Hannover Rück (HNR1) Q4 2025 earnings summary

Executive summary

• Group net income reached €2.64 billion for 2025, up 13.4% year-over-year, reflecting strong underlying profitability and earnings power.

• Dividend proposal of €12.50 per share, up nearly 40% year-over-year, with a payout ratio of 57% and retained earnings above 40% to support future growth.

• Shareholders’ equity increased by 10% to €12.9 billion, driven by robust earnings and favorable CSM growth, despite negative currency translation effects.

• Return on equity reached 21.4%, well above the strategic ambition of >14%, with long-term performance above peers and low volatility.

Financial highlights

• EBIT reached €2.6 billion; operating profit (EBIT) increased 5.7% to €3,508 million.

• Group reinsurance revenue grew 1.5% year-over-year to €26,786 million (FX-adjusted +4.7%).

• P&C underlying revenue growth was around 10%, exceeding the 7% target; FX adjusted growth was 3.8%.

• Life & Health reinsurance revenue grew 6.8% FX adjusted; reinsurance service result was €903 million, above the €875 million target.

• Solvency ratio stood at 256%, reflecting strong capital generation and dividend increase.

Outlook and guidance

• FY 2026 guidance targets group net income of at least €2.7 billion, mid-single-digit revenue growth, and a combined ratio below 87%.

• Life & Health reinsurance service result expected at ~€925 million; investment return guidance at ~3.5%.

• Dividend of €12.50 set as new minimum for next year, reflecting confidence in future earnings.