Hannover Rueck SE (HVRRY) AI Stock Analysis

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Hannover Rueck SE

(OTC:HVRRY)

Rating:73Outperform

Price Target:

$58.00

▲(12.23%Upside)

Hannover Rueck SE scores well due to its strong financial performance and robust cash flow. While technical indicators are mixed, the stock shows short-term bullish momentum. The valuation is fair, supported by a reasonable P/E ratio and dividend yield. The absence of significant earnings call insights or notable corporate events does not detract from the overall assessment.

Hannover Rueck SE (HVRRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$37.67B

Dividend Yield2.29%

Average Volume (3M)700.00

Price to Earnings (P/E)15.6

Beta (1Y)0.37

Revenue Growth8.58%

EPS Growth17.61%

CountryUS

Employees3,895

SectorFinancial

Sector Strength73

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)0.74

Shares Outstanding723,582,800

10 Day Avg. Volume0

30 Day Avg. Volume700

Financial Highlights & Ratios

PEG Ratio-0.13

Price to Book (P/B)0.46

Price to Sales (P/S)0.00

P/FCF Ratio0.72

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Hannover Rueck SE 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 makes money primarily through underwriting reinsurance policies and investment income. The company earns premiums from insurance companies that it reinsures, providing them with risk coverage in exchange for these payments. These premiums are the main revenue stream and are used to cover potential claims and operational costs. Additionally, Hannover Re invests the premiums it receives in various financial instruments to generate investment income, which contributes significantly to its overall profitability. The company's earnings are also influenced by its ability to accurately assess risk, manage claims efficiently, and maintain strong relationships with its clients. Hannover Re's diversified portfolio across different regions and sectors helps stabilize its income and mitigate risks associated with specific markets or events.

Hannover Rueck SE Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q4-2024)

% Change Since: 0.02%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance for Hannover Re in 2024, with significant achievements in net income, equity growth, and investment returns. The company has demonstrated resilience and maintained a strong balance sheet. Challenges were noted in the life and health segment and currency impacts, but these were outweighed by the overall positive developments.

Q4-2024 Updates

Positive Updates

Strong Financial Performance

Hannover Re delivered a Group net income slightly above EUR2.3 billion, surpassing the initial target of approximately EUR2.1 billion. The operating performance was robust across all areas, supported by favorable investment income and a higher-than-expected reinsurance service result.

Dividend Increase

The company proposed an increase in the ordinary dividend to EUR7 per share, complemented by a special dividend of EUR2, bringing the total dividend to EUR9, a 25% increase compared to the previous year.

P&C Reinsurance Growth

The P&C segment reported a currency-adjusted growth rate in reinsurance revenue of 11%, with a combined ratio of 86.6%, reflecting strong underlying profitability. The impact of large losses was about EUR200 million below budget.

Strong Return on Equity

Hannover Re achieved a return on equity of 21.2%, highlighting the company's strong earnings power. The solvency ratio of about 261% reflects a very healthy capitalization.

Increased Shareholders' Equity

Shareholders' equity increased by 16.5%, driven by Group net income and positive impacts from interest rates and currency movements.

Investment Return

The return on investments was 3.2%, exceeding the target of 2.8%. This was driven by higher interest rates and strong operating cash flow.

Negative Updates

Challenges in Life and Health

Reinsurance revenue in life and health was stable year-on-year, with challenges in the U.S. mortality business due to accelerated runoff and regulatory changes affecting financial solutions in China.

Currency Impact on Financials

The currency result was negatively impacted by the strengthening of the U.S. dollar in the fourth quarter, resulting in a minus EUR143 million swing.

Adverse Development in Claims Triangles

The nominal reserve runoff showed EUR95 million adverse development across all years, with negative impacts from Italy hail events and provisions for the Russia-Ukraine loss complex.

