(News Bulletin 247) – Hannover Re on Wednesday presented better than expected net profit for the first six months of the year, which allows it to confirm its objectives for the current financial year.
The German reinsurer reported this morning a net profit up 18% to 960 million euros, a performance above market expectations.
The costs of major natural disasters, mainly related to the earthquake that struck Turkey and Syria at the start of the year, totaled 607 million euros, against a forecast of around 750 million euros.
“The growing losses resulting from natural disasters and other major disasters, as well as the persistence of high inflation in certain regions, lead to a growing demand for the protection provided by reinsurance”, explained Jean-Jacques Henchoz, the director general of the group.
For the full year, Hannover Re has confirmed its net profit target of at least 1.7 billion euros, but market expectations are already well above this figure, since the consensus is for 1 .8 billion.
As a result, Hannover Re shares fell 1.3% at the start of the session on the Frankfurt Stock Exchange, marking the biggest drop in the DAX index. The European insurance sector fell by 0.6%.
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