Hannover Re Posts Net Profit Increase With Large Losses Below Budget

By Adria Calatayud

Hannover Re reported a jump in first-quarter net profit, benefiting from lower-than-budgeted large losses in its property-and-casualty segment.

The German reinsurer said Monday that net profit for the quarter was 710.6 million euros ($837.7 million), up 48% compared with the year-earlier period. Analysts had expected the group's net profit at 721 million euros, according to consensus estimates compiled by the company.

Reinsurance revenue fell 6.4% to 6.52 billion euros. Analysts had forecast reinsurance revenue at 7.10 billion euros.

Hannover Re said reinsurance revenue was up 0.6% on year when adjusting for the effect of changes in foreign-exchange rates, with an increase in life-and-health reinsurance revenue offsetting a decline in property-and-casualty reinsurance.

Large losses in the property and casualty segment were below Hannover Re's budgeted expectation at 206.9 million euros, it said.

Hannover Re said it achieved premium growth of 19% in its April treaty renewals, but flagged price pressures in property-and-casualty reinsurance.

The company reiterated its full-year guidance.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

05-11-26 0208ET