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Hannover Rueck (DE:HNR1)
XETRA:HNR1

Hannover Rueck (HNR1) AI Stock Analysis

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Hannover Rueck

(XETRA:HNR1)

Rating:79Outperform
Price Target:
Hannover Rueck's strong financial performance and stable valuation metrics are counterbalanced by bearish technical analysis indicators. The company's robust cash flow and prudent financial management provide a solid foundation, but the stock's current trading position below key moving averages suggests caution. The attractive dividend yield adds to its investment appeal, particularly for income-focused investors.

Hannover Rueck (HNR1) vs. iShares MSCI Germany ETF (EWG)

Hannover Rueck Business Overview & Revenue Model

Company DescriptionHannover 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 MoneyHannover Re generates revenue primarily through the underwriting of reinsurance policies and the investment of premium income. The company's key revenue streams include premiums received for reinsurance coverage, investment income from its substantial asset portfolio, and fees for providing various risk management and advisory services. Hannover Re's earnings are influenced by its ability to accurately assess and price risk, manage claims efficiently, and achieve favorable investment returns. Significant partnerships with primary insurers and a strong global presence further bolster its revenue by expanding its client base and market reach.

Hannover Rueck Financial Statement Overview

Summary
Overall, Hannover Rueck exhibits strong financial performance with consistent revenue and profit growth, stable balance sheet, and excellent cash flow management. The company shows prudent financial management with a focus on growth and stability, making it a reliable player in the insurance industry. Continued focus on operational efficiency will further enhance its financial standing.
Income Statement
78
Positive
Hannover Rueck has demonstrated consistent revenue growth with a solid 2.85% increase from 2023 to 2024. The gross profit margin remains strong at 100% due to the nature of the insurance industry where gross profit equals total revenue. The net profit margin improved to 8.80% in 2024, showcasing enhanced profitability. However, the absence of EBITDA data limits a comprehensive analysis of operational efficiency.
Balance Sheet
75
Positive
The company maintains a stable equity position with an equity ratio of 16.35% in 2024, indicating a balanced asset structure. The debt-to-equity ratio decreased to 0.33, reflecting prudent debt management. Return on equity improved to 19.75%, signifying efficient use of equity. These figures suggest financial stability but highlight the need for continued monitoring of liabilities.
Cash Flow
82
Very Positive
Hannover Rueck has robust cash flow management with a marginal decrease in operating cash flow from 2023 to 2024. The free cash flow remains strong at 5,681 million in 2024, providing liquidity and growth opportunities. The operating cash flow to net income ratio is healthy at 2.44, indicating efficient cash conversion. Overall, the cash flow position supports solid financial health.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
26.46B25.72B31.60B26.15B23.28B
Gross Profit
26.46B22.09B31.60B26.15B23.28B
EBIT
3.32B1.97B1.97B1.66B939.01M
EBITDA
0.002.13B1.66B1.87B1.30B
Net Income Common Stockholders
2.33B1.82B780.80M1.23B883.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
57.39B1.05B46.65B47.59B40.97B
Total Assets
72.13B65.67B86.95B82.90B71.44B
Total Debt
3.83B4.77B5.51B4.37B3.43B
Net Debt
2.58B3.72B4.19B3.02B2.15B
Total Liabilities
59.44B54.65B78.20B70.15B59.60B
Stockholders Equity
11.79B10.13B8.09B11.89B11.00B
Cash FlowFree Cash Flow
5.68B5.79B5.16B4.60B2.86B
Operating Cash Flow
5.68B5.79B5.16B4.94B3.23B
Investing Cash Flow
-4.41B-4.51B-5.38B-5.26B-2.24B
Financing Cash Flow
-1.10B-1.50B133.25M277.51M-726.04M

Hannover Rueck Technical Analysis

Technical Analysis Sentiment
Positive
Last Price280.20
Price Trends
50DMA
271.09
Positive
100DMA
260.87
Positive
200DMA
251.56
Positive
Market Momentum
MACD
2.53
Positive
RSI
56.66
Neutral
STOCH
80.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HNR1, the sentiment is Positive. The current price of 280.2 is above the 20-day moving average (MA) of 278.10, above the 50-day MA of 271.09, and above the 200-day MA of 251.56, indicating a bullish trend. The MACD of 2.53 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 80.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HNR1.

Hannover Rueck Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€33.86B15.0419.63%3.19%9.68%18.57%
GBSNX
72
Outperform
£54.08M17.147.93%1.45%13.60%46.74%
64
Neutral
$12.80B9.717.59%16985.66%12.07%-7.53%
€134.79B13.6516.56%4.38%
€74.73B13.4418.25%3.48%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HNR1
Hannover Rueck
280.20
52.74
23.19%
GB:SNX
Synectics
320.00
147.27
85.26%
GB:0M6S
Allianz
351.78
100.33
39.90%
GB:0KFE
Munich Reinsurance
574.92
130.06
29.24%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.