Hannover Rück SE
Explore by topic
5-year stock timeline
2020 (Pandemic Year)
Heavy COVID-19 provisioning and large-loss activity dominated the year. The company set aside substantial COVID reserves in H1 (~€600m) with total COVID-related losses reported for 2020 reaching approximately €1.6bn. Group net income came in at €883.1m, while combined-ratio pressure and temporary guidance withdrawals created uncertainty through the period [16,19,22].
Market reaction swung from shock and uncertainty in the first half to a "resilience test" narrative—the company was repositioned as diversified and capital-robust despite underwriting volatility, with management emphasizing risk-carrying capacity [19,22].
The technical picture reflected pandemic-driven volatility in early 2020, with underwriting headlines and reserving guidance serving as clear catalysts for intra-year swings. Combined ratios exceeding 100% pressured sentiment through mid-year [16,19,22].
2021
Results recovered materially. Group net income rose to approximately €1.23bn, with major losses still elevated but improving execution across underwriting and investments. The retrocession programme and capital protections were prominently deployed and cited by analysts [17,20,61].
Perception shifted from "pandemic casualty" to "resilient quality" reinsurer. Investors rewarded Hannover Re for retrocession protection and balance-sheet resiliency, with the narrative emphasizing better protection versus peers and lower tail-risk exposure [61,20].
The share price entered a clear recovery and uptrend, outperforming some peer insurance indices on confidence in retro cover and improving earnings [61,20].
2022
Geopolitical and catastrophe shocks tested the year. Russia–Ukraine war prompted three-digit million EUR provisions early in the period, while significant catastrophe activity including US hurricanes hit P&C underwriting. Despite these headwinds, Group net income remained solid at approximately €1.4bn, aided by investment returns and Life & Health contributions [18,21,27].
The narrative acknowledged headline tail risks but maintained respect for Hannover Re's diversified earnings and capital strength. Investors viewed results as evidence that management could absorb large-loss volatility while keeping capital metrics intact [27,24].
The first half proved volatile on geopolitical shocks and catastrophe headlines, but company-level resilience limited drawdown severity. The share closed 2022 at €185.50, materially above some peers and indicating relative outperformance in a turbulent equity year [55,27].
2023
Underwriting normalized. P&C large-loss spend remained manageable at approximately €1.6bn (broadly within budget), while the combined ratio improved to around 94%. Group net income recovered further to approximately €1.8bn, and new-business CSM expanded as the company signalled improved terms and conditions in renewals [13,1,2].
The narrative evolved to "normalization and improving underwriting cycle." Investors shifted focus to margin recovery and pricing strength in renewals, with Hannover Re beginning to be viewed again as a steady compounder with a path to sustainably higher earnings and shareholder returns [13,2].
The share price moved sideways-to-mild-uptrend with earnings-driven spikes. Volatility concentrated around quarterly and annual releases plus renewal-season datapoints as investors re-priced the stock on improving underwriting prints [13].
2024
A strong operational year featured visible capital returns. The company raised its full-year 2024 profit target in November to approximately €2.3bn, with FY2024 Group net income reported at €2.33bn. Management proposed materially higher shareholder distribution: a total dividend of €9.00/share (€7.00 ordinary plus €2.00 special). The share reached an intra-day record of approximately €263.50 in October and closed the year at €241.40 [44,9,54,58].
The investor narrative shifted to "quality dividend compounder" with emphasis on execution discipline in underwriting, improving combined ratios and active capital-return policy. Analysts turned more constructive, with some raising targets and Jefferies incrementing forecasts on dividend outlook [54,62,66].
A sustained multi-month uptrend carried through 2024, with a clear breakout to record highs in October on the guidance raise and dividend signals (peak ~€263.50), followed by retracement into year-end (~€241.40). The pattern showed higher highs and higher lows with earnings-led spikes [54,9].
2025 (Transition & Shareholder-Return Focus)
Management succession was announced in November 2024: CEO Jean-Jacques Henchoz would hand over to CFO Clemens Jungsthöfel effective April 1, 2025. The company executed the raised FY2024 results and increased payout, with management reiterating growth and guidance ambitions for 2025 [29,58,44].
Market narrative emphasized shareholder returns and capital allocation, with the board willing to raise both ordinary and special dividends. The perception solidified around a well-capitalised, shareholder-friendly reinsurer, though mindful of cyclical catastrophe risk [58,66,67].
Price action turned positive overall on results and dividend announcements, followed by pockets of profit-taking. The share traded at materially higher levels than 2020–22, with episodes of consolidation as investors digested new payout signals [56,62].
2026 H1 (Through June 30)
FY2025 results reported in March showed Group net income rising further to approximately €2.6bn, with large-loss spend staying within budgeted levels. The Board materially lifted shareholder returns for 2025, with headline payouts reported at approximately €12.50/share in market coverage, while guidance and ambitions for 2026 were maintained or raised [49,60,68,53].
By mid-2026, the dominant investor narrative centered on a "capital-efficient, cash-returning franchise" with confidence in dividend trajectory and earnings quality. Analysts remained broadly constructive while continuing to flag natural-catastrophe cyclicality and market/interest-rate sensitivity as principal risks [49,63,68].
The market rallied on strong FY2025 prints and the large dividend, followed by short consolidation as investors weighed payout sustainability against cyclical tail risk. Current price stands at 242.4 as of June 30, 2026.
