Given the live and dynamic situation in the Middle East, Althoff, during a media call following the release of the firm’s 2025 results, emphasised that it’s still far too early for Hannover Re to provide any estimate about potential financial impact from the war.

“From a coverage point of view, most of the traditional P&C lines of business do exclude coverage for war. On the other hand, we are expecting losses coming out of the specialty reinsurance portfolio where explicit coverage for war-related perils is given,” he explained.

On the call, Althoff was questioned further on this and specifically what lines of specialty business might be affected.

“When it comes to the heads of cover that are potentially exposed to war perils on the specialty side, it is marine and aviation, war coverage, both for hull and cargo. You have exposure on the property side via political violence and war land policies. And depending a little bit on how the war is going through the potential economic impact of the war, you can also think about potential involvement of classes like trade credit or political risk when you think about project financing, for example,” said Althoff.

These covers, he continued, are the ones Hannover Re is observing very closely, although to date, there’s “nothing major when it comes to actual losses to report”.

The April 1st reinsurance renewal season is fast-approaching, and while Althoff has observed an impact on firm order terms from the war situation, he underlined that “it’s much too early to say, with the lack of any noticeable losses reported today, but I would not expect a significant impact.”

Yesterday, we reported on commentary from leaders at re/insurance broker Aon around the war in the Middle East, as the firm highlighted that numerous insurance lines are being impacted.

The post Middle East war exposure likely in specialty lines, but nothing major in actual losses yet, says Hannover Re appeared first on ReinsuranceNe.ws.

Gross revenue growth would have been even stronger at 4.7% at constant exchange rates, while the net reinsurance service result rose by a significant 15.8% to €3.5 billion in 2025.

At the same time, the net reinsurance finance result, which is structurally negative and reflects the interest accretion on technical reserves discounted in prior years, totalled -€1.4 billion in 2025, compared with -€1.1 billion in 2024. The currency result improved to €243.2 million from -€108 million, as operating profit increased to €3.5 billion from €3.3 billion a year earlier.

“Given the high profitability of its business, underutilisation of the large loss budget and a positive currency result, Hannover Re was able to deliver increased net income while also significantly boosting its earnings power for future years. To this end, Hannover Re further expanded the resilience of its loss reserves and actively realised hidden losses in its investment portfolio,” explains the firm.

Hannover Re’s shareholders’ equity amounted to €12.9 billion as at the end of 2025, up from €11.8 billion at the end of 2024, as the return on equity improved to 21.4%, which is well above the strategic target of more than 14%.

“Through systematic realisation of hidden losses in our investments and by further expanding our resilience in the loss reserves, we have continued to significantly reinforce our financial soundness. In an increasingly challenging market landscape, Hannover Re is thus equipped with the strongest balance sheet in its history. Our commitment to supporting our clients with stability and reliability is further underscored by our extremely robust solvency ratio,” said Christian Hermelingmeier, Chief Financial Officer of Hannover Re.

The capital adequacy ratio under Solvency II stood at 256% at the end of December 2025, compared with 261% a year earlier.

Within the P&C reinsurance arm, net expenditures for large losses in the 2025 financial year totalled €1.725 billion, which while up on the prior year’s €1.629 billion, is below the full-year budgeted expectation of €2.1 billion. The largest net cost for Hannover Re were the California Wildfires at €595 million, followed by Hurricane Melissa at €329 million, the earthquake in Myanmar at €118 million, and €102 million from the severe hailstorms that impacted Australia in November.

However, an expected increase in reserve resiliency to roughly €3.2 billion more than offset the benign large-loss experience, says Hannover Re.

The P&C net new business CSM increased by a considerable 12.1% to €3.1 billion in 2025, driven by the favourable outcome of the treaty renewals throughout 2025 and a profitability-centred underwriting approach by the reinsurer. P&C reinsurance revenue, gross, increased by 0.6% to €18.8 billion in 2025, but would have been 3.8% growth at constant exchange rates.

The P&C net reinsurance service result increased to €2.6 billion in 2025 from €2.1 billion in 2024, as the combined ratio strengthened to 84% from 86.6%. Operating profit in the P&C business hit €2.6 billion in 2025, an increase on the prior year’s €2.4 billion.

Hannover Re highlights sustained demand across its L&H reinsurance business despite intense competition, as the new CSM generation increased to €766.4 million from €624.1 million. However, the net contractual service margin fell to €6.3 billion from €6.5 billion, so failed to reach the growth target of 2% for the year.

