TAKING THE PULSE: German insurers and reinsurers will continue to report declining or flat profits in the first quarter, as equity write-downs due to the continued financial crisis cut into net investment income, and weak economic growth and storms, earthquakes and fires keep overall claims costs up.

But reinsurers' overall revenue should show healthy gains, on the back of higher demand for reinsurance policies due to primary insurers' weaker balance sheets and reinsurers' ability to demand higher rates for contracts that were up for renewal in January, analysts say.

German reinsurers and insurers have been less vulnerable to the financial crisis than banks but are nevertheless cautioning on 2009.

Munich Re AG (MUV2.XE) Chief Executive Nikolaus von Bomhard told shareholders that he didn't want to give a 2009 earnings target for now, and the reinsurer has suspended its share buybacks due to the financial crisis.

Allianz SE (AZ) Chief Executive Michael Diekmann last week said that 2009 "will not be an easy year," although the insurer's capital base and solvency remain healthy and robust.

   COMPANIES TO WATCH: 
   Hannover Re (HNR1.XE) --- May 5

MARKET EXPECTATIONS: Hannover RE, one of the world's five largest reinsurers worldwide, said in March that 2009 has "got off to a very good start" and that large disaster claims were still within the company's budget.

Eleven analysts polled by Dow Jones Newswires on average expect first-quarter net profit of EUR155 million, up 2% from the same quarter a year ago. Earnings before interest and taxation, or EBIT, however, is forecast to have dropped by 10% to EUR220 million, notably on the lower net investment result, which is expected to have slumped by 18% to EUR214 million, due to write-downs on the bond and private equity portfolio. Hannover Re, which joined the German DAX blue-chip index in March, had already cut its stock portfolio in the fourth quarter, to 1%-2% from around 8%, realizing losses.

Gross premium income is expected to rise 14% to EUR2.60 billion, benefiting from higher rates in renewed contracts in January, which saw average rises of 4.6%. Premium income in the life reinsurance business is expected to get a boost from the acquisition of a U.S. individual life reinsurance portfolio from Bermuda-based reinsurer Scottish Re Group Ltd. (SKRRF) in January.

Quarterly claims costs will remain high, involving costs for damage caused by winter storm Klaus that ripped across parts of France and Spain in late January, claims related to the collapse of an archive building in Cologne and bush fires in Australia. However, claims are expected to be within budget, so that the combined ratio - a figure that compares claims costs and revenues - will be slightly better. Analysts on average expect a small improvement in that number to 98.6% from 99.5%; a figure below 100% means an insurer's core underwriting business, when stripping off the net investment result, is profitable.

Hannover Re has said it expected a EUR7.9 million net claim on the Cologne building collapse, a EUR12.6 million net claim on Australia bush fires, and a EUR70 million claim on winter storm Klaus.

MAIN FOCUS: Investors are eyeing an update on full-year targets, April renewals.

   Munich RE AG (MUV2.XE) --- May 6

MARKET EXPECTATIONS: Munich Re, one of the two largest reinsurers worldwide along with Swiss Re Co. (RUKN.VX), is expected to post a a "satisfactory result" in the first quarter as a solid underwriting performance helped partially offset continuing pressure on investments from the financial crisis, Chief Executive von Bomhard told shareholders last week.

Major losses from natural disasters were manageable, and the "performance of our underwriting business was pleasing," von Bomhard said, while warning that market conditions remain difficult.

According to a Dow Jones Newswires poll of 12 analysts, Munich Re will post first-quarter net profit of EUR478 million, down 38% from EUR767 million a year earlier.

Net investment result is expected to drop 24% to EUR1.28 billion, on gross premium income of EUR10.20 billion, up 3.6%.

MAIN FOCUS: Update on contract renewals, full-year targets eyed.

   Allianz SE (AZ) --- May 13

MARKET EXPECTATIONS: Allianz CEO Diekmann told shareholders last week that Europe's largest primary insurer by market capitalization expects "break even" on a net level in the first quarter.

Notably write-downs on financial investments and the announced EUR400 million burden related to the sale of Dresdner Bank AG are weighing on the first-quarter result, Diekmann said.

Allianz also reported a small set of figures last week, saying it expects a 41% decline in operating profit, to around EUR1.3 billion, on total revenue of EUR27.7 billion, up 2.6%.

Allianz sold Dresdner Bank to Commerzbank last year for around EUR5.1 billion, with the closing in mid-January. Allianz has said the total burden related to the sale amounted to EUR6.8 billion of which EUR6.4 billion was booked in 2008 and the remaining EUR400 million in the first quarter.

Allianz also last week said it expects EUR112 million in first-quarter write-downs on its investment in U.S. Hartford Financial Services Group Inc. (HIG). Currently, Allianz holds a 7.4% stake in Hartford and has hybrid debt worth $1.75 billion that includes the option of a conversion into Hartford shares within the next seven years.

MAIN FOCUS: Update eyed on restructuring of U.S. life insurance business, full-year targets. Company Web sites: www.allianz.com; www.munichre.com; www.hannover-re.com

-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500; ulrike.dauer@dowjones.com