Key risks and downside factors
Hannover Rück (HNR1.XETRA) operates in global property & casualty reinsurance alongside established competitors: Munich Re and Swiss Re in Europe, SCOR across regions, and major players from Bermuda and the US including Everest, Arch, and RenaissanceRe. The business sits within a cyclical, capital-intensive sector shaped by soft pricing pressure, the growing weight of alternative capital (ILS), and the unpredictable impact of catastrophe losses. Investment returns, interest-rate movements, Solvency II compliance, and rating sensitivity layer additional complexity onto the company's risk profile.
- Large-catastrophe exposure creates a straightforward vulnerability. Major hurricanes, earthquakes, and similar events can inflict sudden, material underwriting losses that put real pressure on capital and earnings.
- Prolonged soft market conditions, aggressive pricing strategies, and the growth of alternative capital and ILS instruments can all compress premiums and underwriting margins, intensifying competitive pressure throughout the underwriting cycle.
- Investment and interest-rate risk can erode returns when yields remain persistently low or markets turn volatile. Either scenario—depressed income or mark-to-market losses—puts pressure on surplus and ROE alike [1].
- Regulatory, capital, and rating risk can manifest through Solvency II (or equivalent) capital requirements, rating downgrades, or retrocession and counterparty failures—each capable of raising the cost of capital or limiting underwriting capacity.
Competitive landscape
Hannover Rück operates in a competitive global reinsurance market alongside established diversified players like Munich Re and Swiss Re, alongside capital-rich specialists such as Berkshire Hathaway's reinsurance arm, RenaissanceRe, Everest, and Arch. The business demands substantial capital, and alternative capital sources—insurance-linked securities and catastrophe bonds—along with direct insurer capacity have begun reshaping the competitive landscape, creating persistent pressure on pricing and margins. The company faces exposure to natural-catastrophe severity, large individual losses, market volatility affecting investment returns, competitive capital dynamics, and the regulatory and counterparty risks inherent to the business.
| Company | Ticker |
|---|---|
| Munich Re | MUV2.XETRA |
| Swiss Re AG | SREN.SIX |
| SCOR SE | SCR.PA |
| Everest Group, Ltd. | EG.NYSE |
| RenaissanceRe Holdings Ltd. | RNR.NYSE |
| Arch Capital Group Ltd. | ACGL.NASDAQ |
Private competitors
- PartnerRe
- Lloyd's of London (market of syndicates)
- National Indemnity (Berkshire Hathaway reinsurance unit)
Get More Stock Analyses Like This
Receive hand-picked stock recommendations with detailed analyses every week
Start Free TrialPerformance Figures of Hannover Rück SE
Relative Performance vs Benchmarks
| Period | Hannover Rück SE | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | +10.75% | +9.04% | +9.34% |
| 3M | -5.36% | -10.53% | -15.62% |
| 6M | +5.98% | +6.86% | -2.32% |
| 1Y | -2.25% | -5.68% | -24.12% |
| 3Y | +49.03% | -11.44% | -27.95% |
| 5Y | +105.28% | +45.68% | +21.59% |
Get More Stock Analyses Like This
Receive hand-picked stock recommendations with detailed analyses every week
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 | 3.3 | 0.4 | 2.2 | 5.1 |
| 1Y ago | 13.1 | 1.1 | 2.9 | 6.2 |
| 3Y ago | 12.6 | 0.9 | 2.4 | 3.2 |
| 5Y ago | 15.3 | 0.7 | 1.6 | 4.2 |
Frequently Asked Questions
Where is the Hannover Rück SE stock traded?
What does Hannover Rück SE do?
What are the key metrics for HNR1.XETRA?
How has Hannover Rück SE's stock price performed?
How is HNR1.XETRA valued?
Does HNR1.XETRA pay dividends?
What are the key risks when investing in HNR1.XETRA?
- Large-catastrophe exposure creates a straightforward vulnerability. Major hurricanes, earthquakes, and similar events can inflict sudden, material underwriting losses that put real pressure on capital and earnings.
- Prolonged soft market conditions, aggressive pricing strategies, and the growth of alternative capital and ILS instruments can all compress premiums and underwriting margins, intensifying competitive pressure throughout the underwriting cycle.
- Investment and interest-rate risk can erode returns when yields remain persistently low or markets turn volatile. Either scenario—depressed income or mark-to-market losses—puts pressure on surplus and ROE alike [1].
- Regulatory, capital, and rating risk can manifest through Solvency II (or equivalent) capital requirements, rating downgrades, or retrocession and counterparty failures—each capable of raising the cost of capital or limiting underwriting capacity.
Who are the main competitors of Hannover Rück SE?
- Munich Re (MUV2.XETRA)
- Swiss Re AG (SREN.SIX)
- SCOR SE (SCR.PA)
- Everest Group, Ltd. (EG.NYSE)
- RenaissanceRe Holdings Ltd. (RNR.NYSE)
- Arch Capital Group Ltd. (ACGL.NASDAQ)
When does Hannover Rück SE report earnings?
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 |
|---|---|---|---|
| 2026 | 12.50 EUR | 4.80% | 4.06% |
| 2025 | 9.00 EUR | 3.13% | |
| 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% |
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 | 24.02B | 23.91B | 24.09B | 22.21B | 26.28B |
| Operating income (EBIT) | 3.41B | 3.21B | 1.85B | 1.20B | 1.73B |
| Net income | 2.64B | 2.33B | 1.82B | 1.41B | 1.23B |
| Free cash flow | 5.69B | 5.68B | 5.79B | 5.16B | 4.60B |
| Total assets | 71.33B | 72.13B | 65.67B | 62.96B | 82.90B |
| Equity | 12.93B | 11.79B | 10.13B | 9.06B | 11.89B |
| Net debt | 3.09B | 3.42B | 3.82B | 4.19B | 3.02B |
PWP Leeway UG (haftungsbeschränkt)
