Hannover Re reported Group net income of EUR 2.1 billion for the first nine months of 2026, a 6.9% increase from the prior-year period, and confirmed its full-year guidance of at least EUR 2.7 billion. The reinsurer said its consistent focus on disciplined underwriting and lean operating model enabled profitable growth across all market phases, particularly in property and casualty reinsurance.
Reinsurance revenue (gross) totaled EUR 19.5 billion, compared with EUR 19.7 billion a year earlier; adjusted for currency effects, revenue grew by 1.1%. The reinsurance service result (net) rose to EUR 2.6 billion from EUR 2.4 billion. Operating profit (EBIT) improved by 16.5% to EUR 2.9 billion, and earnings per share reached EUR 17.42, up from EUR 16.29.
The company’s annualized return on equity was 21.1%, down from 22.0% a year earlier, while shareholders’ equity rose to EUR 13.7 billion at September 30, 2026, from EUR 12.9 billion at the end of 2025. The contractual service margin (net) increased by 8.3% to EUR 8.6 billion. Hannover Re’s Solvency II capital adequacy ratio stood at 242%, comfortably above its threshold of more than 200%.
In property and casualty reinsurance, the combined ratio improved to 83.7% from 86.0% and was better than the full-year expectation of less than 87%. Large loss payments totaled EUR 1,316 million, comfortably below the budgeted expectation of EUR 1,786.5 million for the period. The largest net individual losses included the August earthquake in Colombia at EUR 215.7 million, severe Atlantic windstorms affecting the Iberian Peninsula and Morocco at EUR 135.5 million, and Winter Storm Fern in the United States and Canada at EUR 107.6 million. Hannover Re also set aside roughly EUR 200 million in the second quarter for possible impacts of the Iran war.
Life and health reinsurance delivered a good performance, with reinsurance revenue (gross) rising to EUR 6.3 billion from EUR 5.8 billion, an increase of 9.5% at constant exchange rates. The reinsurance service result (net) increased to EUR 717.2 million from EUR 671.3 million and was on a very good level for achieving the full-year target of around EUR 925 million.
Net investment income surged by 40.4% to EUR 1.9 billion, driven primarily by active loss realization in the previous year and higher ordinary income from fixed-income securities. The annualized return on investment reached 3.7%, ahead of the full-year target of around 3.5%. The investment portfolio grew to EUR 70.1 billion from EUR 66.3 billion at the end of 2025.
“In the first nine months of this year we have once again demonstrated our earning power,” said Christian Hermelingmeier, Chief Financial Officer of Hannover Re. “The profitable growth in our reinsurance portfolio continuously increases our investment volume, while we also benefit from the higher interest rate environment in our reinvesting activities.”
Hannover Re confirmed its full-year guidance on the premise that large loss expenditure does not significantly exceed the expected level of EUR 2.3 billion and that there are no unforeseen distortions on capital markets. The company projects a combined ratio of less than 87%, a return on investment of around 3.5%, and a dividend payout ratio of around 55% of IFRS Group net income. Further information, including the financial supplement, is available in the company’s results and reports, and the full release can be viewed via NEWMEDIAWIRE. Additional details are also available on the company’s website, and the company’s legal information page outlines relevant disclaimers.
