- Nachrichtendetail
-
14.05.2024 07:30:58 - dpa-AFX: EQS-News: Hannover Re increases quarterly profit to EUR 558 million (english)
Hannover Re increases quarterly profit to EUR 558 million
EQS-News: Hannover Rück SE / Key word(s): Quarter Results
Hannover Re increases quarterly profit to EUR 558 million
14.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Hannover Re increases quarterly profit to EUR 558 million
* Group net income up by 15% to EUR 558 million
* Reinsurance revenue rises to EUR 6.7 billion
* Result in life and health reinsurance in line with expectations
* Return on investment ahead of target at 3.3%
* Return on equity reaches 21.3%
* Guidance for 2024 confirmed
Hannover, 14 May 2024: Hannover Re increased Group net income by 15% in the
first quarter to EUR 558 million and confirms its guidance for the full 2024
financial year.
"We can look back on a rather benign quarter as regards large losses. We had
a good start into the year, putting us on track to achieve our full-year
profit target," said Jean-Jacques Henchoz, Chief Executive Officer of
Hannover Re. "At the same time, with the recent treaty renewals we have put
in place a solid foundation for further profitable growth given the
continued demand for high-quality and reliable risk protection in what is a
challenging landscape."
Group net income up by 15% to EUR 558 million
Reinsurance revenue (gross) grew by 1.6% to EUR 6.7 billion (previous year:
EUR 6.6 billion). Growth of 3.0% would have been booked at unchanged
exchange rates.
The reinsurance service result, reflecting the profitability of underwriting
activity less business ceded (primarily retrocessions and insurance-linked
securities), increased by 27% to EUR 720 million (EUR 568 million). Adjusted
for exchange rate effects, the reinsurance finance result - which includes
in particular the interest accretion on technical reserves discounted in
previous years - amounted to EUR -261 million (EUR -167 million).
The operating profit (EBIT) climbed by 13% to EUR 811 million (EUR 720
million). Group net income improved by 15% to EUR 558 million (EUR 484
million). Earnings per share thus came in at EUR 4.63 (EUR 4.02).
Return on equity reaches 21.3%; capital adequacy ratio under Solvency II
remains robust
The shareholders' equity of Hannover Re amounted to EUR 10.9 billion as at
31 March 2024 (31 December 2023: EUR 10.1 billion). The annualised return on
equity reached 21.3% (previous year: 20.8%). The book value per share stood
at EUR 89.97 (31 December 2023: EUR 83.97).
The contractual service margin (net) rose sharply by 15% to EUR 8.9 billion
(31 December 2023: EUR 7.7 billion). The increase reflects above all the
business growth in the first quarter and the continued favourable earnings
prospects. The risk adjustment for non-financial risk similarly increased
accordingly by 4.9% to EUR 3.9 billion (31 December 2023: EUR 3.7 billion).
The capital adequacy ratio under Solvency II, which measures the
risk-carrying capacity of Hannover Re, amounted to 266.8% at the end of
March and was thus still clearly in excess of the long-term target of more
than 200%.
Large losses in property and casualty reinsurance within the budgeted
expectation
Expenditures for catastrophe losses in property and casualty reinsurance
came in below expectations in the first quarter and were thus comfortably
within the envisaged and reserved budget. At the same time, the main renewal
season in property and casualty reinsurance as at 1 January 2024 brought
further improvements in risk-adjusted prices and conditions for Hannover Re.
Reinsurance revenue (gross) in property and casualty reinsurance rose by
3.1% to EUR 4.7 billion (EUR 4.6 billion). Growth of 5.0% would have been
recorded at unchanged exchange rates.
