Hannover Re Group saw an average 2.3% increase in reinsurance renewal pricing during the Jan. 1, 2020, renewals and rates will likely increase further in 2020, the Hanover, Germany-based reinsurer reported Wednesday.
Hannover Re also reported a profit increase of nearly 22%, according to preliminary figures.
The reinsurer’s property/casualty reinsurance renewal premium volume increased 14%, with North America premium volume rising 19.5% during the year-end renewal season, according to the report.
In the United Kingdom, Ireland and the London market, premium volume grew 22.1%. Prices for nonproportional auto liability reinsurance in the region rose by double digits, the report said.
In Germany, Switzerland, Austria and Italy, premium volume grew by 5.9%, Hannover Re said. Auto reinsurance rates in the region were stable and “after years of challenging market conditions in German industrial lines, the remedial actions taken by primary insurers are having a positive effect,” the statement said.
The increase in volume and pricing will likely continue in 2020, Jean-Jacques Henchoz, CEO of Hannover Re, said in the statement.
“The positive trend that emerged from the Jan. 1 renewals should become more pronounced in the subsequent rounds of renewals during the year, not least because these also concentrate more on the loss-affected programs,” he said.
The reinsurer’s 2019 net income increased to €1.28 billion ($1.41 billion) compared with €1.05 billion in 2018, according to preliminary figures, the statement said. Hannover Re reports full results next month.
Hannover Re is the world’s third largest reinsurer, according to Business Insurance’s most recent ranking.
