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. The Executive Board and Supervisory Board will propose to the Annual General Meeting a 39% higher dividend of EUR 12.50 per share for the 2025 financial year, with a payout ratio of 57%. This aligns with the new dividend strategy aimed at distributing around 55% of IFRS Group net income.
“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,” said Clemens Jungsthofel, Chief Executive Officer of Hannover Re. “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% in the 2025 financial year to EUR 26.8 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. The operating profit (EBIT) increased by 5.7% to EUR 3.5 billion. Group net income rose sharply by 13.4% to EUR 2.6 billion. Earnings per share reached EUR 21.90.
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 as at 31 December 2025. 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. In an increasingly challenging market landscape, Hannover Re is thus equipped with the strongest balance sheet in its history,” said Christian Hermelingmeier, Chief Financial Officer of Hannover Re. “Our commitment to supporting our clients with stability and reliability is further underscored by our extremely robust solvency ratio.”
The capital adequacy ratio under Solvency II stood at 256% at the end of December, comfortably above the threshold of more than 200%. In property and casualty reinsurance, the favourable outcome of the treaty renewals and a profitability-centred underwriting approach are reflected in the positive development of the new business CSM (net), which increased by a substantial 12.1% to EUR 3.1 billion. Net expenditures for large losses totalled EUR 1,725 million, below the full-year budgeted expectation of EUR 2.1 billion. The combined ratio improved to 84.0%.
In life and health reinsurance, all segments enjoyed sustained demand. The new CSM generation (net) amounted to EUR 766.4 million, sharply higher. The reinsurance service result (net) climbed to EUR 903.0 million, surpassing the target of more than EUR 875 million. The return on investment reached 2.5%, below the guided target of around 2.9% primarily due to the strategically motivated active realisation of hidden losses in the fixed-income portfolio to boost future earnings.
Hannover Re expects Group net income of at least EUR 2.7 billion for the 2026 financial year. “With our solution-driven and pragmatic ‘somewhat different’ approach, we continue to be a strong and reliable partner for our clients,” said Clemens Jungsthofel. “Thanks to our proven strengths and robust balance sheet, and with the additional steps taken to increase our resilience, we are optimally placed to deliver attractive earnings growth even in a challenging market - in 2026 and beyond.”
Adjusted for exchange rate effects, property and casualty reinsurance is expected to deliver growth in reinsurance revenue (gross) in the mid-single-digit percentage range in traditional business. Hannover Re also anticipates 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 earnings guidance for 2026 is based on the premise that large loss expenditure does not significantly exceed the budgeted level of EUR 2.3 billion and assumes no unforeseen distortions on capital markets.
Further information, including the financial supplement, is available at https://www.hannover-re.com/en/investors/results-and-reports/#2025.
