395 million euro net loss, but could break even in the fourth quarter.

Hannover Re reported a 395 million euro net loss in the third quarter. It has realised losses of about 200 million euros in October. The company says this has reduced its equity exposure which, combined with hedging on the remaining portfolio, meant the company "can no longer be affected" by further financial market volatility.

It also said it was possible to break even in the fourth quarter.

Hannover Re previously had set itself a target of 15% return on equity this year, but this target had to be dropped.

Gustav and Ike will cost Hannover Re around 250 million euros.

"We expect to see stronger demand for reinsurance and hence hardening of the markets," said Wilhelm Zeller, the CEO.