Hannover Re Surpasses Full-Year Earnings Target and Announces Increased Dividend

Hannover Re achieved a Group net income of EUR 1.8 billion for the financial year 2023, surpassing its target of at least EUR 1.7 billion. This success led to the proposal of an increased dividend distribution of EUR 7.20 per share, including a special dividend, compared to the previous year's EUR 6.00 per share. The company confirmed its 2024 guidance, expecting a Group net income of at least EUR 2.1 billion.

Reinsurance revenue rose to EUR 24.5 billion, and the contractual service margin increased by 17.4% to EUR 7.7 billion. Jean-Jacques Henchoz, CEO of Hannover Re, credited the company's robust performance to the effective management of both business groups and investments, highlighting the resilience and profitability of the business amidst a challenging environment.

Significant improvements were noted in risk-adjusted prices and conditions in property and casualty reinsurance. Additionally, results in life and health reinsurance exceeded expectations. A notable return on investment of 2.8% was achieved, surpassing the target.

An increase in shareholders' equity to EUR 10.1 billion was reported, with a return on equity of 19.0%, exceeding the minimum target. The company also detailed its performance in property and casualty reinsurance, with a 3.4% revenue increase to EUR 16.8 billion. Life and health reinsurance saw a slight contraction in revenue to EUR 7.6 billion but achieved a better-than-anticipated result.

Looking ahead, Hannover Re anticipates greater than 5% growth in reinsurance revenue for 2024, with property and casualty reinsurance expected to grow more significantly than life and health reinsurance. The company's investment portfolio is also expected to show moderate growth, with a targeted investment return of at least 2.8%.