Hannover Rück Se Stock Earnings Reports

Hannover Re reported a strong start to 2026 with group net income of EUR 711 million and robust underlying profitability across P&C and Life & Health. P&C delivered an excellent Q1 combined ratio of 83.6% (below the <87% target), with management booking the full large-loss budget for the quarter and intentionally adding reserve prudency (positive underlying runoff but reported runoff negative at -€48m). New business CSM was €1.1bn for P&C (driven by January renewals) and €249m for Life & Health; L&H revenue grew ~15% (FX-adjusted), supported by U.S. Financial Solutions and Australia. Investment ROI was 3.6% (slightly above the 3.5% target), driven by fixed income ordinary income. Solvency remains strong at 254% (includes dividend accruals), though slightly lower than year-end due to market movements and capital deployed for growth. Management confirmed 2026 guidance: P&C mid-single-digit top-line growth remains achievable (they see a higher likelihood of the lower end of the range), combined ratio target <87%, L&H reinsurance service result target ~€925m, and ROI target ~3.5%. April renewals broadly mirrored January: competition and rational price pressure, portfolio risk‑adjusted price change -3.6% but volume-weighted growth of 5.6% (boosted by digital business, India expansion and specialty lines). Structured reinsurance volumes declined (notably cession-rate reductions at Jan 1 renewals), but management expects stabilization and says structured business is similarly attractive on capital efficiency. Key risks include geopolitical uncertainty from the Iran war (limited claims so far; any exposure expected to be covered by available large-loss budget), continued market softening, inflation and reserving developments. Management emphasized continued conservative reserving and the flexibility to build further reserve resiliency to manage volatility and to capitalize on opportunities.