By Ulrike Dauer
FRANKFURT--Germany's Hannover Re SE (HNR1.XE) Wednesday said it
was on track for full-year targets after net profit rose almost
one-third in the second quarter, helped by a higher contribution
from investments, higher revenues and moderate costs for insured
claims.
Hannover Re is one of the three biggest reinsurers by premium
revenues worldwide.
Net profit rose 29% to 186.3 million euros ($247.4 million) in
the three months to June from EUR144 million in the same period a
year earlier, beating the forecast increase to EUR179 million.
Revenues were up 3% at EUR3.47 billion but below the forecast
EUR3.61 billion. The investment result rose 24% to EUR334.3 million
from EUR268.8 million. That was also below the forecast 31%
increase to EUR352 million.
In the second quarter, Hannover Re had to pay EUR246.3 million
for insured claims such as for floods in Europe and Canada, and
hail damage in Germany. For the first six months, that number was
EUR259.5 million, only slightly higher than what the company has
budgeted for such claims.
With a net profit of EUR407.7 million after the first half of
2013, Hannover Re "has put in place a good basis for achieving its
full-year targets," the company said.
Hannover Re, which is majority owned by Talanx AG (TLX.XE),
confirmed all full year targets, such as a net profit of EUR800
million, a 5% increase in gross premium revenues and a dividend
payout ratio of between 35% and 40% of net profit.
On Tuesday, larger peer Munich Re AG (MUV2.XE) disappointed
investors with lower than expected quarterly operating and net
profits, on high costs for natural and man-made disasters and as
its investment result took hits from higher write-downs on
derivatives. Munich Re shares closed down 5.4%.
Reinsurers insure primary insurers, thereby enabling them to
take more risks on their books. Swiss Re AG (SREN.VX) is scheduled
to report second-quarter earnings Thursday.
Write to Ulrike Dauer at ulrike.dauer@dowjones.com
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