Hannover Re has reported a 28% increase in group net income for 2024, reaching €2.3 billion and meeting the higher guidance set in autumn 2024.
The company’s return on equity (ROE) rose to 21.2%, exceeding its strategic target. Reinsurance revenue grew by 7.9% to €26.4 billion for the year.
The company’s property and casualty reinsurance segment saw a substantial increase in operating profit (EBIT) to €2.4 billion. The life and health reinsurance segment also posted growth, with EBIT rising to €934 million.
Hannover Re’s return on investment reached 3.2%, surpassing its target. Considering these results, the company’s board of directors has proposed a dividend of €9.00 per share, including a special dividend.
Earlier this year, Hannover Re saw premium growth of 7.6% in the treaty renewals as of Jan. 1, 2025.
CEO Jean-Jacques Henchoz (pictured above) said that the January renewals were characterized by an increase in insurance supply, mainly driven by retained earnings of incumbent reinsurers, exceeding growth in demand which was less pronounced than anticipated.
Hannover Re recorded its largest net individual loss from Hurricane Milton at €230 million, followed by €194 million in losses from flooding in parts of Central and Eastern Europe.
Flooding in Dubai and other parts of the United Arab Emirates resulted in €138 million in losses, while unrest in New Caledonia led to expenditures of €117 million. The company also booked €116 million in losses from Hurricane Helene and €103 million related to the bridge collapse in Baltimore.
Additionally, Hannover Re substantially increased its provision for claims linked to the ongoing war in Ukraine.
Looking ahead to 2025, Hannover Re has confirmed its financial guidance, targeting group net income of around €2.4 billion. The company expects property and casualty reinsurance revenue to increase by more than 7% at constant exchange rates, with a combined ratio of under 88%.
In life and health reinsurance, Hannover Re projects a net reinsurance service result of more than €875 million, with the contractual service margin growing by around 2%. The return on investment is expected to remain at least 3.2%.
The company’s 2025 profit target assumes that large loss expenditure does not exceed €2.1 billion and that capital markets remain stable without unforeseen distortions.
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