In accordance with its usual practice, Hannover Re booked the entire large
loss budget for the first quarter of EUR 378 million and took this as a
basis for calculating the quarterly result. Losses were caused by the
earthquake in Japan at the turn of the year in an amount of EUR 25 million,
wildfires in Chile costing EUR 16 million and the collision between two
aircraft at a Japanese airport amounting to EUR 12 million. At the time of
the quarterly closing, it was not yet possible to put a number on what will
probably be the largest individual loss resulting from the bridge collapse
in Baltimore harbour. In total, however, the large loss expenditures
incurred in the first quarter, including the Baltimore bridge collapse, will
remain comfortably within the booked large loss budget.
The reinsurance service result increased by 61% to EUR 509 million (EUR 315
million). The combined ratio in property and casualty reinsurance improved
to 88.0% (92.3%) and was thus within the expected level of less than 89%.
The reinsurance finance result (net) excluding exchange rate effects
amounted to EUR -228 million (EUR -129 million).
Investment income in property and casualty reinsurance surged by 41% to EUR
421 million (EUR 298 million).
The operating profit (EBIT) consequently increased by 35% to EUR 629 million
(EUR 466 million).
Result in life and health reinsurance in line with expectations
In the first quarter Hannover Re generated a result in line with
expectations in life and health reinsurance. This was attributable above all
to sustained strong demand in financial solutions business and for solutions
designed to protect against longevity risks. Traditional reinsurance of
mortality and morbidity risks also saw business develop favourably.
The new business CSM (net) amounted to EUR 97 million (EUR 84 million). In
addition, contract renewals and amendments in the in-force portfolio
resulted in a significant increase in the contractual service margin (net)
to EUR 6.1 billion. The new business LC (net) amounted to EUR 7.9 million
(EUR 6.7 million).
Reinsurance revenue (gross) retreated by a modest 2.1% in the first quarter
to EUR 1.9 billion (EUR 2.0 billion). A decline of 1.7% would have been
booked at unchanged exchange rates.
The reinsurance service result (net) contracted as expected to EUR 211
million (EUR 253 million) and thus reached a satisfactory level for
achieving the year-end target of more than EUR 850 million. Adjusted for
exchange rate effects, the reinsurance finance result (net) came to EUR -33
million (EUR -38 million).
Investment income in life and health reinsurance totalled EUR 76 million
(EUR 83 million).
The operating result (EBIT) in life and health reinsurance reached EUR 181
million (EUR 253 million).
Investment income: Return on investment of 3.3% generated
"Our investments delivered a pleasing performance in the first three months,
despite ongoing volatility associated with numerous geopolitical and
economic headwinds," said Clemens Jungsthöfel, Chief Financial Officer of
Hannover Re. "Furthermore, our continued prudent positioning positively
impacted our investments."
The volume of investments again surpassed the previous year's level to reach
EUR 61.4 billion at the end of March (31 December 2023: EUR 60.1 billion).
The portfolio was favourably affected by a pleasingly strong operating cash
flow, dividend income received from participating interests as well as by
currency effects. Interest rate increases made themselves felt as an
opposing factor.
Investment income was substantially higher overall than the corresponding
figure for the previous year, coming in at EUR 498 million (EUR 381
million). This was driven primarily by strong earnings from the fixed-income
portfolio, which clearly offset the somewhat lower income from investments
recognised at fair value through profit or loss. The return on investment
reached 3.3%, beating the full-year target of at least 2.8%.
Guidance for 2024 confirmed
Hannover Re expects reinsurance revenue in total business to grow by more
than 5% in 2024 based on constant exchange rates. The currency-adjusted
growth in reinsurance revenue will be disproportionately stronger in
property and casualty reinsurance than in life and health reinsurance.
Group net income should reach at least EUR 2.1 billion for the full year.
This assumes that there are no unforeseen distortions on capital markets and
that large loss expenditure remains within the budgeted expectation of EUR
1.825 billion. Business in the Asia-Pacific region and North America as well
as in some specialty lines traditionally comes up for renewal on 1 April.
Hannover Re obtained slightly improved risk-adjusted prices and conditions
here overall. The renewed volume grew by 7.1%. The inflation- and
risk-adjusted price increase for the renewed business amounted to 1.5%.
