Hannover Re APAC P&C combined ratio plunges to 126.1% in FY2022

APAC P&C fell to a $576.2m loss due to expenditures from the pandemic and disasters.

Hannover Re recorded a 126.1% decline to its Asia-Pacific (APAC) property and casualty reinsurance (P&C)’s combined operating ratio for the full fiscal year (FY2022) ended 31 December 2022, from 91.6% for the previous year (FY2021).

Their financial report revealed that the APAC P&C fell to a loss worth €544.1m ($576.2m) compared to its profit worth €299.6m ($317.3m) from FY2021.

Hannover Re cited the considerable expenditures regarding the COVID-19 pandemic and natural catastrophes across the region as the reason behind the loss.

The company added that pandemic-related losses in accident and health insurance are “substantially higher than expected.” 

“The main factors here were high case numbers in connection with the omicron variant as well as regulatory changes, which had negative implications for the scope of coverage provided by the underlying insurance contracts. Among other things, a sickness daily allowance had to paid for quarantine at home,” Hannover Re said.