DGAP-News

Hannover Re achieves record result and increases dividend

DGAP-News: Hannover Rückversicherung AG / Key word(s): Final Results
Hannover Re achieves record result and increases dividend

07.03.2013 / 07:45

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Hannover Re achieves record result and increases dividend

  - Group net income: EUR 858.3 million (EUR 606.0 million)

  - Premium growth + 13.9% (currency-adjusted + 9.5%)

  - Book value per share + 21.8%

  - Return on equity: 15.6% (12.8%)

  - Investment income rises to EUR 1.7 billion (EUR 1.4 billion)

  - Net major loss expenditure: EUR 477.8 million (EUR 980.7 million)

  - Combined ratio: 95.8% (104.3%)

  - Increased dividend proposal for 2012: EUR 2.60 (EUR 2.10 ) + EUR 0.40
    bonus per share

Hannover, 7 March 2013: Hannover Re has posted the best result in the
company´s history with net income of EUR 858.3 million. The most important
keys to this success were solid growth, a good underwriting result in
non-life reinsurance and exceptionally pleasing investment income. ´Our
shareholders should also share in this success. The Executive Board and
Supervisory Board will therefore propose to the Annual General Meeting that
a dividend of EUR 2.60 and a bonus of EUR 0.40 per share should be paid´,
Chief Executive Officer Ulrich Wallin stated.

2012 financial year
Gross written premium in total business increased by a pleasing 13.9% to
EUR 13.8 billion (EUR 12.1 billion). At constant exchange rates -
especially against the US dollar - the increase would have been 9.5%.
Growth thus exceeded the forecast range of 7% to 8%, which itself had been
revised upwards during the year. The level of retained premium decreased
slightly to 89.8% (91.2%). Net premium earned climbed 14.2% to EUR 12.3
billion (EUR 10.8 billion). At unchanged exchange rates the increase would
have been 9.9%.

The operating profit (EBIT) as at 31 December 2012 soared to EUR 1,406.5
million (EUR 841.4 million). Group net income surged 41.6% to EUR 858.3
million (EUR 606.0 million). Earnings per share consequently rose
appreciably to EUR 7.12 (EUR 5.02).

Non-life reinsurance delivers very pleasing profit contribution
The state of the market in non-life reinsurance was favourable. ´Not least
owing to the major losses in 2011, we were able to push through price
increases for most business segments. As a result, the rate level for our
company in 2012 was significantly better than in the previous year´, Mr.
Wallin noted. Markets in Asia and Australia that had suffered losses in
2011 were particularly important drivers of growth. In addition, gratifying
growth rates were recorded in North America and in global facultative
reinsurance.

Altogether, gross written premium in non-life reinsurance increased by
13.1% (currency-adjusted: 9.3%) to EUR 7.7 billion (EUR 6.8 billion);