Hannover Re Achieves Premium Growth in Competitive Reinsurance Market
Hannover Re Experiences Growth in Premium Volume Amidst Competitive Market Conditions
In 2025, Hannover Re reported a significant achievement in premium volume growth within a highly competitive reinsurance market, culminating in a Group net income of EUR 2.6 billion. Despite a challenging environment characterized by an overall decline in prices, Hannover Re successfully navigated the reinsurance landscape, leveraging AI-driven prior authorization processes.
Key Achievements
Hannover Re successfully increased its premium income for traditional property and casualty reinsurance during the treaty renewals on January 1, 2026. The renewal process resulted in a 3.3% increase in premium volume, despite a 3.2% average decline in risk-adjusted pricing dynamics.
Clemens Jungsthöfel, CEO of Hannover Re, highlighted the firm's strategic advantages, stating, “Our strong market position, long-standing partnership-oriented client relationships, and cost efficiencies were crucial for our profitable growth.” Hannover Re expanded market shares in profitable segments while sustaining the quality of its portfolio.
Renewal Results
The January renewals saw approximately 61% of Hannover Re's property and casualty reinsurance business up for renewal, excluding facultative reinsurance, Insurance-Linked Securities (ILS) business, and structured reinsurance. Overall, the renewed premium volume rose by 3.3% to EUR 10,535 million despite a more challenging pricing landscape compared to previous years.
Sven Althoff, Executive Board member responsible for property and casualty reinsurance, noted: “The price level remains above the multi-year average and aligns with associated risks. We maintained profitability thanks to reinforced client relationships and strategic development in underwriting.”
Regional Market Overview
The Americas saw a 6.5% increase in premium volume, with stable outcomes in the U.S. property sector despite price declines. The U.S. casualty insurance segment provided selective growth opportunities, while Canada maintained competitive stability.
In Europe, Middle East, and Africa, premium volumes saw a marginal increase of 0.4%, preserving profitability amidst intensive competition. Asia-Pacific's growth was marked at 1.9%, with a stable profitable portfolio, notwithstanding some deliberate non-renewals attributable to market conditions.
Specialty Lines and Structured Reinsurance
Specialty lines, including credit, surety, political risks, aviation, marine, agricultural, and digital businesses, achieved a 5.8% increase in premium volume. Growth was notable in credit and political risk lines, while disciplined underwriting led to volume reductions in aviation and marine reinsurance.
Facultative reinsurance prices declined due to surplus capacity and increased client retentions. Nonetheless, Hannover Re successfully renewed existing portfolios and initiated new treaties. In natural catastrophe reinsurance, significant capacity led to notable competitive pressures and rate reductions, yet prices remained at adequate levels overall.
Financial Outlook
Based on preliminary figures, Hannover Re's reinsurance revenue reached EUR 26.8 billion in 2025, with an operating profit of EUR 3.5 billion. The earnings target was met, and guidance for 2026 forecasts a Group net income of at least EUR 2.7 billion, signaling a 12.5% increase from earlier projections.
Hannover Re’s strategic objectives for 2026 include mid-single-digit percentage growth in property and casualty reinsurance revenue, ensuring compliance with regulatory frameworks. The continued expansion of profitable opportunities is anticipated as market positions are maintained amidst growing competition.
Hannover Re will release its audited annual financial statement on March 12, 2026, providing more insight into its robust risk management and claims processing strategies.