TAKING THE PULSE: German reinsurers and insurers are expected to post "solid" third-quarter profits, according to forecasts by several analysts, in the absence of major claims from U.S. hurricanes.

Still, costs for significant weather-related losses elsewhere will be higher than in the year-ago quarter, notably due to earthquakes in New Zealand and floods and storms in Europe and Asia, though the impact will be well within budgets and only visible in slightly higher combined ratios.

Against the background of a solid earnings cushion after the first nine months, analysts expect the companies to comment with more confidence than before on their full-year earnings targets.

For instance, Munich Re AG (MUV2.XE), the largest reinsurer worldwide by gross premium income, "may adopt a slightly more positively worded guidance for the year," given the low losses from Atlantic hurricanes, Helvea writes in a research note. Munich Re previously guided that its 2010 target of an after-tax profit of above EUR2 billion is ambitious but achievable, despite substantial disaster costs in the first half.

Hannover Re AG (HNR1.xe) already said its third-quarter and full-year net profits will get a boost of around EUR100 million following a decision by a German federal fiscal court, as provisions made for potential additional taxation at Irish units are no longer needed and can be released. Excluding that effect, Hannover Re has said it expects a net profit of around EUR600 million for 2010.

Swiss peer Swiss Reinsurance Co. (RUKN.VX) set an upbeat tone Thursday, when it reported a nearly doubling in third-quarter net profit to $618 million from $314 million a year earlier. The figures beat analyst forecasts as the reinsurer benefited from solid underlying operations and the absence of a charge that hurt the year-earlier results. Analysts consensus forecasts for the German peers appear a bit more subdued.

COMPANIES TO WATCH:

*Munich Re (MUV2.XE) -- (Nov. 9)

MARKET EXPECTATIONS: Munich Re is expected to report a net profit of around EUR612 million for the third quarter, down 4.9% from EUR643 million a year earlier, according to an average forecast in a Dow Jones Newswires poll of 13 analysts. Analysts forecast a decline in the quarterly investment result and a higher combined ratio--reflecting a slightly higher burden from large disasters compared with revenue--which isn't offset by the increase in premium income.

MAIN FOCUS: Analysts eye a more positive guidance on the full-year profit goal and signals that the dividend payment for 2010 could be higher than the EUR5.75 a share the company paid for 2009. The company also has yet to come up with new mid-term targets for its primary insurer Ergo Versicherungsgruppe AG (EVG2.XE)

*Hannover Re (HNR1.XE) -- (Nov. 10)

MARKET EXPECTATIONS:

Hannover Re, one of the five largest reinsurers worldwide, is expected to report a net profit of around EUR250 million, up 54% from EUR163.1 million a year earlier, according to a Dow Jones Newswires poll of 14 analysts. Hannover Re will benefit from a one-time boost in the third quarter and gross premium growth, which is expected to outweigh a weaker investment result and higher claims burden in the quarter.

MAIN FOCUS: As the nine-month net profit--seen around EUR561 million--will already be close to the full-year target of EUR600 million, analysts are looking for an upward revision of that target. An uplift in the dividend is also being eyed. Hannover Re paid EUR2.10 a share for 2009 and has said it aims for EUR2 a share for 2010. But in general, its dividend payout target is 35% to 40% of net profit.

*Allianz SE (ALV.XE) -- (Nov. 10)

MARKET EXPECTATIONS: Allianz SE, Europe's largest primary insurer by market capitalization, is expected to report a net profit of around EUR1.17 billion for the third quarter, down 11% from EUR1.32 billion a year earlier, according to an average consensus in a Dow Jones Newswires poll of 14 analysts.

Analysts forecast a weaker performance of the insurance operations, notably the property-casualty business due to costs for floods, earthquakes and storms, which won't be offset by improvements in asset management and higher overall revenue.

Operating profit is expected to come in at EUR1.92 billion, down 0.3% from EUR1.93 billion a year earlier. Still, Allianz is expected to benefit from good third-quarter results of its financial investment in Hartford Financial Services Group (HIG).

MAIN FOCUS: Analysts expect an update on Allianz's full-year goal of an operating profit of around EUR7.2 billion, give or take EUR500 million. They are also eyeing clearer guidance on acquisitions the company might envisage.

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