Hannover Re posted €13.3bn in gross reinsurance revenue for H1 2025, a 3.3% increase year-on-year, driven by growth in property and casualty (P&C) offsetting a small contraction in life and health (L&H).
Revenue growth would have reached 4.3% at constant exchange rates. The net reinsurance service result remained unchanged at €1.4bn.
Operating profit rose 6.3% to €1.8bn, and net income advanced 13.2% to €1.3bn. Return on equity reached 23%, exceeding the strategic target. Shareholders’ equity stood at €11.1bn on June 30, down from €11.8bn at year-end 2024.
P&C reinsurance delivered strong results despite significant catastrophe losses. Gross revenue rose 4.8% to €9.5bn, or 6% at constant exchange rates.
Net new business contractual service margin (CSM) grew 7% to €1.99bn, while the net loss component reached €29.6mn versus €15.7mn a year earlier.
Large loss expenses totalled €976.1mn, above the €935mn half-year budget, and well above last year’s €566.5mn.
The Los Angeles wildfires in January accounted for €615.1mn, followed by a Texas oil refinery fire (€76mn), the Myanmar earthquake (€59mn), and Midwest US tornadoes (€50mn).
Hannover Re strengthened P&C reserves during the period, building on the €2.5bn level estimated by an external study at end-2024.
The net reinsurance service result in P&C increased just over 1% to €975.1mn. The combined ratio rose to 88.4% from 87.8%, slightly higher than the target of under 88%. Segment operating profit grew 11.6% to €1.3bn.
L&H reinsurance results met expectations, supported by favourable performance in longevity and financial solutions. The CSM for net new business rose 17% to €216.6mn, while the net loss component increased to €16.3mn from €9.9mn.
Contract renewals and amendments in the in-force portfolio generated €148.1mn, down from €201.3mn.
The total CSM declined 2.9% to €6.3bn from €6.5bn at year-end. Gross revenue slipped to €3.8bn from €3.82bn, although constant-currency growth was 0.3%.
The net reinsurance service result fell slightly to €444.5mn from €448.1mn, and operating profit dropped 6.3% to €469.9mn.
The investment portfolio contracted to €62.6bn from €65.9bn at end-2024, mainly due to revaluation effects on USD-denominated assets. The investment result held steady at €1bn, delivering a 3.3% annualised return, tracking ahead of the full-year goal of at least 3.2%.
Mid-year P&C renewals showed mild price declines, particularly in parts of the North American portfolio — including natural catastrophe risks — as well as in Australian, New Zealand, credit, and surety lines.
Overall business volume fell 2.1% due to the reduction of a major contract; excluding this, growth would have been 4.5%. The inflation- and risk-adjusted price change for renewed business was -2.9%.
CEO Clemens Jungsthöfel highlighted that large losses eased in Q2 after heavy Q1 impacts, noting market conditions remain adequate. He said the company has reinforced its financial position while maintaining capacity for innovation.
Our lean, partnership-based business model, our pragmatic corporate culture and our resilience remain as indispensable for sustainable reinsurance protection as adequate prices and conditions on the market.
CEO Clemens Jungsthöfel
“Based on the numbers for the first six months, I am confident of our ability to generate further profitable growth in the second half of the year and achieve our full-year targets,” added Jungsthöfel.
CFO Christian Hermelingmeier stated that the P&C reserve boost will help mitigate earnings volatility and improve preparedness for future events. Jungsthöfel added that the lean, partnership-focused operating model positions Hannover Re to deliver profitable growth in H2 2025 and achieve full-year objectives.
On the basis of the good business performance of the past six months and the positive currency result, we further strengthened our balance sheet. In concrete terms, we have further increased the level of reserves in property and casualty reinsurance.
Christian Hermelingmeier, Chief Financial Officer of Hannover Re
“This measure not only prepares us better for future loss events, but also enables us to continue to minimise earnings volatility in the future.”
