Hannover Rück, a prominent German reinsurer, recently announced an increase in its 2024 dividend while simultaneously confirming its optimistic outlook for 2025 following a remarkable performance in earnings. The company reported a substantial 7.9% rise in gross reinsurance revenue, showcasing its resilience in the competitive insurance landscape. For the financial year ending December 31, 2024, Hannover Rück achieved a net income of €2.33 billion, a significant growth from the previous year's €1.82 billion.
This figure, however, fell slightly short of analysts' expectations, as compiled by FactSet, which pegged the consensus estimate at €2.36 billion. Revenue also saw a notable increase, climbing to €26.38 billion, surpassing the projected estimate of €26.06 billion as opposed to the previous year's revenue of €24.46 billion. The company's reinsurance revenue within the property and casualty sector saw a dramatic increase of 10.9%, reaching €18.66 billion.
This growth was attributed to a year characterized by a high incidence of medium-severity catastrophic losses. Particularly in Europe, the market contended with the fallout from extreme weather events, with the most profound losses stemming from floods experienced in Germany and other parts of Central and Eastern Europe, as well as Spain. In the life and health segment, Hannover Rück reported a modest increase in reinsurance revenue of 1.1%, amounting to €7.71 billion.
This segment's growth was largely driven by persistent demand from clients. The United States maintained its status as a crucial market for the company’s financial solutions, while Hannover Rück successfully expanded its presence in both European and Asian markets. Additionally, the company’s investment portfolio experienced significant growth, rising to €65.9 billion from €60.1 billion due to strong inflows from operational activities coupled with reduced risk premiums on corporate bonds. CEO Jean-Jacques Henchoz remarked, “The figures published today show that Hannover Re is optimally positioned for the future.
In a market environment currently impacted by climate change and geopolitical tensions, we have succeeded in sustainably securing our profitability, further expanding our resilience, and remaining a financially robust and reliable partner for our clients.” Given its strong financial performance, the board plans to propose a regular dividend of €7 per share, alongside a special dividend of €2 per share.
This reflects an increase from €6 per share and €1.20 per share from the previous year. The proposal for these dividends will be presented to shareholders at the annual general meeting scheduled for May 7. The company also reaffirmed its guidance for net income in 2025, set at €2.4 billion. In early trading, the stock demonstrated positive momentum, with an increase of 1%..