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Hannover Rueck SE (ADR) (HVRRY)
:HVRRY
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Hannover Rueck SE
(OTC:HVRRY)
Rating:73Outperform
Price Target:
$57.00
▲(13.23%Upside)
Hannover Rueck SE (HVRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.48B
Dividend Yield3.72%
Average Volume (3M)640.00
Price to Earnings (P/E)15.0
Beta (1Y)0.35
Revenue Growth8.58%
EPS Growth17.61%
CountryUS
Employees3,895
SectorFinancial
Sector Strength68
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.74
Shares Outstanding723,582,800
10 Day Avg. Volume878
30 Day Avg. Volume640
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit1.71
Enterprise Value/Ebitda15.60
Forecast
1Y Price Target
$58.00Price Target Upside15.22% Upside
Rating ConsensusModerate Buy
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 generates its revenue primarily through the underwriting of reinsurance contracts and the management of its investment portfolio. The company's key revenue streams include premiums collected from reinsurance agreements and returns on investments. In the reinsurance business, Hannover Re assumes part of the insurance risk from primary insurers, receiving premiums in return for providing coverage against potential claims. The company diversifies its risk portfolio across various geographies and sectors, which helps stabilize earnings. Additionally, Hannover Re invests the premiums it receives in a diversified portfolio of assets, contributing to its income through interest, dividends, and capital gains. Strategic partnerships and long-term relationships with primary insurers and brokers play a significant role in the company's ability to secure new business and maintain a competitive edge in the reinsurance market.
Hannover Rueck SE Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: -2.57%|
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 exhibits strong financial performance with consistent revenue growth and improved profitability. The company manages its balance sheet effectively with a solid equity position and controlled leverage. Cash flow management is robust, indicating continued financial stability and potential for growth.Income Statement
Hannover Rueck SE has demonstrated strong revenue growth with a 2.85% increase from 2023 to 2024. The company maintains a robust gross profit margin, as all revenue translates into gross profit. The net profit margin improved significantly to 8.80% in 2024, indicating enhanced profitability. EBIT and EBITDA margins also show positive trends, reflecting efficient operational management.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.40 in 2024, indicating prudent leverage management. The return on equity (ROE) improved to 19.74%, showcasing effective use of equity to generate profits. The equity ratio is stable at 16.35%, suggesting a balanced capital structure.78
Positive
Cash Flow
The company exhibits strong cash flow management with a stable free cash flow of $5.68 billion in 2024. The operating cash flow to net income ratio is 2.44, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable, reflecting the company's ability to convert earnings into cash.82
Very Positive
| 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 | 25.72B | 31.60B | 26.15B | 23.28B |
| EBITDA | 3.21B | 2.13B | 1.66B | 1.76B | 1.30B |
| Net Income | 2.33B | 1.82B | 780.80M | 1.23B | 883.07M |
Balance Sheet | |||||
| Total Assets | 72.13B | 66.49B | 86.95B | 82.90B | 71.44B |
| Cash, Cash Equivalents and Short-Term Investments | 57.39B | 1.05B | 46.65B | 47.59B | 40.97B |
| Total Debt | 4.67B | 4.77B | 5.51B | 4.37B | 3.43B |
| 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
Positive
50.34
Price Trends
52.07
Negative
51.10
Positive
47.09
Positive
Market Momentum
-0.23
Positive
48.30
Neutral
15.17
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 50.34 is below the 20-day moving average (MA) of 51.62, below the 50-day MA of 52.07, and above the 200-day MA of 47.09, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.38B | 6.17 | 18.75% | 0.65% | 23.19% | -22.42% | |
78 Outperform | $2.17B | 6.64 | 14.07% | ― | 35.36% | -3.34% | |
76 Outperform | $32.98B | 9.09 | 17.09% | ― | 23.79% | -32.09% | |
75 Outperform | $14.09B | 17.26 | 5.52% | 2.41% | 10.40% | -71.67% | |
73 Outperform | $11.72B | 15.43 | 7.07% | 2.01% | 1.53% | -10.27% | |
73 Outperform | $36.48B | 15.04 | 19.55% | 3.72% | 8.58% | 17.61% | |
62 Neutral | C$15.13B | 6.84 | 19.06% | 5.62% | 33.28% | -19.39% |
* Financial Sector Average
Performance Comparison
HVRRY
Hannover Rueck SE
51.46
13.24
34.64%
ACGL
Arch Capital Group
88.51
-2.83
-3.10%
EG
Everest Group
326.04
-22.56
-6.47%
RGA
Reinsurance Group
177.10
-12.26
-6.47%
RNR
Renaissancere Holdings
239.98
13.02
5.74%
HG
Hamilton Insurance Group, Ltd. Class B
21.38
5.77
36.96%
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.