Hannover Re on course for profit goal -CEO on TV

 @ibtimes on October 01 2007 3:18 PM

Hannover Re is on course to reach its target net profit of more than 700 million euros ($993 million) this year, the chief executive of the world's fourth-biggest reinsurer said.

Up to now, there is no reason to doubt that we will reach this result, Wilhelm Zeller told Bloomberg TV in an interview that was recorded on Thursday.

Zeller said he did not expect any problems reaching the company's target of achieving at least 15 percent return on equity this year.

He said the third quarter was largely calm, with interest-rate effects helping to offset some of the turbulence on share markets.

Zeller said Hannover Re was sticking to its policy of paying out 35 to 40 percent of net profit excluding the 150 million-euro special gain from German tax reform as a dividend, which could certainly allow it to pay a dividend of 1.70 to 1.80 euros per share for 2007 if the company stayed on target.

The gain from German tax reform might also allow Hannover Re to pay a bonus dividend, he said.

Hannover Re paid a dividend of 1.60 euros per share for 2006.

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