The German reinsurer posted group net income of €667.8m for the first nine months of 2020, which is down by 33.4% compared to the same period of 2019
Hannover Re office building in Germany. (Credit: Hannover.)
Hannover Re has reported a 22.1% decline in its group net income for the third quarter 2020 (Q3 2020) at €265.5m compared to €340.7m made in the same quarter in the previous year.
The German reinsurance group’s earnings per share in Q3 2020 were €2.2 compared to €2.82 reported in Q3 2019.
For the first nine months of 2020, the group net income is €667.8m, which marks a 33.4% decline compared to €1bn posted in the same period of 2019.
Hannover Re estimates to post group net income of over €800m for the 2020 financial year.
The German company increased its reserves for losses related to Covid-19 in property and casualty reinsurance by €100m to €700m as at the end of September 2020. The burden from Covid-19 is presently at €160m in life and health reinsurance, said the company.
Hannover Re CEO Jean-Jacques Henchoz said: “The impacts associated with the Covid-19 pandemic can be better estimated following the close of the third quarter, and we therefore believe that we are now in a position again to provide profit guidance for 2020 and 2021.
“While we feel very comfortable with our 2020 guidance based on our prudent reserving, the outlook for the coming year is dependent on the further course of the pandemic. Movements in reinsurance prices nevertheless give us grounds for optimism.”
The German reinsurer’s gross premiums written in Q3 2020 were up by 7.9% to €6.14bn compared to €5.69bn reported in Q3 2019.
Its net premium earned in Q3 2020 moved up by 7.1% to €5.3bn compared to €5bn reported in the prior year quarter.
Hannover Re’s operating profit (EBIT) was down by 11.9% in Q3 2020 at €399.3m compared to €453.3m reported in the same quarter in 2019.
The company reported an underwriting loss of €108.9m in Q3 2020 compared to an underwriting loss of €91m in Q3 2019.
In property and casualty reinsurance, the group net income in the reported quarter dropped by 16.9% to €173.4m compared to Q3 2019. Gross written premium grew by 9.7% in Q3 2020 at €4.17bn compared to the prior year quarter.
The life and health reinsurance unit reported a 25.5% reduction in group net income at €108.2m compared to €145.2m made in Q3 2019. Gross written premium of the unit moved up by 4.3% in Q3 2020 at €1.97bn compared to the previous year quarter.