E+S Rückversicherung AG, the subsidiary of Hannover Re responsible for German business, expects a stable market environment in Germany for 2026 and continued growth in demand for reinsurance protection. The company made this forecast during the annual reinsurance meeting in Baden-Baden.
Thorsten Steinmann, Chief Executive Officer of E+S Rück, stated: "Our clients know: We are always at their side as a reliable and consistent partner – even when the market environment is challenging. Our strong and enduring business relationships coupled with our robust capital base will enable us to generate further profitable growth – together with our clients. Thanks to our business model as a pure-play reinsurer, we offer the entire spectrum of reinsurance coverage and are keen to explore innovative reinsurance concepts, including for example structured solutions for capital management."
In 2025, demand for high-quality reinsurance protection has increased, allowing E+S Rück to expand its premium volume. Losses from natural catastrophes have remained moderate so far this year. Motor insurance has also shown significant recovery following actions by primary insurers and lower claims related to natural perils.
Despite these positive developments, German insurers continue to face challenges such as geopolitical uncertainties, extreme weather events linked to climate change, and claims inflation. The company emphasized the importance of maintaining prices and terms that reflect actual risks in order to provide stable long-term protection.
German motor insurance experienced a significant recovery in 2025 after two years of losses. E+S Rück expects an underwriting profit in this sector for the first time since those losses.
"German motor insurers are well on track to reclaim their profitability. But this does not mean that the journey towards a sustained return to the black is over," said Thorsten Steinmann. "Claims inflation is still clearly outpacing the general rate of inflation, notably driven by further increases in spare parts and workshop costs in motor own damage business. On the motor liability side, expenditures associated with major bodily injury claims are rising, in part due to higher treatment and care costs. Against this backdrop, further targeted rate increases are necessary in motor business because insurers must price in these higher costs."
Claims expenditures from natural catastrophes have been moderate so far this year compared with previous years’ heavy losses. However, prudent underwriting and risk-adequate pricing remain important regardless of how claims develop through year-end.
In industrial property insurance lines, prices have softened somewhat while large fire losses decreased year-on-year and claims from natural perils were below average—both factors supporting profitability. Liability lines remain competitive with pressure on pricing especially within directors and officers (D&O) insurance; emerging risks and geopolitical issues are becoming more prominent considerations.
Specialty lines such as marine and aviation face ongoing effects from geopolitical tensions along with surplus capacity; conditions here are expected to stay broadly unchanged but pricing will be influenced by individual customer experiences and exposures. Cyber insurance continues growing in importance due both to minor incidents and significant losses; E+S Rück anticipates rising demand particularly for non-proportional covers.
Beyond traditional products like property and casualty reinsurance solutions, E+S Rück—together with Hannover Re—offers structured reinsurance tailored for client needs such as capital optimization or managing earnings volatility. Facultative business provides specialized coverages for specific risks while offerings related to insurance-linked securities (ILS) address capital market demands.
Hannover Re operates globally across all lines of property & casualty as well as life & health reinsurance with about 4,000 employees worldwide; its German operations run through E+S Rück. Both companies hold high financial strength ratings: Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior".