Hannover Re reported a group net income of €480 mn for Q1 2025, down 13.9% year-on-year, driven by large losses in its property and casualty reinsurance segment. Total large losses reached €765 mn, exceeding the company’s budgeted figure of €435 mn.
The largest individual event was the California wildfires, costing €631 mn. Other notable losses included a mid-air collision over Washington, D.C. (€29 mn), an earthquake in Myanmar (€25 mn), a refinery fire in southern Germany (€20 mn), and Cyclone Alfred in Australia (€17 mn).
As a result, the property and casualty reinsurance service result dropped by 46.6% to €272 mn. The combined ratio increased to 93.9%, compared to 88% in Q1 2024.
CEO Clemens Jungsthöfel noted that the wildfires highlight the growing impact of climate-related events. He emphasized that while large loss costs exceeded expectations, the core business continued to perform well, supporting confidence in meeting full-year targets.
The expenditures for the wildfires put us significantly above the large loss budget for the first quarter. At the same time, our underlying business has continued to develop favourably, and we are therefore confident of achieving our full-year targets.
Clemens Jungsthöfel, Hannover Re Chief Executive Officer
Group-wide, gross reinsurance revenue rose by 4.5% to €7 bn. Property and casualty revenue increased 7.2% to €5.1 bn, while life and health revenue declined 2.4% to €1.88 bn.
The total reinsurance service result fell 28.5% to €515 mn. However, the new business contractual service margin (CSM) rose in both segments—up 5.8% to €1.54 bn in property and casualty, and up to €132 mn in life and health.
Shareholders’ equity reached €12.1 bn, compared to €11.8 bn at the end of December 2024. The annualised return on equity was 16.1%, above the strategic target of 14%.
CFO Christian Hermelingmeier highlighted the company’s stable capital position, noting the increase in loss reserves from €2.1 bn to €2.5 bn in 2024. He said this supports Hannover Re’s ability to serve clients consistently, even under adverse conditions.
