DGAP-News

Hannover Re increases Group net income by around 20 percent - Seite 3

able to act on opportunities in South America, Australia and Asia. Net
premium earned rose by 26.6% to EUR 3.1 billion (EUR 2.5 billion); this is
equivalent to a gain of 13.8% at constant exchange rates. The retention
increased to 86.5% (83.1%).

The operating profit (EBIT) in life and health reinsurance grew by a
pleasing 29.2% as at 30 June 2015 to EUR 200.0 million (EUR 154.8 million);
this included a special effect from the first quarter in an amount of
around EUR 40 million. Group net income improved appreciably by 26.2% to
EUR 145.6 million (EUR 115.4 million). Earnings per share reached EUR 1.21
(EUR 0.96).

Very positive investment income
The portfolio of investments under own management improved on the level as
at year-end 2014 to reach EUR 37.4 billion (EUR 36.2 billion). The modest
increase derived principally from favourable exchange rate effects,
especially the movement of the euro against the US dollar.

Ordinary investment income excluding interest on funds withheld and
contract deposits was comfortably higher than in the comparable period
despite the continued low level of interest rates, standing at EUR 598.7
million (EUR 490.1 million). This can be attributed in part to the special
effect in life and health reinsurance along with sharply higher earnings
from fixed-income securities and real estate as well as exchange rate
effects. Interest on funds withheld and contract deposits rose slightly to
EUR 197.4 million (EUR 174.9 million). Net gains on disposals amounted to
EUR 66.6 million (EUR 88.5 million). Changes in the fair values of
financial assets measured at profit or loss totalled EUR -1.6 million (EUR
10.0 million) as at 30 June 2015. Impairments - for the most part scheduled
depreciation - of just EUR 14.7 million (EUR 10.3 million) were taken in
the reporting period.

Income from assets under own management came in at a very pleasing EUR
601.3 million (EUR 532.6 million) as at 30 June 2015. The resulting
annualised average return on investment (excluding ModCo effects and
inflation swaps) amounted to 3.4%. The inflation swaps taken out by
Hannover Re to partially hedge inflation risks associated with the loss
reserves matured in the second quarter of 2015. In future, this protection
will be maintained by means of bonds already included in the portfolio
whose coupon payments are inflation-linked. Net investment income including
interest on funds withheld and contract deposits totalled EUR 798.8 million
(EUR 707.5 million), an increase of 12.9% compared to the previous year's
period.

Shareholders' equity remains on a strong level