Hannover Re, one of the world’s leading reinsurers, announced that it increased the premium income in traditional property and casualty reinsurance by 7.6% in the treaty renewals as at 1 January 2025. The good quality of the renewed business was maintained, while an average inflation- and risk-adjusted price decline of 2.1% was recorded.

According to the company’s press release, based on preliminary unaudited financials, Group net income increased in the 2024 financial year to EUR 2.3 billion. Hannover Re thus achieved its earnings target, which it had raised to around EUR 2.3 billion in the fourth quarter of 2024.

The key takeaways of the report:

• Premium growth of 7.6% in the renewals in traditional property and casualty reinsurance as of 1 January
• Sustained high quality of the business based on broadly stable conditions
• Modest average inflation- and risk-adjusted price decline of 2.1%
• Preliminary Group net income of EUR 2.3 billion for 2024 in line with expectations
• Guidance for 2025 confirmed: Group net income of around EUR 2.4 billion

Significant premium growth in the 1 January renewals

Treaties with a premium volume of EUR 10.3 billion were up for renewal on 1 January 2025. This corresponds to 59% of business in traditional property and casualty reinsurance (excluding facultative reinsurance, ILS business and structured reinsurance).

Hannover Re renewed treaties with a premium volume of EUR 9,304 million, while treaties worth EUR 950 million were cancelled. Together with EUR 1,734 million from new treaties and from changes in prices and treaty shares, the total renewed premium volume grew by 7.6% to EUR 11,038 million.

Regional markets: Continued attractive price level

Hannover Re's premium volume in the region Europe, Middle East and Africa grew by 9.7%. An increased supply of reinsurance capacity led to rate erosion, while conditions remained good. In Germany, Hannover Re increased its premium volume on the back of attractive risk-adjusted prices and thereby maintained its strong market position. The Middle East and Türkiye recorded significant rate improvements for loss-affected business.

Worldwide markets: Sustained good quality of the business written

The premium volume in the credit, surety and political risks lines grew by 4.5% in a favourable market environment. Aviation and marine reinsurance saw premium volume contract by 6.2%. While Hannover Re was able to further enlarge its market share in the aviation sector, surplus capacities in marine business resulted in moderate price declines despite significant large loss expenditure. The premium volume booked by Hannover Re in agricultural lines declined by 9.2%. This was driven by, among other things, a planned reduction of the business volume in China on profitability grounds.

"We can look back on successful renewals in a market that remains attractive. This enabled us to generate further profitable growth in our book of business", said Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re. "Demand for high-quality reinsurance capacities was once again higher than in the previous year. Thanks to our very healthy capitalisation, we were able to offer our clients more reinsurance protection at appropriate conditions", CEO added.