Hannover Re reports significant price increases at January renewals

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6 February 2012

Hannover Re has obtained significant price increases at the January treaty renewals, with average rises of 60% in Australian premiums.

CEO Ulrich Wallin says rates increased significantly in property catastrophe lines due to the heavy losses incurred in 2011 and he is satisfied with the outcome.

He says most of the loss-affected treaties, such as in Japan, Australia and New Zealand, come up for renewal later in the year and Hannover Re is expecting further premium increases.

“We achieved better conditions and rates on average than in the previous year,” he said. “In segments impacted by natural catastrophes the price increases were, as anticipated, particularly marked.

“Yet it is still too soon to speak of a hard market across the board in non-life.”

Mr Wallin says there is a hardening trend in the reinsurance market and Hannover Re anticipates a good financial year ahead.

Two-thirds of the group’s treaties were up for renewal on January 1 and its total renewed premium rose by 6% to €3.69 billion ($4.5 billion).

Mr Wallin says nearly half the North American portfolio was up for renewal and the reinsurer gained price increases of up to 30% for loss-affected US property business.