Hannover Re generated a very good Group profit in the first nine months and is revising its full-year guidance. Among other things, the company is raising its projected Group net income to around EUR 2.6 billion. Group net income for the 2026 financial year is expected to reach at least EUR 2.7 billion, the Group announced.

Reinsurance revenue (gross) was virtually unchanged at EUR 19.7 billion (previous year: EUR 19.7 billion). Growth of 2.1% would have been booked at unchanged exchange rates; excluding a base effect from the previous year, growth would have reached around 7% adjusted for exchange rate effects.

The reinsurance service result (net), reflecting the profitability of underwriting activity less business ceded (primarily retrocessions and insurance-linked securities), increased to EUR 2.4 billion (EUR 2.1 billion). Adjusted for exchange rate effects, the reinsurance finance result (net) – which is structurally negative and reflects the interest accretion on technical reserves discounted in previous years – amounted to EUR -1,007.8 million (EUR -783.6 million).

The currency result improved significantly to EUR 216.5 million (EUR 32.3 million), driven largely by the appreciation of the euro against the US dollar. Other income and expenses amounted to EUR -442.2 million (EUR -375.7 million).

The operating profit (EBIT) grew by +2.1% to EUR 2.5 billion (EUR 2.4 billion). Group net income increased by +7.7% to EUR 2.0 billion (EUR 1.8 billion). Earnings per share reached EUR 16.29 (EUR 15.13), the report said.

In view of the favourable business performance, additional positive one-time effects in the currency result and the lower tax burden in the first nine months, Hannover Re is raising its Group net income guidance for the full 2025 financial year from around EUR 2.4 billion to around EUR 2.6 billion. Achievement of the earnings target for 2025 is based on the premise that large loss expenditure does not significantly exceed the anticipated level of EUR 2.1 billion and there are no unforeseen distortions on capital markets.

The outlook for the 2025 financial year assumes full utilisation of the large loss budget by year-end and does not take into account the possibility of further realisation of losses on fixed-income securities to strengthen future investment income and increase flexibility in the investment portfolio.

The key takeaways of the report:

• Group net income up by +7.7% to EUR 2.0 billion
• Reinsurance revenue (gross) adjusted for exchange rate effects and without a base effect from the previous year grows by around 7%
• Large losses in property and casualty reinsurance comfortably within budgeted expectation
• Life and health reinsurance continues to develop in line with expectations
• Return on investment of 2.8% due to active realisation of losses
• Return on equity clearly above strategic target at 22.0%
• Earnings guidance for full-year 2025 raised to around EUR 2.6 billion
• Guidance 2026: Group net income of at least EUR 2.7 billion anticipated

"We generated a very good Group profit in the first nine months. Both business groups as well as the investments and our lean operating model contributed to this. In view of this favourable business performance, we are raising our earnings guidance for the current year”, commented Clemens Jungsthöfel, Chief Executive Officer. "For the coming year we are looking at a market environment with broadly adequate prices and conditions", said Clemens Jungsthöfel. "In a landscape still clouded by uncertainties, demand for reliable and high-quality reinsurance protection remains strong – which is why we expect further profitable growth side-by-side with our clients wherever conditions are commensurate with the risks", the CEO added.



The full report can be found here.