Hannover Rueck SE (HVRRY) AI Stock Analysis

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Hannover Rueck SE

(OTC:HVRRY)

Rating:77Outperform

Price Target:

$59.00

▲(19.60% Upside)

Hannover Rueck SE's strong financial performance is the most significant factor, supported by effective cash flow management and profitability. The technical analysis suggests stability with mild bullish momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, offering a good balance between growth and income.

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

Market Cap

$35.70B

Dividend Yield3.79%

Average Volume (3M)1.17K

Price to Earnings (P/E)13.1

Beta (1Y)0.34

Revenue Growth8.06%

EPS Growth24.07%

CountryUS

Employees3,895

SectorFinancial

Sector Strength71

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)1.34

Shares Outstanding723,582,800

10 Day Avg. Volume616

30 Day Avg. Volume1,171

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.22

Enterprise Value/Revenue6.81

Enterprise Value/Gross Profit1.46

Enterprise Value/Ebitda13.75

Forecast

1Y Price Target

$59.00

Price Target Upside19.60% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Hannover Rueck SE Business Overview & Revenue Model

Company DescriptionHannover Rueck SE (HVRRY) is one of the leading global reinsurance companies, headquartered in Hannover, Germany. The company operates primarily in the reinsurance sector, providing a wide range of reinsurance solutions including property and casualty, life and health, and specialty lines. With a strong focus on risk management and innovative solutions, Hannover Rueck serves clients across various industries and regions, helping them mitigate risks and manage their capital effectively.

How the Company Makes MoneyHannover Rueck generates revenue primarily through its reinsurance operations, which involve underwriting insurance policies from primary insurers and accepting the risks associated with those policies. The company earns premium income by providing coverage for various types of risks, including natural disasters, health-related claims, and other liabilities. Additionally, Hannover Rueck invests the premiums it receives in a diversified portfolio of assets, generating investment income. Key revenue streams include the underwriting profits from its reinsurance business and the returns on its investment portfolio. The company also engages in strategic partnerships with insurance companies and other financial institutions, enhancing its market presence and contributing to its earnings through collaborative risk management solutions.

Hannover Rueck SE Earnings Call Summary

Earnings Call Date:Aug 12, 2025

(Q4-2024)

% Change Since: -3.92%|

Next Earnings Date:Nov 10, 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 presents a strong financial profile with consistent revenue growth, improved profitability, and effective cash flow management. The balance sheet is well-managed with a healthy equity position and controlled leverage.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.41B	26.46B	25.72B	31.60B	26.15B	23.28B
Gross Profit	29.89B	26.46B	25.72B	31.60B	26.15B	23.28B
EBITDA	3.17B	3.21B	2.13B	1.66B	1.76B	1.30B
Net Income	2.25B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	72.57B	72.13B	66.49B	86.95B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	57.40B	57.39B	1.05B	46.65B	47.59B	40.97B
Total Debt	4.64B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	59.62B	59.44B	54.65B	78.20B	70.15B	59.60B
Stockholders Equity	12.08B	11.79B	10.13B	8.09B	11.89B	11.00B
Cash Flow
Free Cash Flow	5.70B	5.68B	5.79B	5.16B	4.60B	2.86B
Operating Cash Flow	5.70B	5.68B	5.79B	5.16B	4.94B	3.23B
Investing Cash Flow	-4.74B	-4.41B	-4.51B	-5.38B	-5.26B	-2.24B
Financing Cash Flow	-1.10B	-1.10B	-1.50B	133.25M	277.51M	-726.04M

Hannover Rueck SE Technical Analysis

Technical Analysis Sentiment

Negative

Last Price49.33

Price Trends

50DMA

51.39

Negative

100DMA

51.40

Negative

200DMA

47.54

Positive

Market Momentum

MACD

-0.66

Positive

RSI

40.08

Neutral

STOCH

26.54

Neutral

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 49.33 is below the 20-day moving average (MA) of 50.70, below the 50-day MA of 51.39, and above the 200-day MA of 47.54, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 26.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HVRRY.

Hannover Rueck SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	84 Outperform	$11.73B	6.36	18.75%	0.64%	23.19%	-22.42%
HG	82 Outperform	$2.40B	6.39	15.86%	―	28.86%	-11.22%
ACGL	80 Outperform	$34.86B	9.65	17.09%	―	23.79%	-32.09%
HVRRY	77 Outperform	$35.70B	13.13	22.23%	3.79%	8.06%	24.07%
RGA	73 Outperform	$12.79B	16.84	7.07%	1.86%	1.53%	-10.27%
EG	72 Outperform	$14.43B	17.92	5.52%	2.33%	10.40%	-71.67%
Sector *	68 Neutral	$17.86B	12.02	10.33%	3.75%	9.68%	0.49%

* Financial Sector Average

Performance Comparison

HVRRY

Hannover Rueck SE

49.33

2.85

6.13%

ACGL

Arch Capital Group

93.41

-10.70

-10.28%

Everest Group

343.94

-37.11

-9.74%

RGA

Reinsurance Group

193.58

-13.03

-6.31%

RNR

Renaissancere Holdings

247.92

-0.62

-0.25%

Hamilton Insurance Group, Ltd. Class B

24.10

4.80

24.87%

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