Hannover Rück SE
5-year stock timeline
Hannover Rück evolved over five years from a COVID-battered reinsurer into a steadily compounding, high-quality operator. The share climbed into the mid-200s by early 2026, shaped by pandemic losses in 2020, improving pricing and earnings from 2021 onward, and successive upgrades to medium-term profit guidance.
2020: COVID shock and earnings hit
COVID-19 and several large catastrophe events drove losses of nearly EUR 1.6 billion in 2020, well above the company's large-loss budget, and dented underwriting results across property & casualty and life & health reinsurance. The company booked around EUR 950 million of COVID-related P&C losses and over EUR 260 million in life & health, while warning about potential long-tail litigation risk alongside peers—a caution that kept investors wary of reinsurance exposure.
The stock traded like a cyclical financial during the pandemic: sharp drawdown in early 2020, followed by partial recovery but clouded by a "COVID overhang" narrative focused on uncertainty in claims and reserving rather than growth. Full-year share performance was negative (around −25%), reflecting both sector de-rating and concern that elevated loss experience might structurally compress returns.
2021–2022: Repair, repricing, and defensive appeal
As COVID claims became more quantifiable and reinsurance pricing hardened, Hannover Rück's profitability improved. 2021 delivered a strong rebound with annual share performance above 25%, followed by another positive year in 2022. Management emphasized disciplined underwriting and improving margins in P&C, as well as ongoing growth in life & health, reassuring investors that pandemic-era reserving had largely absorbed the worst losses.
The narrative shifted from "COVID-damaged cyclical" toward a defensive compounder in a structurally firmer pricing environment, benefiting from higher reinsurance rates and rising interest rates supporting investment returns. The stock moved from a wide post-COVID trading range into a persistent uptrend, with higher lows and positive yearly returns around 10–25%, and only temporary pullbacks around macro risk episodes.
2023: Strong earnings and rerating
2023 was another very strong year with stock performance above 20%, supported by robust earnings, continued hard reinsurance pricing, and higher yields lifting the investment result. Quarterly disclosures showed solid premium growth and rising net income, reinforcing confidence that return on equity could stay clearly above the strategic target in a normalized loss environment.
The market increasingly treated Hannover Rück as a high-quality "quality compounder" insurance play rather than a purely cyclical reinsurer, with investors focused on capital return capacity and earnings resilience. Technically, 2023 featured a broad uptrend with stair-step advances and consolidations; each bout of market volatility tended to be used as an entry opportunity, with full-year performance around +22%.
2024: Profit target raised, perception upgrades
In November 2024, Hannover Rück raised its profit target for 2024 and guided to group net income of around EUR 2.4 billion for 2025, signaling confidence in sustained earnings power. This guidance upgrade highlighted the company's ability to compound capital in a supportive pricing and rate environment, further reinforcing its strategic positioning among global reinsurers.
The narrative evolved toward "under-appreciated compounder" with upside from capital returns and continued pricing strength, attracting more attention from quality and value investors seeking stable, above-cost-of-capital ROE. The share price maintained its multi-year uptrend, adding roughly 15% in 2024; pullbacks remained relatively contained, consistent with a stock that had moved into a higher trading zone and was being supported on dips.
2025–early 2026: Guidance hikes and high-level consolidation
In late 2024 and again in 2025, Hannover Rück refined and raised its earnings guidance, with communications pointing to net income of around EUR 2.4 billion for 2025 and at least EUR 2.7 billion anticipated for 2026, backed by very good business performance and ROE clearly above the strategic target. The company reported investment returns around 3.3% annualized in 2025 and confirmed guidance, underlining balance-sheet resilience and supporting expectations for continued capital generation.
Investor perception in this phase was that of a stable defensive compounder with attractive capital generation and visibility, rather than a high-beta macro play. After strong multi-year gains (2019 and 2021–2025 all positive except the 2020 shock), the stock traded in a higher band with periods of consolidation and modest pullbacks from peaks, while maintaining an elevated price zone consistent with a well-regarded European reinsurer.