"The 1 April renewals provided further confirmation that the market
environment has stabilised on a high level after the substantial
improvements in prices and conditions recorded in prior years," said
Henchoz. "We are optimistic that this level can be sustained in the coming
renewals as well. It remains the case that our clients value our quality as
a strong partner and our focus on our core expertise, namely reinsurance."
In view of the improved market environment, Hannover Re anticipates a
combined ratio under 89% for property and casualty reinsurance in 2024. Life
and health reinsurance should generate a reinsurance service result of more
than EUR 850 million in the current financial year.
The asset portfolios should continue to show moderate growth - assuming
stable exchange rates and interest rate levels. The return on investment
from assets under own management should be at least 2.8%.
The ordinary dividend is expected to increase year-on-year over the
2024-2026 strategy cycle. The ordinary dividend will be supplemented by a
special dividend provided the capitalisation exceeds the capital required
for future growth and the profit target is achieved.
Hannover Re is one of the world's leading reinsurers. It transacts all lines
of property & casualty and life & health reinsurance and is present
worldwide with more than 3,500 staff. German business of the Hannover Re
Group is written by the subsidiary E+S Rück. Established in 1966, Hannover
Re is recognised as a reliable partner for innovative risk solutions,
exceptional customer intimacy and financial soundness. The rating agencies
most relevant to the insurance industry have awarded both Hannover Re and
E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very
Strong" and A.M. Best A+ "Superior".
Please note the disclaimer: https://www.hannover-re.com/535917
Contact
External Communications:
Oliver Suess
Tel. +49 511 5604-1502
oliver.suess@hannover-re.com
Verena Lilge
Tel. +49 511 5604-0101
verena.lilge@hannover-re.com
Investor Relations:
Karl Steinle
Tel. +49 511 5604-1500
karl.steinle@hannover-re.com
Axel Bock
Tel. +49 511 5604-1736
axel.bock@hannover-re.com
www.hannover-re.com
---------------------------------------------------------------------------
14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1901651 14.05.2024 CET/CEST
EQS-News: Hannover Rück SE / Key word(s): Quarter Results
Hannover Re increases quarterly profit to EUR 558 million
14.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Hannover Re increases quarterly profit to EUR 558 million
* Group net income up by 15% to EUR 558 million
* Reinsurance revenue rises to EUR 6.7 billion
* Large losses in property and casualty reinsurance comfortably within
budgeted and booked expectation
* Result in life and health reinsurance in line with expectations
* Return on investment ahead of target at 3.3%
* Return on equity reaches 21.3%
* Guidance for 2024 confirmed
Hannover, 14 May 2024: Hannover Re increased Group net income by 15% in the
first quarter to EUR 558 million and confirms its guidance for the full 2024
financial year.
"We can look back on a rather benign quarter as regards large losses. We had
a good start into the year, putting us on track to achieve our full-year
profit target," said Jean-Jacques Henchoz, Chief Executive Officer of
Hannover Re. "At the same time, with the recent treaty renewals we have put
in place a solid foundation for further profitable growth given the
continued demand for high-quality and reliable risk protection in what is a
challenging landscape."
Group net income up by 15% to EUR 558 million
Reinsurance revenue (gross) grew by 1.6% to EUR 6.7 billion (previous year:
EUR 6.6 billion). Growth of 3.0% would have been booked at unchanged
exchange rates.
The reinsurance service result, reflecting the profitability of underwriting
activity less business ceded (primarily retrocessions and insurance-linked
securities), increased by 27% to EUR 720 million (EUR 568 million). Adjusted
for exchange rate effects, the reinsurance finance result - which includes
in particular the interest accretion on technical reserves discounted in
previous years - amounted to EUR -261 million (EUR -167 million).
The operating profit (EBIT) climbed by 13% to EUR 811 million (EUR 720
million). Group net income improved by 15% to EUR 558 million (EUR 484
million). Earnings per share thus came in at EUR 4.63 (EUR 4.02).
