Hannover Re

To achieve a return on equity of 15%, Hannover Re needs to post a net profit of around €450mn in terms of the current level of capital employed. Mr Zeller is cautiously optimistic that the target could be achieved in 2006

Like all reinsurers with US natural catastrophe exposures, the management of Hannover Re thought that the company had a tough year in 2004 when net profits fell by 6% to €333.3mn. This was largely the result of a 16% fall in investment income to €901.9mn and a 75% deterioration in underwriting losses from a loss of €234.6mn in 2003 to a loss of €410.4mn in 2004.