Hannover Rueck Stock: Growth Plans Persist Despite Wildfire Impact

Hannover Rueck, the world's third-largest reinsurer, experienced a notable stock decline on Thursday, with shares dropping 2.2 percent to €252.50 on XETRA trading. Despite facing substantial financial pressures from California wildfires, estimated to cost between €500-700 million, the company maintains its ambitious profit targets. This commitment follows an impressive 2024 performance, where the reinsurer achieved a net profit of €2.3 billion, marking a 28 percent increase from the previous year. The company's insurance revenue rose to €26.4 billion, while operating results reached €3.3 billion, with property reinsurance contributing €2.4 billion to this success.

Analyst Outlook Remains Positive

Market experts maintain an optimistic stance on Hannover Rueck's future prospects, despite recent figures falling slightly below expectations. Analysts project an average target price of €279.71, suggesting significant upward potential for the stock. This positive outlook is supported by strong quarterly performance metrics, including earnings per share growth to €5.50, compared to €3.64 in the previous year's period, and a 10.12 percent revenue increase to €7.39 billion. The company aims to achieve approximately €2.4 billion in profits for the current year, contingent on not exceeding the planned major loss budget of €2.1 billion for 2025.