Hannover Rück (HNR1) Q1 2025 earnings summary

Executive summary

• Group net income for Q1 2025 was EUR 480 million, down 13.9% year-over-year, mainly due to large losses from LA/California wildfires exceeding budget.

• Reinsurance revenue grew 4.5% year-over-year to EUR 7.0 billion, with strong growth in Property & Casualty offsetting a slight decline in Life & Health.

• Shareholders' equity increased by 2.4% since year-end 2024, reaching EUR 12.1 billion.

• Investment income increased 15.8% to EUR 577 million, with return on investment at 3.5%, above the 3.2% target.

• Solvency II ratio stood at 273%, well above the >200% ambition.

Financial highlights

• Property & Casualty reinsurance revenue rose 7.2% to EUR 5.1 billion; combined ratio increased to 93.9% due to large losses.

• Life & Health reinsurance revenue declined 2.4% to EUR 1.88 billion, but service result improved 15.3% to EUR 243 million.

• Earnings per share fell to EUR 3.98 from EUR 4.63 year-over-year.

• Book value per share increased to EUR 100.19 from EUR 97.80 at year-end 2024.

• Large losses in Q1 2025 totaled EUR 765 million (net), significantly above the quarterly budget, mainly from California wildfires.

Outlook and guidance

• Full-year 2025 net income guidance of around EUR 2.4 billion reaffirmed.

• Property & Casualty reinsurance revenue expected to grow over 7% (currency-adjusted), with a combined ratio below 88%.

• Life & Health reinsurance CSM (net) expected to grow by about 2%, with a service result above EUR 875 million.

• Return on investment target for 2025 is at least 3.2%.

• Net large loss budget for 2025 raised to EUR 2.1 billion, reflecting portfolio growth and higher expected nat cat losses.