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Hannover Re Affirms Outlook For FY18 And FY19 - Quick Facts

German re-insurer Hannover Re AG (HVRRY.PK,HVRRF.PK) said Tuesday that against a backdrop of modestly improved conditions from an overall perspective, the company increased its premium volume in traditional property and casualty reinsurance by 15.4 percent on a currency-adjusted basis to 6.4 billion euros in the 1 January 2019 treaty renewals.

Hannover Re noted that roughly 66 percent of its book of traditional property and casualty reinsurance (excluding facultative reinsurance, insurance-linked securities (ILS) business and structured reinsurance) was up for renewal on 1 January 2019.

Based on preliminary figures, the company expects its group net income improved for the 2018 financial year to about 1.05 billion euros from 958.6 million euros last year.

Of this total result, roughly 83 percent was attributable to Hannover Re's property and casualty reinsurance business, and 17 percent to life and health reinsurance.

The company projects gross premium for the year in the order of 19 billion euros, up from 17.8 billion euros last year, equivalent to an increase of some 11 percent adjusted for exchange rate effects.

The company's audited annual financial statement will be published on 7 March 2019.

For fiscal 2019, Hannover Re affirmed its outlook for net income in the order of 1.1 billion euros. Based on constant exchange rates, the company noted that growth in gross premium income should be in the single-digit percentage range and the return on investment should reach at least 2.8 percent.

Furthermore, Hannover Re has raised its net large loss budget for the first time in three years. It now stands at 875 million euros for 2019, compared to 825 million euros in previous years. This adjustment reflects the growth in the underlying business. The company added that its risk appetite remains unchanged.

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