(MENAFN- AFP) German reinsurance giant Hannover Re stood by its forecast for 2014 on Thursday, saying that renewal of its contracts with insurers had gone well at the beginning of the year. "In view of the broadly satisfactory results of the treaty renewals as at January 1, 2014, Hannover Re anticipates a good financial year in non-life reinsurance," the group said in a statement."The company sees growth potential in Asian-Pacific markets, Latin America, the countries of Central and Eastern Europe and in marine business," it said.Hannover Re said it expected to generate "stable or slightly higher gross premium volume in the 2014 financial year."Reinsurers take on part of the risks underwritten by insurance companies which are able to spread and dilute their risk profile in this way. The company said it had budgeted 670 million euros ($906 million) for major losses incurred in 2014. "Assuming that major loss expenditure does not significantly exceed this expectation and provided there are no unforeseen downturns on capital markets, Hannover Re is looking to generate net income of around 850 million euros for the 2014 financial year," the statement said. "Thanks to our comparatively low expense ratio and good market positioning we are well placed to achieve our 2014 profit target despite challenging conditions in non-life reinsurance," said chief executive Ulrich Wallin.
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