Hannover Re has reported a robust financial performance for 2024, with key metrics surpassing strategic targets. The reinsurance giant’s group net income climbed by 28% to €2.3 billion, exceeding the guidance provided in autumn 2024. This strong performance saw the company’s return on equity (ROE) reach 21.2%, exceeding its strategic objective.
Reinsurance revenue for the year increased by 7.9% to €26.4 billion. Both key segments contributed to this growth. The property and casualty reinsurance segment saw operating profit (EBIT) increase to a substantial €2.4 billion, while its life and health reinsurance segment posted an EBIT of €934 million.
Hannover Re’s return on investment reached 3.2%, surpassing its target. Reflecting these positive results, the company’s board of directors has proposed a dividend of €9.00 per share, including a special dividend payout.
CEO Jean-Jacques Henchoz noted the recent January renewals, which showed an increase in insurance supply thanks to retained earnings of incumbent reinsurers. He also noted that the growth in demand was less pronounced than expected.
In 2024, several events contributed to significant losses for the company. Hannover Re’s largest individual net loss came from Hurricane Milton, totaling €230 million. Flooding in Central and Eastern Europe resulted in €194 million in losses. Furthermore, flooding in Dubai and the United Arab Emirates led to €138 million in losses. Political unrest in New Caledonia resulted in expenditures of €117 million. The company also reported losses of €116 million from Hurricane Helene and €103 million related to the bridge collapse in Baltimore. A substantial increase in provisions for claims linked to the war in Ukraine was also made.
Looking ahead to 2025, Hannover Re has confirmed its financial guidance, targeting a group net income of roughly €2.4 billion. The company anticipates property and casualty reinsurance revenue to grow by more than 7% at constant exchange rates, with a combined ratio under 88%. The life and health reinsurance segment is projected to achieve a net reinsurance service result of over €875 million, with the contractual service margin growing by approximately 2%. The return on investment is expected to stay at a minimum of 3.2%.
The company’s 2025 profit target is based on the assumption that large loss expenditure does not exceed €2.1 billion and that capital markets remain stable with no unforeseen disruptions.
