Hannover Re Reports 3.3% Premium Growth Amid Competitive Reinsurance Market

Hannover Re, one of the world's leading reinsurers, has reported a successful start to 2026 with a 3.3% premium growth in traditional property and casualty reinsurance renewals as of January 1, despite recording an average risk-adjusted price decline of 3.2% in a highly competitive market. The company, headquartered in Hannover, Germany, maintained largely stable terms and conditions, supporting the continued high quality of its business portfolio. Key executives, including CEO Clemens Jungsthöfel and Executive Board member Sven Althoff, emphasized that the company's strong market position, long-standing client relationships, and cost advantages enabled profitable growth, even as price reductions were more pronounced than anticipated in certain lines. The renewed premium volume reached EUR 10,535 million, with EUR 9,369 million from renewed treaties and EUR 1,165 million from new and restructured agreements, while EUR 827 million in treaties were cancelled.

Regionally, Hannover Re demonstrated robust performance across global markets. In the Americas, premium volume grew by 6.5%, with stable property business in the United States and selective growth opportunities in US casualty insurance. In Europe, the Middle East, and Africa, premium volume saw modest growth of 0.4%, maintaining profitability despite intense competition, particularly in natural catastrophe covers. The Asia-Pacific region experienced a 1.9% increase in premium volume, with notable demand for natural catastrophe cover in Southeast Asia. Specialty lines, including credit, surety, political risks, aviation, marine, agricultural, and cyber business, saw a 5.8% premium growth, with credit lines delivering double-digit growth. However, natural catastrophe business faced risk-adjusted rate reductions of 10% to 20% due to abundant market capacity, though prices remained adequate overall.

Preliminary financial results for 2025 show Hannover Re achieved a Group net income of EUR 2.64 billion, meeting its raised earnings target. Reinsurance revenue for the year was EUR 26.8 billion, with an operating profit (EBIT) of EUR 3.5 billion. The company has confirmed its guidance for 2026, expecting Group net income of at least EUR 2.7 billion, representing a 12.5% increase from the previous year's original forecast. This outlook is based on conservative reserving, active loss realization in investments, and a strong market position, assuming no significant large loss expenditures or capital market distortions. Hannover Re will publish its audited annual financial statement on March 12, 2026, and more details can be found on www.newmediawire.com, where the original release is available.