Hannover Re Aims to Boost Dividend With New Payout Policy
By Adria Calatayud
Hannover Re said it would aim to distribute a higher proportion of its net profits to shareholders as dividends and to boost its payout over time as part of a new dividend policy.
The German reinsurer said Sunday that it decided to realign its dividend policy, setting a payout ratio of 55% of net profit. Last year, the company's dividend amounted to 46% of its net profit.
Hannover Re said special dividends that in the past were declared routinely would become part of its regular dividend, and that going forward it would top up its regular distributions with additional special dividends only in exceptional circumstances.
Moreover, the company said it would aim to distribute dividends per share at least on par with those of the previous year, with the goal of increasing them over the long run.
The company said its new dividend policy, outlined ahead of an investor day later this week, would be applied for the first time in declaring payouts for this year.
"Hannover Re's very good capitalization will enable it to continue generating profitable growth along with the increased dividend distribution," it said.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
October 06, 2025 01:50 ET (05:50 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Dividend Stocks
12 Best Blue-Chip Stocks to Buy for the Long Term
United States