Hannover Re’s SA business booms

HANNOVER Reinsurance Group (Hannover Re), the thirdbiggest reinsurance group globally, had reported doubledigit premium growth in its South African business over the past five years, Hannover Re Africa group MD Achim Klennert said this week.

Mr Klennert and Hannover Re CEO Ulrich Wallin were interviewed by Business Day. Hannover Re transacts all lines of non-life and life and health reinsurance on all continents.

Mr Wallin said the performance of the southern African businesses was good, and while the region contributed only 3%4% of group premium income, it had a bigger effect on group profits.

Based on a good start to the financial year and the prevailing market climate, the Hannover Re group is forecasting a successful 2013 financial year.

Net income for the full year is anticipated to be about €800m. Net income was €858.8 last year, which represented a 41.6% increase on the previous year.

The forecast for this year was conditional upon major losses not significantly exceeding the expected level of €625m for the full year, and also assumes there were no drastic downturns on capital markets.

Hannover Re Africa employs 135 people.

The group and Munich Re hold the biggest shares of the local reinsurance market, excluding reinsurance that SA’s insurers place abroad.

Mr Wallin said the group aimed to increase the level of its business north of SA’s border, in sub-Saharan African countries. About 5%-10% of the premiums of Hannover Re Africa are from this region.