Global reinsurance company Hannover Re has continued strong growth through the first half of 2022, with the company’s written premiums growing by around 20% across the group and 26% in the P&C reinsurance business.
At the same time, Hannover Re reported bigger-than-expected losses, while leaving part of its losses to recover in six months.
The group’s net income is reported to be EUR 649 million for H1 2022, a slight decrease on the previous year’s EUR 671 million.
The results that showed the results included the occurrence of natural disasters around the world, the exposure of people who die from COVID and other life effects, and the increase of defense reserves to protect the potential damage caused by Russia’s war in Ukraine.
Growth is the main issue though, as Hannover Re, like its recycling peers, continues to grow the business at favorable rates.
The company posted a turnover of EUR 17.3 billion for the whole business, up from EUR 14.5 billion in the previous year.
In the case of property and casualty recovery, Hannover Re said that “the demand for support from those with financial recovery remains high.”
As a result, “Hannover Re was also able to increase its capital base and secure favorable rates and conditions during the year.”
Total written premiums rose by around 26% in P&C reinsurance to EUR 12.9 billion, up from EUR 10.3 billion last year.
“Our strong and profitable growth shows how Hannover Re insurance is in high demand among our customers in difficult times,” said Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re. “We gave satisfactory results in the first half of the year, not only because of our great risks and financial management. We were able to do this even though we set aside funds to support the war that was launched against Ukraine against international law, despite the loss of a lot of money and even though other charges related to the epidemic.”
Major losses came out at EUR 971 million, which currently includes Russia/Ukraine losses of EUR 316.2 million.
These war-related places remain unconfirmed by actual claims, so no refundable benefits have been given to them.
On natural disasters, Hannover Re reported EUR 625.6 million in gross losses for H1 2022, which was reduced to EUR 507.2 million on the net, meaning that some of this has been passed on to reinsurers.
Floods and rain in Australia were the best driver of the quarter, at EUR 245.5 million, but this also reduced the net significantly, at EUR 186.1 million.
European hurricanes were the next biggest loss risk at EUR 144.1 million, which decreased to EUR 126.1 million.
Hannover Re was also hit by last year’s drought in Brazil, where it added EUR 130 million to IBNR due to late reporting.
In its July reinsurance update, Hannover Re cited “significant price increases” at times, which has helped confirm its growth expectations for the year.
Hannover Re expects net assets to grow by 7.5% adjusted for volatility, and is still targeting EUR 1.4 billion to EUR 1.5 billion for the group as a whole.
“Our success is based on our quality control, cost effectiveness of our business and financial management,” said CEO Henchoz. “For this reason, we have the opportunity to overcome many challenges in our market. Based on this, and thanks to our strong customer relationships, I am confident that we will achieve our main goals for 2022. As a result, in the first six months we have laid the necessary foundations for this make it possible.