5th August 2020

Hannover Re reports profit of E402m for the half year

Hannover Re achieves profit of E402m for the half year despite substantially increased risk provision for COVID-19-highlights were:
-Reserves for COVID-19 strengthened substantially in first half-year owing to uncertainty around course of the pandemic
-Gross premium grows by 12.2% adjusted for exchange rate effects
-Increased demand for reinsurance coverage resulied in sometimes significantly improved prices and conditions
-Return on investment reached 2.7%
-Guidance for 2020 currently still not possible.
"We have come through the crisis relatively well so far. This enables us to make appropriate provision for the anticipated COVID-19 losses and take account of the still considerable uncertainty surrounding the scale of the pandemic," Jean-Jacques Henchoz, comments. "Our business model is geared to managing such extreme events. We offer our clients and business partners our unqualified support.
There are still too many uncertainties associated with providing profit guidance for the full year. "The development of the pandemic and its implications for economic growth as well as the measures taken by various governments will play a defining role in shaping our loss experience. In view of their global nature and the immense costs that can be incurred worldwide, the coverage of systemic risks is dependent now more than ever on partnership-based approaches. We stand ready to contribute our global expertise in supporting the development of innovative coverage solutions for large risks."

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