Hannover Re has increased its full-year profit forecast to approximately €2.6 billion from €2.4 billion after reporting strong results for the first nine months of 2025.
The company posted group net income of €1,964.8 million for the nine-month period ended Sept. 30, marking a 7.7% rise from €1,824.4 million in the same period last year. Earnings per share climbed to €16.29 from €15.13.
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“The business development in the first nine months of 2025 was thoroughly satisfactory for Hannover Re,” the company stated in its quarterly report.
Operating profit reached €2,500.2 million, up 2.1% year over year, while return on equity stood at 22.0%. The company’s solvency ratio under Solvency II remained “extremely robust” at 258.6%, well above its long-term target of more than 200%.
Reinsurance revenue was largely unchanged at €19,710.6 million compared to €19,701.1 million in 2024. However, the reinsurance service result rose 12.1% to €2,388.2 million, reflecting improved underwriting profitability.
Large loss expenditures totalled €1,177 million through September, coming in below the budgeted €1,636 million for the period. The California wildfires accounted for the largest single loss at €615 million, followed by an earthquake in Myanmar at €91 million.
In property and casualty reinsurance, operating profit increased 7.6% to €1,868.3 million, with the combined ratio improving to 86.0% from 87.9%. The segment benefited from favourable treaty renewals and disciplined underwriting.
Life and health reinsurance saw its operating result decline 9.9% to €645.3 million, though the reinsurance service result edged up to €671.3 million.
The investment result decreased 6.9% to €1,345.5 million, as the company actively realized losses on fixed-income securities to strengthen future investment income and enhance portfolio flexibility. The return on investment stood at 2.8%.
Hannover Re also announced a revised dividend policy, increasing the payout ratio to approximately 55% of group net income from the 2025 financial year onward.
For 2026, the company anticipates group net income of at least €2.7 billion, assuming large losses do not significantly exceed the budgeted €2.3 billion.
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