DGAP-News

Hannover Re increases Group net income by around 20 percent - Seite 2

to EUR 4.41 (EUR 3.69).

Property and casualty reinsurance posts very good result
While supply still outstripped demand in worldwide property and casualty
reinsurance, the first signs of bottoming out began to emerge here on the
rates side. This was also true to some extent of the treaty renewals as at
1 April 2015, which from an overall perspective passed off satisfactorily
for Hannover Re.

Gross premium for property and casualty reinsurance increased by 21.9% as
at 30 June 2015 relative to the previous year's period to reach EUR 5.0
billion (EUR 4.1 billion). This was due in part to the strong US dollar. At
constant exchange rates growth of 10.0% would have been booked. The level
of retained premium edged lower to 89.6% (91.1%). Net premium earned
climbed by 15.5% to EUR 3.9 billion (EUR 3.4 billion); adjusted for
exchange rate effects, a gain of 4.4% would have been recorded.

Major loss expenditure in the first half of 2015 stayed below the budgeted
level of EUR 294 million for the period at EUR 197.4 million (EUR 104.7
million). The largest individual losses for Hannover Re were the storm
"Niklas" at EUR 35.4 million and an explosion on an oil platform in the
Gulf of Mexico, which cost the company EUR 32.9 million. In keeping with
past practice, the unused portion of the budget was allocated to the IBNR
reserves, thereby building an additional cushion for any large losses that
may occur in the second half of 2015. The already very good underwriting
result of the comparable period was boosted by a further 7.9% to EUR 170.9
million (EUR 158.3 million). The combined ratio was positive at 95.4%
(95.0%). Against this backdrop, the operating profit (EBIT) for property
and casualty reinsurance reached a very pleasing EUR 583.7 million (EUR
521.0 million) as at 30 June 2015. Group net income surged 20.3% to EUR
418.4 million (EUR 347.9 million). Earnings per share stood at EUR 3.47
(EUR 2.89).

Life and health reinsurance generates premium growth
Hannover Re achieved the targeted improvement in profitability for life and
health reinsurance relative to the previous year's period, although the
result in the second quarter of 2015 fell short of expectations owing to
higher mortality and lapse rates in part of the US mortality portfolio.

Gross premium in life and health reinsurance increased by a substantial
21.0% as at 30 June 2015 to EUR 3.6 billion (EUR 3.0 billion); adjusted for
exchange rate effects, growth would have come in at 8.9%. Here, too, the
strength of the US dollar and pound sterling made itself felt. Hannover Re
booked particularly strong growth in its longevity portfolio and was also