Company Guidance

In the earnings call for Hannover Re's Fiscal Year 2024, the company reported a Group net income slightly above EUR 2.3 billion, surpassing its increased target of around EUR 2.3 billion. This outperformance was attributed to favorable investment income and a higher-than-expected reinsurance service result. The company announced a proposed dividend increase to EUR 7 per share, with a special dividend of EUR 2, totaling EUR 9 per share, a 25% rise from the previous year. In the P&C segment, they achieved an 11% growth in reinsurance revenue, with a combined ratio of 86.6%, well within the target of below 89%. The impact of large losses was EUR 200 million below budget, allowing for cautious reserve strengthening. In life and health, revenue was stable, with a reinsurance service result exceeding the target of EUR 850 million, reaching EUR 883 million. The return on investments stood at 3.2%, supported by higher interest rates and strong operating cash flow. Hannover Re also reported a return on equity of 21.2% and a solvency ratio of about 261%, reflecting robust earnings power and healthy capitalization. The company aims for a Group net income of around EUR 2.4 billion for 2025, maintaining confidence despite ongoing challenges.

Hannover Rueck SE Financial Statement Overview

Summary

Hannover Rueck SE demonstrates strong financial health, with high profitability, a stable balance sheet, and robust cash flow. The company maintains a solid equity base and consistent cash generation. However, revenue growth volatility could pose a risk to long-term profit expansion.

Income Statement

Positive

Hannover Rueck SE shows strong profitability with a high gross profit margin consistently above 80%. The net profit margin improved significantly in the last year, highlighting efficient cost management. However, revenue growth has been volatile, with a recent decline. EBIT and EBITDA margins were not available for the latest year, limiting a complete assessment of operating efficiency.

Balance Sheet

Very Positive

The company maintains a solid financial position with a strong equity base, as evidenced by a consistent equity ratio above 15%. The debt-to-equity ratio is stable, reflecting prudent financial leverage. Return on equity has been improving, indicating effective use of shareholder funds to generate profit.

Cash Flow

Very Positive

Hannover Rueck SE exhibits robust cash flow generation, with consistent free cash flow and a healthy operating cash flow to net income ratio. The free cash flow growth rate has been stable, supporting the company's liquidity and operational flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
26.46B	25.72B	31.60B	26.15B	23.28B
	Gross Profit
26.46B	25.72B	31.60B	26.15B	23.28B
	EBIT
3.32B	1.85B	1.97B	1.66B	1.21B
	EBITDA
3.21B	2.13B	1.66B	1.76B	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	66.49B	86.95B	82.90B	71.44B
	Total Debt
4.67B	4.77B	5.51B	4.37B	3.43B
	Net Debt
3.42B	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 SE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price51.68

Price Trends

50DMA

51.51

Positive

100DMA

48.46

Positive

200DMA

46.08

Positive

Market Momentum

MACD

0.26

Positive

RSI

45.12

Neutral

STOCH

0.08

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVRRY, the sentiment is Positive. The current price of 51.68 is below the 20-day moving average (MA) of 52.74, above the 50-day MA of 51.51, and above the 200-day MA of 46.08, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 0.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HVRRY.

Hannover Rueck SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	82 Outperform	$11.89B	7.78	16.30%	0.65%	32.10%	-30.52%
HG	79 Outperform	$2.17B	6.62	14.07%	―	35.36%	-3.34%
RGA	76 Outperform	$13.01B	16.64	7.60%	1.81%	1.47%	-7.47%
HVRRY	73 Outperform	$37.67B	15.61	19.55%	2.29%	8.58%	17.61%
ACGL	73 Outperform	$34.10B	9.33	18.42%	―	25.29%	-23.19%
EG	71 Outperform	$14.23B	16.88	6.12%	2.39%	12.81%	-70.56%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%

* Financial Sector Average

Performance Comparison

HVRRY

Hannover Rueck SE

52.24

12.16

30.34%

ACGL

Arch Capital Group

91.14

-3.20

-3.39%

Everest Group

339.13

-29.13

-7.91%

RGA

Reinsurance Group

198.10

-2.35

-1.17%

RNR

Renaissancere Holdings

244.39

22.64

10.21%

Hamilton Insurance Group, Ltd. Class B

21.10

4.60

27.88%

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.