Hurricane Ian costs Hannover Re 276 million euros

Dhe devastating hurricane “Ian” affected Hannover Re much less than its larger competitors Munich Re and Swiss Re. The third-largest reinsurer in the world estimated the claims burden from the hurricane that swept across Florida at the end of September at 276 million euros on Thursday. The world’s largest reinsurers Munich Re and Swiss Re had previously reported losses in the billions. The Munich group is assuming a burden of 1.6 billion euros for its business, the competitor from Zurich is expecting around 1.3 billion euros in damage.

Hannover Re does not have to deviate from its targets for 2022 because of the hurricane, although net profit will be at the lower end of the forecast range of 1.4 to 1.5 billion euros.

Although the budget reserved for major claims is clearly exceeded, Hannover Re is able to make up for this with an unexpectedly good investment result. The reinsurer had covered itself with inflation-linked bonds. In the first nine months alone, they contributed 301 million euros to the profit. “Even before the great devastation caused by Hurricane ‘Ian’, 2022 was a year with an above-average major loss burden,” said CEO Jean-Jacques Henchoz. “The high inflation rates make the reconstruction costs even more expensive. Nevertheless, our profit target for the year as a whole remains achievable.”

In the first nine months, Hannover Re’s net profit was slightly up on the previous year at EUR 871 (previous year: 856) million. Gross written premiums shot up by 21 percent to 26.3 billion euros. Without currency effects, the increase would have been 13.5 percent. Currency-adjusted, Henchoz expects a premium increase of 7.5 percent by the end of the year.