Hannover Re Posts 3Q Net Income Of $235 Million

GEORGE FREY

FRANKFURT (AP) — German reinsurance company Hannover Re AG reported net income of €159 million ($235 million) in the third quarter from a loss a year ago, as a result of an increase in premiums and a one-off profit related to a recent acquisition.

The company, based in Hannover, lost €395 million in the year-ago quarter but was helped this year by a 23 percent increase in gross written premiums — a measure of revenue — to €2.42 billion.

Reinsurers sell back-up coverage to insurance companies to spread risk in the event of catastrophe or large claims.

The company said it expects "a pleasing result" for 2009 in both its non-life and life-health reinsurance, with net premium volume to grow by around 30 percent.

"With our result for the third quarter we have secured a very good foundation and are in a position to raise our profit target for the full financial year," chief executive Ulrich Wallin said.

"We now anticipate earnings of at least €5.75 a share and are looking to pay a dividend of at least €2 per share," Wallin said.