Global reinsurance company Hannover Re’s net profit in the first quarter of 2026 was 710.6 million euros, an increase of 47.9% from the previous year. During the period, its reinsurance service performance jumped 72.9% to 890.2 million euros.
The large European reinsurer reported strong results for the first quarter of this year, with total reinsurance revenue of €6.5 billion, up 0.6% after adjusting for currency effects.
Group-wide, the net reinsurance financial result adjusted for currency effects (which Hannover Re explains as structurally negative), which reflects the interest accretion on discounted technical reserves in previous years, totaled -€360.1 million in Q1’26, up from -€333.3 million in the previous year.
The Group’s operating profit in the first quarter of 2026 increased by nearly 40% to 971.1 million euros, compared with 696.5 million euros in the first quarter of 2025. As of March 31, 2026, shareholders’ equity amounted to €13.9 billion, up from €12.9 billion at the end of December 2025, and return on equity reached 21.2%, above the target of more than 14%.
In property and casualty (P&C) reinsurance, net new business CSM fell 26.8% to €1.1 billion in the first quarter of 2026, reflecting Hannover Re’s experience at renewals on January 1, where premium volume increased by 3.3% and inflation and risk-adjusted prices for renewal business fell by 3.2%.
Total property and casualty reinsurance revenue reached €4.5 billion in the first quarter of 2026, down from €5.1 billion in the same period last year, which was attributed to different developments in property and casualty reinsurance. Hannover Re noted: “While conventional reinsurance achieved diversified growth of 2.1% after adjusting for currency effects, structured reinsurance revenue declined due to reductions in individual large contracts.”
Large loss costs within Property & Casualty fell to €206.9 million in Q1 2026 and were therefore below the first quarter large loss budget of €480.3 million. “Given that it is too early to reliably estimate the further economic impact of the war in Iran, Hannover Re expects that the large remaining loss budget in the first quarter will be sufficient to cover any loss payouts that may be incurred to date. However, only a small number of specific notifications have been received to date,” the company explained.
The reinsurer explained that the largest net claims for individual losses were attributable to winter storm “Fern” in the United States and Canada at the beginning of the year, which caused €124.8 million in losses, and Atlantic storms “Christine” and “Leonardo”, which also caused €34 million in damage payouts in the Iberian Peninsula and Morocco.
Property and casualty net reinsurance services results increased from €271.6 million in Q1’25 to €636 million in Q1’26, with the combined ratio rising from 93.9% to 83.6%, below the full-year 2026 target of below 87%. In addition, the segment’s operating profit increased by 72.9% in the first quarter of 2026 to 767.2 million euros.
In its most recent April renewals, Hannover Re renewed business in Asia Pacific and North America as well as some specialty lines, “where treaty negotiations have resulted in stable or slightly softer conditions and continued adequate pricing.” In fact, Hannover Re’s premium income increased by 18.8%, and inflation and risk-adjusted prices for renewal business fell by 3.6%.
Turning to its life and health (L&H) reinsurance business, Hannover Re reported that all segments experienced sustained demand despite intense global competition.
In the first quarter of 2026, L&H Reinsurance’s net new CSM increased to 248.6 million euros, compared with 231.7 million euros in the same period last year, and the net contract service margin increased by 3% to 6.5 billion euros.
The segment’s total reinsurance revenue increased by approximately €100 million to €2.0 billion, or 15% at constant exchange rates. Net reinsurance services increased from 243.2 million euros to 254.2 million euros, and are on track to achieve the full-year 2026 target of approximately 925 million euros.
L&H Re’s operating results in the first quarter of 2026 totaled 204.1 million euros, down from 253 million euros in the previous year, due to exchange rate effects and lower investment income contributions.
On the asset side of the balance sheet, Hannover Re’s self-managed portfolio reached €68.3 billion, higher than at the end of the previous year, which was “buoyed” by positive operating cash flow and currency effects. Investment income totaled €605.3 million, up from €576.9 million in the previous year. The annualized return on investment reaches 3.6%.
Clemens Jungsthöfel, CEO of Hannover Re, commented: “Hannover Re has made a successful start to the 2026 financial year. Our group’s net profit in the first quarter once again underlines the strength of our diversified business model and our ability to achieve attractive profitable growth even in more challenging markets. Thanks to our strong position in the market, good capitalization and lean cost structure, we enjoy considerable financial flexibility. This lays the foundation for further strengthening our sustained profitability in the future.”
Chief Financial Officer Christian Hermelingmeier commented: “Hannover Re is very well positioned, thanks to our consistent risk and capital management. This is evident from the further increase in resilience reserves to a level of €3.2 billion in 2025. The strong capital adequacy also underlines our financial stability. Given the good quality of the business as written, we again see potential for further strengthening of our financial resilience this year, provided that there are no distortions in the capital markets or particularly large losses.”
Looking forward, Hannover Re expects full-year group net profit in 2026 to reach at least 2.7 billion euros, and growth in property and casualty reinsurance income from traditional businesses is expected to be in the mid-single-digit percentage range at fixed exchange rates. The combined ratio of property and casualty insurance reinsurance is expected to be below 87%. Regarding L&H Reinsurance, Hannover Re expects net reinsurance services to be approximately €925 million. In addition, the return on investment is expected to be around 3.5%.
Hannover Re explained that achieving these targets for 2026 assumes that large loss payments do not significantly exceed the budgeted level of 2.3 billion euros and assumes no unforeseen distortions in the capital markets.
“While price pressures continue to prevail in property and casualty reinsurance, our excellent positioning allows us to significantly expand our business scope in areas that meet profitability requirements, especially at renewals on April 1. Against this backdrop, we remain committed to adhering to a rigorous underwriting approach, prioritizing the quality of our portfolio and focusing on businesses that generate sustainable profits,” Jungsthöfel said.
