Hannover Re has reported a 7.7% increase in group net income to EUR 2.0 billion for the first nine months of 2025 and raised its earnings guidance for the full year. The company now expects group net income to reach around EUR 2.6 billion in 2025, up from an earlier forecast of approximately EUR 2.4 billion, and anticipates at least EUR 2.7 billion for the 2026 financial year.
"We generated a very good Group profit in the first nine months. Both business groups as well as the investments and our lean operating model contributed to this. In view of this favourable business performance we are raising our earnings guidance for the current year," said Clemens Jungsthöfel, CEO/Chairman of Hannover Re’s Executive Board.
Gross reinsurance revenue remained steady at EUR 19.7 billion compared to the previous year, but would have grown by about 7% after adjusting for exchange rate effects and excluding a base effect from last year. The operating profit (EBIT) rose by 2.1% to EUR 2.5 billion, while earnings per share increased to EUR 16.29 from EUR 15.13.
The company’s return on equity reached an annualized rate of 22%, surpassing its strategic target of over 14%. Shareholders' equity totaled EUR 12 billion as of September end, with book value per share at EUR 99.51.
In property and casualty reinsurance, gross revenue held at EUR 13.9 billion, with growth estimated at about 9.5% when adjusted for currency fluctuations and one-off factors from last year. Net expenditures for large losses amounted to EUR 1,177 million—well within the budgeted expectation—and included major events such as California wildfires (EUR 615 million), an earthquake in Myanmar (EUR 91 million), fires at oil refineries in Texas (EUR 76 million) and California (EUR72 million), and tornadoes in the US Midwest (EUR51 million).
The combined ratio improved to 86%, down from last year's figure of nearly 88%. Operating profit in property and casualty reinsurance grew by almost eight percent to reach EUR1.9 billion.
Life & health reinsurance continued developing according to expectations, particularly with longevity covers showing robust performance through new business contractual service margins totaling EUR373 million versus last year's figure of just over half that amount.
Investment returns were affected by active realization of losses within fixed income portfolios but resulted in a return on investment under own management of about 2.8%. “We took advantage of the favourable development in reinsurance business and systematically boosted the resilience of our investment portfolio by active loss realisation in our fixed income portfolio,” said Christian Hermelingmeier, Chief Financial Officer at Hannover Re.“This will improve our future investment income through reinvestment at prevailing higher interest rates.”
Looking ahead, Hannover Re expects property & casualty gross reinsurance revenue growth above seven percent based on constant exchange rates while revising its expected combined ratio downward below eighty-seven percent due to ongoing favorable market conditions.The company projects a net result exceeding EUR875million in life & health reinsurance next year,and aims for a slightly lower average return on investments due largelyto recent realized losses.The dividend policy has also been changed:the regular payout ratio is now setat approximately fifty-five percentof IFRS group net income;special dividends will only be considered under exceptional circumstances going forward.
"For the coming year we are looking at a market environment with broadly adequate prices and conditions," Jungsthöfel added."In a landscape still clouded by uncertainties,demand for reliableand high-qualityreinsurance protection remains strong–which is why we expect further profitable growth side-by-side with our clients wherever conditions are commensurate with the risks."
Hannover Re is among leading global reinsurers operating across all lines worldwide with around four thousand employees.Established since1966,it continues being recognizedfor innovation,reliability,and strong financial standing,bothby industry partnersand rating agencies suchas Standard& Poor's(AA-"Very Strong")and A.M.Best(A+"Superior").