Hannover Rück (HNR1) Q1 2026 earnings summary

Executive summary

• Net income rose 47.9% year-over-year to EUR 711 million in Q1 2026, with strong underlying profitability and reserve resiliency supporting 2026 targets.

• Shareholders’ equity increased by 7.3% to EUR 13.9 billion, driven by earnings and currency translation.

• Solvency II capital adequacy ratio remained robust at 254%, well above the 200% target.

• Minimal claims from geopolitical events; large loss budget for Q1 not fully utilized.

Financial highlights

• Group reinsurance revenue declined 6.4% year-over-year to EUR 6.52 billion, but would have increased 0.6% at constant exchange rates.

• Group EBIT up 39.4% to EUR 971 million; RoE at 21.2% (target >14%).

• Investment income increased 4.9% year-over-year to EUR 605.3 million, with an annualised return on investment of 3.6%.

• Shareholders’ equity grew 7.3% to EUR 13.9 billion; CSM up 9.7%.

• Large losses of EUR 207 million were well below the Q1 budget of EUR 480 million.

Outlook and guidance

• FY 2026 guidance unchanged: net income ≥ EUR 2.7 billion, combined ratio <87%, investment return ~3.5%.

• Revenue growth expected in the mid-single-digit percent range, with strong contributions from all business engines.

• Life & Health reinsurance service result expected around EUR 925 million.

• Combined ratio target for P&C remains below 87%.