Hannover Re, the world’s third- biggest reinsurer, has sufficient capital to offer investors a steady dividend and pursue potential purchases, Chief Executive Officer Ulrich Wallin said.
Global reinsurers face challenges including increased competition and shrinking demand, following a “miraculous year,” A.M. Best said.
German stocks were little changed, after a two-day gain, as European Central Bank President Mario Draghi said policy makers could turn to asset purchases to combat persistent low inflation in the euro area.
Property and casualty reinsurance prices declined on policies renewed for April 1 amid an oversupply of capital and muted demand from clients, according to Willis Re.
Germany’s Verdi union said it will contest Munich Re’s supervisory board election in court as the reinsurer admitted a rival union to the voting that didn’t meet requirements.
Lloyd’s of London, the world’s oldest insurance market, reported its biggest annual profit in four years as natural catastrophe claims declined.
Munich Re, the world’s biggest reinsurer, said profit this year is expected to decline 9.1 percent as prices charged by the industry are in decline.
Most European stocks declined as investors weighed Federal Reserve Chair Janet Yellen’s remark that benchmark interest rates could rise about six months after the central bank ends bond purchases.
German stocks retreated, halting a four-day rally, after comments from Federal Reserve Chair Janet Yellen signaled rates may rise by the middle of next year.
Hannover Re, the world’s third- biggest reinsurer, posted a 48 percent increase in fourth- quarter profit, beating analysts’ estimates.