Berenberg Trims Hannover Re Forecasts, Price Target After Q2 Results

Berenberg has trimmed its forecasts and price target for Hannover Re after the company's Q2 results. Hannover Re is a global reinsurance leader, with gross revenues primarily from non-life reinsurance (70.8%) and life and health reinsurance (29.2%). The company's revenues are geographically distributed across Germany, the UK, Europe, North America, Asia, Australia, Africa, and others.

Hannover Re, a leading global reinsurance company, has seen its stock target price and forecast adjusted by Berenberg after the company's second-quarter (Q2) results were released. The investment bank, in a research note published by Michael Huttner, has advised its clients to buy the stock, with the target price revised to EUR 312 from EUR 314 [1].

The Q2 results from Hannover Re showed strong financial performance, with group net income climbing to EUR 833.5 million, up from EUR 603.0 million in the same period last year. Earnings per share increased to EUR 6.91, compared to EUR 5.00 a year ago. The operating profit (EBIT) grew to EUR 1.07 billion, up from EUR 846.7 million. Gross reinsurance revenue rose to EUR 6.37 billion, an increase of EUR 1.3 billion over the previous year [2].

The company's CEO, Clemens Jungsthöfel, expressed confidence in the company's ability to achieve its full-year targets, citing the strong Q2 results. He noted that the company anticipates a reinsurance service result of more than EUR 875 million in life and health reinsurance and expects a combined ratio of under 88% for property and casualty reinsurance [2].

Despite the strong Q2 performance, Hannover Re faced high catastrophe losses in the first quarter, which were mitigated by a prudent reserving policy and favorable market conditions. The company's resilience in loss reserves was further strengthened in the first half of the year, with expenditures for large losses totaling EUR 976.1 million, slightly higher than the budgeted expectation of EUR 935 million [3].

Berenberg's adjustment in the target price reflects the company's strong performance and the potential for continued growth. The investment bank's revised forecast aligns with Hannover Re's guidance for 2025, which includes a group net income of around EUR 2.4 billion. The company's robust capitalization and prudent risk management have allowed it to strengthen its balance sheet and maintain a strong position in the market [3].

Hannover Re's geographical distribution of revenues, with a significant portion coming from non-life reinsurance and life and health reinsurance, underscores the company's diverse business model. The company's ability to generate profitable growth and maintain a strong financial position in a volatile market makes it an attractive investment for financial professionals and investors [2].

References:

[1] https://www.marketscreener.com/news/hannover-rueckversicherung-ag-berenberg-remains-its-buy-rating-ce7c51dbdb88ff25
[2] https://www.nasdaq.com/articles/hannover-re-q2-profit-reinsurance-revenue-rise-confirms-fy25-profit-view
[3] https://www.hannover-re.com/en/news/2025/hannover-re-increases-half-year-result-and-further-strengthens-balance-sheet-resilience/