Reinsurer Hannover Re has reported group net income of €1.41 billion for the 2022 financial year, based on preliminary figures, up from €1.23 billion in the previous year.
Looking ahead, the company is targeting net income of at least €1.7 billion for 2023, with reinsurance revenue expected to grow by at least 5% during this time.
Hannover Re noted that its underwriting result in property and casualty reinsurance was characterised by high claims burdens this year, although it has yet to release the full details of its results, which will become available on March 9th.
Nevertheless, gross written premiums rose by 12.7% over 2022, and the result in life and health reinsurance was “clearly above expectations,” the reinsurer reported, despite further losses associated with the pandemic.
In order to take account of the growth in the property and casualty reinsurance portfolio and the increased loss expectation from natural catastrophes, Hannover Re has increased its net major-loss budget for 2023 to €1.725 billion, up from €1.4 billion previously.
Hannover Re also disclosed that its return on investment from assets under own management reached 3.2% in 2022 and was well above the target of more than 2.5%. Return on equity stood at 14.1%.
“Thanks to our position as a profitable and sought-after business partner and in light of the attractive market environment, especially in property and casualty reinsurance, we again expect a satisfying Group net income for the current financial year,” said Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re.
“After the high burdens from major losses in the past years, we will stick to our conservative reserving policy in the current business year.”
2023 will mark the first time that Hannover Re’s consolidated financial statements will be prepared using the new accounting standards (IFRS 17/9).
The company’s ordinary dividend for 2022 is expected to be at least stable compared to the previous year, and will be supplemented by a special dividend, provided the capitalisation exceeds the capital required for future growth and the profit target is achieved.
