Hannover Re reports improved Q3 non-life results

Hannover Re’s non-life reinsurance group reported a net underwriting profit of EUR98.1 million (about Cdn$156.7 million) in 2009 Q3, marking an improvement from 2008 Q3’s net underwriting loss of EUR131.2 million (about Cdn$209.2 million).
The non-life group reported a net income of EUR331.3 million (about Cdn$529.1 million) in the quarter, up from the loss of EUR178 million (about Cdn$284.3 million) during the same period of 2008.
The 2009 Q3 combined ratio was 96.8%, marking an improvement from 2008 Q3’s 103.6%.
In light of an unremarkable hurricane season, the catastrophe losses in Q3 were below average, the company said in a release.
The total net burden of catastrophe losses and major claims in the period until Sept. 30, 2009 stood at EUR198.2 million (about Cdn$316.5 million), compared to EUR444.9 million (about Cdn$710.5 millon) last year.
“This is equivalent to 5.3% of net premium in non-life reinsurance and hence comfortably below the expected level.”
Capacities contracted sharply in credit and surety insurance in response to higher loss ratios triggered by the financial market crisis, the company said.
But overall “the situation on the international reinsurance markets remain positive,” it said.
“The effects of the financial market crisis have highlighted particularly forcefully the attraction of reinsurance as a capital management tool, especially in cash-intensive segments,” it continued.
“Demand for reinsurance protection has consequently risen in numerous segments.”