1H2019 results highlights
- Gross written premiums (GWP): EUR 11,694 million (+17.1%)
- Net premium earned: EUR 9,356 million (+12.1%)
- Net investment income: EUR 866 million (+16.4%)
- Operating profit (EBIT): EUR 942 million (+3.8%)
- Group net income: EUR 663 million (+19.3%)
Gross written premium for the Hannover Re Group surged by 17.1% to EUR 11.7 billion (previous year: EUR 10.0 billion). Growth would have reached 14.5% at constant exchange rates. Net premium earned climbed by 12.1% (+10.0% adjusted for exchange rate effects) to EUR 9.4 billion (1H2018: EUR 8.3 billion).
The operating profit (EBIT) posted by Hannover Re improved by 3.8% to EUR 942 million (1H2018: EUR 907 million). Earnings per share amounted to EUR 5.49 (1H2018: EUR 4.60).
Property and Casualty (P&C) GWP rose 21.3% y-o-y, reaching EUR 7.8 billion. With net expenditure on large losses coming in at EUR 140.5 million (1H2018: EUR 93.3 million), the impact on the first half-year was higher than in the comparable period but still well below the budgeted level of EUR 370 million. P&C underwriting result amounted to EUR 196 million (1H2018: EUR 221 million). The combined ratio slightly increased y-o-y, to 96.7% (1H2018: 95.7%).
Life and Health (L&H) GWP reinsurance grew by 9.3% to EUR 3.8 billion (1H2018: EUR 3.5 billion). Net premium earned climbed by 7.0% to EUR 3.4 billion (1H2018: EUR 3.2 billion). The operating result (EBIT) for L&H reinsurance improved by 30.3% to EUR 286.0 million (1H2018: EUR 219.4 million).
The portfolio of assets under own management grew to EUR 44.8 billion (31 December 2018: EUR 42.2 billion). The main drivers here were a decrease in interest rates compared to the end of the previous year as well as lower credit spreads and a sustained very positive operating cash flow.
Jean-Jacques HENCHOZ, Chief Executive Officer of Hannover Re, stated:
"In the 1 June and 1 July treaty renewals in property and casualty reinsurance we were able to secure long overdue price increases. (...) In view of the business development to date we are well on track to achieve Group net income in the order of EUR 1.1 billion for 2019. In addition, the result will be positively influenced by a one-off effect to the tune of EUR 100 million associated with our participation in Viridium Group."
More details about Hannover Re first half-year of 2019 and second quarter of 2019 financial results can be found on company's website.