Hannover Re Earnings: Shares Undervalued as Company Continues Year-to-Date Good Start

Hannover Re delivered good first-half results, with net income amounting to EUR 960 million. We think this leaves the business relatively well placed against our full-year net income forecast of EUR 1.6 billion, or EUR 13.64 in earnings per share. Hannover operates with a full-year net income target of equal to or greater than EUR 1.7 billion. First-half earnings of EUR 7.96 per share probably leaves the business a little light versus the full-year forecast of EUR 14.65 per share as per Refinitiv-collected consensus. We surmise that is the reason behind the fall in the share price after the earnings report, which we believe creates a buying opportunity for investors. We maintain our fair value estimate of EUR 220 per share. That equates to fair value/earnings for 2023 of around 16.5 times.