Forecasts & Results

Hannover Re interim results impacted by large Ukraine reserve

Posted 04/08/2022 – Quick takes

Hannover Re has announced its interim results to 30th June 2022.


  • Group gross written premiums (GWP) increased by +20% to €17.3bn and the group produced a 1H22 net income of €649m.
  • Within the Property & Casualty (P&C) reinsurance division, net expenditure for large losses in 1H22 rose to €850m. This compares with the company’s expectation for large losses of €611m in 1H22 and is a big rise on the corresponding period in 2021 (€326m in 1H21).
  • The rise in large losses is largely due to a reserve of €316m for possible claims related to the war in Ukraine.
  • The floods in Australia drove the largest individual loss in 1H22 at €186m, followed by the impacts of winter storm Ylenia in Central Europe at €126m.
  • The group booked further IBNR reserves of €130m for the 2021 drought in Brazil (due to late claims reporting).
  • The 1H22 combined ratio (CoR) for P&C deteriorated to 99% vs. 96% in 1H21.

Summary for the P&C division:

Source: Hannover Re

Alpha comment

The losses in Australia and Europe experienced by Hannover Re have contributed to the rise in rates across both the Property Insurance and Property Reinsurance classes globally. Alpha welcomes these developments, having argued for some time that Property Reinsurance rates in certain geographies were barely adequate at best. These rate rises, combined with the continued strength of the US dollar, are leading to higher than expected pre-emptions for 2023 for many syndicates in Lloyd’s, including those supported by Alpha members. The potential losses arising from Ukraine should help ensure that rates in a number of other classes do not weaken, despite numerous quarters of cumulative rate increases.

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