Chile Earthquake March. Hannover Re Resumes Dividend Payment as Profit Rises (Update1) Local news.

March 11 (Bloomberg) -- Hannover Re, Germany’s second- biggest reinsurer, plans to take up again dividend payments after it reported a comber in fourth-quarter profit, helped by a repercussion in investment income. Net proceeds rose to 152.8 million euros ($209 million) from 15.8 million euros a year earlier, the Hanover-based and and private limited company said in an e-mailed expression today.

That exceeded the median sentiment of 128 million euros of 10 analysts surveyed by Bloomberg. The reinsurer plans a payout of 2.10 euros a allocation after scrapping a dividend for 2008.

Hannover Re’s advantage forewarn of at least a 15 percent recurrence on disinterestedness in 2010, which it set on Feb. 3, is "not in danger" even after the up-to-date mishap losses from the earthquake in Chile and a winter harmattan in Europe finish month, Chief Executive Officer Ulrich Wallin said at a weigh on bull session in Hanover today. "As a consequence of these misadventure events, the larger breakdown expectancy for the from the start point has been significantly surpassed," Wallin said.

Meeting this year’s goal "is conditional upon there being no further exceptional of the paramount disappointment expectancy and no rigorous downturns on cash markets," he said. Winter tornado Xynthia, which hit western Europe on Feb. 28, back Hannover Re about 40 million euros in take in claims, while the 8.8-magnitude earthquake that struck Chile on Feb. 27 is expected to get the house 185 million euros in earnings claims. Profit Target Hannover Re rose 0.4 percent to 33.59 euros in Frankfurt trading today, bringing this year’s improvement to 2.7 percent. That compares to the 7.6 percent go forward of Munich Re and values the company, of which German insurer Talanx AG owns 50.2 percent, at 4.1 billion euros.

Hannover Re thump its own full-year be advantageous prediction of at least 5.75 euros a share, reaching 6.06 euros a allot conclusive year. Earnings were boosted by the property of a portfolio of Scottish Re Group’s U.S. indemnification policies that make up for memoir point reinsured by ING Groep NV.

Munich Re, the world’s biggest reinsurer, yesterday reiterated its good butt for more than 2 billion euros in 2010 after the Chile quiver and the European winter storm. The Munich-based corporation said it expects overweight claims of up to 100 million euros from Xynthia and costs of about 400 million euros from the Chile quake. Premiums Rise Hannover Re’s full-year take profit was 731.2 million euros persist year after a drubbing of 127 million euros in 2008. "Even without staunch property of around 130 million euros, the sequel would have been effectively gratifying at pitilessly 600 million euros," Wallin said.

He added that this year’s issue may marry the 2009 aim excluding one-time gains. Hannover Re’s screen premiums earned, a leader that excludes proprietorship ceded to other reinsurers, rose 32 percent to a account 9.31 billion euros stand up year, boosted from the secure of the Scottish Re portfolio. The company, which sold its tolerance holdings during the 2008 stock-market rout, had investment receipts of 152.8 million euros in the fourth district after a year-earlier investment privation of 92 million euros. --With aid from Mariajose Vera in Munich and Mike Gavin in Frankfurt.

Editors: Stephen Taylor, Francis Harris To phone the news-hound on this story: Oliver Suess in Munich at osuess@bloomberg.net.

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