Hannover Ruck SE (HVRRY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Well, good morning, everyone, and welcome to our earnings call on the first quarter results of 2025. Today's speakers are Clemens Jungstorfer, our news CEO, and for the first time, Christian Helmeningmeier, our CFO. For the Q&A, we are joined by Sven Althoff and Claude Schaefer, as in the past. And with that, I hand over to you, Clemens. Thank you, Karl, and good morning from Hanover. I'm pleased to report that we got off to a very solid start in 2025, despite a significant impact from large losses in P&C reinsurance against the backdrop of absorbing the losses from the LA wildfires with an impact of $631 million. This is very satisfying and highlights the resilience of our diversified earnings generation. With group net income of $480 million, we also remain in a position to confirm our full-year target of around $2.4 billion. The strong underlying profitability and the further strengthened balance sheet gives me considerable confidence to be even better positioned in potentially volatile times. In P&C, re-revenue increased by 5.1%, adjusted for FX The reported growth number is affected by a refinement in the calculation for the non-distinct investment component. Excluding this effect, the underlying growth would be in the double digits, a level that provides good support for our target of more than 7%. A couple of additions and details on the non-distinct investment components will be explained by Christian later on. Our successful January renewals are reflected in a strong new business CSM, including loss component of 1.5 billion euros. The combined ratio of 93.9 reflects the fact that our large loss budget was exceeded by 330 million, mainly driven by the mentioned LA wildfire losses. Furthermore, the ratio reflects our prudency in our reserving approach also in ...