Hannover Re, one of the world's leading reinsurers, achieved its increased earnings guidance for the 2025 financial year despite challenging market conditions, with group net income rising sharply by 13.4% to EUR 2.6 billion. The company also significantly reinforced its resilience and sustained profitability through strategic actions, including expanding loss reserve resilience and actively realizing hidden losses in its investment portfolio.
The Executive Board and Supervisory Board will propose a 39% higher dividend of EUR 12.50 per share for the 2025 financial year, up from EUR 9.00 per share the previous year. The payout ratio of 57% aligns with the new dividend strategy aimed at distributing around 55% of IFRS group net income. “Hannover Re stands for reliability and financial strength. We achieved our increased earnings guidance in 2025 and at the same time made the most of another successful financial year to take strategic actions aimed at significantly reinforcing our future profitability,” said Clemens Jungsthofel, Chief Executive Officer.
Reinsurance revenue (gross) rose by 1.5% to EUR 26.8 billion, with growth of 4.7% at constant exchange rates. The reinsurance service result (net) increased by 15.8% to EUR 3.5 billion. The operating profit (EBIT) rose by 5.7% to EUR 3.5 billion, while earnings per share reached EUR 21.90. Return on equity came to 21.4%, clearly surpassing the strategic target of more than 14%.
In property and casualty reinsurance, the combined ratio improved to 84.0% from 86.6%, with net large losses totaling EUR 1,725 million, below the budgeted expectation of EUR 2.1 billion. The reinsurance service result (net) increased considerably to EUR 2.6 billion. In life and health reinsurance, the reinsurance service result (net) climbed to EUR 903.0 million, surpassing the target of more than EUR 875 million. The return on investment reached 2.5%, below the guided target of around 2.9%, primarily due to the active realization of hidden losses to boost future earnings.
“Through systematic realisation of hidden losses in our investments and by further expanding our resilience in the loss reserves, we have continued to significantly reinforce our financial soundness,” said Christian Hermelingmeier, Chief Financial Officer. The solvency ratio stood at a robust 256% at the end of December, comfortably above the threshold of more than 200%.
For 2026, Hannover Re confirms its guidance of group net income of at least EUR 2.7 billion, with property and casualty reinsurance expected to deliver growth in reinsurance revenue in the mid-single-digit percentage range and a combined ratio below 87%. Life and health reinsurance is expected to achieve a reinsurance service result of around EUR 925 million, with a projected return on investment of around 3.5%. The guidance assumes large loss expenditure does not significantly exceed the budgeted level of EUR 2.3 billion and no unforeseen capital market distortions.
More information is available in the financial supplement at Hannover Re Results and Reports.
