Hannover Re achieved its increased earnings guidance for the 2025 financial year despite challenging market conditions, with group net income rising sharply by 13.4% to EUR 2.6 billion. The Executive Board and Supervisory Board will propose a 39% higher dividend of EUR 12.50 per share, reflecting a payout ratio of 57%, aligned with the new dividend strategy targeting around 55% of IFRS group net income.
Reinsurance revenue (gross) grew by 1.5% to EUR 26.8 billion, or 4.7% at constant exchange rates. The reinsurance service result (net) increased by 15.8% to EUR 3.5 billion. Operating profit (EBIT) rose 5.7% to EUR 3.5 billion. Earnings per share reached EUR 21.90.
In property and casualty reinsurance, the combined ratio improved to 84.0% from 86.6%, with net large losses of EUR 1,725 million below the budgeted EUR 2.1 billion. Notable losses included the California wildfires (EUR 595 million), Hurricane Melissa (EUR 329 million), and the Myanmar earthquake (EUR 118 million). The reinsurance service result increased to EUR 2.6 billion.
Life and health reinsurance saw the reinsurance service result climb to EUR 903.0 million, beating the guidance of more than EUR 875 million. The new business CSM generation (net) rose sharply to EUR 766.4 million.
Return on equity was 21.4%, clearly above the strategic target of more than 14%. The solvency ratio under Solvency II stood at 256%, comfortably above the threshold of 200%. The company actively realised hidden losses in its investment portfolio to boost future earnings, resulting in a return on investment of 2.5%, below the guided 2.9%.
For 2026, Hannover Re expects group net income of at least EUR 2.7 billion, with property and casualty reinsurance targeting mid-single-digit growth in reinsurance revenue and a combined ratio below 87%. Life and health reinsurance anticipates a reinsurance service result of around EUR 925 million, and the return on investment is projected at around 3.5%.
Further details are available in the financial supplement at https://www.hannover-re.com/en/investors/results-and-reports/#2025.
