Company Reports

For second-quarter 2026. Hannover Re has again reported a broadly in-line set of numbers, similar to the first quarter. However, these second-quarter numbers are marked by a rise in large losses due to claims from human-made events. Experience variance has pulled down numbers in life and health.

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 peers. We believe the combination of its low-cost location, lean and flat structure, organic growth, and homogenous technology have made 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. Through these brokers, Hannover supports insurance companies, mutuals, and governments.

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 peers. We believe the combination of its low-cost location, lean and flat structure, organic growth over acquisitions, and homogenous technology have made 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. Through these brokers, Hannover supports insurance companies, mutuals, and governments as clients.

For first-quarter 2026, Hannover Re reported a broadly in-line set of results, with some hits and misses. The hits are mainly in the quality of the firm's underwriting; the misses are in revenue. Overall, the company is tracking in line with our forecasts and company-compiled consensus.

We have rolled our model for Hannover to incorporate the latest figures for full-year 2025, and in doing so, we have revised our forecasts moderately.

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 peers. We believe the combination of its low-cost location, lean and flat structure, organic growth over acquisitions, and homogenous technology have made 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. Through these brokers, Hannover supports insurance companies, mutuals, and governments as clients.

For 2025, Hannover Re's EUR 2.652 billion earnings are broadly in line with the EUR 2.626 billion company-compiled consensus. And the EUR 1.725 billion large loss impact is much lighter than the EUR 2.1 billion budget that the revised EUR 2.6 billion earnings guidance was based on.

Hannover Re has maintained moderate growth in its portfolio during the January 2026 renewals as prices continue to fall.

With Hannover Re's third-quarter results, we see reinsurance revenue continuing to slide as softening of the reinsurance cycle persists. Reinsurance revenue missed company-compiled consensus as well as operating profit, but stronger underwriting in property and casualty has led to a net income beat.

In taking a closer look at European reinsurers, we think that while the industry could be faced with higher volume as a result of climate change, buoyant returns from a harder market have attracted capital. That has led to the cycle turning, and that is more important in the medium term.

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 peers. We believe that the combination of its low-cost location, lean and flat structure, organic growth over acquisitions, and homogenous technology have made 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. Through these brokers, Hannover supports insurance companies, mutuals, and governments as clients.

For the second quarter of 2025, we think Hannover Re has missed company-compiled consensus in a few key areas. Year to date, the business has reported EUR 1.316 billion in net income and maintains its full-year guidance of EUR 2.4 billion. Most business areas are under pressure.

Hannover Re has reported results for the first quarter of 2025 that are lower than last year, but above company-compiled consensus forecasts. Life and health and the investment returns have supported a weaker property and casualty underwriting result.

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 peers. We believe that the combination of its low-cost location, lean and flat structure, organic growth over acquisitions, and homogenous technology have made 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. Through these brokers, Hannover supports insurance companies, mutuals, and governments as clients.

We think Hannover Re delivered a strong set of results over 2024 and the company also delivered in line with and, in some areas, ahead of its guidance. There are some slight misses versus our expectations and company-compiled consensus estimates, but operationally we think these are sound numbers.

In January, Hannover Re renewed over half of its traditional reinsurance premiums up for renegotiation this year, as well as a little over a third of its total property and casualty premium contracts up for renewal. However, we believe the key takeaway is the risk-adjusted decline in prices.

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.

Hannover Re is continuing to deliver sound results over the year. Net income year to date is EUR 1.8 billion with EPS of EUR 15.13. This sets the business up well and accordingly, full-year guidance has been raised from EUR 2.1 billion to EUR 2.3 billion for the full year. Profit is also ahead of company-compiled consensus almost across the board. We raise our fair value estimate to EUR 238 per share and maintain our no moat rating.

Hannover Re has announced that CEO Jean-Jacques Henchoz will not extend his contract beyond March 31, 2025. He will be succeeded by Hannover’s current CFO Clemens Jungsthöfel on April 1, 2025, who will in turn be succeeded by Christian Hermelingmeier, the current CFO of HDI Global. Henchoz will stay associated with Hannover Re. Jungsthöfel took over as CFO of HDI Global in 2018 and in 2020 became CFO of Hannover Re. Since then, Hannover’s earnings have grown by double digits. We cannot attribute that directly to either Jungsthöfel or Henchoz because that growth has also taken place in a hardening market with higher investment returns. However, Hannover Re's long-term earnings track record has been good. We maintain our EUR 235 per-share fair value estimate and no moat rating.

For the first half of 2024 Hannover Re has delivered a good set of financial results. This performance has mainly been helped by lower natural catastrophe losses than in the same period last year and a positive cycle of property and casualty renewals. The business has delivered better results than company-compiled consensus for the second quarter in life and health. However, our full-year forecasts look a little inflated at the moment for this division. The investment result for the group is strong at a 3.3% return on investment. This is much better than our 3.05% full-year forecast and 2.8% target. Reinsurance revenue across the group has come in at EUR 12.9 billion, below our EUR 26.9 billion full-year estimate. However, the reinsurance service result and operating profit look good at EUR 1.411.4 billion and EUR 1.657.2 billion, respectively. Straight to the bottom line, Hannover Re has delivered EPS of EUR 9.63 for the first six months versus our EUR 19.35 full-year estimate. We maintain our no moat rating and EUR 235 per-share fair value estimate.