Hannover Re on course for record profits despite expensive natural disasters

Hannover Re on course for record profits despite expensive natural disasters

According to a report by www.sueddeutsche.de, the world's third largest reinsurer Hannover Re achieved a profit of a good 439 million euros in the third quarter. Despite costly natural disasters, the company is on track for record profits this year. CEO Jean-Jacques Henchoz expects Hannover Re to earn at least 1.7 billion euros for the full year. In particular, the severe storms in northern Italy and the forest fires on the Hawaiian island of Maui led to significant costs in the third quarter. Like other large insurers, Hannover Re has been calculating its business figures according to new accounting standards since this year.

This development has various implications for the reinsurance market as well as for consumers and the industry as a whole. The high costs of natural disasters can lead to rising reinsurance premiums as companies seek to recover their losses. This could lead to increased long-term costs for consumers who rely on solid insurance coverage. Additionally, this could also impact the entire insurance industry as companies may need to rethink their risk assessments and management strategies to minimize such financial impacts in the future.

Overall, Hannover Re's development shows how natural disasters can have significant financial impacts on the insurance industry. This highlights the need for robust risk assessment and appropriate risk management to protect the financial stability of companies and the interests of consumers.