Hannover Re reported a strong financial performance in 2024, increasing its Group net income and proposing a 25% higher total dividend.
The Executive and Supervisory Boards will recommend a dividend of EUR 9.00 per share (EUR 7.20 last year), including an ordinary dividend of EUR 7.00 (EUR 6.00) and a special dividend of EUR 2.00 (EUR 1.20).
- Group net income rises by 28% to EUR 2.3 bn and reaches guidance, which had been revised higher in autumn 2024
- Return on equity increases to 21.2% and clearly exceeds strategic target
- Reinsurance revenue increases by 7.9% to EUR 26.4 bn
- Operating profit (EBIT) in property and casualty reinsurance improves substantially to EUR 2.4 bn
- Life and health reinsurance boosts operating result (EBIT) to EUR 934 mn
- Return on investment of 3.2% beats target
- Proposed dividend of EUR 9.00 per share including special dividend
- Guidance for 2025 confirmed: Group net income of around EUR 2.4 bn
Reinsurance revenue rose 7.9% to EUR 26.4 bn (EUR 24.5 bn), exceeding the target of over 5%. Adjusted for exchange rates, growth was 7.8%.
The reinsurance service result (net), indicating profitability after ceded business, increased to EUR 3 bn (EUR 1.7 bn). The reinsurance finance result (net), adjusted for exchange rate effects, declined to EUR -1,115 mn (EUR -880 mn) due to interest accretion on technical reserves.
Operating profit (EBIT) surged 68% to EUR 3.3 bn (EUR 2 bn). Tax expenses rose to EUR 817 mn from EUR 26 mn last year, reflecting a one-time effect.
CEO Jean-Jacques Henchoz highlighted steady growth and robust profits as drivers of the increased dividend.
We can look back on a very successful 2024 financial year, in which we grew steadily and generated a very pleasing Group profit. With the planned dividend increase, we are living up to our commitment to continuously grow the ordinary dividend over our current strategy cycle and underscoring our positioning as an attractive dividend stock.
Jean-Jacques Henchoz, CEO Hannover Re
Net income climbed 28% to EUR 2.3 bn (EUR 1.8 bn), with earnings per share reaching EUR 19.31 (EUR 15.13). Shareholders’ equity increased to EUR 11.8 bn (EUR 10.1 bn), driven by retained earnings.
The book value per share reached EUR 97.80 (EUR 83.97), and return on equity improved to 21.2% (19.0%), exceeding the 14% strategy target.
CFO Clemens Jungsthöfel noted that enhanced equity strengthened Hannover Re’s reliability and boosted resilience, while the return on equity outpaced strategic expectations.
The contractual service margin (net), reflecting unearned profit, grew by 6.0% to EUR 8.2 bn (EUR 7.7 bn), driven by profitable new business and increased risk adjustment for non-financial risks.
In the past financial year we further increased our shareholders’ equity. We thereby boosted Hannover Re’s resilience and strengthened what clients consider to be a crucial factor in Hannover Re’s reliability.
Clemens Jungsthöfel, CFO of Hannover Re
“At the same time, we continue to set the pace with our return on equity, which is significantly higher than our strategic target,” Clemens Jungsthöfel said.
The Solvency II capital adequacy ratio stood at 261.2% (269.5%) as of December 31, 2024, well above the 200% threshold.
Property and casualty reinsurance revenue increased by 10.9% to EUR 18.7 bn (EUR 16.8 bn), driven by higher risk-adjusted prices and stable conditions.
The combined ratio improved to 86.6% (94.0%), beating the target of under 89%. Large-loss expenses remained within budget at EUR 1.6 bn, despite mid-sized catastrophes, including Hurricane Milton (EUR 230 mn), Central and Eastern Europe floods (EUR 194 mn), and Dubai rainfall (EUR 138 mn).
The reinsurance service result (net) rose to EUR 2,136 mn (EUR 848 mn). Adjusted for currency effects, the reinsurance finance result (net) was EUR -945 mn (EUR -722 mn).
EBIT from property and casualty reinsurance jumped to EUR 2.4 bn (EUR 1.1 bn), boosted by a better reinsurance service result and investment income.
Life and health reinsurance also recorded strong demand, especially in the US financial solutions market, Europe, and Asia.
Longevity covers remained popular, while traditional reinsurance with mortality risks performed as expected, with notable contributions from Latin America and France.
The strategy cycle through to 2026 puts the focus squarely on what Hannover Re stands for: we are pragmatic, client-centric and have a business model geared to the utmost efficiency. Our financial ambition thus builds on our robust foundation to ensure Hannover Re’s lasting stability and resilience.
Jean-Jacques Henchoz, CEO Hannover Re
The new business CSM (net) reached EUR 317 mn (EUR 359 mn), while reinsurance revenue (gross) grew to EUR 7.7 bn (EUR 7.6 bn).
The EBIT from life and health reinsurance increased by 7.2% to EUR 934 mn (EUR 871 mn).
Investments rose to EUR 65.9 bn (EUR 60.1 bn), supported by operational inflows and lower risk premiums.
The investment result totaled EUR 2.0 bn (EUR 1.6 bn), driven by higher interest rates and returns from inflation-linked bonds and alternative investments. The annualized return on investment reached 3.2%, surpassing the target of 2.8%.
