Hannover Re Premium Growth in Competitive Reinsurance Market
Hannover Re Reports Moderate Premium Growth Amidst Competitive Market
HANNOVER, GERMANY - February 5, 2026 – Hannover Re announced a 3.3% rise in premium income from traditional property and casualty reinsurance during the treaty renewals as of January 1, 2026. Despite the competitive market, rates saw an average risk-adjusted price decrease of 3.2%, yet the overall quality of business remained stable.
Clemens Jungsthofel, CEO of Hannover Re, commented on these results: "We experienced profitable growth in a competitive market, underpinned by our strong positioning and client relationships. While some lines faced significant price reductions, we managed to sustain our portfolio's quality and expand market shares in profitable segments."
The preliminary unaudited financials reveal a Group net income for 2025 of EUR 2.64 billion, aligning with prior forecasts. The company has confirmed its 2026 guidance, projecting a minimum Group net income of EUR 2.7 billion, reflecting ongoing confidence in the firm's financial trajectory.
Renewals and Regional Market Impact
As of the January renewals, EUR 10,196 million in treaty business was up for renewal, representing 61% of the traditional property and casualty reinsurance segment. The renewal resulted in a 3.3% increase in the total premium volume, growing to EUR 10,535 million. Treaties worth EUR 827 million were canceled, with additional contributions from new and restructured agreements.
Sven Althoff, Executive Board member responsible for property and casualty reinsurance, noted, "While price declines exceeded initial expectations in some competitive areas, the overall price level remains above the multi-year average. We continued to grow our portfolio profitably by nurturing existing client relationships and entering new markets."
Regional Performance
Americas: Premium volume increased by 6.5%, maintaining stability in the U.S. amidst competitive pricing. Canadian renewals also reflected this stability, highlighting Hannover Re's strong regional positioning.
Europe, Middle East, and Africa (EMEA): A slight growth of 0.4% was observed, with profitability maintained despite intense competition, especially in natural catastrophe covers. Higher retentions by clients, such as in Germany, were noted.
Asia-Pacific: A modest increase of 1.9% was recorded, with a trend towards expanded terms and conditions. The firm selectively renewed profitable contracts, particularly in Southeast Asia's natural catastrophe sector.
Specialty Lines and Strategic Initiatives
Growth in specialty lines, including credit, surety, aviation, marine, agricultural, and cyber segments, reached 5.8%. Credit and political risks saw double-digit growth due to favorable market conditions, whereas aviation faced disciplined underwriting due to rate pressures. The digital and cyber sectors experienced stable market share retention and new business development.
Facultative reinsurance encountered price declines due to increased capacity and client retentions. Nonetheless, a significant portion of the portfolio was successfully renewed.
Natural catastrophe business faced a competitive environment with risk-adjusted rate reductions between 10% to 20%. Despite this, pricing remained appropriate. The formation of Hannover Re Capital Partners enhanced cooperation with capital markets in this domain.
2025 Preliminary Financial Highlights and 2026 Outlook
Hannover Re's 2025 reinsurance revenue reached EUR 26.8 billion, with property and casualty contributing EUR 2.6 billion to operating profit while life and health reinsurance contributed EUR 0.9 billion. The strong underwriting result enabled resilience in loss reserves and management of investment losses.
For 2026, Hannover Re projects continued growth with a forecasted combined ratio below 87% in property and casualty reinsurance and a return on investment around 3.5%. The guidance is based on controlled large loss expenditure and stable capital markets.
Hannover Re will release its audited annual financial results on March 12, 2026. The company, with a strong AA- rating by Standard & Poor's and an A+ from A.M. Best, remains a significant player in the global reinsurance market.