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 also significantly reinforced its resilience and sustained profitability, according to its annual results released on March 12, 2026.
The Executive Board and Supervisory Board will propose a 39% higher dividend of EUR 12.50 per share for the 2025 financial year, up from EUR 9.00 per share the previous year. The payout ratio of 57% aligns with the new dividend strategy aimed at distributing around 55% of IFRS Group net income. "Hannover Re stands for reliability and financial strength," said Clemens Jungsthofel, CEO. "With a further substantial increase in the proposed dividend and the higher payout ratio, our shareholders are also participating more than ever in Hannover Re’s success."
Reinsurance revenue (gross) 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 (net) increased by 15.8% to EUR 3.5 billion. The operating profit (EBIT) rose by 5.7% to EUR 3.5 billion, while earnings per share reached EUR 21.90. The return on equity came to 21.4%, clearly surpassing the strategic target of more than 14%. "Through systematic realisation of hidden losses in our investments and by further expanding our resilience in the loss reserves, we have continued to significantly reinforce our financial soundness," said CFO Christian Hermelingmeier.
In property and casualty reinsurance, the reinsurance service result (net) increased considerably to EUR 2.6 billion, and the combined ratio improved to 84.0%. Net expenditures for large losses totalled EUR 1,725 million, below the budgeted expectation of EUR 2.1 billion. The largest individual losses included the California wildfires at EUR 595 million and Hurricane Melissa at EUR 329 million. In life and health reinsurance, the reinsurance service result (net) climbed to EUR 903.0 million, surpassing the target of more than EUR 875 million, driven by sustained demand across all segments. The return on investment reached 2.5%, below the guided target of around 2.9% due to strategically motivated active realisation of hidden losses in the fixed-income portfolio.
Hannover Re confirmed its guidance for 2026, expecting group net income of at least EUR 2.7 billion. The company anticipates mid-single-digit percentage growth in property and casualty reinsurance revenue and a combined ratio below 87%. In life and health reinsurance, a reinsurance service result of around EUR 925 million is expected. The return on investment is projected to reach around 3.5%. Achievement of the guidance assumes large loss expenditure does not significantly exceed the budgeted level of EUR 2.3 billion and no unforeseen capital market distortions. The capital adequacy ratio under Solvency II stood at 256% at year-end, comfortably above the threshold of more than 200%.
Further information, including the financial supplement, is available at Hannover Re Results and Reports.
