Hannover Rück (HNR1) investor relations material

Executive summary

• Achieved record net income of EUR 2.64 billion for 2025, up 13.4% year-over-year, reflecting strong underlying profitability and sustainable earnings growth.

• Proposed dividend of EUR 12.50 per share, a nearly 39% increase year-over-year, with a payout ratio of 57%.

• Shareholders’ equity rose by 10% to EUR 12.9 billion, supported by robust operating cash flow and favorable CSM growth.

• Return on equity reached 21.4%, well above the strategic ambition of >14%.

Financial highlights

• EBIT reached EUR 3.51 billion, up 5.7%; combined ratio in P&C reinsurance at 84%, well below the 87% target.

• Life & Health reinsurance service result was EUR 903 million, exceeding the EUR 875 million target.

• Solvency ratio stood at 256%, reflecting strong capital generation and prudent reserve build.

• Operating capital generation was EUR 3.7 billion, with EUR 1 billion net capital generation post-dividend.

• Ordinary investment income rose 3.8% to EUR 2.51 billion, though total investment result declined 16.6% due to active loss realization.

Outlook and guidance

• FY 2026 guidance targets group net income of at least EUR 2.7 billion, mid-single-digit revenue growth, and a combined ratio below 87%.

• Life & Health reinsurance service result expected at around EUR 925 million; investment return guidance at around 3.5%.

• CSM growth midterm target of around 2% remains valid.

• Dividend of EUR 12.50 set as new minimum for next year, reflecting confidence in future earnings.