Hannover Rück (HNR1) Company presentation summary

Strategic positioning and market leadership

• Holds a top-three global position in reinsurance, with strong capitalisation and a lean, efficient operating model.

• Focuses on profitable growth, low earnings volatility, and a dividend policy targeting increases over prior years.

• Maintains a diversified international portfolio, with significant presence in North America, Europe, and Asia.

• Emphasises sustainability, aiming for net zero by 2050 and active decarbonisation of underwriting and investments.

• Strong financial strength ratings and access to capital markets support competitive cost of capital.

Financial performance and shareholder value

• Achieved a 21.2% return on equity in 2024, consistently outperforming peers over five- and ten-year periods.

• Group net income guidance for 2025 raised to ~€2.6bn, with a target of ≥€2.7bn for 2026.

• Dividend per share has increased steadily, with a payout ratio around 55% and special dividends in exceptional cases.

• Share price rose 60% over three years, with a total shareholder return of 14.6% p.a. since IPO.

• Book value and accumulated paid dividends have shown robust growth, despite IFRS 17 transition impacts.

Business segments: Property & Casualty (P&C) and Life & Health (L&H)

• P&C reinsurance features empowered underwriters, conservative reserving, and a focus on profitability over volume.

• P&C combined ratio improved to 86.0% in Q1-3/2025, with large losses well within budget and strong renewal outcomes.

• L&H reinsurance is solution-driven, agile, and diversified across mortality, longevity, morbidity, and financial solutions.

• L&H segment delivered strong operating performance in 2024, with new business generation supporting future earnings.

• Both segments benefit from broad geographic and product diversification, supporting earnings stability.