Hannover Rueck SE (HVRRY) AI Stock Analysis

• Market Cap: $34.23B
• Dividend Yield: 3.57%
• Average Volume (3M): 1.17K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.36
• Revenue Growth: 4.35%
• EPS Growth: 12.64%
• Country: US
• Employees: 3,895
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 1.04
• Shares Outstanding: 723,568,360
• 10 Day Avg. Volume: 1,549
• 30 Day Avg. Volume: 1,170
• PEG Ratio: 0.45
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 10.93
• P/FCF Ratio: 5.11
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 30.85
• Enterprise Value/Gross Profit: 30.85
• Enterprise Value/Ebitda: 10.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $57.00 ▲(20.58% Upside)

Hannover Rueck SE's strong financial performance and positive earnings call are the most significant factors contributing to its score. The company shows robust revenue growth and profitability, with effective equity utilization. The technical analysis indicates a neutral trend, while the valuation is reasonable with an attractive dividend yield. The earnings call highlights substantial growth and increased guidance, reinforcing the company's strong position in the industry.

Positive Factors

Revenue Growth

The significant growth in the Life & Health segment indicates strong demand and effective market penetration, supporting long-term revenue expansion.

Strong Solvency and Capitalization

A robust solvency ratio ensures financial stability and the ability to withstand adverse conditions, supporting sustainable growth.

Increased Guidance

Raising guidance reflects management's confidence in continued strong performance and enhances investor trust in the company's future prospects.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow may limit the company's ability to invest in growth opportunities and maintain financial flexibility.

Currency Translation Impact

Currency translation impacts can affect financial stability and reported earnings, potentially leading to volatility in financial performance.

Fixed Income Losses

Realizing fixed income losses may impact short-term earnings and reflects challenges in managing investment portfolios amid changing market conditions.

Hannover Rueck SE 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 its reinsurance operations. The company earns money by underwriting reinsurance contracts, where it assumes part of the risk from primary insurers in exchange for premium payments. Key revenue streams include property and casualty reinsurance, life and health reinsurance, and specialty reinsurance products. Additionally, Hannover Re invests premiums in various asset classes, generating investment income. The company's strong relationships with insurance clients and its global presence, along with its expertise in risk assessment and management, contribute to its earnings. Significant partnerships with insurers and strategic collaborations in various regions also enhance its market position and revenue potential.

Hannover Rueck SE Financial Statement Overview

Summary

Hannover Rueck SE demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is stable with manageable leverage, and the company effectively utilizes its equity. However, declining free cash flow growth and increasing debt levels warrant attention to ensure continued financial stability.

Income Statement

Hannover Rueck SE shows strong revenue growth with a 12.41% increase in TTM, indicating robust business expansion. The company maintains healthy profitability with a gross profit margin of 92.80% and a net profit margin of 8.78%. EBIT and EBITDA margins are stable at 11.81%, reflecting efficient operational management. However, the slight decline in net profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.37, indicating prudent leverage. Return on equity is impressive at 21.53%, showcasing effective use of equity capital. The equity ratio stands at 15.99%, suggesting a stable capital structure. However, the slight increase in debt levels over the past year could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains strong, but free cash flow has declined by 7.60% in the TTM, which may impact future investment capabilities. The free cash flow to net income ratio of 0.78 indicates that a significant portion of earnings is being converted into cash, although this is lower than the previous year. The company needs to monitor cash flow closely to maintain financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	2.66B	1.13B	1.39B	26.15B	23.28B
Gross Profit	1.15B	2.53B	1.04B	1.31B	20.39B	18.24B
EBITDA	3.47B	3.37B	2.01B	1.44B	1.85B	1.39B
Net Income	2.48B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	69.36B	72.13B	65.67B	86.95B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	54.67B	57.39B	1.05B	46.65B	47.59B	40.97B
Total Debt	4.11B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	57.40B	59.44B	54.65B	78.20B	70.15B	59.60B
Stockholders Equity	11.10B	11.79B	10.13B	9.06B	11.89B	11.00B
Cash Flow
Free Cash Flow	5.26B	5.68B	5.79B	5.16B	4.60B	2.86B
Operating Cash Flow	5.26B	5.68B	5.79B	5.16B	4.94B	3.23B
Investing Cash Flow	-3.32B	-4.41B	-4.51B	-5.38B	-5.26B	-2.24B
Financing Cash Flow	-1.82B	-1.10B	-1.50B	133.25M	277.51M	-726.04M

Hannover Rueck SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVRRY, the sentiment is Negative. The current price of 47.27 is below the 20-day moving average (MA) of 49.96, below the 50-day MA of 49.74, and below the 200-day MA of 50.38, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 32.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HVRRY.

Hannover Rueck SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$32.98B	8.48	17.81%	―	16.68%	-28.54%
RNR	77 Outperform	$12.45B	7.50	14.98%	0.57%	-3.96%	-48.08%
HVRRY	76 Outperform	$34.23B	12.44	22.23%	3.57%	4.35%	12.64%
RGA	74 Outperform	$12.80B	15.06	7.19%	1.76%	2.10%	19.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	64 Neutral	$39.35B	13.07	7.68%	2.02%	-23.02%	52.43%
EG	64 Neutral	$13.38B	23.66	3.59%	2.37%	8.62%	-78.92%