It looks like Hannover Re has weathered the storm, posting a higher net income in 2019 despite major losses from the likes of Hurricane Dorian.
The latest to release its full-year numbers, the major reinsurer said its executive and supervisory board will be proposing a dividend increase given the results. Here’s how Hannover Re fared in the past year:
“We have achieved a record result and thereby once again demonstrated our profitability, even though 2019 was another year of relatively high losses,” stated Hannover Re chief executive Jean-Jacques Henchoz (pictured).
“We are again able to offer our shareholders the prospect of an attractive dividend including a special distribution, but we are also retaining the necessary flexibility to invest further in our profitable growth.”
At the company’s annual general meeting, a dividend of €5.50 per share will be put forward. The amount represents a jump from 2018’s €5.25. Broken down, the 2019 dividend consists of a higher ordinary dividend of €4 plus an unchanged special dividend of €1.50.
According to Hannover Re, which is part of Talanx Group, the special dividend will be paid for the sixth consecutive year.
As for its property & casualty reinsurance business, the company noted: “Following the heavy losses of 2017 and 2018, Hannover Re incurred further significant major losses in the 2019 financial year. The largest loss was Hurricane Dorian at a net cost of €194.7 million.
“Typhoons Hagibis and Faxai caused further expenditure of €183.8 million and €83.8 million, respectively. An amount of €85.7 million was set aside for the insolvency of UK travel operator Thomas Cook. Total net major loss expenditure in 2019 came to €956.1 million and hence exceeded the large loss budget of €875 million for the full year.”
Hannover Re’s life & health reinsurance unit, meanwhile, generated a “very pleasing” profit increase.
