Hannover Re increased its premium income in traditional property and casualty reinsurance by 3.3% during the treaty renewals as of January 1, 2026, while recording an average risk-adjusted price decline of 3.2%. The company maintained largely stable terms and conditions, supporting the continued high quality of its business portfolio. According to preliminary unaudited financials, Hannover Re generated group net income of €2.64 billion for the 2025 financial year, meeting its raised earnings target.
Chief Executive Officer Clemens Jungsthöfel attributed the profitable growth to the company's strong market position, long-standing client relationships, and cost advantages. "We were able to partially offset more significant price reductions in certain lines within our overall portfolio thanks to our broad positioning," Jungsthöfel stated. The company renewed treaties worth €9,369 million out of €10,196 million up for renewal, with new and restructured treaties contributing to a total renewed premium volume of €10,535 million.
Sven Althoff, Executive Board member responsible for property and casualty reinsurance, noted that while treaty terms remained largely stable, price declines were more pronounced than anticipated, particularly in highly competitive lines and for contracts with moderate loss experience. "The price level is nevertheless above the multi-year average and remains commensurate with the risks," Althoff explained. Regional performance varied, with the Americas showing 6.5% premium growth, Europe, Middle East and Africa virtually unchanged at 0.4% growth, and Asia-Pacific increasing by 1.9%.
In specialty lines, which include facultative reinsurance, credit, surety and political risks, aviation and marine reinsurance, agricultural risks, and cyber and digital business, the premium volume grew by 5.8%. Credit, surety and political risks lines delivered double-digit growth, while aviation and marine reinsurance saw volume reductions due to more disciplined underwriting. Natural catastrophe business experienced risk-adjusted rate reductions of 10% to 20% due to abundant market capacity, though prices remained adequate overall. The company strengthened its capital market cooperation through the successful launch of Hannover Re Capital Partners.
For the full 2025 financial year, Hannover Re generated reinsurance revenue of €26.8 billion and operating profit (EBIT) of €3.5 billion. Property and casualty reinsurance contributed €2.6 billion to the operating result, while life and health reinsurance accounted for €0.9 billion. The company confirmed its guidance for 2026, expecting group net income of at least €2.7 billion, representing a 12.5% increase compared to the previous year's original forecast. Hannover Re anticipates mid-single-digit percentage growth in reinsurance revenue for traditional property and casualty business, a combined ratio below 87%, and a return on investment around 3.5%.
The achievement of the 2026 earnings guidance depends on large loss expenditure not significantly exceeding the budgeted €2.3 billion and assumes no unforeseen distortions on capital markets. Hannover Re will publish its audited annual financial statement on March 12, 2026, available through New Media Wire. The company's performance demonstrates how established reinsurers can navigate competitive pressures through disciplined underwriting, diversified portfolios, and strong client relationships while maintaining profitability and growth targets.