Key risks and downside factors
HNR1.XETRA is Hannover Rück SE, one of the world's largest reinsurers, operating across property & casualty and life & health markets where it competes against scale-driven giants like Munich Re and Swiss Re, as well as specialized players who differentiate on capital strength, underwriting skill, and portfolio breadth.[6][9] The business carries meaningful exposure to catastrophe risk, financial market swings, and evolving regulatory capital requirements—all of which can materially affect profitability and solvency ratios.[4] Beyond these cyclical pressures, the company navigates structural headwinds from reinsurance pricing cycles and mounting competition from both traditional competitors and alternative capital sources.[4][6]
- Exposure to major natural catastrophes and man-made loss events creates earnings volatility and can strain capital during severe loss years.
- Extended soft pricing cycles or oversupply in Hannover Re's core reinsurance lines could squeeze margins and weaken its competitive standing.
- Interest rate movements, credit spreads, and equity market shifts pose material risks to Hannover Re's substantial investment portfolio and the capital it reports.
- Tightening regulations around solvency, accounting standards, and climate risk could push up capital requirements, compliance costs, and limitations on product offerings across key markets.
Competitive landscape
HNR1.XETRA is Hannover Rück SE, one of the world's largest reinsurers. It competes across global property & casualty and life & health reinsurance, alongside heavyweight multi-line operators like Munich Re and Swiss Re.[1][11] The market itself is concentrated—a handful of large players set the tone on pricing, terms, and capital allocation across North America, Europe, and Asia.[8][11] What shapes Hannover Re's risk profile is the usual suspects: underwriting volatility from natural catastrophes, investment market swings, and regulatory constraints that tighten capital and solvency requirements.[1][11] Competition is intensifying from both established reinsurers and alternative capital providers, which makes sustaining profitable growth across the cycle a genuine challenge.[8][13]
| Company | Ticker |
|---|---|
| Muenchener Rueckversicherungs-Gesellschaft AG (Munich Re) | MUV2.XETRA |
| SCOR SE | SCR.PA |
Private competitors
- Lloyd’s of London
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Start Free TrialPerformance Figures of Hannover Rück SE
Relative Performance vs Benchmarks
| Period | Hannover Rück SE | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | +7.17% | +6.18% | +7.14% |
| 3M | -2.79% | -9.96% | -5.23% |
| 6M | +0.24% | -4.34% | -6.99% |
| 1Y | +2.70% | -10.13% | -13.57% |
| 3Y | +43.17% | -22.17% | -37.77% |
| 5Y | +90.95% | +11.02% | +2.43% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | 10.8 | 1.2 | 279,967,424,000,000,000.0 | 5.3 |
| 1Y ago | 12.7 | 1.1 | 2.5 | 5.2 |
| 3Y ago | 13.3 | 0.9 | 2.7 | 4.2 |
| 5Y ago | 19.2 | 0.7 | 1.5 | 5.2 |
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
| Year | Dividend | Yield at payment | Avg. yield |
|---|---|---|---|
| 2025 | 9.00 EUR | 3.13% | 4.12% |
| 2024 | 7.20 EUR | 3.09% | |
| 2023 | 6.00 EUR | 3.12% | |
| 2022 | 5.75 EUR | 3.89% | |
| 2021 | 4.50 EUR | 2.92% | |
| 2020 | 5.50 EUR | 3.77% | |
| 2019 | 5.25 EUR | 3.89% | |
| 2018 | 5.00 EUR | 4.22% | |
| 2017 | 5.00 EUR | 4.37% | |
| 2016 | 4.75 EUR | 4.70% | |
| 2015 | 4.25 EUR | 4.76% | |
| 2014 | 3.00 EUR | 4.41% | |
| 2013 | 3.40 EUR | 5.40% | |
| 2012 | 2.10 EUR | 4.47% | |
| 2011 | 2.30 EUR | 5.66% |
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Upcoming earnings report
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 26.80B | 2.66B | 21.98B | 1.39B | 26.28B |
| Operating income (EBIT) | 26.80B | 3.21B | 1.85B | 1.47B | 1.73B |
| Net income | 2.64B | 2.33B | 1.82B | 780.80M | 1.23B |
| Free cash flow | — | 5.68B | 5.79B | 5.16B | 4.60B |
| Total assets | — | 72.13B | 65.67B | 62.96B | 82.90B |
| Equity | — | 11.79B | 10.13B | 9.06B | 11.89B |
| Net debt | — | 3.42B | 3.82B | 4.19B | 3.02B |
PWP Leeway UG (haftungsbeschränkt)
