German re-insurer Hannover Re (HVRRY.PK, HVRRF.PK) reported a decrease in profit and reinsurance revenue for its third quarter on Monday. However, the company posted an increase in nine-month profit compared to the previous year and subsequently raised its fiscal 2025 outlook. Additionally, Hannover Re issued profit guidance for fiscal 2026, expecting continued growth.
Chief Executive Officer Clemens Jungsthöfel commented, “We generated a very good Group profit in the first nine months. Both business groups as well as the investments and our lean operating model contributed to this. In view of this favourable business performance, we are raising our earnings guidance for the current year.”
For fiscal 2025, Hannover Re now anticipates Group net income of around 2.6 billion euros, up from the earlier estimate of approximately 2.4 billion euros. The company also projects that gross reinsurance revenue in property and casualty reinsurance will grow by more than 7 percent.
Looking ahead to fiscal 2026, the firm expects Group net income to reach at least 2.7 billion euros. The CEO added, “In a landscape still clouded by uncertainties, demand for reliable and high-quality reinsurance protection remains strong, which is why we expect further profitable growth side-by-side with our clients wherever conditions are commensurate with the risks.”
In the third quarter, Hannover Re’s Group net income declined to 650.8 million euros from 663.3 million euros a year earlier. Earnings per share stood at 5.40 euros, slightly down from 5.50 euros during the same period last year.
Operating profit also fell to 738.3 million euros from 791.0 million euros last year. Correspondingly, the EBIT margin decreased to 13.2 percent from 13.5 percent year-over-year. Gross reinsurance revenue dropped to 6.37 billion euros from 6.78 billion euros reported in the previous year’s third quarter.
Despite the third-quarter dip, the nine-month Group net income increased by 7.7 percent year-over-year to reach 1.96 billion euros, while gross reinsurance revenue remained steady at 19.70 billion euros.
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https://www.nasdaq.com/articles/hannover-re-q3-results-down-lifts-fy25-outlook-sees-growth-fy26-profit
