Hannover Re is satisfied with the development of business in 2017, even though the company was unable to achieve all its targets due to the above-average burden of large losses. As a consequence of the severe catastrophe loss events that occurred primarily in the second half of the year, the profit target of more than EUR 1 billion was no longer attainable. The company did, however, meet the reduced guidance of around EUR 800 million announced in the autumn. The sale of the portfolio of listed equities in the third quarter was a positive factor in the solid level of Group net income.
While the higher-than-average strains from natural catastrophe losses adversely impacted the result recorded by Hannover Re, they will have no lasting effect on our profitability or capitalisation. Quite the contrary: the losses have led to a renewed improvement in market conditions for reinsurers.
The company’s shareholders’ equity continues to be robust. At the time of preparing the management report, both the business position of the Hannover Re Group and its financial strength remain good. The Executive Board and Supervisory Board will therefore propose to the Annual General Meeting that a dividend on the level of the previous year should be paid.