Hannover Rück (HNR1) Q1 2026 earnings summary

Executive summary

• Net income rose 47.9% year-over-year to €711m in Q1 2026, with strong underlying profitability and reserve resiliency supporting 2026 targets.

• Operating profit (EBIT) increased 39.4% to €971m.

• Shareholders' equity increased by 7.3% to €13.9bn, driven by earnings and currency translation.

• Solvency ratio at 254%, well above the >200% ambition.

• Return on equity improved to 21.2% from 16.1% year-over-year.

Financial highlights

• Group reinsurance revenue declined 6.4% year-over-year to €6.52bn (FX-adjusted +0.6%).

• Investment income increased 4.9% year-over-year to €605m, with an annualised return on investment of 3.6%.

• Shareholders’ equity grew 7.3% to €13.9bn.

• Large losses of €207m were well below the Q1 budget of €480m.

• Earnings per share rose to €5.89 from €3.98 year-over-year.

Outlook and guidance

• FY 2026 guidance unchanged: net income ≥ €2.7bn, combined ratio <87%, investment return ~3.5%.

• Revenue growth expected in the mid-single-digit percent range, with strong contributions from all business engines.

• Life & health reinsurance service result expected around €925m.

• Reinsurance rates remain adequate despite a -3.6% risk-adjusted price change in renewals.

• Achievement of guidance assumes large loss expenditure does not significantly exceed expectations and no major capital market disruptions.