Hannover Re Reports Strong 2025 Results with Significant Dividend Increase and Reinforced Profitability

Hannover Re achieved its increased earnings guidance in the 2025 financial year despite challenging market conditions, with group net income rising sharply by 13.4% to EUR 2.6 billion. The company simultaneously strengthened its resilience and sustained profitability through strategic actions. The Executive Board and Supervisory Board will propose a 39% higher dividend of EUR 12.50 per share for the 2025 financial year, representing a payout ratio of 57% that aligns with the new dividend strategy aimed at distributing around 55% of IFRS Group net income.

Chief Executive Officer Clemens Jungsthofel emphasized that Hannover Re stands for reliability and financial strength, achieving increased earnings guidance while taking strategic actions to reinforce future profitability. Reinsurance revenue for the Group rose by 1.5% to EUR 26.8 billion, with growth reaching 4.7% at constant exchange rates. The reinsurance service result increased substantially by 15.8% to EUR 3.5 billion, while the operating profit increased by 5.7% to EUR 3.5 billion. Given high business profitability, underutilization of the large loss budget, and a positive currency result, Hannover Re delivered increased net income while boosting earnings power for future years.

Shareholders' equity amounted to EUR 12.9 billion as at 31 December 2025, with return on equity reaching 21.4% and clearly surpassing the strategic target of more than 14%. Chief Financial Officer Christian Hermelingmeier noted that through systematic realization of hidden losses in investments and expanding resilience in loss reserves, Hannover Re has continued to significantly reinforce financial soundness. The capital adequacy ratio under Solvency II stood at 256% at year-end, comfortably above the threshold of more than 200% while already accounting for the proposed dividend and planned business growth.

Property and casualty reinsurance delivered a good result with increased resilience in loss reserves, with reinsurance revenue rising slightly by 0.6% to EUR 18.8 billion. Net expenditures for large losses totaled EUR 1,725 million, coming in below the full-year budgeted expectation of EUR 2.1 billion. The largest expenditures for individual losses included the California wildfires at EUR 595 million, Hurricane Melissa at EUR 329 million, the Myanmar earthquake at EUR 118 million, and severe Australian hailstorms at EUR 102 million. The reinsurance service result increased considerably to EUR 2.6 billion, with the combined ratio improving to 84.0%.

Life and health reinsurance saw the reinsurance service result beat guidance, climbing to EUR 903.0 million and surpassing the target of more than EUR 875 million. Reinsurance revenue increased to EUR 8.0 billion, with growth of 6.8% at unchanged exchange rates. The return on investment reached 2.5%, primarily affected by strategically motivated active realization of hidden losses in the fixed-income portfolio to boost future earnings. Hannover Re expects Group net income of at least EUR 2.7 billion for the 2026 financial year, with property and casualty reinsurance anticipated 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, while the return on investment is projected to reach around 3.5%. Further information is available at https://www.hannover-re.com/en/investors/results-and-reports/#2025.