Jean-Jacques Henchoz: Steering Hannover Re to global leadership with an SME mindset

By Sophie Roberts

March 31 - (The Insurer) - As Jean-Jacques Henchoz steps down today from his role as CEO of Hannover Re, marking the end of a notable tenure, his legacy is one of steady growth, strategic innovation and empowered underwriting.

In a wide-ranging interview with The Insurer TV to mark the end of his time as CEO of the third-largest reinsurer in Europe, Henchoz reflected on his time with the company, going back to when he first stepped into the role in 2019.

"The main difficulty was actually that the company was doing rather well,” he reminisced. “There was no turnaround to consider. This really was a company that was a well-oiled machine, producing good underwriting results,” he said.

“It was difficult because if you have a turnaround case, you know exactly what you need to do and everybody accepts it, so you need to change. And here, you had a case where there was no burning platform and the stakeholders didn’t want to change anything, so it was not an easy start,” he added.

Henchoz had a hard act to follow in taking over the reins as CEO from Ulrich Wallin and was faced with the challenge of leading a successful company without the need for drastic change. Henchoz, instead, focused on leveraging Hannover Re’s strengths and adapting its operating model for future growth.

“I wanted to make sure that the well-oiled machine was continuing to drive underwriting profit, but at the same time, look at Hannover Re in five to 10 years, and what it meant in terms of development of the operating platform,” he said.

In the almost six-year timeframe since he has upheld the firm's record outperformance versus peers.

He aimed to establish what he described as "a global SME – global player, SME mindset," emphasising client-centricity and efficiency.

Henchoz shared: "We are a friendly company towards our partners. We were seeking very pragmatic solutions with our clients, and that philosophy has been appreciated by clients and brokers.

“It was just about making sure that we break the silos around the world, make sure that we have an integrated team, particularly with the larger customers, and being more integrated in our delivery. But the base was very, very strong because the philosophy is very client-centric, and there is a lot of business drive and entrepreneurial spirit at Hannover Re. So, it was really about leveraging that platform for a growing company,” he added.

Under Henchoz’s leadership, Hannover Re’s market capitalisation has doubled to 33.39 billion euros, while in the past six years the group has maintained a robust return on equity of circa 14%, differentiating itself through a "pure-play reinsurance model" and a culture of efficiency.

“So we've been really focused on our core business. We don't have primary insurance ventures aside, with few small exceptions, like our syndicate in London, and that focus gives you a competitive edge.

“We’re not competing with our clients, that's another advantage; and the other part is that we're not trying to sell services adjacent to our core business, and that makes it a bit lighter in terms of cost load,” he shared.

EMPOWERMENT IS THE 'NAME OF THE GAME'

Addressing market conditions, Henchoz noted the competitive landscape but remained optimistic.

“Clearly, the market is more competitive, we're seeing that in 2025. So, I'm not saying a soft market is coming any time soon in reinsurance, but there'll be softening trends nevertheless,” he said.

Henchoz emphasised the importance of empowering underwriters, stating: "We empower our underwriters. They take decisions as profit centre holders, and they know when a business is still attractive and when it starts to be borderline or unattractive.

“So, we push the decision to the underwriter, and they really do what they need to do. Part of it is client segmentation,” he continued. “You have clients that we want to accompany across cycles, so we have a joint understanding, long-term relationship building, and part of the portfolio is a bit more opportunistic, and then we have to react accordingly in a softening trend.

“But I think empowerment is the name of the game if you want to be successful over time. And I think Hannover Re will continue to be successful independently from the cycle in the P&C markets.”

Henchoz also discussed the evolving risk landscape, highlighting the increasing frequency and severity of natural disasters and the need for improved modeling.

He expressed concern about the protection gap, saying: "My worry is more about affordability and availability of insurance and reinsurance capacity ... It's not only about pricing and modelling the risk. It's also about adaptation measures, infrastructure upgrades, building standards – all this prevention side of risk management is very important."

LOOKING FORWARD AND BACK

Henchoz reflected on his career trajectory and pivotal moments, highlighting both highs and challenges.

"I think I came into reinsurance by coincidence … I really liked the intellectual challenge but also the global scope," he shared.

A key milestone was his time in Canada: "I went to Toronto in 2005, spent five years there, and for the first time, as a young manager, I could lead a business unit … This was really the decisive moment for me."

Henchoz also opened up about some of the challenges he faced in leadership. "There are moments where you realise that there is organisational complexity … and then you realise that your message has not been really heard or was misunderstood," he explained.

Despite these challenges, he emphasised the importance of being connected to teams to ensure clarity in communication.

Looking ahead, Henchoz plans to take a break before pursuing a diverse portfolio of activities, possibly outside the industry. "I still need a break … I'll have a bit of a break and see how I can build up a portfolio of activities, not yet fully defined."

Henchoz leaves Hannover Re well positioned for future growth, with a strong platform for his successor to build upon.

His legacy is one of stability, innovation and a relentless focus on client-centricity, ensuring that Hannover Re remains a trusted partner in the global reinsurance landscape.

As he concludes his tenure, Henchoz hopes that people will see that "Hannover Re has made decisive steps toward becoming a global leader, while keeping that unique blend of collaborative spirit, pragmatic decision making and empowered underwriting".

Watch the 30-minute "exit" interview with outgoing Hannover Re CEO Jean-Jacques Henchoz to hear more about:

• Leadership philosophy

• Market insights

• Risk management and empowered underwriting

• Career reflections and future plans