Hannover Rück (HNR1) Q4 2024 earnings summary

Executive summary

• Group net income rose 27.6% year-over-year to EUR 2,329m, exceeding targets and supporting a 25% higher dividend proposal of EUR 9.00 per share, driven by strong investment income and robust reinsurance service results in both P&C and life & health segments.

• Reinsurance revenue increased 7.9% year-over-year to EUR 26,379m, with strong growth in both Property & Casualty and Life & Health segments.

• Return on equity reached 21.2%, well above the strategic ambition of >14%, and the solvency ratio stood at approximately 261%, highlighting strong capital strength.

• Shareholders' equity grew 16.5% to EUR 11.8bn, with CSM and risk adjustment also increasing, supporting long-term value creation.

Financial highlights

• Operating profit (EBIT) surged 68.3% year-over-year to EUR 3,318m; net income before taxes up 73.3% to EUR 3,213m.

• Group net income slightly above EUR 2.3 billion, outperforming the initial target of EUR 2.1 billion.

• Return on investments was 3.2%, above the 2.8% target.

• Operating cash flow reached EUR 5.7 billion.

• Large losses of EUR 1,629m were below the budgeted EUR 1,825m, despite high frequency of natural catastrophe events.

Outlook and guidance

• 2025 guidance maintained: Group net income expected at EUR 2.4bn, P&C revenue growth >7%, combined ratio <88%, L&H CSM growth ~2%, and investment return ≥3.2%.

• Dividend baseline for ordinary dividend set at EUR 7 per share, with progressive growth targeted.

• Guidance assumes no major capital market distortions or large losses exceeding the EUR 2.1bn budget.

• Market environment remains supportive, and the company expects to maintain double-digit ROE.