Hannover Rueck SE (HVRRY)
OTHER OTC:HVRRY
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Hannover Rueck SE
(OTC:HVRRY)
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Rating:71Outperform
Price Target:
$51.00
▲(7.89% Upside)
Action:Upgraded
Date:05/18/26
The score is driven primarily by solid underlying financial performance (improving leverage and strong operating cash flow) and a very attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and some financial volatility signals (notably the sharp free cash flow deterioration), despite a generally positive earnings call with reaffirmed guidance and strong Q1 underwriting.
Positive Factors
Capitalization & Solvency
A 254% solvency ratio and rising equity provide a durable capital buffer to absorb catastrophes, support risk-taking and regulatory compliance, and permit disciplined capital returns or growth spending without forcing reactive balance-sheet measures over the medium term.
Negative Factors
Free Cash Flow Volatility
Sharp swings in free cash flow undermine predictability for dividends, buybacks, or capital deployment. If driven by timing, claims or investment timing, it can constrain strategic initiatives and increase funding risk during adverse underwriting or market periods over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Capitalization & Solvency
A 254% solvency ratio and rising equity provide a durable capital buffer to absorb catastrophes, support risk-taking and regulatory compliance, and permit disciplined capital returns or growth spending without forcing reactive balance-sheet measures over the medium term.
Read all positive factors
Hannover Rueck SE (HVRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.79B
Dividend Yield3.57%
Average Volume (3M)1.17K
Price to Earnings (P/E)11.3
Beta (1Y)0.35
Revenue Growth5.21%
EPS Growth37.28%
CountryUS
Employees3,895
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)3.96
Shares Outstanding723,582,800
10 Day Avg. Volume1,549
30 Day Avg. Volume1,170
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)2.48
Price to Sales (P/S)1.34
P/FCF Ratio0.00
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit1.34
Enterprise Value/Ebitda3.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.51
Revenue Forecast (FY)$32.09B
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...
How the Company Makes Money
Hannover Rueck primarily makes money through (1) underwriting income from reinsurance and (2) investment income on the assets it holds to support reserves and capital.
1) Reinsurance underwriting revenue (core business):
- Premiums: The company e...
Hannover Rueck SE Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture: strong Q1 earnings (EUR 711m), robust underwriting performance (P&C combined ratio 83.6%), strengthened reserving resiliency (EUR 3.2bn), solid Life & Health growth (+15% currency-adjusted) and investment returns slightly above target (3.6%). Management confirmed 2026 guidance and emphasized prudent reserving and capital deployment to sustain growth. Headwinds include structured reinsurance volume declines, rate softening (risk-adjusted -3.6% in April), IFRS 17 accounting impacts on reported revenue, and some adverse reserving/assumption items (notably a EUR 133m loss component in Life & Health related partly to China CI). Overall, positives (profitability, capitalization, reserve strengthening, affirmed guidance) outweigh the manageable challenges and market uncertainties.Positive Updates
Strong Group Net Income
Group net income of EUR 711 million for Q1 2026, described as a very good start to the year and underpinning sustainable earnings growth.
Negative Updates
Top-Line Headwinds from Structured Reinsurance
Structured reinsurance volume decreased materially at the January renewals (mid-triple-digit million EUR decline cited), reducing top-line growth and contributing to an overall decline in reinsurance revenue versus the prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Group Net Income
Group net income of EUR 711 million for Q1 2026, described as a very good start to the year and underpinning sustainable earnings growth.
Read all positive updates
Company Guidance
Hannover Re reaffirmed its 2026 guidance after a strong Q1 (group net income EUR 711m), keeping a P&C combined ratio target below 87% (Q1: 83.6% despite booking the full large‑loss budget and a negative runoff of EUR 48m), a mid‑single‑digit growth target for traditional business (Q1 FX‑adjusted traditional growth 2.1%; volume‑weighted April renewals growth 5.6%; overall risk‑adjusted price change -3.6%), and Life & Health reinsurance service result target of around EUR 925m (Q1: EUR 254m) supported by new business CSMs of EUR 1.1bn (P&C) and EUR 249m (L&H); they expect return on investment ≈3.5% (Q1 ROI 3.6%), maintain a solvency ratio of 254%, cite reserve adequacy per Willis Towers Watson of EUR 3.2bn with total resiliency up from 7.7% to 8.6% (risk adjustment +5.2%), and see an undistorted runoff release of roughly EUR 200–250m — overall management is confident it can deliver sustainable earnings growth while continuing to build reserve resiliency.Hannover Rueck SE Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.44B | 24.02B | 2.66B | 1.13B | 1.39B | 26.15B |
| Gross Profit | 23.95B | 22.87B | 2.53B | 1.04B | 1.31B | 20.39B |
| EBITDA | 9.81B | 3.41B | 3.37B | 2.01B | 1.44B | 1.85B |
| Net Income | 2.88B | 2.64B | 2.33B | 1.82B | 780.80M | 1.23B |
Balance Sheet | ||||||
| Total Assets | 73.51B | 71.30B | 72.13B | 65.67B | 62.96B | 82.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 1.05B | 57.39B | 52.63B | 46.65B | 47.59B |
| Total Debt | 4.15B | 4.14B | 4.67B | 4.88B | 5.51B | 4.37B |
| Total Liabilities | 58.62B | 57.37B | 59.44B | 54.65B | 53.00B | 70.15B |
| Stockholders Equity | 13.88B | 12.92B | 11.79B | 10.13B | 9.06B | 11.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 0.00 | 5.68B | 5.79B | 5.16B | 4.60B |
| Operating Cash Flow | 5.87B | 5.46B | 5.68B | 5.79B | 5.16B | 4.94B |
| Investing Cash Flow | -4.08B | -3.89B | -4.41B | -4.51B | -5.38B | -5.26B |
| Financing Cash Flow | -1.67B | -1.65B | -1.10B | -1.50B | 133.25M | 277.51M |
Hannover Rueck SE Technical Analysis
Negative
47.27
Price Trends
49.15
Negative
47.93
Negative
47.83
Negative
Market Momentum
-0.75
Negative
41.19
Neutral
64.57
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 47.27 is below the 20-day moving average (MA) of 47.63, below the 50-day MA of 49.15, and below the 200-day MA of 47.83, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 64.57 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $33.65B | 8.24 | 20.48% | ― | 8.66% | 32.96% | |
77 Outperform | $13.96B | 5.04 | 13.31% | 2.37% | -0.63% | 147.66% | |
75 Outperform | $14.02B | 10.22 | 9.47% | 1.76% | 18.66% | 55.67% | |
74 Outperform | $12.60B | 10.75 | 24.71% | 0.57% | -8.19% | 90.81% | |
71 Outperform | $33.79B | 11.29 | 73.88% | 3.57% | 5.21% | 37.28% | |
70 Outperform | $40.85B | 13.27 | 7.70% | 2.02% | -2.31% | 26.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HVRRY
Hannover Rueck SE
46.66
-3.89
-7.70%
AIG
American International Group
77.05
-2.78
-3.48%
ACGL
Arch Capital Group
96.30
4.23
4.59%
EG
Everest Group
352.71
24.82
7.57%
RGA
Reinsurance Group
214.04
17.23
8.76%
RNR
Renaissancere Holdings
295.56
58.03
24.43%
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.