Amsterdam (www.aktiencheck.de) - Frank Kopfinger, financial analyst at Cheuvreux, reiterates his rating of "underperform" with a price target of 49.00 EUR on Hannover Re (Hannover Rück Aktie).
In their research study on the European reinsurance sector, the analysts point out that there were only limited damage claims from natural catastrophes in the second quarter. The claims have probably accounted for only 50% to 60% of the corresponding budgets of the reinsurers. This gives hope for another strong quarter in particular with respect to operating earnings. Even stronger hurricanes and tornadoes in the third quarter could be absorbed by the reserves. However, the experts expect to see only an average hurricane season. This raises the confidence that the groups will be able to achieve substantial earnings on 2012. For this reason, the focus will return to questions around the management of investments.
Hannover Re is expected to stick to its course and to make use of not fully utilized budgets for natural catastrophes to set up provisions. For this reason, Hannover Re still has higher combined ratios than its competitors. The combined ratio for the second quarter is expected to amount to 97.3%.
In contrast to the first three months, inflation swaps should not have had a major impact on the figures of the second quarter. The positive ModCo effects are expected to have reversed at least partly, since the spreads have increased slightly.
Besides an operating profit of 277 million EUR, the analysts forecast earnings of 1.41 EUR per share.
The analysts of Cheuvreux stick to their "underperform" rating on Hannover Re shares. (analysis of July 24, 2012) (24.07.2012/ac/a/d)
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