Hannover Rück Se Stock Earnings Reports

Hannover Re reported a strong start to 2026 with group net income of EUR 711 million and confirmed full-year guidance. Key financials: P&C combined ratio was 83.6% (well below the <87% target), new business CSM for P&C was EUR 1.1 billion (driven by January renewals), Life & Health new CSM was EUR 249 million and the reinsurance service result was EUR 254 million. Return on investment was 3.6%, slightly above the ~3.5% target. Solvency ratio stood at 254% (including a quarterly dividend accrual). The company booked the full large-loss budget for Q1 despite only minimal client notifications related to the Iran conflict and expects any exposures to be covered by the unused large-loss budget. Reserve adequacy was finalized at EUR 3.2 billion (Willis Towers Watson), with total resiliency rising from 7.7% to 8.6% — management emphasised a conservative reserving approach and continued ability/flexibility to build resiliency. Structured reinsurance revenue declined (notably at the 1 Jan renewals) due to reduced cession rates on a few large programs; management expects structured volumes to stabilise over the year. April renewals showed continued pricing pressure but remained broadly risk-adequate: portfolio risk-adjusted price change was -3.6% while volume-weighted growth was 5.6%. Management reiterated the FY 2026 targets: P&C growth achievable (likely toward the lower end of the range), combined ratio <87% on normal large-loss experience, Life & Health reinsurance service result ~EUR 925 million, and ROI ~3.5%. Overall message: strong underlying profitability, conservative reserving to increase balance-sheet resiliency, selective growth execution amid a softening but rational reinsurance market.