Hannover Re reports 86.6% full-year combined ratio, dividend rises by 25%

By Scott Vincent

March 13 - (The Insurer) - Hannover Re reported a combined ratio of 86.6% in its audited 2024 results on Thursday morning as it delivered a significant improvement in profitability within its P&C reinsurance portfolio.

The combined ratio was ahead of Hannover Re’s target of below 89% and compared with the 94.0% achieved in 2023.

While the year featured a high frequency of mid-sized catastrophe losses, Hannover Re’s net large loss bill of 1.60 billion euros ($1.74 billion) was within its 1.83 billion euro budget.

Hurricane Milton was the reinsurer’s costliest loss event of the year at 230 million euros, with the Dubai floods costing 138 million euros, New Caledonia unrest 117 million euros and Hurricane Helene 116 million euros.

Hannover Re has increased its large loss budget to 2.10 billion euros for 2024.

The group’s P&C reinsurance service result rose to 2.14 billion euros, compared with 848 million euros in 2023. The prior year result had been impacted by reserve strengthening.

Gross P&C reinsurance revenue increased by 10.9% to 18.7 billion euros, up from 16.8 billion euros in 2023.

At group level, net income rose to 2.3 billion euros. The 2024 guidance for net income of 2.4 billion euros was also confirmed this morning.

Following the increased profits in 2024, the reinsurer has proposed a dividend distribution of 9.00 euros per share, up from 7.20 euros per share in 2023.

The 2024 distribution comprises an ordinary dividend of 7.00 euros per share and a special dividend of 2.00 euros per share.

Hannover Re has targeted an 88% combined ratio in 2025, assuming large losses are within budget.