UPDATE 2-Hannover Re-no return to share buying until end-Q3
* Hannover Re sees opportunities in reinsurance
* Increase in equity quota up to 4 percent possible
* Incoming CEO confirms 2009 guidance
* Shares down 2.9 percent, lagging insurance index
(Adds detail, shares)
FRANKFURT, June 26 (Reuters) - Hannover Re (HNRGn.DE) plans to start buying equities again only later this year, preferring for now to invest in its core reinsurance business, the world's fourth-biggest reinsurer said on Friday.
Hannover Re, which sold off most of its equity investments last year to cap the damage from writedowns in the global financial crisis, said it may start buying shares in the final months of the year and ramp up purchases in 2010 and 2011.
"We still see equities as an interesting asset class but the capital requirements are rather high," Chief Financial Officer Roland Vogel told an investor conference broadcast via the Internet.
There were better growth opportunities in the company's reinsurance business as the Atlantic hurricane season gets underway, Vogel said.
Equity investments represented about 2 percent of Hannover Re's over 20 billion euros ($27.9 billion) in assets in 2008, down from 12 percent in 2007.
The company said it could see a moderate increase in its equities quota of up to 4 percent of assets this year.
It would also continue with its long-term goal of building up its real estate holdings toward 5 percent of total assets, from around 1 percent in 2008.
NEW CEO CONFIRMS GUIDANCE
Ulrich Wallin, who takes over the helm as chief executive from retiring Wilhelm Zeller on Wednesday, said the company expected to see a return on investments of 3-4 percent over the next 2-3 years, rising to around 4 percent by 2013. Continued...
