Hannover Rück (HNR1) Q3 2025 earnings summary

Executive summary

• Group net income for the first nine months reached EUR 1,964.8 million, up 7.7% year-over-year, with return on equity at 22.0%.

• Net income guidance for the full year 2025 was raised to EUR 2.6 billion, reflecting strong business performance and prudent loss realization in fixed income.

• Shareholders' equity increased by up to 2% over nine months, driven by strong earnings despite negative currency effects.

• Additional profits were used to strengthen the balance sheet, increase P&C reserves, and realize over EUR 300 million in fixed income losses to improve future returns.

• One-off positive tax effect from German corporate tax reform contributed to a lower tax ratio and deferred tax liabilities.

Financial highlights

• Adjusted P&C revenue growth was close to 10% year-over-year, ahead of the 7% target; reinsurance revenue reached EUR 19,711 million, up 2.1% currency-adjusted.

• Combined ratio for P&C improved to 86.0%, in line with or better than targets.

• Life & Health reinsurance revenue grew moderately, with new business CSM up to EUR 575 million and strong new business generation.

• Reinsurance service result reached EUR 671 million, supporting full-year targets.

• Return on investment was 2.8%, below target due to deliberate loss realization in fixed income.

• Solvency ratio remained strong at 259%.

Outlook and guidance

• Net income target for 2025 increased to EUR 2.6 billion, with 2026 guidance set at least EUR 2.7 billion.

• Combined ratio for 2025 and 2026 expected below 87%; ROI target set at 2.9% for 2025 and 3.5% for 2026.

• P&C revenue growth expected to exceed 7% in 2025; Life & Health reinsurance service result targeted above EUR 875 million in 2025 and around EUR 925 million in 2026.

• New dividend policy: regular payout ratio raised to ~55% of IFRS net income.