L&H gross reinsurance revenue rose to €8 billion in 2025 from €7.7 billion in 2024, and growth would have been 6.8% at unchanged exchange rates. The segment’s net reinsurance service result rose to €903 million from €882.9 million, which is above the target of €875 million for the year. The L&H reinsurance operating result declined by 5.1% year-on-year to €886.1 million.

On the asset side of the balance sheet, investment income totalled €1.7 billion in 2025, down on the prior year’s €2 billion, as the return on investment reached 2.5%, which is below the guided target return of around 2.9%, driven mostly by the strategically motivated active realisation of hidden losses in the fixed-income portfolio of €593 million to boost future earnings.

Clemens Jungsthöfel, Chief Executive Officer of Hannover Re, commented: “Hannover Re stands for reliability and financial strength. We achieved our increased earnings guidance in 2025 and at the same time made the most of another successful financial year to take strategic actions aimed at significantly reinforcing our future profitability. With a further substantial increase in the proposed dividend and the higher payout ratio, our shareholders are also participating more than ever in Hannover Re’s success.”

Today, Hannover Re has also confirmed its guidance for the 2026 financial year, including group net income of €2.7 billion, P&C reinsurance revenue growth of in the mid-single-digit percentage range in traditional business with a combined ratio of below 87%, and a reinsurance service result in L&H of roughly €925 million. The return on investment in 2026 is excepted to reach around 3.5%.

Hannover Re adds that the achievement of the earnings guidance for 2026 is based on the premise that large loss expenditure does not significantly exceed the budgeted level of €2.3 billion, and assumes that there are no unforeseen distortions on capital markets.

“With our solution-driven and pragmatic ‘somewhat different’ approach, we continue to be a strong and reliable partner for our client. Thanks to our proven strengths and robust balance sheet, and with the additional steps taken to increase our resilience, we are optimally placed to deliver attractive earnings growth even in a challenging market – in 2026 and beyond,” said Jungsthöfel.

The post Hannover Re’s net income rises to €2.6bn in 2025 as increased reserve resiliency offsets benign loss experience appeared first on ReinsuranceNe.ws.

Most recently, Patel served as the Chief Risk Officer and Head of Compliance and Risk at Hannover ReTakaful B.S.C., positions he has held since April 2016.

He brings over two decades of experience across finance, risk, compliance, and governance, with 17 of those years spent at Hannover Re, after joining the Bahrain branch in March 2009 as Finance Manager.

Additionally, Patel also served as the Senior Manager for Finance and Compliance of Hannover Re for more than 13 years.

In the past, he has held roles including Associate at Hamilton Consulting, and as Financial Director at Repo Wild 1021 CC.

Patel started his career as a Trainee at PricewaterhouseCoopers in 2002.

Hannover Re commented on the appointment, “Congratulations, Ridwaan – we wish you every success in this exciting new chapter.”

The post Hannover Re adds Ridwaan Patel as CFO, Hannover ReTakaful & Bahrain branch appeared first on ReinsuranceNe.ws.

The reinsurer noted that the growth was supported by its strong market position and long-standing, partnership-driven client relationships.

According to Hannover Re, treaties with a premium volume of €10.196 million were up for renewal on January 1. This corresponds to 61% of business in traditional property and casualty reinsurance (excluding facultative reinsurance, ILS business and structured reinsurance).

The firm renewed treaties with a volume of €9.369 million, while treaties worth €827 million were cancelled.

“Together with €1.165 million from new and restructured treaties and from changes in prices and treaty shares, the total renewed premium volume grew by 3.3% to €10.535 million,” Hannover Re explained.

The reinsurer added that with the quality of the renewed business still good overall, an average risk-adjusted price decline of 3.2% was recorded.

Sven Althoff, a member of Hannover Re’s Executive Board with responsibility for property and casualty reinsurance, commented, “While treaty terms and conditions remained largely stable, price declines were more pronounced than anticipated – especially in highly competitive lines and for contracts with a moderate loss experience.

“The price level is nevertheless above the multi-year average and remains commensurate with the risks. We therefore continued to profitably grow our portfolio by strengthening existing client relationships and developing new ones.

“Proportional programmes benefited from the growth of our clients’ underlying business. We also further improved our own retrocession protection.”

Looking at premium volume by region, Hannover Re reported that the Americas grew by 6.5% at January 1, with more than half of the business due to be renewed over the remainder of 2026.

“In the United States, the volume in property business was stable. Even though prices declined, they were still on a risk-adequate level. US casualty insurance offered selective opportunities for growth against a backdrop of generally stable prices. In Canada, the stable picture coming out of the renewals reflected a continued strong competitive position,” Hannover Re added.

