Hannover Re, one of the world's leading reinsurers, has announced preliminary group net income of EUR 2.64 billion for the 2025 financial year, achieving its raised target of around EUR 2.6 billion. The result marks an increase from EUR 2.33 billion in 2024. The company also confirmed its guidance for 2026, projecting group net income of at least EUR 2.7 billion.
The positive earnings were driven by a strong underwriting performance in property and casualty reinsurance, which contributed EUR 2.6 billion to the operating profit (EBIT) of EUR 3.5 billion. Life and health reinsurance added EUR 0.9 billion. Reinsurance revenue grew to EUR 26.8 billion from EUR 26.4 billion in the prior year.
In the treaty renewals as at 1 January 2026, Hannover Re increased premium volume in traditional property and casualty reinsurance by 3.3%, achieving a total of EUR 10,535 million. The renewals covered 61% of the business in this segment. However, the highly competitive market environment led to an average risk-adjusted price decline of 3.2%. "We booked profitable growth in a highly competitive market environment," said Clemens Jungsthöfel, Chief Executive Officer of Hannover Re. "Our strong market position, long-standing client relationships, and cost advantages were crucial factors."
Regionally, the Americas saw premium growth of 6.5%, while the Europe, Middle East and Africa region remained virtually flat with 0.4% growth. The Asia-Pacific region grew modestly by 1.9%. Specialty lines, including facultative reinsurance, credit, surety, and cyber, expanded by 5.8%. Notably, credit, surety and political risks achieved double-digit growth, while aviation and marine reinsurance saw a reduction in volume due to disciplined underwriting.
Natural catastrophe business experienced intensified competition, with risk-adjusted rate reductions of 10% to 20%, though prices remained adequate overall. Structured reinsurance continued to develop favorably, though lower cessions under large contracts are expected to reduce premium volume.
Hannover Re's guidance for 2026 includes mid-single-digit growth in traditional property and casualty reinsurance revenue, a combined ratio below 87%, and a reinsurance service result of around EUR 925 million in life and health. The return on investment is projected at approximately 3.5%. The guidance assumes large loss expenditure does not exceed EUR 2.3 billion and no unforeseen capital market distortions.
The company emphasized its conservative reserving and active realization of investment losses as foundations for sustained earnings growth. Hannover Re will publish its audited annual financial statement on 12 March 2026.
For more details, refer to the original release on NewMediaWire and the company's legal information.
