Hannover Re increases Group Profit and Confirms Full-year Guidance

• Group net income up by 6.9% to EUR 2.1 billion
• Reinsurance revenue (gross) on Group level grows by 1.1% adjusted for currency effects
• Return on equity reaches 21.1%
• Large losses in property and casualty reinsurance comfortably below expectation
• Combined ratio improves to 83.7%
• Life and health reinsurance delivers good performance
• Return on investment of 3.7% ahead of around 3.5% target
• Full-year guidance for 2026 confirmed

HANNOVER, GERMANY - November 9, 2026 (NEWMEDIAWIRE) - Hannover Re is growing profitably in a challenging market environment while at the same time continuing to systematically enhance its resilience. On this basis, the company is confirming its Group net income guidance of at least EUR 2.7 billion.

"We are thoroughly satisfied with the development of business in the first nine months. Our consistent focus on disciplined underwriting and our lean operating model enable us to grow profitably across all market phases, particularly in property and casualty reinsurance,” said Clemens Jungsthofel, Chief Executive Officer of Hannover Re. "Therefore, we are very confident of achieving our full-year guidance."

Group net income up by 6.9% to EUR 2.1 billion

Reinsurance revenue (gross) totalled EUR 19.5 billion (previous year: EUR 19.7 billion). Growth of 1.1% would have been booked at unchanged exchange rates.

The reinsurance service result (net) rose to EUR 2.6 billion (EUR 2.4 billion). Adjusted for exchange rate effects, the reinsurance finance result (net) came to EUR -1.1 billion (EUR -1.0 billion). The structurally negative amount reflects the reversal of discounting applied in prior years.

The currency result amounted to EUR -91.3 million (EUR 216.5 million). While the previous year’s figure had benefited from US dollar devaluation in the first half of 2025, the strengthening of the US dollar over the course of 2026 gave rise to opposing effects. Other income and expenses amounted to EUR -333.8 million (EUR -442.2 million).

The operating profit (EBIT) improved by 16.5% to EUR 2.9 billion (EUR 2.5 billion). Group net income was up by 6.9% to EUR 2.1 billion (EUR 2.0 billion). Earnings per share reached EUR 17.42 (EUR 16.29).

Return on equity reaches 21.1%

Shareholders’ equity as at 30 September 2026 totalled EUR 13.7 billion (31 December 2025: EUR 12.9 billion). The book value per share reached EUR 113.34 (31 December 2025: EUR 107.21). The annualised return on equity amounted to 21.1% (22.0%).

The contractual service margin (net), quantifying the unearned profit still to be recognised on the business written, increased by 8.3% to EUR 8.6 billion (31 December 2025: EUR 7.9 billion). The risk adjustment for non-financial risk amounted to EUR 3.9 billion (31 December 2025: EUR 3.7 billion).

The capital adequacy ratio under Solvency II, which measures the risk-carrying capacity of the Hannover Re Group, stood at 242% at the end of September (31 December 2025: 256%). It makes allowance for the foreseeable dividend on a pro-rata basis for 2026 as well as planned business growth in 2027 and remains on a level comfortably above the threshold of more than 200%.

Combined ratio in property and casualty reinsurance improves to 83.7%

Hannover Re succeeded in writing an increased profitable volume in the various rounds of treaty renewals held during the year, thereby partially offsetting price declines and exchange rate effects. The new business CSM (net) contracted by 11.9% to EUR 2.3 billion (previous year: EUR 2.6 billion).

Reinsurance revenue (gross) in property and casualty reinsurance retreated by 4.9% to EUR 13.2 billion (EUR 13.9 billion). A decrease of 2.4% would have been recorded at unchanged exchange rates.

Payments for large losses totalled EUR 1,316 million (EUR 1,177 million) in the first nine months of the year and thus came in comfortably below the budgeted expectation of EUR 1,786.5 million for this period. In accordance with the company’s standard practice, Hannover Re booked the entire large loss budget for the first nine months and used it as the basis for calculating the nine-month result. The full-year large loss budget for 2026 amounts to EUR 2.3 billion.

The largest net individual losses from natural catastrophes in the first nine months included the August earthquake in Colombia at a cost of EUR 215.7 million, the severe Atlantic windstorms that impacted the Iberian Peninsula and Morocco to the tune of EUR 135.5 million as the year got underway and Winter Storm Fern in the United States and Canada at the start of the year with expenditures of EUR 107.6 million.

