Hannover Re, the world's third-largest reinsurer, based in Hanover, Germany, is gearing up for a substantial increase in profits. The DAX-listed company aims to hit a net income of over 2.1 billion euros in 2024, marking a 24% leap from its 2023 minimum target of 1.7 billion euros. Despite this ambitious goal, the company expects a more moderate increase in its medium-term operating profit (EBIT), aiming for an average annual rise of more than 5% by 2026.
CEO Jean-Jacques Henchoz also plans to set aside more funds for potential major claims in the new year. Shareholders can count on high dividends, too, with an annual increase in the basic dividend from 2024 to 2026, and special dividends still under consideration if the company's capital exceeds requirements for future growth.
Hanover Re's successful strategies include premium volume growth, attractive risk-adjusted prices in key regions, a leading position in structured reinsurance, and maintained strength in natural catastrophe business. In terms of dividends, the company's parent company, The Hanover, has a progressive policy of increasing dividends annually, and now proposes a regular dividend equivalent to about 4% of NAV, paid quarterly. Hanover Re's strong market position in Germany, global growth, and competitive advantage contribute to its success in the insurance industry.
