Low disaster Claims assist to reinforce complete-year profit for Hannover Re

Hannover Re, the world’s 1/3-largest reinsurer, plans to pay a unique dividend after fourth-area income rose more than analysts estimated, helped by way of low disaster claims. The shares climbed.

internet income rose to 290 million euros ($313 million) from 265 million euros within the year-in advance length, the Hanover, Germany-based totally reinsurer said in a announcement Tuesday. That beat the 244 million-euro average profit estimate of eight analysts surveyed by using Bloomberg.

chief govt Officer Ulrich Wallin, 60, reiterated a goal for full-yr profit of about 875 million euros this year, provided massive harm claims don’t “substantially exceed” 690 million euros.

costs Hannover Re expenses customers for insurance fell for a 2nd 12 months in January, the employer said ultimate month. A persevering with influx of capital from opportunity markets, in particular in natural disaster reinsurance, is placing charges below stress, it stated.

The reinsurer plans to pay a dividend of three euros a share plus a 1.25-euro unique dividend for 2014, in comparison with 3 euros a percentage paid out for 2013. Hannover Re became expected to preserve a dividend charge of 3 euros a percentage for the contemporary 12 months, in keeping with a Bloomberg Dividend Forecast.

stocks Climb

Hannover Re shares won 2.7 percentage to 89.52 euros at nine:05 a.m., extending gains this yr to 19 percentage and valuing the agency at about 10.eight billion euros. The Bloomberg Europe 500 insurance Index rose sixteen percentage over the identical period. Talanx AG, Germany’s 1/3-largest insurer, owns 50.2 percentage of Hannover Re.

Hannover Re’s annual internet profits rose 10 percent to 986 million euros, beating the common analyst estimate of 931 million euros and Hannover Re’s target of 850 million euros.

“The successful financial year changed into based totally on a 25 percentage upward push in internet earnings in life and health reinsurance and the continuing excellent underwriting bring about property and casualty reinsurance,” Wallin said in the assertion. “furthermore, we were able to barely enhance our investment income despite the challenging market environment.”

prices for fundamental losses declined to 426 million euros last year. That compares to a finances of 670 million euros set aside through Hannover Re and to 578 million euros of foremost claims paid in 2013. profits from the agency’s investments rose four.three percent to at least one.47 billion euros ultimate yr, helped by means of higher returns from real estate and alternative belongings.

Reinsurers help number one insurers shoulder risks. The charges they charge to backstop claims from catastrophes along with hurricanes and earthquakes, usually the maximum steeply-priced disasters, declined in seven of the ultimate 10 years, in keeping with the man chippie world assets catastrophe price on line Index. they're below strain due to an plentiful supply of capital and lower-than-average catastrophe losses.