Hannover Re Says Profit Forecasts Are Cancelled for 2020

Hannover, 21 April 2020: In view of the ongoing COVID-19 crisis and the associated increased uncertainty surrounding both the claims development and the capital market environment, Hannover Re is withdrawing its profit guidance for the current year.

The figures for the first quarter were not significantly affected by the worldwide spread of the virus as they also benefitted from lower other charges. Therefore they cannot be used to draw conclusions about the full financial year. It is still too soon to estimate the expected negative impacts of the COVID-19 crisis over the course of the year in light of the prevailing uncertainties at this point in time. Particularly the investment result as well as property and casualty reinsurance may see increased burdens.

Based on preliminary figures for the first quarter of 2020, Hannover Re anticipates Group net income of about EUR 300 million (Q1 2019: EUR 293.7 million) and an operating profit (EBIT) of about EUR 426 million (EUR 450.0 million).

According to preliminary estimates, the solvency ratio at the end of the first quarter – and hence allowing for considerable volatility in interest rates and credit spreads – remains comfortably above the limit and threshold of 180% and 200% respectively. At year-end 2019 the solvency ratio amounted to 251%.

Hannover Re will publish its financial report for the first quarter as announced on 6 May 2020. The Annual General Meeting, which will adopt a resolution on the proposed dividend of EUR 5.50 per share, will also be held on this date.

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