Hannover Rueck (HNR1) AI Stock Analysis

• Market Cap: €28.79B
• Dividend Yield: 3.37%
• Average Volume (3M): 112.70K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.78
• Revenue Growth: 2.57%
• EPS Growth: 9.75%
• Country: DE
• Employees: 3,895
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 5.40
• Shares Outstanding: 120,597,140
• 10 Day Avg. Volume: 124,930
• 30 Day Avg. Volume: 112,700
• PEG Ratio: 0.45
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 10.96
• P/FCF Ratio: 5.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €291.63
• Price Target Upside: 19.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €269.00 ▲(10.16% Upside)

The score is supported primarily by solid financial strength (profitability and improving leverage), plus an appealing valuation (12.07 P/E and 3.64% yield). These are tempered by weak technicals, with the stock trading below key moving averages and negative momentum indicators.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, enabling investment in growth opportunities and shareholder returns.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk and supports sustainable growth and resilience in market downturns.

Negative Factors

Net Income Fluctuations

Fluctuations in net income can signal volatility in earnings, potentially impacting investor confidence and long-term financial planning.

Profitability Concerns

A decline in net income may indicate challenges in maintaining profitability, which could affect future earnings and investment capacity.

Earnings Volatility

Earnings volatility can reflect underlying business uncertainties, potentially impacting strategic decisions and investor sentiment.

Hannover Rueck Business Overview & Revenue Model

Company Description

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide. It operates through Property & Casualty Reinsurance, and Life & Health Reinsurance segments. The company offers property, casualty, facultative, catastrophe XL, structured reinsurance, and insurance-linked securities. It also provides risk solutions for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business, as well as credit, surety, and political risks reinsurance products. In addition, the company offers group and individual credit life, enhanced annuities, group life and health, and Takaful reinsurance products; and risk solutions in the areas of critical illness, disability, health, longevity, long term care, mortality, and morbidity. Further, it provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and divestiture of non-core businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. The company was founded in 1966 and is headquartered in Hanover, Germany. Hannover Rück SE is a subsidiary of Talanx AG.

How the Company Makes Money

Hannover Rueck generates revenue primarily through its reinsurance activities, which involve assuming risk from primary insurers in exchange for premium payments. The company's key revenue streams include premiums from property and casualty reinsurance, life and health reinsurance, and specialty lines of business. Additionally, Hannover Rueck invests the premiums received in various financial instruments, generating investment income. Significant partnerships with insurance companies globally enhance its market presence and contribute to its earnings, while a strong focus on risk management and underwriting discipline allows the company to maintain profitability and manage claims effectively.

Hannover Rueck Financial Statement Overview

Summary

Strong profitability and return profile (TTM net income ~2.47B; ~21% ROE) and a sound, improving leverage position (debt-to-equity ~0.35 vs ~0.68 in 2022). Offsetting factors are volatility in margins across years and weakened cash conversion, with TTM free cash flow down sharply (~-40%) and covering ~46% of net income.

Income Statement

Profitability is strong, with TTM (Trailing-Twelve-Months) net income of ~2.47B and a high return profile supported by ~21% return on equity. Revenue growth improved to ~8.7% in TTM versus low-single-digit growth in 2024, showing better top-line momentum. Offsetting this, margins and revenue levels appear volatile across periods (including unusually high profit margins in TTM and 2024 versus much lower margins in 2022–2023), which raises questions around earnings consistency and comparability year to year.

Balance Sheet

The balance sheet looks sound for a reinsurer, with moderate leverage and improving capital positioning: debt-to-equity is ~0.35 in TTM (Trailing-Twelve-Months) versus ~0.68 in 2022, and equity is sizable at ~12.0B. Total assets are large (~70.3B), indicating scale. The main watch item is that absolute debt remains meaningful (~4.19B) and assets fluctuate year to year, so maintaining capital strength through underwriting cycles remains important.

Cash Flow

Cash generation remains solid on an absolute basis (TTM (Trailing-Twelve-Months) operating cash flow ~5.31B and free cash flow ~2.46B). However, free cash flow fell sharply in TTM (about -40% growth), and free cash flow covers less than half of net income in TTM (~46%), suggesting earnings-to-cash conversion weakened versus prior annual periods where free cash flow closely matched net income. This introduces more volatility risk in cash returns and capital flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	2.66B	1.13B	1.39B	26.28B	23.17B
Gross Profit	1.25B	2.53B	1.04B	1.31B	26.28B	23.17B
EBITDA	3.42B	3.37B	2.01B	1.44B	1.71B	1.44B
Net Income	2.47B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	70.35B	72.13B	65.67B	62.96B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	56.51B	57.39B	1.05B	46.65B	47.59B	1.28B
Total Debt	4.19B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	57.45B	59.44B	54.65B	53.00B	70.15B	59.60B
Stockholders Equity	12.00B	11.79B	10.13B	9.06B	11.89B	11.00B
Cash Flow
Free Cash Flow	2.46B	5.68B	5.79B	4.95B	4.94B	3.02B
Operating Cash Flow	5.31B	5.68B	5.79B	4.95B	4.94B	3.02B
Investing Cash Flow	-3.84B	-4.41B	-4.51B	-5.08B	-5.26B	-2.03B
Financing Cash Flow	-1.72B	-1.10B	-1.50B	44.30M	277.51M	-726.04M

Hannover Rueck Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 244.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HNR1, the sentiment is Neutral. The current price of 244.2 is above the 20-day moving average (MA) of 242.05, below the 50-day MA of 252.17, and below the 200-day MA of 259.89, indicating a neutral trend. The MACD of -4.35 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 61.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:HNR1.

Hannover Rueck Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUV2	71 Outperform	€66.94B	10.88	19.40%	3.56%	0.48%	11.17%
HNR1	68 Neutral	€28.79B	11.66	21.34%	3.37%	2.57%	9.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALV	67 Neutral	€140.80B	14.52	―	3.94%	25.33%	12.54%
TLX	67 Neutral	€27.49B	11.71	19.49%	2.37%	3.70%	24.02%