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 6,970 million, 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.

• Demonstrated strong underlying profitability and balance sheet resilience, with robust performance in both P&C and Life & Health segments.

• Solvency ratio at 273%, above consensus and ambition, reflecting strong capitalization and prudent reserving.

Financial highlights

• Property & Casualty reinsurance revenue rose 7.2% to EUR 5,087 million; combined ratio increased to 93.9% due to large losses.

• Life & Health reinsurance revenue declined 2.4% to EUR 1,883 million, but service result improved 15.3% to EUR 243 million.

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

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

• Shareholders’ equity increased by 2.4%, CSM up 8.4%, risk adjustment up 3.3%.

Outlook and guidance

• Full-year net income guidance of at least EUR 2.4 billion reaffirmed.

• P&C revenue growth expected at least 7%, combined ratio below 88%.

• Life & Health service result expected above EUR 875 million; CSM growth ~2%.

• ROI target maintained at 3.2% despite strong Q1 performance.

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