Hannover Re has attributed the decline in the first-half net income to an increase in the reserves established in the Property & Casualty reinsurance business group due to the Covid-19 pandemic

Hannover Re

Hannover Re’s office building in Germany. (Credit: Hannover.)

German insurance company Hannover Re has reported a net income of €402.4m, or €3.34 per share, for the first half of 2020, a 39.3% decrease compared to €662.5m, or €5.49 per share, for the same period last year.

Hannover Re has attributed the decline in the first-half net income to an increase in the reserves established in the Property & Casualty reinsurance business group due to the Covid-19 pandemic.

Gross written premium for the first half was €13.1bn, a 12.4% increase compared to €11.6bn for the corresponding period of 2019.

Net earned premium increased by 10.9% to €10.4bn, compared to €9.4bn for the first half of 2019.

The operating profit (EBIT) contracted by 46.6% to €503.5m, compared to €942.1m for the first six months of last year.

Hannover Re CEO comments on the results

Hannover Re CEO Jean-Jacques Henchoz said: “We have come through the crisis relatively well so far. This enables us to make appropriate provision for the anticipated Covid-19 losses and take account of the still considerable uncertainty surrounding the scale of the pandemic.

“Our business model is geared toward managing such extreme events. We offer our clients and business partners our unqualified support.”

Hannover Re has reported a net income of €101.5m, or €0.84 per share, for the second quarter of 2020, a 72.5% decrease compared to €368.9m, or €3.06 per share, for the same quarter of the previous year.

The German insurance firm reported gross written premium of €6.2bn for the second quarter, a 16% increase €5.3bn for the corresponding period of 2019.

Net earned premium increased by 11.4% to €5.2bn, compared to €4.7bn for the second quarter of 2019.

The firm’s EBIT was contracted by 84.4% to €76.9m, compared to €492.1m for the second quarter of last year.

Henchoz further added: “The development of the pandemic and its implications for economic growth as well as the measures taken by various governments will play a defining role in shaping our loss experience.

“In view of their global nature and the immense costs that can be incurred worldwide, the coverage of systemic risks is dependent now more than ever on partnership-based approaches.

“We stand ready to contribute our global expertise in supporting the development of innovative coverage solutions for large risks.”