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Hannover Rueck (DE:HNR1)
XETRA:HNR1
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Hannover Rueck (HNR1) AI Stock Analysis

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DE:HNR1

Hannover Rueck

(XETRA:HNR1)

Rating:74Outperform
Price Target:
€298.00
▲(18.91% 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 (HNR1) vs. iShares MSCI Germany ETF (EWG)

Hannover Rueck Business Overview & Revenue Model

Company DescriptionHannover Rueck SE, commonly known as Hannover Re, is a leading global reinsurer headquartered in Hannover, Germany. The company operates in the reinsurance sector, providing a range of reinsurance solutions across various lines of business including property and casualty, life, and health insurance. Hannover Re is known for its innovative risk management solutions and extensive expertise in underwriting, offering products that help insurance companies manage their risk and capital requirements effectively.
How the Company Makes MoneyHannover 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
78
Positive
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
82
Very Positive
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
85
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.27B26.46B25.72B24.16B26.28B23.17B
Gross Profit26.23B26.46B25.72B24.16B26.28B23.17B
EBITDA3.34B3.21B2.06B1.47B1.71B1.44B
Net Income2.48B2.33B1.82B780.80M1.23B883.07M
Balance Sheet
Total Assets69.36B72.13B65.67B62.96B82.90B71.44B
Cash, Cash Equivalents and Short-Term Investments54.67B57.39B1.05B46.65B47.59B1.28B
Total Debt4.11B4.67B4.77B5.51B4.37B3.43B
Total Liabilities57.40B59.44B54.65B53.00B70.15B59.60B
Stockholders Equity11.10B11.79B10.13B9.06B11.89B11.00B
Cash Flow
Free Cash Flow4.11B5.68B5.79B4.95B4.94B3.02B
Operating Cash Flow5.26B5.68B5.79B4.95B4.94B3.02B
Investing Cash Flow-3.32B-4.41B-4.51B-5.08B-5.26B-2.03B
Financing Cash Flow-1.82B-1.10B-1.50B44.30M277.51M-726.04M

Hannover Rueck Technical Analysis

Technical Analysis Sentiment
Negative
Last Price250.60
Price Trends
50DMA
263.67
Negative
100DMA
268.04
Negative
200DMA
258.17
Negative
Market Momentum
MACD
-4.25
Positive
RSI
36.04
Neutral
STOCH
19.41
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 250.6 is below the 20-day moving average (MA) of 259.53, below the 50-day MA of 263.67, and below the 200-day MA of 258.17, indicating a bearish trend. The MACD of -4.25 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.41 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€30.14B12.2422.81%3.60%7.50%22.49%
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
€140.13B13.6618.92%
€71.25B14.2316.65%5.29%
€30.78B13.6019.75%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HNR1
Hannover Rueck
250.60
2.31
0.93%
GB:0M6S
Allianz
364.01
94.44
35.03%
GB:0KFE
Munich Reinsurance
547.61
73.53
15.51%
GB:0QA8
Talanx AG
118.50
42.64
56.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 09, 2025