Hannover Re expects 2022 net income of €1.4 billion

Hannover Re generated a Group net income of €1.41 billion (previous year: €1.23 billion) in the 2022 financial year based on preliminary, unaudited key figures, thus achieving the forecast specified in November 2022.

Gross written premium rose by 12.7% adjusted for exchange rate effects to €33.3 billion (€27.8 billion). The underwriting result in property and casualty reinsurance was characterised by high claims burdens.

The result in life and health reinsurance was clearly above expectations and the previous year’s result, despite further losses associated with the pandemic.

The return on investment from assets under own management reached 3.2% and was thus clearly above the target of more than 2.5%. Return on equity stood at 14.1%.

Net income of at least €1.7 billion expected for 2023

Based on the continued favourable market environment, Hannover Re expects to grow its Group net income to at least €1.7 billion for the 2023 financial year.

The 2023 consolidated financial statements will be prepared using the new accounting standards (IFRS 17/9) for the first time.

Reinsurance revenue is expected to grow by at least 5% at constant exchange rates and the return on investment from assets under own management should be at least 2.4%.

In order to take account of the growth in the property and casualty reinsurance portfolio and the increased loss expectation from natural catastrophes, Hannover Re has increased its net major-loss budget for 2023 to €1.725 billion (€1.4 billion).

“Thanks to our position as a profitable and sought-after business partner and in light of the attractive market environment, especially in property and casualty reinsurance, we again expect a satisfying Group net income for the current financial year,” said Jean-Jacques Henchoz, chief executive officer of Hannover Re.

“After the high burdens from major losses in the past years, we will stick to our conservative reserving policy in the current business year.”

Hannover Re will publish its audited annual financial statements on 9 March 2023.