Hannover Re set aside roughly EUR 200 million in the second quarter for possible impacts of the Iran war. Provision was also made for additional risks in the reporting period, and the resilience of the loss reserves was further strengthened.

The reinsurance service result (net) rose to EUR 1.9 billion (EUR 1.7 billion). The combined ratio improved to 83.7% (86.0%) and was thus better than the full-year expectation of less than 87%.

The operating profit (EBIT) in property and casualty reinsurance increased by 20.2% to EUR 2.2 billion (EUR 1.9 billion).

Life and health reinsurance delivers good performance

The Life & Health reinsurance business group developed well over the first nine months and lived up to expectations.

New CSM generation (net), comprised of new business (net) and contract extensions (net), decreased to EUR 502.8 million (previous year: EUR 584.8 million). The contractual service margin (net) grew by 3.9% to EUR 6.5 billion (31 December 2025: EUR 6.3 billion).

Reinsurance revenue (gross) rose to EUR 6.3 billion (EUR 5.8 billion). An increase of 9.5% would have been booked at constant exchange rates.

The reinsurance service result (net) increased to EUR 717.2 million (EUR 671.3 million) and was thus on a very good level for achieving the full-year target of around EUR 925 million. The included loss component (net) from new business and contract extensions stood at EUR 13.9 million (EUR 10.1 million).

The operating result (EBIT) in life and health reinsurance was up by 3.5% to EUR 668.2 million (EUR 645.3 million).

Return on investment of 3.7% ahead of around 3.5% target

Net investment income surged by 40.4% to EUR 1.9 billion (EUR 1.3 billion). This increase was influenced primarily by active loss realisation in the previous year and higher ordinary income from fixed-income securities. The annualised return on investment reached 3.7% and was thus ahead of the full-year target of around 3.5%.

“In the first nine months of this year we have once again demonstrated our earning power,” said Christian Hermelingmeier, Chief Financial Officer of Hannover Re. “The profitable growth in our reinsurance portfolio continuously increases our investment volume, while we also benefit from the higher interest rate environment in our reinvesting activities. Both factors reinforce our current investment income and the reliable contribution made by our investments to the Group profit.”

The investment portfolio of EUR 70.1 billion was clearly higher than the level at the end of the previous year (31 December 2025: EUR 66.3 billion).

Full-year guidance for 2026 confirmed

Hannover Re is confirming that it anticipates Group net income of at least EUR 2.7 billion for the full financial year. Achievement of the earnings guidance for 2026 is based on the premise that large loss expenditure does not significantly exceed the expected level of EUR 2.3 billion and that there are no unforeseen distortions on capital markets. In the event that large losses in 2026 remain substantially below expectation, Hannover Re intends to further strengthen its balance sheet.

In view of the favourable volume developments seen in property and casualty reinsurance renewals during the year, reinsurance revenue (gross) in traditional business (excluding structured reinsurance) is still projected to show growth in the mid-single-digit percentage range. Hannover Re also anticipates a combined ratio of less than 87%.

Hannover Re expects a reinsurance service result (net) of around EUR 925 million in life and health reinsurance.

The return on investment is projected to reach around 3.5%.

In accordance with Hannover Re’s dividend policy, it is envisaged that the payout ratio for the dividend will be around 55% of IFRS Group net income. Furthermore, the goal is to distribute a dividend per share at least on the level of the previous year and to increase it over the long term.

Hannover Re is one of the world's leading reinsurers. We transact all lines of property & casualty and life & health reinsurance and are present worldwide with around 4,000 staff. Property and casualty reinsurance in Germany is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück very good financial strength ratings: Standard & Poor’s AA- "Very Strong" and A.M. Best A+ "Superior".

Please note the disclaimer: https://www.hannover-re.com/en/legal-information/

You can access further information, including the financial supplement, at the following link: https://www.hannover-re.com/en/investors/results-and-reports/#2026

Contact
Media Relations:
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tel. +49 511 5604-1502
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Jessica Locker
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Investor Relations:
Karl Steinle
tel. +49 511 5604-1500
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Axel Bock
tel. +49 511 5604-1736
[email protected]

www.hannover-re.com

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