Hannover Re Sees 3.3% Growth in 2026 Reinsurance Renewals
Reinsurance Industry Update: Hannover Re's January 2026 Renewals
Hannover Re, a leading figure in the reinsurance sector, reports a 3.3% increase in renewed premium volume for traditional property and casualty reinsurance as of January 1, 2026. This growth elevates the total to €10.535 billion, underlining the reinsurer's robust stance in a competitive market.
The company’s renewals covered treaties valued at €10.196 million, comprising 61% of its property and casualty portfolio, excluding facultative, insurance-linked securities (ILS), and structured reinsurance. Hannover Re successfully renewed treaties worth €9.369 million and did not renew €827 million. The growth included €1.165 million from newly structured treaties and price adjustments.
Despite a competitive environment, the quality of the renewed portfolio remained strong, with an average risk-adjusted price decrease of 3.2%. Sven Althoff, an Executive Board member, remarked that while terms largely remained stable, more intense competition led to unexpected price declines. Nonetheless, the overall price level was deemed adequate for the risks involved.
Regionally, the Americas achieved notable growth with a 6.5% increase in premium volume. U.S. property premiums held steady with risk-adequate pricing, despite reductions. The Canadian market's competitive nature maintained a stable outlook. In Europe, the Middle East, and Africa, premium volume saw a slight 0.4% increase amid ongoing competition, particularly affecting natural catastrophe covers. The Asia-Pacific region posted a 1.9% gain, targeting a challenging market with selective renewal strategies.
Hannover Re's specialty lines segment recorded a 5.8% increase in premium volume, with significant growth in credit, surety, and political risks due to favorable conditions. Meanwhile, disciplined underwriting led to declines in aviation and marine segments, coupled with adjustments in rates and terms.
In the facultative reinsurance market, price decreases were influenced by oversupply and increased client retentions. Hannover Re managed to maintain its portfolio, expanding in profitable niches. The natural catastrophe sector experienced declines in risk-adjusted rates due to abundant capacity, with prices remaining satisfactory overall.
CEO Clemens Jungsthöfel highlighted the profitable growth achieved despite market challenges. Strategic client relationships and cost benefits allowed Hannover Re to offset pricing pressures and expand market share in lucrative areas. Preliminary 2025 fiscal results indicate a rise in reinsurance revenue to €26.8 billion, with an operating profit of €3.5 billion. The property and casualty segment contributed €2.6 billion, while life and health reinsurance accounted for €0.9 billion. The group net income climbed to €2.64 billion, meeting elevated earnings targets. Jungsthöfel remains optimistic, emphasizing strategic planning and conservative reserving as keys to leveraging market opportunities.