Hannover Ruck SE (HVRRY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our earnings call on our results for the first nine months of 2025. And as usual, our CEO, Clemens Jungstifel, and CFO, Christian Emmelingmeyer, will provide a pre-overview of the business development so far in 2025. And afterwards, Clemens will present the updated outlook for the current year, and as usual, will provide an initial guidance for the financial year 2016. For the Q&A, we will be joined by Claude Schaefer and Sven Althoff. And with that, I hand over to you, Kevin. Thank you, Karl, and good morning from Hanover. So, on the first slide, the business performance in the first nine months was very satisfactory. The group net income of 1.96 billion euros reflects a strong underlying profitability and additional positive tailwind from currency translation and from tax, adding up to more than 400 million euros. The low tax rate, particularly in the third quarter, is mainly connected to the newly enforced change in the German corporate tax, resulting in a corresponding release in deferred tax liabilities. This not only left us in a comfortable position to increase the group net income guidance to around 2.6 billion euros for the full year. In addition, we used the extra level of profits to further strengthen our company's balance sheet. We have added significant 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 more than 300 million euro losses in our fixed income portfolio. All of this improves our already strong balance sheet and our confidence in future earnings growth. In P&C reinsurance, we have continued to grow our portfolio in an attractive rate environment. As in the first half, the refinement in the calculation for the non-distin...