Meanwhile, premium volume in the Europe, Middle East and Africa region was broadly unchanged year on year at January 1, rising by 0.4%.

The firm stated that it maintained a good level of profitability despite intense competition, particularly in business with natural catastrophe covers.

“The region offered a wide range of growth opportunities, although these were partially curtailed as individual clients – especially in Germany – carried higher retentions. Renewals were predominantly price-driven, with treaty structures remaining largely unchanged,” Hannover Re said.

At the same time, premium volume in the Asia-Pacific region increased by a modest 1.9%. The reinsurer noted initial signs of a broadening in terms and conditions in a challenging market landscape characterised by intense competition.

Hannover Re suggested that business written at unexpectedly low prices or with poorer terms and conditions were deliberately not renewed in some cases.

Despite this, the reinsurer said it was able to keep its profitable portfolio broadly stable overall. Parts of Southeast Asia saw particularly strong growth in demand for natural catastrophe cover in markets that had been hard hit by losses.

Turning to Hannover Re’s specialty lines segment, which includes facultative reinsurance, credit, surety and political risk, aviation and marine, agricultural risks, as well as cyber and digital business, premium volume grew by 5.8% at 1 January, again, despite a highly competitive market environment.

Hannover Re said its credit, surety and political risks business delivered double-digit growth amid an attractive market backdrop, while aviation and marine volumes declined as it pursued disciplined underwriting, with rate increases in non-proportional aviation but greater-than-expected pressure on marine pricing and terms.

Concurrently, agricultural lines continued to expand in core markets such as Brazil and the US with stable rate quality, and the company maintained market share and generated new business in cyber and digital.

In facultative reinsurance, oversupply and higher client retentions drove price declines, particularly in property, although Hannover Re renewed most of its portfolio at risk-adequate rates and added new treaties.

In the natural catastrophe business, abundant capacity led to risk-adjusted rate reductions of 10% to 20%, though pricing remained adequate overall, while structured reinsurance demand stayed strong despite competition, even as lower cessions under large contracts are expected to trim premium volumes.

With all this in mind, Clemens Jungsthöfel, Chief Executive Officer at Hannover Re, commented, “We booked profitable growth in a highly competitive market environment in the renewals at the start of the year.

“Our strong market position, long-standing and partnership-focused client relationships, as well as cost advantages, were crucial factors. We were able to partially offset more significant price reductions in certain lines within our overall portfolio thanks to our broad positioning.

“In areas where business is profitable, we were able to add to our market shares. The quality of our written portfolio remains on a good level overall.”

Alongside its renewal news, Hannover Re has also released preliminary key figures for the full 2025 financial year.

Based on unaudited financials, the reinsurer said it has generated reinsurance revenue of €26.8 billion in 2025, up from €26.4 billion in 2024.

The operating profit (EBIT) in the period is said to have amounted to €3.5 billion. Property and casualty reinsurance contributed €2.6 billion to the operating result, while life and health reinsurance accounted for a share of EUR 0.9 billion.

“The pleasingly strong underwriting result in property and casualty reinsurance made it possible also in the fourth quarter to further increase the resilience in the loss reserves and at the same time to realise hidden losses in the investment portfolio,” Hannover Re continued.

Finally, group net income rose to €2.64 billion from €2.33 billion, enabling Hannover Re to meet the earnings target it had raised in Q4 to around €2.6 billion.

Clemens Jungsthöfel concluded, “With the January renewals behind us and following a successful 2025, we are looking ahead with confidence. Even in the face of increasing competition, our careful planning and strong market position consistently open up additional profitable opportunities for growth.

“Thanks to our conservative reserving in property and casualty reinsurance and the active realisation of losses in our investments, we have laid the foundation for achieving further sustained earnings growth over the coming years.”

The post Hannover Re reports 3.3% rise in Jan 1 P&C reinsurance premiums appeared first on ReinsuranceNe.ws.

Cardinez will take on the role in addition to her existing mandate as Chief Executive Officer of Hannover Re Bermuda.

She brings more than 20 years of industry experience, with strong business development acumen and a proven track record across China, Hong Kong, Australia, Europe and South Africa.

Cardinez joined Hannover Re in 2008 and has served in her current role as CEO of Hannover Re Bermuda since 2020.

Prior to joining Hannover Re, she spent four years at Scottish Re, most recently as a Pricing Actuary.

