Hannover Re, one of the largest reinsurers in the world, reported a 13 percent second-quarter decline in profit citing lower contribution from investments and a substantially higher tax rate that more than offset moderate disaster claims and higher premium volume.The company reported its quarterly tax rate was 18.1 percent — up from 2.5 percent a year ago, when it benefited from a tax-free profit at the Bermuda operations and a tax refund, among other things.Net income fell to $177 million from $199.4 million a year earlier, the Hanover, Germany-based reinsurer reported. That missed the $209.6 million average estimate of 15 analysts surveyed by Bloomberg Business. Gross premium revenue was up 16 percent at $4.15 billion, above the forecast $3.95 billion.While the company’s shares have gained 60 percent over the past year, they fell four percent on Friday as investors focused on the net and operating profit and the investment-income miss compared with forecasts. Analysts were expecting a profit increase due to decline in natural disaster claims, but Hannover Re reported a $97 million loss on two derivatives — instruments it uses to hedge against inflation and risk associated with some securities deposits held by US life-insurance clients.The company, which is one of the three biggest reinsurers in the world by gross premium income, didn’t provide full-year net profit guidance, though it reiterated it expects “a good result for the full 2012 financial year”, considering “continuing attractive market opportunities” and “the gratifying” net profit after the first six months.Since the beginning of the year, Hannover Re’s 50.2 percent parent Talanx AG has requested that the reinsurer refrain from giving a net profit forecast ahead of a decision by Talanx as to whether it will conduct an initial public offering of itself later this year.Chief financial officer Roland Vogel, in a conference call, declined to give a concrete profit guidance, but also said he “wouldn’t deny analyst estimates of a full-year net profit between $860.5 million and $922 million,” considering $498.2 million reached after the first six months.He also said if Talanx were ready for an IPO in the first half, “why wouldn’t it be similarly ready in the second half if markets stabilise and investor appetite” returns.Talanx, which will report second-quarter earnings Tuesday, in March, mandated JP Morgan Chase and Citigroup to help with the planned IPO, people close to the matter said. Initially, investment bank Rothschild was appointed to advise on a potential IPO, and Deutsche Bank was named to lead manage it, signalling progress in plans that Talanx has been discussing for more than a decade.Hannover Re did confirm all its other 2012 earnings targets, saying it aims for a five to seven percent rise in gross premium revenue, a 3.5 percent return on investments and a dividend payout ratio of 35-40 percent.Several analysts pointed out that Hannover Re was able to push for higher rate rises than peers in the July contract renewals, where it achieved average four percent rate increases, compared with Munich Re’s two percent, and the three percent achieved by Swiss Re.Mr Vogel conceded, however, that rate rise have slowed, in line with comments Munich Re made this week when it said that rate hikes are limited to disaster-hit areas, while the overall “hardening of the market” across all sectors shouldn’t be expected any more.Reinsurers have been spared high costs for major disasters, as the few mid-size weather events this year are predominantly covered by primary insurers, rather than the big reinsurers, which insurers use as a backstop for higher risks.