Return on equity reaches 21.3%; capital adequacy ratio under Solvency II
remains robust
The shareholders' equity of Hannover Re amounted to EUR 10.9 billion as at
31 March 2024 (31 December 2023: EUR 10.1 billion). The annualised return on
equity reached 21.3% (previous year: 20.8%). The book value per share stood
at EUR 89.97 (31 December 2023: EUR 83.97).
The contractual service margin (net) rose sharply by 15% to EUR 8.9 billion
(31 December 2023: EUR 7.7 billion). The increase reflects above all the
business growth in the first quarter and the continued favourable earnings
prospects. The risk adjustment for non-financial risk similarly increased
accordingly by 4.9% to EUR 3.9 billion (31 December 2023: EUR 3.7 billion).
The capital adequacy ratio under Solvency II, which measures the
risk-carrying capacity of Hannover Re, amounted to 266.8% at the end of
March and was thus still clearly in excess of the long-term target of more
than 200%.
Large losses in property and casualty reinsurance within the budgeted
expectation
Expenditures for catastrophe losses in property and casualty reinsurance
came in below expectations in the first quarter and were thus comfortably
within the envisaged and reserved budget. At the same time, the main renewal
season in property and casualty reinsurance as at 1 January 2024 brought
further improvements in risk-adjusted prices and conditions for Hannover Re.
Reinsurance revenue (gross) in property and casualty reinsurance rose by
3.1% to EUR 4.7 billion (EUR 4.6 billion). Growth of 5.0% would have been
recorded at unchanged exchange rates.
In accordance with its usual practice, Hannover Re booked the entire large
loss budget for the first quarter of EUR 378 million and took this as a
basis for calculating the quarterly result. Losses were caused by the
earthquake in Japan at the turn of the year in an amount of EUR 25 million,
wildfires in Chile costing EUR 16 million and the collision between two
aircraft at a Japanese airport amounting to EUR 12 million. At the time of
the quarterly closing, it was not yet possible to put a number on what will
probably be the largest individual loss resulting from the bridge collapse
in Baltimore harbour. In total, however, the large loss expenditures
incurred in the first quarter, including the Baltimore bridge collapse, will
remain comfortably within the booked large loss budget.
The reinsurance service result increased by 61% to EUR 509 million (EUR 315
million). The combined ratio in property and casualty reinsurance improved
to 88.0% (92.3%) and was thus within the expected level of less than 89%.
The reinsurance finance result (net) excluding exchange rate effects
amounted to EUR -228 million (EUR -129 million).
Investment income in property and casualty reinsurance surged by 41% to EUR
421 million (EUR 298 million).
The operating profit (EBIT) consequently increased by 35% to EUR 629 million
(EUR 466 million).
Result in life and health reinsurance in line with expectations
In the first quarter Hannover Re generated a result in line with
expectations in life and health reinsurance. This was attributable above all
to sustained strong demand in financial solutions business and for solutions
designed to protect against longevity risks. Traditional reinsurance of
mortality and morbidity risks also saw business develop favourably.
The new business CSM (net) amounted to EUR 97 million (EUR 84 million). In
addition, contract renewals and amendments in the in-force portfolio
resulted in a significant increase in the contractual service margin (net)
to EUR 6.1 billion. The new business LC (net) amounted to EUR 7.9 million
(EUR 6.7 million).
Reinsurance revenue (gross) retreated by a modest 2.1% in the first quarter
to EUR 1.9 billion (EUR 2.0 billion). A decline of 1.7% would have been
booked at unchanged exchange rates.
The reinsurance service result (net) contracted as expected to EUR 211
million (EUR 253 million) and thus reached a satisfactory level for
achieving the year-end target of more than EUR 850 million. Adjusted for
exchange rate effects, the reinsurance finance result (net) came to EUR -33
million (EUR -38 million).
Investment income in life and health reinsurance totalled EUR 76 million
(EUR 83 million).
The operating result (EBIT) in life and health reinsurance reached EUR 181
million (EUR 253 million).
