Hannover Rueck Stock: Profit Soars Despite California Wildfire Impact

Hannover Rueck demonstrated remarkable financial resilience in 2024, posting a substantial 28% increase in net profit to €2.3 billion, despite facing potential losses of €500-700 million from California wildfires. The reinsurance giant's performance has been particularly noteworthy in the third quarter, where earnings per share jumped to €5.50, significantly higher than the previous year's €3.64. The company's insurance revenue climbed to €26.4 billion, while operating profit reached €3.3 billion, underlining the firm's robust operational execution. Trading activity showed the stock fluctuating between €252.80 and €256.60, maintaining strong market presence despite recent challenges.

Market Outlook and Renewal Trends

The company encountered its first pricing pressure in seven years during the annual renewal round, with risk-adjusted prices in property reinsurance declining by 2.1%, most notably in natural catastrophe coverage, which saw a 5.4% decrease. Nevertheless, analysts maintain an optimistic outlook, setting an average price target of €279.71 per share. The projected dividend increase to €8.67 per share, up from the previous year's €7.20, further reinforces investor confidence, even as the company adheres to its ambitious €2.4 billion profit target for the current year.