Hannover Re AG (HVRRY.PK), a German reinsurance company, reported Tuesday lower profit in its first quarter, hit by considerable natural catastrophe losses mainly California wildfires. Reinsurance revenue, however, increased from last year, and the company maintained fiscal 2025 outlook with healthy underlying business.
In the first quarter, Group net income fell 13.9 percent to 480 million euros from last year's 558 million euros. Earnings per share came in at 3.98 euros, down from 4.63 euros a year earlier.
The operating profit or EBIT contracted by 14.1 percent to 696 million euros from 811 million euros a year earlier.
The reinsurance service result decreased 46.6 percent to 272 million euros.
Reinsurance revenue, however, increased 4.5 percent to 6.97 billion euros from last year's 6.67 billion euros. Growth of 2.4 percent would have been booked at unchanged exchange rates.
Reinsurance revenue in property and casualty reinsurance grew 7.2 percent.
Large losses of 765 million euros in property and casualty reinsurance exceeded budgeted expectation for the first quarter. The largest net individual loss for Hannover Re was the California wildfires at a cost of 631 million euros.
For 2025, Hannover Re continues to expect Group net income of around 2.4 billion euros, despite costly large losses.
Further, the company noted that the ordinary dividend is expected to increase year-on-year over the 2024-2026 strategy cycle. The ordinary dividend will be supplemented by a special dividend provided the capitalisation exceeds the capital required for future growth and the profit target is achieved.
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