Hannover Re Announces Major Dividend Boost and Strategic Leadership Transition

The reinsurance giant Hannover Re has unveiled a substantial increase in shareholder returns alongside key leadership transitions, positioning the company advantageously ahead of the upcoming renewal season. These strategic moves, comprising a revised dividend policy and structured management succession, highlight the firm's resilience in a dynamic market environment.

Demonstrating formidable financial health, Hannover Re reported a Solvency II capital ratio of 261% as of the end of June 2025, significantly surpassing its internal target. This financial robustness provides the foundation for the company's decision to elevate shareholder distributions while continuing to pursue profitable growth.

Effective October 5, 2025, Hannover Re will raise its payout ratio for the regular dividend to approximately 55% of its IFRS group result. This marks a considerable increase from the total dividend ratio of 46% paid out in 2024. The company's new dividend framework integrates the previous special dividend into the regular payment. Furthermore, the policy commits to maintaining the dividend per share at least at the prior year's level, with a long-term objective of sustained growth.

Strategic Leadership Appointments

Concurrent with the dividend announcement, Hannover Re is implementing significant leadership changes within its Insurance-Linked Securities (ILS) and core reinsurance operations. Henning Ludolphs, a pivotal figure in shaping the ILS division since its establishment in 2008, will transition into an advisory capacity.

Stepping into the leadership of the ILS unit is Patrick Horstmann. Dirk Heuer will continue to oversee the company's reinsurance activities. This carefully planned succession is designed to preserve and strengthen the firm's formidable market standing.

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Positive Outlook for German Motor Insurance

In a related sector analysis, Hannover Re's German subsidiary, E+S Rück, forecasts a return to profitability for German motor insurers in 2025, following several years of losses. This anticipated recovery is attributed to premium adjustments made by primary insurers and moderate natural catastrophe losses experienced this year.

However, CEO Thorsten Steinmann issued a note of caution, indicating that "further targeted price increases" will be necessary in 2026. This ongoing need is driven by persistently rising costs for vehicle parts, repairs, and medical treatments for accident victims.

Looking ahead to the critical January 1, 2026, renewal period, E+S Rück anticipates a stable market environment and growing demand for reinsurance protection, particularly for coverage against natural catastrophes. While there are initial signs of softening market conditions in the property and casualty segment, the company still projects continued premium growth.

• Dividend payout ratio increases from 46% to 55%
• New leadership appointed for ILS and reinsurance business
• German motor insurance sector expected to return to profitability in 2025
• Solvency II ratio remains strong at 261%

The next significant milestone for Hannover Re will be the release of its third-quarter results on November 10, 2025. The market will be watching closely to assess the impact of the new dividend policy on investor sentiment and to see if the optimistic forecast for the German property and casualty insurance market materializes.