Hannover’s Cost Leadership Is Gradually Eroding, and It Is Compensating Through Pure Underwriting

Hannover is probably one of the most efficiently run reinsurers in our European reinsurance coverage. The business is based in a low-cost location, and the number of employees that support the business is more efficient than at large peers. We believe that the combination of its low-cost location, lean and flat structure, organic growth over acquisitions, and homogenous technology make the group the most expense-efficient European reinsurer we cover. Versus larger peers, we think Hannover is a more agile and nimbler organization, and its focus on brokers as its primary channel would support this claim. Through these brokers, Hannover supports insurance companies, mutuals, and governments as clients.