Hannover Re increased its premium income in traditional property and casualty reinsurance by 3.3% in the treaty renewals as of January 1, 2026, a result that trails some peers as abundant market capacity drove the sharpest rate decline in a decade.
The company recorded an average risk-adjusted price decline of 3.2% during the renewal period. Treaties with a premium volume of €10.196 billion were up for renewal, of which Hannover Re renewed €9.369 billion. New and restructured treaties contributed €1.165 billion, bringing total renewed premium to €10.535 billion.
Clemens Jungsthöfel (pictured above), chief executive officer, said the company achieved profitable growth in a competitive market. "Our strong market position, long-standing and partnership-focused client relationships, as well as cost advantages were crucial factors," he said.
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By region, Hannover Re's premium volume in the Americas grew 6.5%, while Asia-Pacific rose 1.9% amid increased demand for natural catastrophe coverage following recent losses. Europe, Middle East, and Africa recorded modest growth of 0.4%.
In natural catastrophe business, abundant capacity resulted in risk-adjusted rate reductions of 10% to 20% in both international markets and the United States.
Based on preliminary unaudited financials, Hannover Re's Group net income for 2025 grew to €2.64 billion from €2.33 billion. For 2026, the company expects net income of at least €2.7 billion, a combined ratio below 87%, and return on investment of around 3.5%.
The results come in below SCOR, which reported 7.4% growth in P&C reinsurance at the January renewals. SCOR's overall portfolio saw a milder price decline of 1.9%, compared to Hannover Re's 3.2%.
Jean-Paul Conoscente, CEO of P&C at SCOR, said abundant capacity has driven prices down in most lines, especially on non-proportional placements. "Nevertheless, the reinsurance market remained disciplined on structures and terms and conditions," he said.
Read more: SCOR leans into capital relief transactions amid historic soft reinsurance pricing
The January 2026 renewals marked a decisive shift toward buyers. According to Howden Re, risk-adjusted global property-catastrophe reinsurance rates declined by an average of 14.7%, the largest annual decrease since 2014.
Guy Carpenter estimates global reinsurance capital reached a record US$660 billion by mid-2025, driven largely by retained and redeployed earnings. The influence of insurance-linked securities continued to grow, with Gallagher Re noting that alternative capital activity in long-tail lines roughly doubled over the past 12 months.
David Flandro of Howden Re said this is not a return to the underwriting practices of the last soft market. "Attachments remain elevated by historical standards, terms and conditions are tighter; capital is being deployed selectively," he said.
