Hannover Re reported Group net income of EUR 2.1 billion for the first nine months of 2026, an increase of 6.9% compared with the same period last year, and confirmed its full-year guidance of at least EUR 2.7 billion. The reinsurer said it is growing profitably in a challenging market environment while systematically enhancing its resilience, according to the NEWMEDIAWIRE release.
“We are thoroughly satisfied with the development of business in the first nine months. Our consistent focus on disciplined underwriting and our lean operating model enable us to grow profitably across all market phases, particularly in property and casualty reinsurance,” said Clemens Jungsthofel, Chief Executive Officer of Hannover Re. “Therefore, we are very confident of achieving our full-year guidance.”
Reinsurance revenue (gross) totalled EUR 19.5 billion, down from EUR 19.7 billion in the prior-year period; adjusted for currency effects, revenue would have grown by 1.1%. The reinsurance service result (net) rose to EUR 2.6 billion from EUR 2.4 billion, while operating profit (EBIT) improved by 16.5% to EUR 2.9 billion. Earnings per share reached EUR 17.42, up from EUR 16.29.
Return on equity stood at 21.1%, and shareholders’ equity increased to EUR 13.7 billion as of 30 September 2026 from EUR 12.9 billion at the end of 2025. The contractual service margin (net), which quantifies unearned profit still to be recognised, rose by 8.3% to EUR 8.6 billion. The Solvency II capital adequacy ratio was 242%, comfortably above the company’s threshold of more than 200%.
In property and casualty reinsurance, the combined ratio improved to 83.7% from 86.0%, better than the full-year expectation of less than 87%. Large loss payments totalled EUR 1,316 million, comfortably below the budgeted expectation of EUR 1,786.5 million for the period. The largest net individual losses included the August earthquake in Colombia at EUR 215.7 million, severe Atlantic windstorms impacting the Iberian Peninsula and Morocco at EUR 135.5 million, and Winter Storm Fern in the United States and Canada at EUR 107.6 million. Hannover Re also set aside roughly EUR 200 million in the second quarter for possible impacts of the Iran war. The operating profit (EBIT) in property and casualty reinsurance increased by 20.2% to EUR 2.2 billion.
Life and health reinsurance delivered a good performance, with reinsurance revenue (gross) rising to EUR 6.3 billion from EUR 5.8 billion, an increase of 9.5% at constant exchange rates. The reinsurance service result (net) increased to EUR 717.2 million, on track for the full-year target of around EUR 925 million. The contractual service margin (net) grew by 3.9% to EUR 6.5 billion, and the operating result (EBIT) rose by 3.5% to EUR 668.2 million.
Net investment income surged by 40.4% to EUR 1.9 billion, driven primarily by active loss realisation in the previous year and higher ordinary income from fixed-income securities. The annualised return on investment reached 3.7%, ahead of the full-year target of around 3.5%. The investment portfolio grew to EUR 70.1 billion from EUR 66.3 billion at the end of 2025.
“In the first nine months of this year we have once again demonstrated our earning power,” said Christian Hermelingmeier, Chief Financial Officer of Hannover Re. “The profitable growth in our reinsurance portfolio continuously increases our investment volume, while we also benefit from the higher interest rate environment in our reinvesting activities. Both factors reinforce our current investment income and the reliable contribution made by our investments to the Group profit.”
Hannover Re confirmed its full-year guidance for 2026, expecting Group net income of at least EUR 2.7 billion, a combined ratio of less than 87%, a reinsurance service result (net) of around EUR 925 million in life and health reinsurance, and a return on investment of around 3.5%. The guidance assumes large loss expenditure does not significantly exceed the expected EUR 2.3 billion and that there are no unforeseen distortions on capital markets. The company also plans a dividend payout ratio of around 55% of IFRS Group net income. Further details are available in the financial supplement, and the company’s legal information includes a disclaimer. The original release is available at www.newmediawire.com.
The results matter for the reinsurance industry and investors because they show that disciplined underwriting and a lean operating model can support profitable growth even as prices decline in some segments. Hannover Re’s ability to keep large losses below budget and to confirm guidance signals stability, while its strong capital position provides capacity to absorb shocks and pursue growth. For readers, the announcement indicates that reinsurers remain financially sound, which can support the availability of insurance capacity globally.
