HANNOVER RE SAYS IT IS "SATISFIED" AT JANUARY RENEWALS

German reinsurer Hannover Re is satisfied with the outcome of its January 1 renewals, it said this morning. Nearly two-thirds of its annual volume is renewed on January 1. The company said that it achieved better conditions and rates on average than in the previous year. But CEO Ulrich Wallin warned that "it is still too soon to speak of a hard market across the board in non-life reinsurance". Some €3.48bn ($4.54bn) of business was up for renewal on January 1, of which €3.13bn was renewed. Treaties worth €347m were either cancelled or renewed in modified form. New or modified treaties added a further €563m, resulting in an overall 6% growth in volume to €3.69bn. In Germany, Hannover Re was pleased with business renewals, where it said that "the persistent premium erosion" in motor insurance had come to an end. Premium volume was up 3% year on year. In North America, where about 50% of policies are renewed at the start of the year, rate erosion in casualty business was halted, while increases were achieved in property lines. Hannover Re said that it was particularly pleased with the Canada performance, where "sizeable" rate increases were achieved. Premium volume rose by about 7% year on year. In marine business rates were "largely stable". Rate increases were achieved in offshore energy, but in aviation reinsurance price erosion was observed. Hannover Re said that "the business nevertheless continues to be attractive, prompting the company to enlarge its premium volume". Hannover Re also increased its volume in credit and surety reinsurance, despite declining prices. The reinsurer attributed this to "larger shares written with our key accounts". In global reinsurance Hannover Re's premium volume was up by 8% in a mixed market. It noted significant price increases in areas where there had been substantial losses, such as a 60% average increase in Australia. The reinsurer said that it was looking forward to further significant rate increases for the April 1 renewals in Japan and New Zealand. Hannover Re anticipates a good financial year in non-life reinsurance, given the "slight hardening" of the market at the January 1 renewals. It has budgeted €560m for major losses in the current financial year, up from €530m last year. The increase is a reflection of the company's larger premium volume and the rise in insured values.