MONACO, Sept 11 (Reuters) - Hannover Re, the German reinsurance titan, expects stable prices when treaties are renewed in January and said it was on track to meet its 2017 profit target despite a “challenging” market.
“The market environment in worldwide property and casualty reinsurance shows little change overall and remains challenging,” Hannover Re said in a statement on Monday.
The reinsurer made the comments in Monte Carlo, where executives from the industry are haggling over prices and sealing underwriting deals.
Prices have been under pressure for years because of intense competition. Large catastrophes have the potential to lift prices, but companies signalled in Monte Carlo that Hurricanes Harvey and Irma are not expected to do so.
Hannover Re said it was well on track to reach its goal of lifting its 2017 gross premium volume by more than 5 percent and posting group net income of more than 1 billion euros ($1.2 billion).
That forecast depends in part on the cost of major losses not significantly exceeding the budgeted level of 825 million euros.
“Even allowing for Hurricane Harvey, the large loss budget set aside by Hannover Re for the first nine months of this year will in all probability not be fully utilised. For further possible major losses, such as Hurricane Irma, the exceeding, unused large loss budget becomes available,” the company said.
$1 = 0.8324 euros Reporting by Tom Sims; Editing by Maria Sheahan