AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa” (Superior) for Hannover Rück SE and its core subsidiaries – most notably Hannover Re – with a stable outlook.
Hannover Re’s capital position is supported by risk-adjusted capitalization that exceeds the threshold for AM Best’s highest category, as measured by Best’s Capital Adequacy Ratio.
AM Best expects risk-adjusted capitalization to remain at that level, citing ongoing capital management and organic capital generation from a diversified earnings base. The analysis also points to asset-liability and liquidity management that are intended to help the group navigate capital market volatility, macroeconomic uncertainty and claims inflation.
The balance sheet assessment incorporates what AM Best describes as prudent reserving and a low-risk asset portfolio. Hannover Re’s use of comprehensive retrocession, combining traditional protections with collateralized alternative structures, is viewed as an important tool in limiting capital volatility, alongside low financial leverage and access to external funding.
The group has reported a sustained record of strong earnings. In 2024, net income, including minority interests, increased to €2.40 billion from €1.83 million in 2023, with technical results remaining solid in both property/casualty and life/health reinsurance.
More recently, Hannover Re raised its full-year 2025 profit guidance to approximately €2.6 billion from €2.4 billion after reporting strong results for the first nine months of the year. The group also introduced a revised dividend policy, targeting a payout ratio of about 55% of group net income from the 2025 financial year onward.
Hannover Re reported a return on equity of 22.0% at the end of the third quarter of 2025, supported by technical margins and investment income. In property/casualty reinsurance, continued premium growth and large losses tracking below budget contributed to a combined ratio of 86.0% on an IFRS 17 discounted basis.
AM Best said it expects underwriting results to remain strong over the cycle, underpinned by moderate net catastrophe exposure, disciplined underwriting and expense controls.
As one of the largest composite reinsurers worldwide, Hannover Re continues to benefit from its position in both P&C and life markets, with diversification by product and geography and long-standing client relationships supporting its business profile.
