Hannover Re net profit up 7% on strong underwriting

Hannover Re, one of Germany’s largest reinsurance groups, posted a 7% increase in net profit for the first half of 2024, rising to €580 million from €542 million in the same period last year.

The improvement was primarily attributed to strong underwriting results, as the company maintained disciplined risk selection and pricing strategies. Gross premiums written rose 5% year-on-year to €11.2 billion, reflecting steady demand across both property and casualty segments.

The reinsurer’s combined ratio—a key measure of underwriting profitability—improved to 93.2% from 94.5% in H1 2023, indicating better loss experience and operational efficiency. Investment income remained stable, contributing €340 million to the bottom line, though it was slightly lower than the €355 million recorded in the prior-year period.

Hannover Re’s CEO, Jean-Jacques Henchoz, highlighted the company’s resilience amid volatile market conditions, noting that the reinsurance market continues to benefit from hardening pricing trends and reduced catastrophe losses compared to 2023.

The group’s solvency ratio stood at 220% as of June 30, well above regulatory requirements, providing a buffer against potential financial shocks. Hannover Re reaffirmed its full-year guidance, targeting a net profit of €1.1 billion to €1.2 billion, supported by its diversified portfolio and conservative capital management.

Shares in Hannover Re were up 1.8% in early trading on the Frankfurt Stock Exchange, reflecting investor confidence in the company’s performance outlook.