Investment income: Return on investment of 3.3% generated
"Our investments delivered a pleasing performance in the first three months,
despite ongoing volatility associated with numerous geopolitical and
economic headwinds," said Clemens Jungsthöfel, Chief Financial Officer of
Hannover Re. "Furthermore, our continued prudent positioning positively
impacted our investments."
The volume of investments again surpassed the previous year's level to reach
EUR 61.4 billion at the end of March (31 December 2023: EUR 60.1 billion).
The portfolio was favourably affected by a pleasingly strong operating cash
flow, dividend income received from participating interests as well as by
currency effects. Interest rate increases made themselves felt as an
opposing factor.
Investment income was substantially higher overall than the corresponding
figure for the previous year, coming in at EUR 498 million (EUR 381
million). This was driven primarily by strong earnings from the fixed-income
portfolio, which clearly offset the somewhat lower income from investments
recognised at fair value through profit or loss. The return on investment
reached 3.3%, beating the full-year target of at least 2.8%.
Guidance for 2024 confirmed
Hannover Re expects reinsurance revenue in total business to grow by more
than 5% in 2024 based on constant exchange rates. The currency-adjusted
growth in reinsurance revenue will be disproportionately stronger in
property and casualty reinsurance than in life and health reinsurance.
Group net income should reach at least EUR 2.1 billion for the full year.
This assumes that there are no unforeseen distortions on capital markets and
that large loss expenditure remains within the budgeted expectation of EUR
1.825 billion. Business in the Asia-Pacific region and North America as well
as in some specialty lines traditionally comes up for renewal on 1 April.
Hannover Re obtained slightly improved risk-adjusted prices and conditions
here overall. The renewed volume grew by 7.1%. The inflation- and
risk-adjusted price increase for the renewed business amounted to 1.5%.
"The 1 April renewals provided further confirmation that the market
environment has stabilised on a high level after the substantial
improvements in prices and conditions recorded in prior years," said
Henchoz. "We are optimistic that this level can be sustained in the coming
renewals as well. It remains the case that our clients value our quality as
a strong partner and our focus on our core expertise, namely reinsurance."
In view of the improved market environment, Hannover Re anticipates a
combined ratio under 89% for property and casualty reinsurance in 2024. Life
and health reinsurance should generate a reinsurance service result of more
than EUR 850 million in the current financial year.
The asset portfolios should continue to show moderate growth - assuming
stable exchange rates and interest rate levels. The return on investment
from assets under own management should be at least 2.8%.
The ordinary dividend is expected to increase year-on-year over the
2024-2026 strategy cycle. The ordinary dividend will be supplemented by a
special dividend provided the capitalisation exceeds the capital required
for future growth and the profit target is achieved.
Hannover Re is one of the world's leading reinsurers. It transacts all lines
of property & casualty and life & health reinsurance and is present
worldwide with more than 3,500 staff. German business of the Hannover Re
Group is written by the subsidiary E+S Rück. Established in 1966, Hannover
Re is recognised as a reliable partner for innovative risk solutions,
exceptional customer intimacy and financial soundness. The rating agencies
most relevant to the insurance industry have awarded both Hannover Re and
E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very
Strong" and A.M. Best A+ "Superior".
