Hannover Re increased premium income in traditional property and casualty reinsurance by 3.3% during treaty renewals as of 1 January 2026, achieving this growth despite an average risk-adjusted price decline of 3.2%. The company reported that treaty terms and conditions remained largely stable, supporting the continued high quality of the business written. Clemens Jungsthöfel, Chief Executive Officer of Hannover Re, stated the company booked profitable growth in a highly competitive market environment, attributing success to strong market position, long-standing client relationships, and cost advantages.
Based on preliminary unaudited financials, Group net income for the 2025 financial year grew to EUR 2.64 billion, meeting the raised earnings target of around EUR 2.6 billion. For the 1 January renewals, treaties with a premium volume of EUR 10,196 million were up for renewal, representing 61% of business in traditional property and casualty reinsurance. Hannover Re renewed treaties with a volume of EUR 9,369 million, while treaties worth EUR 827 million were cancelled. Together with EUR 1,165 million from new and restructured treaties and changes in prices and treaty shares, the total renewed premium volume reached EUR 10,535 million.
Sven Althoff, a member of Hannover Re's Executive Board responsible for property and casualty reinsurance, noted that while treaty terms and conditions remained largely stable, price declines were more pronounced than anticipated, especially in highly competitive lines and for contracts with moderate loss experience. The price level nevertheless remains above the multi-year average and commensurate with risks. The company continued to profitably grow its portfolio by strengthening existing client relationships and developing new ones.
Regional performance varied across markets. In the Americas, premium volume grew by 6.5%, with more than half the business to be renewed over the remainder of 2026. In the United States, property business volume remained stable with prices still at risk-adequate levels despite declines. US casualty insurance offered selective growth opportunities against a backdrop of generally stable prices. The Europe, Middle East and Africa region saw virtually unchanged premium volume with 0.4% growth, maintaining good profitability despite intense competition, especially in natural catastrophe covers. The Asia-Pacific region experienced modest growth of 1.9%, with Hannover Re keeping its profitable portfolio stable overall despite challenging market conditions.
In specialty lines, encompassing facultative reinsurance, credit, surety and political risks, aviation and marine reinsurance, agricultural risks, and cyber and digital business, premium volume grew by 5.8% in a highly competitive environment. Credit, surety and political risks lines delivered double-digit growth benefiting from an attractive market landscape. Aviation and marine reinsurance saw a more disciplined underwriting policy leading to volume reduction. Agricultural business continued to expand in core markets like Brazil and the United States, while digital and cyber segments maintained market shares and opened new business.
Natural catastrophe business faced more intensive competition with risk-adjusted rate reductions of 10% to 20% due to abundant market capacity, though prices remained adequate overall. The successful launch of Hannover Re Capital Partners strengthened cooperation with capital markets in natural catastrophe covers. Demand for structured reinsurance developed favourably, with most contracts renewed and new treaty relationships established through close cooperation with underwriting teams and long-standing marketing efforts.
For the full 2025 financial year, Hannover Re generated reinsurance revenue of EUR 26.8 billion with operating profit (EBIT) of EUR 3.5 billion. Property and casualty reinsurance contributed EUR 2.6 billion to the operating result, while life and health reinsurance accounted for EUR 0.9 billion. The strong underwriting result in property and casualty reinsurance allowed for increased resilience in loss reserves and realization of hidden losses in the investment portfolio.
The company confirmed its guidance for 2026, expecting Group net income of at least EUR 2.7 billion, representing a 12.5% increase compared to the previous year's original forecast. Adjusted for exchange rate effects, traditional business in property and casualty reinsurance is projected to deliver mid-single-digit percentage growth in reinsurance revenue. Hannover Re anticipates a combined ratio below 87% in Property & Casualty reinsurance and a reinsurance service result of around EUR 925 million in Life & Health reinsurance, with return on investment expected to reach approximately 3.5%.
Achievement of the 2026 earnings guidance assumes large loss expenditure does not significantly exceed the budgeted amount of EUR 2.3 billion and that there are no unforeseen distortions on capital markets. Hannover Re will publish its audited annual financial statement on 12 March 2026. The company's performance demonstrates how strategic positioning and disciplined underwriting can deliver growth even in competitive market conditions, with implications for reinsurance industry profitability and capacity management.
