Hannover Rueck (HNR1) AI Stock Analysis

• Market Cap: €31.76B
• Dividend Yield: 3.42%
• Average Volume (3M): 79.05K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.73
• Revenue Growth: 9.68%
• EPS Growth: 18.57%
• Country: DE
• Employees: 3,895
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Reinsurance
• EPS (TTM): 3.98
• Shares Outstanding: 120,597,140
• 10 Day Avg. Volume: 74,105
• 30 Day Avg. Volume: 79,049
• PEG Ratio: -4.20
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.57
• 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: €292.90
• Price Target Upside: 10.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: €300.00 ▲(13.46%Upside)

Hannover Rueck's overall stock score is supported by its strong financial performance, characterized by consistent revenue growth, a solid balance sheet, and robust cash generation. While technical analysis indicates some short-term challenges, the stock's reasonable valuation and attractive dividend yield offer a compelling case for long-term investors. The absence of earnings call and corporate events data does not affect the positive outlook.

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 Re generates revenue primarily through underwriting reinsurance contracts, where it assumes risk from primary insurance companies in exchange for premiums. The company diversifies its income by engaging in both property and casualty reinsurance and life and health reinsurance. In property and casualty reinsurance, Hannover Re earns premiums by providing coverage for events such as natural disasters, accidents, and liability claims. In life and health reinsurance, the company generates revenue through contracts that cover mortality, morbidity, and longevity risks. Additionally, Hannover Re invests premiums received in various financial instruments, creating investment income as a secondary revenue stream. The company's earnings are further influenced by its global network of clients, strategic partnerships, and its ability to leverage data analytics and risk management expertise to optimize underwriting and pricing models.

Hannover Rueck Financial Statement Overview

Summary

Hannover Rueck demonstrates strong financial performance with consistent revenue growth, robust gross profit margin, and efficient cost management. Despite slight fluctuations in net income, the company's balance sheet remains solid with a low debt-to-equity ratio and impressive ROE. Strong cash flow generation further reinforces the financial stability and growth potential.

Income Statement

Hannover Rueck's income statement shows strong performance with a consistent increase in revenue over the TTM period, indicating a solid growth trajectory. The gross profit margin is robust at 63.09%, reflecting efficient cost management. However, the slight decline in net income compared to the previous year slightly dampens the overall profitability. Net profit margin remains healthy at 9.10%, and the EBIT and EBITDA margins are strong at 12.75% and 13.05%, respectively.

Balance Sheet

The balance sheet of Hannover Rueck is solid with a healthy equity ratio of 16.65%, suggesting a strong capital structure. The debt-to-equity ratio is low at 0.38, indicating low financial leverage and risk. Return on Equity (ROE) is impressive at 18.63%, showcasing efficient utilization of shareholder funds. The company maintains substantial cash reserves, which enhances financial stability.

Cash Flow

Hannover Rueck's cash flow statement highlights robust free cash flow generation, with a healthy free cash flow to net income ratio of 2.53, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio is also strong at 2.53, reflecting effective cash conversion from operations. The consistent growth in free cash flow further supports a positive outlook for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.74B	26.46B	25.72B	24.16B	26.28B	23.17B
Gross Profit	27.74B	26.46B	25.72B	24.16B	26.28B	23.17B
EBITDA	3.09B	3.21B	2.06B	1.47B	1.71B	1.44B
Net Income	2.25B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	72.57B	72.13B	65.67B	62.96B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	57.40B	57.39B	1.05B	46.65B	47.59B	1.28B
Total Debt	4.64B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	59.62B	59.44B	54.65B	53.00B	70.15B	59.60B
Stockholders Equity	12.08B	11.79B	10.13B	9.06B	11.89B	11.00B
Cash Flow
Free Cash Flow	5.70B	5.68B	5.79B	4.95B	4.94B	3.02B
Operating Cash Flow	5.70B	5.68B	5.79B	4.95B	4.94B	3.02B
Investing Cash Flow	-4.74B	-4.41B	-4.51B	-5.08B	-5.26B	-2.03B
Financing Cash Flow	-1.10B	-1.10B	-1.50B	44.30M	277.51M	-726.04M

Hannover Rueck Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 264.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HNR1, the sentiment is Negative. The current price of 264.4 is below the 20-day moving average (MA) of 266.26, below the 50-day MA of 272.76, and above the 200-day MA of 254.83, indicating a neutral trend. The MACD of -2.12 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HNR1.

Hannover Rueck Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNR1	76 Outperform	€31.76B	14.11	19.63%	3.42%	9.68%	18.57%
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%
0M6S	―	€130.59B	13.32	16.56%	4.53%	―	―
0KFE	―	€73.27B	13.19	18.25%	3.03%	―	―
0QA8	―	€28.84B	14.31	17.10%	2.42%	―	―