Reinsurer Hannover Re says can hit 2010 profit target

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German reinsurance group Hannover Re said Tuesday it would reach its full-year net profit target barring any fresh financial market shocks or major catastrophes in the coming months.

The company, one of the five biggest reinsurers worldwide, still expects to post a net profit of around 600 million euros (790 million dollars) this year, a statement said.

It made a net profit of 310.6 million euros in the first half of the year, which included a 24 percent drop in the second quarter figure to 160 million euros owing to lower returns on investments and higher claims from natural and man-made disasters.

BP's oil spill in the Gulf of Mexico has cost Hannover Re a net 89 million euros so far, more than double the amount foreseen in early May.

The group said a key condition for hitting its 2010 profit target was that large claims do not exceed 280 million euros in the second half of the year.

© 2010 AFP

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