Oct. 24 (Bloomberg) -- Hannover Re, the world’s third- biggest reinsurer, expects unchanged conditions for German property and casualty renewals in January.
“We anticipate stable conditions overall, and allowing for the current financial climate this means that the profitability requirements in the portfolio can be maintained,” Michael Pickel, Hannover Re’s management board member in charge of the German reinsurance business, said today at a press conference in Baden-Baden, Germany.
Hannover Re reduced its full-year profit target by 23 percent to 500 million euros ($693 million) in May following claims from the record earthquake and tsunami in Japan. Chief Executive Officer Ulrich Wallin reiterated the earnings forecast last month. The Hanover, Germany-based reinsurer plans to report third-quarter earnings on Nov. 9.
“The accumulation of natural disasters and the planned implementation of Solvency II will likely be reflected particularly prominently in rates for catastrophe cover,” Pickel said. “Prices should trend upwards on the back of the current claims expenditures and those of previous years.”
Hannover Re operates in Germany under the E+S Rueck brand. It owns 63.7 percent of the unit with eight mutual insurers including HUK-Coburg Holding AG and VHV Versicherung AG owning the remainder.
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