Reinsurance revenue (gross) on the Group level reached EUR 6.5 billion as at the end of March (previous year: EUR 7.0 billion). Reinsurance revenue would have grown by 0.6% at constant exchange rates. Life and health reinsurance contributed currency-adjusted growth of 15.0%. Property and casualty reinsurance experienced a decline in revenue of 4.7% at unchanged exchange rates. While traditional reinsurance delivered diversified growth of 2.1% adjusted for exchange rate effects, revenue in structured reinsurance declined due to the reduction of individual larger-volume contracts.
Based on the profitable premium growth of 18.8% generated in the April renewals, Hannover Re remains confident to achieve the full-year target for revenue growth in traditional property and casualty reinsurance in the mid-single-digit percentage range.
The reinsurance service result (net), reflecting the profitability of underwriting activity less business ceded (primarily retrocessions and insurance-linked securities), increased significantly by 72.9% to EUR 890.2 million (EUR 514.8 million). This had been influenced in the previous year’s period by the exceptional large losses caused by wildfires in California. The reinsurance finance result (net) adjusted for exchange rate effects, which is structurally negative and reflects the interest accretion on technical reserves discounted in prior years, stood at EUR -360.1 million (EUR -333.3 million).
The currency result decreased to EUR -24.4 million (EUR 66.4 million), largely due to the appreciation of various currencies against the euro. Other income and expenses amounted to EUR -140.0 million (EUR -128.3 million).
The Group’s operating profit (EBIT) rose by 39.4% to EUR 971.1 million (EUR 696.5 million). Group net income increased sharply by 47.9% to EUR 710.6 million (EUR 480.5 million). Earnings per share reached EUR 5.89 (EUR 3.98).
Shareholders’ equity amounted to EUR 13.9 billion as at 31 March 2026 (31 December 2025: EUR 12.9 billion). The return on equity came to 21.2% (16.1%) and thus clearly surpassed the strategic target of more than 14%.
The contractual service margin (net), which quantifies the unearned profit expected from the business written, grew by 9.7% to EUR 8.7 billion (31 December 2025: EUR 7.9 billion). The risk adjustment for non-financial risk increased to EUR 3.9 billion (31 December 2025: EUR 3.7 billion).
The capital adequacy ratio under Solvency II, which measures Hannover Re’s risk-carrying capacity, stood at 254% at the end of March (31 December 2025: 256%). It allows for the foreseeable dividend for 2026 on a pro-rata basis as well as the planned business growth in 2026 and thus remains comfortably above the threshold of more than 200%.
“Hannover Re has made a successful start to the 2026 financial year. Our Group net income for the first quarter once again underscores the strength of our diversified business model and our ability to show attractive earnings growth even in a more challenging market. Thanks to our robust positioning in the market, very good capitalisation and lean cost structures, we enjoy considerable financial resilience. This forms the basis for further strengthening our sustained profitability going forward”, commented Clemens Jungsthöfel, Chief Executive Officer.
Key takeaways are:
- Group net income rises to EUR 710.6 million
- Reinsurance revenue (gross) on the Group level grows by 0.6% adjusted for exchange rate effects
- Significant premium growth of 18.8% in April renewals
- Large losses in property and casualty reinsurance below budgeted expectation at EUR 206.9 million
- Life and health reinsurance develops favourably as anticipated
- Annualised return on investment of 3.6% above the full-year target of around 3.5%
- Return on equity clearly above strategic target at 21.2%
- Guidance: Full-year targets for 2026 confirmed.
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