DGAP-News

Hannover Re achieves record result and increases dividend - Seite 2

growth rates thereby beat the forecast target range of 5% to 7%. The level
of retained premium retreated slightly to 90.2% (91.3%). Net premium earned
rose sharply by 15.0% to EUR 6.9 billion (EUR 6.0 billion).

In contrast to the previous year, the major loss situation in the year
under review was comparatively moderate. Costing in excess of USD 20
billion, the largest loss for the international insurance industry was
Hurricane Sandy, which caused fatalities and considerable devastation along
the US East Coast. The net loss for Hannover Re from this event was EUR
257.5 million. Further major losses included the wreck of the ´Costa
Concordia´ cruise ship and the protracted drought in the United States, at
a cost of EUR 53.3 million and EUR 43.3 million respectively for net
account. Total major loss expenditure for 2012 came in at EUR 477.8 million
net - roughly half that of the previous year (EUR 980.7 million) - and
remained within the calculated major loss budget of EUR 560 million. The
combined ratio consequently improved to a very good 95.8% (104.3%). The
underwriting result increased from EUR -268.7 million to EUR 272.2 million.
The operating profit (EBIT) for non-life reinsurance as at 31 December 2012
rose by 82.2% to EUR 1,091.9 million (EUR 599.3 million); Group net income
climbed to EUR 685.9 million (EUR 455.6 million). Earnings per share stood
at EUR 5.69 (EUR 3.78).

Life and health reinsurance stays on growth track
In life and health reinsurance, too, Hannover Re continued to grow. ´We
generated above-average growth in the United States, using the platform
acquired in 2009 under the ING transaction to expand our business´, Mr.
Wallin explained. ´We also recorded appreciable gains in Australia, but
first and foremost in the emerging markets of China and Latin America.´

Gross premium in the financial year just ended grew to EUR 6.1 billion (EUR
5.3 billion), a pleasing increase of 14.9%. Adjusted for exchange rate
effects, growth would have been 9.8%, hence surpassing the target range of
5% to 7%. Net premium also rose sharply by 13.3% to EUR 5.4 billion (EUR
4.8 billion).

The operating result (EBIT) in life and health reinsurance increased by
33.7% to EUR 291.1 million (EUR 217.6 million). This improved profitability
was assisted by pleasing fair value gains on so-called ModCo derivatives,
which produced a profit contribution of some EUR 52 million. The EBIT
margin improved to 5.4% (4.5%). Group net income in life and health
reinsurance climbed 26.7% to EUR 230.9 million (EUR 182.3 million) and thus
outpaced the growth in gross premium income. Earnings per share amounted to