments for illnesses and deaths in the United States.
The portfolio of assets under own management increased to EUR 49.0 billion (31 December 2019: EUR 47.6 billion). Ordinary investment income excluding interest on funds withheld and contract deposits fell by 11.5% to EUR 919.4 million. Altogether, Hannover Re generated investment income of EUR 1,185.0 million (9M2019: EUR 1,331.9 million). The annualised average return reached 2.8%.
Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re, said:
"The Covid-19 pandemic will continue to be a concern for us in the year ahead. That said, we already have a clearer picture of the situation now and we feel conservatively enough positioned in our assessment that we can anticipate Group net income in the range of EUR 1.15 billion to EUR 1.25 billion in the coming year. That also puts the good result of 2019 back in reach."