Please note the disclaimer: https://www.hannover-re.com/535917
2023 2024
in EUR million Q1 YTD Q1 YTD +/-
previous
year
Hannover Re Group
Results
Reinsurance revenue 6,570 6,570 6,673 6,673 +1.6 %
(gross)
Reinsurance service 568 568 720 720 +26.7 %
result (net)
Reinsurance finance -167 -167 -261 -261 +56.5 %
result (net) ¹
Net income from 381 381 498 498 +30.9 %
investments
Operating profit / loss 720 720 811 811 +12.5 %
(EBIT)
Group net income 484 484 558 558 +15.2 %
Balance sheet
Policyholders' surplus 14,152 14,941 +4.9 %
Equity attributable to 9,531 10,850 +7.1 %
shareholders of Hannover
Rück SE
Non-controlling 893 860 -3.6 %
interests
Hybrid capital 3,727 3,231 +0.0 %
Contractual service 7,432 8,868 +15.2 %
margin
Risk-Adjustment 3,825 3,912 +4.9 %
Investments 56,997 61,384 +2.1 %
Total assets 64,669 68,099 +2.4 %
Ratios
Combined ratio (property 92.3% 92.3% 88.0% 88.0%
and casualty
reinsurance) ²
EBIT margin ³ 12.3% 12.3% 13.5% 13.5%
Return on investment 2.7% 2.7% 3.3% 3.3%
Return on equity 20.8% 20.8% 21.3% 21.3%
Share
Earnings per share 4.02 4.02 4.63 4.63 +15.2 %
(basic and diluted) in
EUR
Book value per share in 79.03 79.03 89.97 89.97 +13.8 %
EUR
Share price at the end 180.35 180.35 253.70 253.70 +40.7 %
of the period in EUR
Market capitalisation at 21,750 21,750 30,595 30,595 +40.7 %
the end of the period
Property & Casualty
reinsurance
Reinsurance revenue 4,600 4,600 4,743 4,743 +3.1 %
(gross)
Reinsurance revenue 4,101 4,101 4,240 4,240 +3.4 %
(net)
Reinsurance service 315 315 509 509 +61.6 %
result (net)
Reinsurance finance -129 -129 -228 -228 +76.5 %
result (net) ¹
Net income from 298 298 421 421 +41.4 %
investments
Operating profit / loss 466 466 629 629 +34.8 %
(EBIT)
EBIT margin ³ 11.4% 11.4% 14.8% 14.8%
Combined ratio ² 92.3% 92.3% 88.0% 88.0%
New business CSM incl. 1,429 1,429 1,431 1,431 +0.1 %
Loss Component
Life & Health
reinsurance
Reinsurance revenue 1,970 1,970 1,929 1,929 -2.1 %
(gross)
Reinsurance revenue 1,769 1,769 1,762 1,762 -0.4 %
(net)
Reinsurance service 253 253 211 211 -16.8 %
result (net)
Reinsurance finance -38 -38 -33 -33 -12.0 %
result (net) ¹
Net income from 83 83 76 76 -7.6 %
investments
Operating profit / loss 253 253 181 181 -28.5 %
(EBIT)
EBIT margin ³ 14.3% 14.3% 10.3% 10.3%
New business CSM incl. 77 77 89 89 +15.1 %
Loss Component
¹ Excluding exchange
rate effects
² Reinsurance service
result / reinsurance
revenue (net)
³ EBIT / reinsurance
revenue (net)
Contact
External Communications:
Oliver Suess
Tel. +49 511 5604-1502
oliver.suess@hannover-re.com
Verena Lilge
Tel. +49 511 5604-0101
verena.lilge@hannover-re.com
Investor Relations:
Karl Steinle
Tel. +49 511 5604-1500
karl.steinle@hannover-re.com
Axel Bock
Tel. +49 511 5604-1736
axel.bock@hannover-re.com
www.hannover-re.com
---------------------------------------------------------------------------
14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: Hannover Rück SE
Karl-Wiechert-Allee 50
30625 Hannover
Germany
Phone: +49-(0)511-5604-1500
Fax: +49-(0)511-5604-1648
Internet: www.hannover-re.com
ISIN: DE0008402215
WKN: 840 221
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard),
Hanover; Regulated Unofficial Market in Berlin,
Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Exchange; Luxembourg Stock Exchange
EQS News ID: 1901651
End of News EQS News Service
---------------------------------------------------------------------------
1901651 14.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
HANNOVER RUECK SE NA O.N. | 840221 | Xetra | 223,000 | 28.05.24 17:35:01 | -3,800 | -1,68% | 0,000 | 0,000 | 226,600 | 226,800 |
