FRANKFURT (Bloomberg) ? Hannover Re, the world?s fourth- biggest reinsurer, said it expects record results in 2006 as prices for reinsurance coverage more than doubled in storm-affected areas in the US in the January round of renewals after the worst Atlantic hurricane season last year.

Hannover Re expects ?a record result in the current year? as its underwriters saw ?stable premiums? in the property and casualty reinsurance market and rate increases of ?100 percent and more in hurricane-exposed regions,? the company said in a statement distributed by the Hugin newswire.

?Although not all our expectations were realised, we were still able to top the already very high rate in some areas,? chief executive officer Wilhelm Zeller said in the statement.

Hannover Re last year was forced to cut its full-year profit forecast twice. The company reduced its outlook to breakeven, compared with a profit forecast of as much as 470 million euros ($563 million), after posting a loss in the third quarter on damage claims related to hurricanes Katrina and Rita.

Some industry executives and analysts have predicted prices will rise in 2006 following last year?s record claims from natural disasters.

Shares of Hannover Re fell 38 cents, or 1.2 percent, to 31.12 euros in Frankfurt, after earlier losing as much as 1.7 percent. The shares have risen 3.5 percent over the last 12 months, compared with a 26 percent increase of the 31-member Bloomberg Europe 500 Insurance Index.

Zeller reiterated an earlier goal of reaching return on equity, a measure of profitability, of 15 percent this year. The Hannover-based reinsurer anticipates a ?very good 2006 financial year? because of ?the successful treaty renewals,? he said.

The forecast is based on expectations that the burden of major losses is in line with the multiyear average and that there are no unexpected declines in the capital, Zeller said, adding that Hannover Re expects a dividend payout ratio of as much as 40 percent in 2006.

On January 19 Zeller said net income would probably be about 450 million euros in 2006 based on the 15 percent return-on-equity target.

Hannover Re?s premium volume in property and casualty reinsurance of 2.6 billion euros in the January round of renewals was 1.5 percent below last year?s volume. About two-thirds of the overall portfolio was under review.