Hannover Re Earnings: Beats Consensus and Broadly Tracking Our Estimates; Shares Fairly Valued

For the first half of 2024 Hannover Re has delivered a good set of financial results. This performance has mainly been helped by lower natural catastrophe losses than in the same period last year and a positive cycle of property and casualty renewals. The business has delivered better results than company-compiled consensus for the second quarter in life and health. However, our full-year forecasts look a little inflated at the moment for this division. The investment result for the group is strong at a 3.3% return on investment. This is much better than our 3.05% full-year forecast and 2.8% target. Reinsurance revenue across the group has come in at EUR 12.9 billion, below our EUR 26.9 billion full-year estimate. However, the reinsurance service result and operating profit look good at EUR 1.411.4 billion and EUR 1.657.2 billion, respectively. Straight to the bottom line, Hannover Re has delivered EPS of EUR 9.63 for the first six months versus our EUR 19.35 full-year estimate. We maintain our no moat rating and EUR 235 per-share fair value estimate.