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DGAP-News: Hannover Rck SE / Key word(s): Miscellaneous Hannover Re satisfied with treaty renewals

06.02.2014 / 07:30

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Hannover Re satisfied with treaty renewals

- Good rate quality preserved in competitive environment

- Selective underwriting led to 2% contraction in premium volume

- Price increases in loss-impacted areas

- Solid prospects for 2014 despite softer market conditions

Hannover, 6 February 2014: Hannover Re expressed satisfaction with the results of the treaty renewals as at 1 January 2014 despite an even more competitive climate. 'Although the rate level in non-life reinsurance was broadly lower than in the previous year, we achieved adequate margins thanks to our systematic underwriting discipline. We are satisfied with the rate level of our renewed portfolio; profitability is likely to remain largely stable relative to 2013. In areas where risks were not commensurately priced we reduced our shares - sometimes markedly so', Hannover Re's Chief Executive Officer Ulrich Wallin stated. Against this backdrop the premium volume contracted by 2%.

Aside from the absence of market-changing major losses, increased retentions carried by ceding companies were a key factor in the premium decline. The inflow of capital from the ILS market led to particularly sharp rate decrease in US natural catastrophe business; this did not, however, give rise to any significant share reductions for Hannover Re. Rate increases were obtained under loss-impacted programmes. This was true, for example, of catastrophe covers in Germany and Canada. Increases were recorded in marine business on the back of adverse claims experiences in prior years. Overall, Hannover Re benefited once again from its enduring client relationships and its position as one of the leading and financially robust reinsurance groups.

Original post:
PRESS RELEASE: Hannover Re satisfied with treaty renewals