Hannover Re SE said Monday that it still can't issue "any reliable profit guidance" for the year due to continuing uncertainty amid the coronavirus pandemic.
"Hannover Re makes the relevant scenario calculations on an ongoing basis as part of its risk management and will specify new earnings targets as soon as the underlying probabilities are sufficiently robust," it said.
The German reinsurance company withdrew its full-year outlook in May.
As for its third quarter, Hannover Re on Monday forecasted large loss expenditure to remain at the expected level, adding, however, that the estimate excluded pandemic effects.
Additionally, the company said it expects prices for property and casualty reinsurance to increase significantly next year.
The increases would be driven by the effect of the pandemic on insurers and reinsurers, an additional drop in interest-rate levels and large losses recorded in the previous three years.
"Low interest rates are here to stay for a long time. This necessitates considerable pricing discipline, because technical profitability will have to do even more to offset declines in investment income," Chief Executive Jean-Jacques Henchoz said in a statement.
"With this in mind, price increases on both the insurance and reinsurance side are absolutely essential in January and beyond."
Write to Kim Richters at kim.richters@wsj.com
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