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1. Company Snapshot

1.a. Company Description

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide.It operates through Property & Casualty Reinsurance, and Life & Health Reinsurance segments.The company offers property, casualty, facultative, catastrophe XL, structured reinsurance, and insurance-linked securities.


It also provides risk solutions for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business, as well as credit, surety, and political risks reinsurance products.In addition, the company offers group and individual credit life, enhanced annuities, group life and health, and Takaful reinsurance products; and risk solutions in the areas of critical illness, disability, health, longevity, long term care, mortality, and morbidity.Further, it provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and divestiture of non-core businesses.


The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013.The company was founded in 1966 and is headquartered in Hanover, Germany.Hannover Rück SE is a subsidiary of Talanx AG.

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1.b. Last Insights on HNR1

Hannover Rück SE faced challenges due to rising claims, particularly from the California wildfires in Q1 2025. Despite a moderate level of claims, the reinsurer maintained its annual guidance, with Q2 net profit growth. However, AM Best reported signs of rate softening, potentially impacting profitability. Additionally, changes in shareholder structure, with private companies holding 50% ownership, may influence key decisions. The company's risk appetite remains steady, but the evolving claims landscape and competitive market conditions pose challenges.

1.c. Company Highlights

2. Hannover Re's Strong Q3 Earnings Exceed Expectations

Hannover Re reported a robust financial performance for the first 9 months of 2025, with a group net income of EUR 1.96 billion, driven by strong underlying profitability and a positive impact from currency translation and tax. The actual EPS came out at '5.47', beating estimates of '5.39'. The company's P&C reinsurance business grew by close to 10% on an adjusted basis, with a combined ratio of 86%, well in line with the target. The return on equity was 22%, and the capitalization remained strong with a solvency ratio of 259%.

Publication Date: Nov -14

📋 Highlights

Segmental Performance

The P&C reinsurance business demonstrated significant growth, with a combined ratio of 86%, indicating strong underwriting profitability. The Life & Health reinsurance segment also showed moderate revenue growth, with new business generation increasing by 16% to EUR 575 million. As Christian Hermelingmeier noted, the company used the positive results situation to add further prudency to its P&C reserves, highlighting its cautious approach to risk management.

Guidance and Outlook

The company increased its group net income guidance to around EUR 2.6 billion for the full year and provided guidance for 2026, expecting a group net income of at least EUR 2.7 billion, representing a 12.5% increase. The P&C business is expected to grow in the mid-single-digit percentage range, with a combined ratio target below 87%. The return on investment is expected to reach around 3.5%. Analysts estimate next year's revenue growth at 4.6%, indicating a positive outlook for the company's top-line performance.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 2.83 and a Dividend Yield of 3.46%, Hannover Re's valuation appears reasonable, considering its strong financial performance and solvency position. The company's ROE of 21.53% is also impressive, indicating efficient use of shareholder capital. These metrics suggest that the company's shares may be attractively priced, given its robust earnings profile and dividend payout.

3. NewsRoom

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Top European Dividend Stocks To Consider In November 2025

Nov -11

Source:

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Hannover Re Lifts Profit View

Nov -10

Source:

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Hannover Re Aims to Boost Dividend With New Payout Policy

Oct -06

Source:

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Top European Dividend Stocks Offering Up To 6.4% Yield

Sep -29

Source:

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Hannover Re (XTRA:HNR1): Assessing the Valuation After Recent Share Price Weakness

Sep -17

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Will WTW's Radar Deal With Sompo Transform Insurance Pricing?

Sep -10

Source: zacks.com

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Property & Casualty Reinsurance

Expected Growth: 5.0%

The Property & Casualty Reinsurance segment is likely to grow slightly above the global average due to the increasing frequency of natural disasters and the subsequent need for reinsurance coverage. This growth is also driven by the expanding insurance markets in emerging economies.

Life and Health Reinsurance

Expected Growth: 4.0%

The Life and Health Reinsurance segment is expected to grow at a slightly lower rate than the global average due to the increasing competition in the life reinsurance market and the regulatory changes affecting health insurance. However, demographic trends such as aging populations will continue to drive demand for certain life and health reinsurance products.

Consolidation

Expected Growth: 4.5%

As Consolidation is not a revenue-generating segment but rather an accounting adjustment, its "growth" mirrors the overall company growth, hence aligning with the global revenue growth hypothesis of 4.5%. It reflects the overall performance of the company rather than a specific business segment.

7. Detailed Products

Property Insurance

Hannover Rück SE offers property insurance products that provide coverage for damages to buildings, inventory, and equipment due to natural disasters, fires, and other perils.

Casualty Insurance

Hannover Rück SE provides casualty insurance products that cover liability risks, such as accidents, injuries, and damages to third parties.

Marine Insurance

Hannover Rück SE offers marine insurance products that cover risks associated with marine transportation, including cargo, hull, and liability risks.

Aviation Insurance

Hannover Rück SE provides aviation insurance products that cover risks associated with aircraft operations, including hull, liability, and cargo risks.

Reinsurance

Hannover Rück SE offers reinsurance products that provide risk transfer solutions to primary insurers, helping them manage their risk exposure and improve capital efficiency.

Specialty Insurance

Hannover Rück SE provides specialty insurance products that cover unique risks, such as cyber, environmental, and financial risks.

8. Hannover Rück SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hannover Rück SE is moderate due to the presence of alternative reinsurance products and services offered by competitors.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of reinsurance products and services offered by Hannover Rück SE, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of reinsurance products and services, which gives Hannover Rück SE some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the reinsurance industry, including regulatory requirements and the need for significant capital investments.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the reinsurance industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.08%
Debt Cost 3.95%
Equity Weight 67.92%
Equity Cost 6.78%
WACC 5.87%
Leverage 47.23%

11. Quality Control: Hannover Rück SE passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BBVA

A-Score: 7.8/10

Value: 7.1

Growth: 9.2

Quality: 7.0

Yield: 8.1

Momentum: 9.5

Volatility: 6.0

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Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

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Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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Swiss Re

A-Score: 6.6/10

Value: 4.2

Growth: 3.0

Quality: 7.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Munich Re

A-Score: 6.6/10

Value: 6.4

Growth: 4.4

Quality: 7.4

Yield: 6.9

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Hannover Rück

A-Score: 6.1/10

Value: 5.9

Growth: 5.9

Quality: 6.9

Yield: 5.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

252.6$

Current Price

252.6$

Potential

-0.00%

Expected Cash-Flows