Hannover Re achieved its increased earnings guidance in the 2025 financial year despite challenging market conditions. Group net income rose sharply to EUR 2.6 billion, while at the same time Hannover Re continued to significantly strengthen its resilience and sustained profitability.

According to the press release, reinsurance revenue (gross) for the Group rose by 1.5% in the 2025 financial year to EUR 26.8 billion (EUR 26.4 billion). Growth would have reached 4.7% at constant exchange rates.

The reinsurance service result (net) increased by a substantial 15.8% to EUR 3.5 billion (EUR 3.0 billion). The reinsurance finance result (net) adjusted for exchange rate effects, which is structurally negative and reflects the interest accretion on technical reserves discounted in prior years, stood at EUR -1.4 billion (EUR -1.1 billion).

The currency result improved considerably to EUR 243.2 million (EUR -108.0 million), driven largely by the appreciation of the euro against the US dollar. Other income and expenses amounted to EUR -541.2 million (EUR -482.9 million).

The operating profit (EBIT) increased by 5.7% to EUR 3.5 billion (EUR 3.3 billion). Group net income rose sharply by 13.4% to EUR 2.6 billion (EUR 2.3 billion). Earnings per share reached EUR 21.90 (EUR 19.31).

Given the high profitability of its business, underutilisation of the large loss budget and a positive currency result, Hannover Re was able to deliver increased net income while also significantly boosting its earnings power for future years. To this end, Hannover Re further expanded the resilience of its loss reserves and actively realised hidden losses in its investment portfolio.

Shareholders’ equity amounted to EUR 12.9 billion (EUR 11.8 billion) as at 31 December 2025. The return on equity came to 21.4% (21.2%) and thus clearly surpassed the strategic target of more than 14%.

"Hannover Re stands for reliability and financial strength. We achieved our increased earnings guidance in 2025 and at the same time made the most of another successful financial year to take strategic actions aimed at significantly reinforcing our future profitability. 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”, said Clemens Jungsthöfel, Chief Executive Officer.

The key takeaways of the report:

• Group net income rises sharply by 13.4% to EUR 2.6 billion
• Reinsurance revenue (gross) grows by 4.7% adjusted for exchange rate effects
• Property and casualty reinsurance: Good result with increased resilience in the loss reserves; large losses below budgeted expectation
• Life and health reinsurance: Reinsurance service result beats guidance
• Return on investment of 2.5% due to active realisation of hidden losses
• Return on equity clearly above strategic target at 21.4%
• Proposed dividend: Increase by 39% to EUR 12.50 per share
• Guidance for 2026 fully confirmed: Group net income of at least EUR 2.7 billion expected.

The full report can be found here.