Hannover Re
Note: This is a daily stock update and the information stands true as of 06/10/25, 09:00 CET.
Company Update:
Expert Opinion:
Valuation remains facially attractive for Hannover Re with PE 25 of 12.2x only and a dividend yield of 3.7% (but likely to increase as dividend expectation may be revised up by 20%). The sector has had a tremendous run in terms of performance for the last 5 years. Our expert is afraid that the momentum may now be fading as the pricing environment starts to be less favorable. He would take chips off the table on the expected rise in share price today.
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Company Update:
Hannover Re announced a change in its payout policy with a payout ratio target of 55%, compared to the 45% payout recorded in 2024. This is good news and probably implies that the consensus (including us) will revise its expected dividend by c 20% this year.
2025 is shaping up to be a record year. In H1 2025, Hannover Re reported a 13% increase in net profit to €1,314m. After a Q1 impacted by the California wildfires, the natural catastrophe environment improved significantly in Q2. The second half has also started well, with a notably benign hurricane season so far.
But this also means that more capital will be available and will come on the market, leading to pressure on pricing, as already mentioned several times ahead and during the Monte Carlo rendez-vous. In this context, the outcome of the January 2026 renewals will be particularly interesting to follow.
Valuation remains facially attractive for Hannover Re with PE 25 of 12.2x only and a dividend yield of 3.7% (but likely to increase as dividend expectation may be revised up by 20%). The sector has had a tremendous run in terms of performance for the last 5 years. Our expert is afraid that the momentum may now be fading as the pricing environment starts to be less favorable. He would take chips off the table on the expected rise in share price today.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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