Hannover Rueck (HNR1) AI Stock Analysis

• Market Cap: €33.86B
• Dividend Yield: 3.19%
• Average Volume (3M): 114.15K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.74
• Revenue Growth: 9.68%
• EPS Growth: 18.57%
• Country: DE
• Employees: 3,895
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Reinsurance
• EPS (TTM): 3.98
• Shares Outstanding: 120,597,140
• 10 Day Avg. Volume: 89,630
• 30 Day Avg. Volume: 114,146
• PEG Ratio: 4.10
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.85
• 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: €295.27
• Price Target Upside: 5.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• 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 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 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.46B	25.72B	31.60B	26.15B	23.28B
	Gross Profit
26.46B	22.09B	31.60B	26.15B	23.28B
	EBIT
3.32B	1.97B	1.97B	1.66B	939.01M
	EBITDA
0.00	2.13B	1.66B	1.87B	1.30B
	Net Income Common Stockholders
2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.39B	1.05B	46.65B	47.59B	40.97B
	Total Assets
72.13B	65.67B	86.95B	82.90B	71.44B
	Total Debt
3.83B	4.77B	5.51B	4.37B	3.43B
	Net Debt
2.58B	3.72B	4.19B	3.02B	2.15B
	Total Liabilities
59.44B	54.65B	78.20B	70.15B	59.60B
	Stockholders Equity
11.79B	10.13B	8.09B	11.89B	11.00B
Cash Flow		Free Cash Flow
5.68B	5.79B	5.16B	4.60B	2.86B
	Operating Cash Flow
5.68B	5.79B	5.16B	4.94B	3.23B
	Investing Cash Flow
-4.41B	-4.51B	-5.38B	-5.26B	-2.24B
	Financing Cash Flow
-1.10B	-1.50B	133.25M	277.51M	-726.04M

Hannover Rueck Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 280.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNR1	79 Outperform	€33.86B	15.04	19.63%	3.19%	9.68%	18.57%
SNX	72 Outperform	£54.08M	17.14	7.93%	1.45%	13.60%	46.74%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
0M6S		€134.79B	13.65	16.56%	4.38%	―	―
0KFE		€74.73B	13.44	18.25%	3.48%	―	―