Hannover Re's Premium Income Grows Amidst Competitive Environment
Hannover Re Reports Growth in Premium Income Amidst Competitive Market
HANNOVER, GERMANY - Hannover Re has announced a 3.3% increase in premium income within its traditional property and casualty reinsurance sector as of January 1, 2026. Despite a challenging competitive environment, the company experienced an average risk-adjusted price decline of 3.2% across renewed business.
Clemens Jungsthöfel, Hannover Re's CEO, emphasized the company's ability to achieve profitable growth through its strong market position and enduring client relationships. He noted that areas of the business maintaining profitability enabled an expansion in market share, ensuring the overall quality of their portfolio.
Financial Performance and Renewal Analysis
Preliminary data reveal that Hannover Re's net income for the 2025 fiscal year hit EUR 2.64 billion, consistent with its revised target of about EUR 2.6 billion issued in late 2025. The January renewals involved treaty volumes of EUR 10,196 million, with EUR 9,369 million successfully renewed and an additional EUR 1,165 million gained from new and restructured treaties, reflecting a 3.3% increase to a total of EUR 10,535 million.
Sven Althoff, an Executive Board member overseeing property and casualty reinsurance, noted that despite inevitable price declines in competitive sectors, prices remained largely above the multi-year average, facilitating sustained portfolio growth. This growth is supported by the company's robust client relationships.
Regional and Sectoral Developments
The Americas region witnessed a premium volume increase of 6.5%, driven by stable U.S. property business and selective opportunities in U.S. casualty insurance. Growth in Europe, the Middle East, and Africa was modest at 0.4% but profitable, especially in natural catastrophe covers. The Asia-Pacific region saw a 1.9% increase, with deliberate avoidance of low renewal prices in some sectors to preserve profitability.
In specialty lines, encompassing sectors like credit and surety, aviation, marine, and cyber risks, the premium volume surged by 5.8%. Notably, credit and surety saw growth, while aviation and marine faced reductions owing to stringent underwriting. Despite market oversupply leading to price cuts in natural catastrophe business, acceptable price levels were sustained.
Future Outlook and Strategic Positioning
Hannover Re anticipates a group net income of at least EUR 2.7 billion for 2026, following its 2025 success. Continued growth is expected in the property and casualty reinsurance segment, with a combined ratio below 87%. In Life & Health reinsurance, a service result of around EUR 925 million is anticipated.
Central to Hannover Re's strategy is conservative reserving and proactive investment management to support earnings growth. The company plans to release its audited annual financial statement on March 12, 2026. Hannover Re remains a key player in global reinsurance markets, committed to delivering innovative risk management solutions supported by solid financial ratings from leading agencies.