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Hannover Rueck SE
(OTC:HVRRY)
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Rating:81Outperform
Price Target:
$56.00
▲(16.62% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by very attractive valuation (low P/E and high dividend yield) and a strong earnings-call read-through showing profitability, capital strength, and guidance confidence. Financial performance is solid overall but tempered by volatility/inconsistency in operating profitability and weaker TTM free-cash-flow trends. Technicals are supportive with price above major moving averages and positive MACD, reinforcing a positive but not overstretched setup.
Positive Factors
Strong underwriting profitability
The combined ratio provides evidence of disciplined pricing, risk selection and claims management. Operating well below target gives Hannover Re resilience against catastrophe volatility and supports durable underwriting profitability.
Negative Factors
Reinsurance pricing is softening
Lower risk-adjusted prices can compress future underwriting margins, particularly in property catastrophe business. If market competition persists, Hannover Re may need stricter selection or accept slower premium growth to protect returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong underwriting profitability
The combined ratio provides evidence of disciplined pricing, risk selection and claims management. Operating well below target gives Hannover Re resilience against catastrophe volatility and supports durable underwriting profitability.
Read all positive factors
Hannover Rueck SE (HVRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.88B
Dividend Yield4.96%
Average Volume (3M)1.17K
Price to Earnings (P/E)3.4
Beta (1Y)0.21
Revenue Growth5.01%
EPS Growth17.33%
CountryUS
Employees4,078
SectorGeneral
Sector StrengthN/A
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)3.79
Shares Outstanding723,582,800
10 Day Avg. Volume1,549
30 Day Avg. Volume1,170
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)2.48
Price to Sales (P/S)1.34
P/FCF Ratio5.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.44
Revenue Forecast (FY)$31.32B
Hannover Rueck SE Business Overview & Revenue Model
Company Description
Hannover Rück SE, through its network of global subsidiaries, functions as a prominent international supplier of extensive reinsurance solutions and related services. Its business operations are primarily divided into two main areas: Property & Ca...
How the Company Makes Money
Hannover Re primarily makes money through (1) underwriting reinsurance risk and (2) investment income on the assets it holds to pay future claims. Underwriting revenue starts with reinsurance premiums ceded by primary insurers in exchange for Hann...
Hannover Rueck SE Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial results: solid group net income (EUR 1.4bn), P&C combined ratio well inside target (83.2%), ROI above target (3.7%), robust solvency (254%) and significant premium/CSM growth across business lines. Management acknowledged market headwinds — notably rate softening (risk-adjusted price decline ~4%), structured reinsurance volume reductions, IFRS 17 reporting effects on revenue, and localized claim/assumption pressures in Life & Health — but emphasized prudent reserving, ample large-loss buffers (~EUR 1.5bn remaining), and confidence in delivering 2026 guidance. Overall, the positives (profitability, capital strength, growth in renewals/CSM and investment yield) outweigh the challenges, with management framing the negatives as manageable and addressed through underwriting discipline and reserve prudence.Positive Updates
Strong Group Profitability
Group net income of EUR 1.4 billion for H1 2026, positioning the company well to deliver on its full-year net income target.
Negative Updates
Reported Revenue Lagging Underlying Premium Growth
Reported P&C reinsurance revenue flat despite ~4% underlying premium growth in traditional business, driven by IFRS 17 effects (increased commissions/profit-sharing and discounting effects) and currency impacts.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Group Profitability
Group net income of EUR 1.4 billion for H1 2026, positioning the company well to deliver on its full-year net income target.
Read all positive updates
Company Guidance
Management confirmed unchanged 2026 guidance, noting strong H1 metrics that keep the group on track: group net income of EUR 1.4bn YTD, P&C combined ratio 83.2% (well inside the <87% target, despite fully booking the large‑loss budget), H1 ROI 3.7% (above the 3.5% target), solvency ratio 254%, operating capital generation ~EUR 1.8bn and shareholders’ equity +2.6%; commercial momentum included year‑to‑date compound renewal premium growth +7.2%, underlying traditional premium growth ~4% (traditional treaty volume +12.3% at mid‑year) with a risk‑adjusted price change of -4.5% (traditional portfolio -3.9% YTD), P&C new business CSM EUR 1.7bn and Life & Health new CSM EUR 385m (L&H reinsurance service result EUR 478m, already >50% of the ~EUR 925m full‑year target), CSM growth +11.4% and risk adjustment +5.8%; management also highlighted more than EUR 200m of unused large‑loss budget in H1 and about EUR 1.5bn of remaining large‑loss capacity for the rest of the year.Hannover Rueck SE Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.84B | 24.02B | 2.66B | 1.13B | 1.39B | 26.15B |
| Gross Profit | 21.19B | 22.87B | 2.53B | 1.04B | 1.31B | 20.39B |
| EBITDA | 9.73B | 3.41B | 3.37B | 2.10B | 1.44B | 1.85B |
| Net Income | 2.76B | 2.64B | 2.33B | 1.82B | 780.80M | 1.23B |
Balance Sheet | ||||||
| Total Assets | 74.36B | 71.30B | 72.13B | 65.67B | 62.96B | 82.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.05B | 57.39B | 52.63B | 46.65B | 47.59B |
| Total Debt | 4.13B | 4.14B | 4.67B | 4.88B | 5.51B | 4.37B |
| Total Liabilities | 60.06B | 57.37B | 59.44B | 54.65B | 53.00B | 70.15B |
| Stockholders Equity | 13.26B | 12.92B | 11.79B | 10.13B | 9.06B | 11.89B |
Cash Flow | ||||||
| Free Cash Flow | 4.72B | 5.69B | 5.68B | 5.79B | 5.16B | 4.60B |
| Operating Cash Flow | 6.49B | 5.46B | 5.68B | 5.79B | 5.16B | 4.94B |
| Investing Cash Flow | -4.84B | -3.89B | -4.41B | -4.51B | -5.38B | -5.26B |
| Financing Cash Flow | -1.72B | -1.65B | -1.10B | -1.50B | 133.25M | 277.51M |
Hannover Rueck SE Technical Analysis
Positive
48.02
Price Trends
47.65
Positive
47.72
Positive
47.66
Positive
Market Momentum
0.47
Negative
63.14
Neutral
97.87
Negative
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 48.02 is below the 20-day moving average (MA) of 48.65, above the 50-day MA of 47.65, and above the 200-day MA of 47.66, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 97.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HVRRY.
Hannover Rueck SE Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $35.88B | 3.38 | 69.73% | 5.06% | 5.01% | 17.33% | |
81 Outperform | $34.37B | 7.62 | 19.52% | ― | -0.21% | 31.57% | |
79 Outperform | $13.78B | 5.64 | 22.68% | 0.49% | -14.15% | 48.57% | |
78 Outperform | $14.56B | 8.04 | 12.43% | 2.08% | -5.12% | 146.14% | |
78 Outperform | $16.10B | 10.69 | 11.29% | 1.56% | 19.54% | 97.85% | |
65 Neutral | $40.25B | 13.91 | 7.27% | 2.34% | -4.19% | 1.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
HVRRY
Hannover Rueck SE
49.69
2.82
6.01%
AIG
American International Group
76.63
-3.07
-3.85%
ACGL
Arch Capital Group
98.76
7.56
8.29%
EG
Everest Group
377.66
45.97
13.86%
RGA
Reinsurance Group
246.02
55.93
29.42%
RNR
Renaissancere Holdings
330.41
90.41
37.67%
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.