23.10.2023 Hannover Rück SE  DE0008402215

EQS-News: E+S Rück expects further improvements in prices and conditions for property and casualty reinsurance in Germany due to sustained high inflation and claims expenditure


 

EQS-News: Hannover Rück SE / Key word(s): Miscellaneous
E+S Rück expects further improvements in prices and conditions for property and casualty reinsurance in Germany due to sustained high inflation and claims expenditure

23.10.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.


Corporate news

E+S Rück expects further improvements in prices and conditions for property and casualty reinsurance in Germany due to sustained high inflation and claims expenditure

  • Significant increase in average claims results in substantially higher payments in motor insurance
  • Frequency of medium-severity natural catastrophes leads to sustained high level of insurance payments
  • Further modifications to risk-adjusted prices and conditions
  • Heightened risk awareness drives sustained strong demand for cyber covers

Baden-Baden, 23 October 2023: E+S Rückversicherung AG, the Hannover Re subsidiary responsible for the Group's German business, expects further price increases and improved conditions in the
1 January 2024 renewals in property and casualty reinsurance.

Natural disasters and persistently high inflation have again taken a toll on the German insurance industry in the current year. The resulting ongoing rise in reconstruction and repair costs continues to adversely impact the insurance sector's profitability.

"We must assume that the multi-year trend towards higher claim payments will continue. Adequate prices are indispensable if we are to be able to offer our clients the best possible reinsurance capacity in the future, as we have in the past," said Dr. Michael Pickel, Chief Executive Officer of E+S Rück, at this year's reinsurance gathering in Baden-Baden. "Particularly at a time of many different interrelated challenges, it is therefore vital for us as a reinsurer to tackle these issues and design solutions jointly with our partners. Moving forward, then, we shall continue to stand by our clients as their partner in managing losses caused by climate change and natural catastrophe risks – just as E+S Rück has done for 100 years."

The insurance industry around the world increasingly finds itself faced with the effects of extreme weather phenomena. In Germany, too, the issue of coverage for impacts from heavy rain, flood, windstorm or hail as well as the associated costs remains very much front of mind. After all, it is equally relevant to private households and commercial / industrial clients alike.

At the same time, E+S Rück expects motor insurance in Germany – the largest line of property and casualty insurance by volume – to close heavily in the red this year. Furthermore, persistently high inflation is pushing up claims expenditures in property insurance, leading to pressure for further adjustments.

Average claims in motor insurance have again surged significantly in the current year, while at the same time the tariff adjustments made so far have failed to achieve the desired effects.

"Sharply above-average increases in the costs of spare parts and repairs as well as higher claims frequencies are causing massive losses and remain a heavy drag on motor insurers' profitability," said Dr. Michael Pickel. "Against this backdrop, we take the view that adjustments to prices in motor insurance are unavoidable in the coming years to move out of the red and restore business to a profitable footing over the long term. We expect to see gradual progress in this respect."

While losses under natural catastrophe covers were, if anything, below average in the first six months with summer storms "Lambert" and "Kay", considerable claims expenditure was incurred in August from a series of storms centred on southern Germany. With this in mind, 2023 is again expected to see substantial losses overall from catastrophe covers.

It can be anticipated that sustained high rates of inflation as well as the trend towards adding natural perils covers to existing contracts will drive claims expenditures for the industry even higher in the future. Parallel to this, capacities on the reinsurance market remain tight overall, while at the same time demand for natural perils coverage is on the rise. All in all, then, prices for catastrophe covers look set to increase further.

High inflation has kept up the pressure for adjustments in industrial and commercial business, even though business interruptions due to supply chain bottlenecks have normalised somewhat of late. At the same time, claims numbers and expenditures in connection with large fire losses have increased. These developments should be reflected accordingly in modified scopes of coverage and conditions. In the liability line, discussions among market players will likely be similarly dominated in the year ahead by the issue of inflation as well as by the insurability of risks associated with so-called forever chemicals (PFAS).

After the sharp price increases seen in past years, the capacities offered by existing and new market players for cyber covers should result in price stabilisation on a higher level. In view of rising claims expenditures, however, the pressure to make adjustments remains. Controlling and limiting cyber accumulation scenarios have taken on added relevance, as is also evident in contract terms and conditions.

"Despite the challenging market environment, I am confident about the upcoming renewal round, because our customer relationships and thus also the upcoming negotiations are always characterized by a cooperative partnership with all market participants," said Dr. Michael Pickel.

 

Hannover Re, with gross premium of more than EUR 33 billion, is the third-largest reinsurer in the world. It transacts all lines of property & casualty and life & health reinsurance and is present on all continents with around 3,500 staff. Established in 1966, the Hannover Re Group today has a network of more than 170 subsidiaries, branches and representative offices worldwide. The Group's German business is written by the subsidiary E+S Rück. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück outstanding financial strength ratings: Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior".

Please note the disclaimer:

https://www.hannover-re.com/535917


Contact

External Communications: 

Oliver Suess
tel. +49 511 5604-1502 
[email protected]

Verena Lilge
tel. +49 511 5604-0101
[email protected]

Investor Relations:
Karl Steinle 
tel. +49 511 5604-1500 
[email protected]

Axel Bock 
tel. +49 511 5604-1736 
[email protected] 

www.hannover-re.com 



23.10.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Hannover Rück SE
Karl-Wiechert-Allee 50
30625 Hannover
Germany
Phone: +49-(0)511-5604-1500
Fax: +49-(0)511-5604-1648
Internet: www.hannover-re.com
ISIN: DE0008402215
WKN: 840 221
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
EQS News ID: 1754113

 
End of News EQS News Service

1754113  23.10.2023 CET/CEST

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Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023e
Umsatzerlöse1 17.790,51 19.176,36 22.597,64 24.770,34 27.762,31 33.275,53 35.015,00
EBITDA1,2 1.435,30 1.691,71 1.933,83 1.379,18 1.885,49 2.281,58 0,00
EBITDA-Marge3 8,07 8,82 8,56 5,57 6,79 6,86
EBIT1,4 1.364,36 1.596,65 1.853,18 1.214,08 1.734,83 2.087,45 0,00
EBIT-Marge5 7,67 8,33 8,20 4,90 6,25 6,27 0,00
Jahresüberschuss1 1.044,58 1.145,53 1.373,37 883,07 1.300,22 1.542,74 1.750,00
Netto-Marge6 5,87 5,97 6,08 3,57 4,68 4,64 5,00
Cashflow1,7 1.693,85 2.224,57 2.509,21 3.231,03 4.940,46 5.164,36 0,00
Ergebnis je Aktie8 7,95 8,70 10,65 7,32 10,21 11,66 13,30
Dividende8 5,00 5,25 5,50 4,50 5,75 6,00 5,00
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2022 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
©boersengefluester.de
Hannover Rück
WKN Kurs in € Einschätzung Börsenwert in Mio. €
840221 236,900 Halten 28.569,46
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
12,95 14,43 0,90 24,37
KBV KCV KUV EV/EBITDA
3,23 5,53 0,86 12,52
Dividende '22 in € Dividende '23e in € Div.-Rendite '23e
in %
Hauptversammlung
6,00 6,20 2,62 06.05.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
14.05.2024 12.08.2024 09.11.2023 18.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
5,48% 13,70% 9,52% 30,38%
    
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Versicherungen , 840221 , HNR1 , XETR:HNR1