Hannover Ruck SE (HVRRY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our earnings call on behalf of Results 2025. Today's speakers are Clement Jungstöpfer, our CEO, and Christian Hemmeling-Meyer, the CFO of Hannover Re. For the Q&A, they will be joined by Claude Schäfer and Sven Aalto. With that, I hand over to you, Clement. Thank you, Axel. Good morning from Hannover. So I'm pleased to report that the business performance in the first half of 2025 leaves us very well positioned to deliver on our profit target for the full year. The group net income of 1.3 billion euros reflects a strong underlying profitability and additional positive effects from currency translation and from tax. As we had not planned for such positive effects to be explicit, this left us in a very comfortable position where we could use the extra level of profits to further strengthen our company's balance sheet. We have added additional prudency to our P&C reserves. We've taken a more cautious view on certain pockets in our life and health portfolio, and we have realized some losses in our fixed income portfolio. All of this improves our already strong capability to manage volatility, deliver on targets, and to pay a steadily increasing dividend. In P&C reinsurance, we have continued to grow our portfolio in an attractive rate environment. As explained at our Q1 conference call in May, the refinement in the calculation for the non-distinct investment component has a negative base effect on reported growth numbers. As it does not impact earnings, this is no cause for concern, also not when comparing to our 7% growth target. On an adjusted basis, the growth is in the double digits, clearly ahead of the 7% mark. The large loss experience in Q2 was rather benign, particularly on the NADCAT side, mitigating the significant oversh...