Brona Magee and Claude Chèvre, members of the Executive Board, said, “Financial Solutions remains a key focus for our L&H business, and we see plenty of opportunities for continued growth across the globe. We are delighted that Chantal has agreed to take on this additional mandate, and we look forward to all of our L&H teams benefitting from her proven capability and expertise.”

The post Hannover Re expands Cardinez’s remit with Global Head of Financial Solutions role appeared first on ReinsuranceNe.ws.

Maheshwari has been part of Hannover Re since 2017, when he joined the India Branch as Finance Manager.

Prior to his current appointment, he held the position of Financial Accountant at Hannover Life Re of Australasia.

He has over 20 years of professional experience spanning accounting, taxation, and regulatory compliance.

A Chartered Accountant, Maheshwari is also a fellow member of the Institute of Chartered Accountants of India. As Chief Financial Officer, he will be responsible for leading the financial operations and governance of the India Branch.

The post Hannover Re appoints Prateek Maheshwari as CFO, India Branch appeared first on ReinsuranceNe.ws.

Maheshwari transitioned to the Indian branch from Hannover Life Re of Australasia, in Sydney, where he most recently served as Management Accountant for nearly four years.

This appointment marks a homecoming of sorts for the executive, who is no stranger to the Indian re/insurance landscape. Before his stint in Sydney, he served as a Finance Manager for Hannover Rusk SE, India Branch.

Before this, he served as a Finance Manager for Munich Re India Services, and was a Senior Manager Tax for Thingna & Contractor prior to that.

Maheshwari’s appointment is one of Hannover Re’s most recent leadership updates. This includes the recent naming of Kun Huang as Chief Executive Officer of the company’s Shanghai Branch.

The post Prateek Maheshwari named CFO of Hannover Re India appeared first on ReinsuranceNe.ws.

Huang joins Hannover Re from Chaucer, where he spent the past six years, most recently serving as Chief Liaison Officer.

Prior to that, he served as Managing Director at China Re Underwriting Agency Ltd, as well as Director of the Risk Management Department at China Re.

In a recent LinkedIn post, Hannover Re said, “Kun brings over 20 years of experience in the reinsurance and insurance industry. He holds a Master of Science degree in Finance from Hunan University and is widely respected for his strategic insight, collaborative leadership, and deep industry expertise.

“Congratulations, Kun – we wish you every success in this exciting new chapter.”

The appointment marks a significant step in Hannover Re’s ongoing growth strategy in Asia, following the recent appointment of Yan Sun as Head of Life & Health, Greater China, in November 2025.

The post Kun Huang named CEO of Hannover Re’s Shanghai branch appeared first on ReinsuranceNe.ws.

Hannover Life Re of Australasia is a specialist provider of insurance and reinsurance solutions for superannuation funds, distribution partners, employers, and other insurers, helping them protect and grow their businesses while offering value, service, and security to employees, clients, and members.

Walters succeeds Gerd Obertopp, who retired at the end of 2025 after nearly four decades of service across multiple continents and business lines.

Walters joined Hannover Re in 2012 and has since held a number of senior management and technical roles, including Senior Pricing Actuary in Ireland and Head of Group Product & Pricing in Australia.

Most recently, he served as General Manager, Group Business, with overall responsibility for business development and client servicing across Hannover Re’s Group portfolio.

Prior to joining Hannover Re, Walters spent more than six years working as an actuary at Willis.

The post John Walters named CEO & Managing Director of Hannover Life Re of Australasia appeared first on ReinsuranceNe.ws.

This appointment is an update of the announcement on September 3, 2025, of Clint Thompson, who was originally set to succeed Pete Schaefer.

For personal reasons, Thompson has elected to transition to a global role as Principal Lead, Life & Health Portfolio Steering and Business Performance reporting to Brona Magee, Hannover Re’s Life & Health Reinsurance Executive Board Member.

The transition comes as Schaefer prepares to retire on December 31, 2025. The executive’s retirement concludes a 27-year career with the firm.

Joining as Chief Actuary in 1999 and ascending to President and CEO in 2001, Schaefer is credited with guiding Hannover Re US through nearly three decades of transformative growth.

Norman brings nearly 20 years of specialised industry to her new role, encompassing a wide range of areas, including actuarial modelling, economic capital, valuation, financial reporting, pricing, and product development.

She joined Hannover Re US in 2006 and has since successfully led actuarial staffing and development for the reinsurer in the US.

Most recently, Norman held the position of Executive Vice President and Head of Annuity Solutions and has achieved notable success in driving growth in this part of Hannover Re US.

The post Tiffany Norman to succeed Pete Schaefer as President and CEO of Hannover Re US appeared first on ReinsuranceNe.ws.