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Hannover Re Now Expects FY17 Group Net Income Of About EUR 950 Mln

German re-insurer Hannover Re AG (HVRRY.PK,HVRRF.PK) said that based on the current status of year-end closing activities, it now anticipates Group net income of around 950 million euros for the 2017 financial year. Group net income level of roughly 800 million euros had been anticipated by the company earlier.

"Even though this result falls short of the previous year's figure, it can nevertheless be considered satisfactory if we bear in mind that 2017 was dominated by natural catastrophe events which caused insured losses substantially in excess of USD 100 billion," Ulrich Wallin, Chief Executive Officer of Hannover Re, said.

The company will publish its annual financial statement on 13 March 2018.

The company added that the dividend for 2017 should be on a par with the previous year at 5.00 euros per share.

Hannover Re noted that the premium volume in traditional property and casualty reinsurance, i.e. excluding facultative reinsurance, ILS business and structured reinsurance, was boosted by 12.7 percent.

Of the total premium volume booked in the previous year in traditional property and casualty reinsurance (excluding facultative business and structured reinsurance) amounting to 7.13 billion euros, treaties with a volume of altogether 4.65 billion euros were up for renewal as at 1 January 2018.

Of this, a premium volume of 4.29 billion euros was renewed, while treaties worth 610 million euros were either cancelled or renewed in modified form.

Looking ahead, Hannover Re said it is looking to the 2018 financial year with optimism. The company noted that it is very well placed to act on opportunities in the course of the current year. Further price increases should be attainable in subsequent rounds of renewals within the year in view of the elevated claims activity.

The company anticipates currency-adjusted growth in gross premium in the single-digit percentage range for 2018 on account of the favorable renewals outcome. The company expects return on investment to be around 2.7 percent and affirmed its outlook for Group net income to be in excess of 1 billion euros.

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