Hannover Rück SE

Hannover Re reported first-half 2026 group net income of EUR 1.4 billion. In P&C reinsurance, the combined ratio was 83.2%, and management said it includes the full half-year large-loss budget and additional reserve prudence; the underlying combined ratio was better than reported. Traditional P&C premium growth was plus 7.2% year to date, while underlying premium growth was around 4% and currency-adjusted revenue was broadly stable year on year. Life & Health generated a reinsurance service result of EUR 478 million and new CSM of EUR 385 million. Investment ROI was 3.7% versus a 3.5% target, solvency was 254%, and operating capital generation was around EUR 1.8 billion. For the full year, management reaffirmed guidance: P&C combined ratio below 87%, Life & Health reinsurance service result around EUR 925 million, and ROI of 3.5%.

Clemens Jungsthofel struck an upbeat but disciplined tone, saying the first half was “very satisfactory” and that profitability was strong in both business groups. He emphasized that growth is being pursued only where pricing still clears hurdle rates, and repeatedly framed the quarter around underwriting discipline, reserve strength, and balance sheet resilience. He also said Hannover Re expects continued earnings growth in 2026 and beyond, supported by client relationships and a lower cost ratio than peers.

Christian Hermelingmeier focused on the quality of earnings and the mechanics behind them. He said the P&C result does not reflect the benign catastrophe environment because the company fully booked the half-year large-loss budget, and he noted the negative runoff result of minus EUR 62 million was due to deliberately added prudence. In Life & Health, he highlighted a strong EUR 478 million service result, a positive experience variance overall, and a 3.7% ROI driven mainly by ordinary fixed-income income and a higher-yield rollover environment; he also said the equity participation impact was a one-off and should not recur materially.

Analysts pressed on whether the 7.2% premium growth and the EUR 1.7 billion new-business CSM were too generous given pricing declines. Management replied that much of the growth is in well-known renewal business that still clears hurdle rates, that the market is softening mainly in property cat while other lines remain more stable, and that the small loss component shows the growth is value-accretive. Questions also focused on the outlook for U.S. Financial Solutions, structured reinsurance, and catastrophe losses; management said U.S. FS is unlikely to keep growing strongly because competition is intense, structured demand remains healthy with more contracts and compensating new business, and it is too early to say how Q3 hurricane losses or retro recoveries will develop.