Hannover Rueck (HNR1) AI Stock Analysis

• Market Cap: €29.40B
• Dividend Yield: 3.69%
• Average Volume (3M): 103.42K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.74
• Revenue Growth: 7.50%
• EPS Growth: 22.49%
• Country: DE
• Employees: 3,895
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 6.91
• Shares Outstanding: 120,597,140
• 10 Day Avg. Volume: 94,552
• 30 Day Avg. Volume: 103,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €289.00
• Price Target Upside: 17.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: €298.00 ▲(21.53% Upside)

Hannover Rueck's strong financial performance, characterized by robust cash generation and a solid balance sheet, is the most significant factor driving the overall score. The valuation is reasonable with an attractive dividend yield, supporting the stock's appeal. Technical analysis suggests a neutral to slightly bearish short-term trend, which slightly tempers the overall 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 its reinsurance premiums, which are paid by primary insurers for coverage against potential losses. The company operates on a model where it assumes risks from these insurers, allowing them to stabilize their financial performance and manage capital more efficiently. Key revenue streams include property and casualty reinsurance, life and health reinsurance, and specialty lines. Additionally, Hannover Re invests the premiums it receives in various financial instruments, generating investment income, which also contributes significantly to its earnings. The company maintains strategic partnerships with various insurance providers and leverages its strong market position and global footprint to sustain its growth and profitability.

Hannover Rueck Financial Statement Overview

Summary

Hannover Rueck demonstrates a strong financial position with consistent revenue growth, efficient cost management, and robust cash generation. The balance sheet is solid with low leverage and strong equity, supporting financial stability and growth potential. Despite minor fluctuations in net income, the overall trajectory remains positive.

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	28.27B	26.46B	25.72B	24.16B	26.28B	23.17B
Gross Profit	26.23B	26.46B	25.72B	24.16B	26.28B	23.17B
EBITDA	3.34B	3.21B	2.06B	1.47B	1.71B	1.44B
Net Income	2.48B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	69.36B	72.13B	65.67B	62.96B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	54.67B	57.39B	1.05B	46.65B	47.59B	1.28B
Total Debt	4.11B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	57.40B	59.44B	54.65B	53.00B	70.15B	59.60B
Stockholders Equity	11.10B	11.79B	10.13B	9.06B	11.89B	11.00B
Cash Flow
Free Cash Flow	4.11B	5.68B	5.79B	4.95B	4.94B	3.02B
Operating Cash Flow	5.26B	5.68B	5.79B	4.95B	4.94B	3.02B
Investing Cash Flow	-3.32B	-4.41B	-4.51B	-5.08B	-5.26B	-2.03B
Financing Cash Flow	-1.82B	-1.10B	-1.50B	44.30M	277.51M	-726.04M

Hannover Rueck Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 245.20
• 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 Negative. The current price of 245.2 is below the 20-day moving average (MA) of 246.57, below the 50-day MA of 256.85, and below the 200-day MA of 258.76, indicating a bearish trend. The MACD of -3.64 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, 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	74 Outperform	€29.40B	11.85	22.81%	3.69%	7.50%	22.49%
MUV2	73 Outperform	67.54B	13.37	17.42%	3.84%	2.36%	-11.93%
ALV	66 Neutral	132.44B	12.80	16.47%	4.44%	47.32%	17.07%
TLX	62 Neutral	28.41B	12.57	16.95%	2.41%	6.51%	22.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%