MONTE CARLO (Dow Jones) – Hannover Re has reiterated its profit forecast of EUR 600 million net profit for the current year and looks more optimistic about the future. (Photo : Hannover Re)
Based on the expectations of the upcoming contract renewals first January , the company is optimistic that we can keep the high level of profitability even in 2011 , it was said at the industry meeting in Monte Carlo on Monday.
Although the earthquake in New Zealand, attracts millions more claims in an already devastating year 2010 being taken, CEO Ulrich Wallin holds fast to the annual forecast. He expects the same for 2010 with EUR 600 million net profit , "said Wallin . As a result of the earthquake , the reinsurer expects a loss burden of "definitely "less than EUR 100 million. For an accurate estimate it is still too early, "said Wallin .
In the renewals at 1 January, in which most industry contracts are renewed , Hannover Re expects generally stable with a price . As the market trends show weakness in some areas , the focus rests on those activities, which would offer good profitability .
But in the coming years, the group would seek stable returns . In the non-life reinsurance , the focus should be on a cautious underwriting policy and a diversified portfolio.
In the coming year , the MDAX- listed companies to expand the reinsurance of agricultural risks , as well as business in emerging markets. promising growth opportunities in terms of premium income , the world’s third-largest reinsurer also securitization of risk (Insurance linked securities ).
The high Schadensaufkommen in natural disasters in this area would lead to a general increase in prices. Although the earthquake in Chile have had to rise only in the region directly affected the prices. With the earthquake in New Zealand could pay your premiums in the coming renewal season , however, get start-up world . Hannover Re intends to expand this business so well on.
would , of great importance for the price of the course of the hurricane season in the U.S. , predicts the Hannover Re. Will North America hit by a large hurricane , this could support the trend of rising premiums on. Further pressure on reinsurance premiums was to be expected , however , if the hurricane season without serious cases go to the end. Although it was generally expected for 2010 with a very devastating hurricane season , spectacular storms like Hurricane Katrina in 2005 have so far failed to materialize.
The sinking of the oil rig Deepwater Horizon and the subsequent oil spill should raise the price for the insurance of oil and gas production significantly , says Hannover Re advance for renewals . The demand of the oil companies would rise to liability policies at the same time .
The stock market Hannover Re’s securities with market conditions laid to 11:50 clock by 1.1 % to 35.74 EUR .
Website: www.hannover – rueck.de
By lap – Rüdiger , Dow Jones Newswires , +49 (0 ) 69 29 725 117
ruediger.schoss @ dowjones.com,
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