Sept. 10 (Bloomberg) -- Hannover Re, the world's fifth-biggest reinsurer, said any major disasters on top of Hurricanes Charley and Frances would jeopardize the company's 2004 profit goal.

``Not much more can happen'' or the Hanover, Germany-based company may have to cut its target for net income of between 390 million euros ($475 million) and 430 million euros, Chief Executive Wilhelm Zeller said in an interview.

Hannover Re's statement comes as Hurricane Ivan approaches Florida after causing at least 18 deaths across the southern Caribbean and damaging 90 percent of the homes on Grenada. Ivan weakened to a Category 4 storm from a Category 5, the strongest as measured by the five-step Saffir-Simpson scale.

Hannover Re yesterday said it expects earnings in 2004 to be at the lower end of its forecast range because of costs related to hurricanes in the U.S. Claims related to Frances may cost the company 40 million euros to 60 million euros, on top of about 70 million euros related to Hurricane Charley, Hannover Re said.

Hurricanes in the U.S. will also have the effect of buoying prices for reinsurance coverage for longer than many companies may had expected, Zeller said.

Reinsurers have more than doubled prices in many areas including aviation following the Sept. 11, 2001, attacks in the U.S. Executives including Zeller have said this year may be the peak in terms of prices.

``There've been a number of market participants that expected some price erosion'' in businesses such as insuring natural disasters in the U.S. next year, Zeller said. ``This expectation will now be disappointed.''

While prices have started to decline in businesses such as U.S. industrial property insurance, prices in others such as industrial liability insurance are still rising, Zeller said.

Reinsurers and insurers, their clients, will convene for their annual reinsurance meetings starting Sunday in Monte Carlo, Monaco, to discuss contract renewals. About two-thirds of the business is being renewed effective Jan. 1.

To contact the reporter on this story: Hellmuth Tromm in Munich at htromm@bloomberg.net

Last Updated: September 10, 2004 02:14 EDT