HANOVER, Germany, March 7 (Reuters) - Hannover Re sees 2.60 euros ($3.38) per share as a sustainable, base dividend for 2013 and could eventually pay more, its chief executive said on Thursday.
The world’s third biggest reinsurer plans to pay 3 euros per share for 2012 after achieving record net profit, consisting of a 2.60 euro dividend topped up by a 0.40 euro bonus, which some analysts saw as disappointing.
Chief Executive Ulrich Wallin told a news conference that 3.00 euros per share appeared too high as a benchmark for the future and that the company needed to exercise caution, given volatility in the reinsurance business that forced it to strike dividend payments in the past.
“Continuity is as important as the amount of the dividend,” he said.
“We are taking 2.60 euros as a basis for 2013, with the possibility of paying more,” Wallin said.
$1 = 0.7692 euros Reporting by Jonathan Gould