HANNOVER (dpa-AFX) - Hannover Re, the world's third-largest reinsurer, has started the year with higher profits thanks to manageable major losses. Net income rose by around 15 percent to 558 million euros in the first quarter, as the Dax-listed group announced in Hanover on Tuesday. However, the management was not yet able to quantify the presumably largest single loss - the collapse of a large highway bridge in Baltimore. Nevertheless, CEO Jean-Jacques Henchoz believes that Hannover Re is on course to achieve a record profit of at least EUR 2.1 billion this year as planned. Further rising prices for reinsurance cover should also contribute to this.

In the treaty renewals as at April 1, Hannover Re again pushed through higher premiums with primary insurers such as Allianz and Generali. Adjusted for changes in risks and inflation, prices reportedly rose by 1.5 percent. At the same time, Hannover Re expanded its business volume by 7.1 percent. "We are optimistic that we will be able to maintain this level in the coming renewals", said Henchoz with regard to the price development. By contrast, the world's largest reinsurer Munich Re reported a slight price decline last week./stw/jha/