Hannover Rück SE
🇩🇪 HNR1.XETRA · Frankfurt · DE0008402215
Insurance
EUR 269.80 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 269.80 ÷ 21.89 = 12.3
TTM period through: 2025-12-31
Forward P/E (estimated): 11.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 12.3
Yield (Fwd)
4.63%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.69%
Net Debt/EBITDA (TTM)
0.1x
Latest quarter: 0.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 0.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
57.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 42.5%
Cash Flow Payout (TTM): 19.7%
FCF Coverage (TTM): 5.07x
ROE
20.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Hannover Rück SE is one of the world's leading reinsurance groups, providing essential risk management with exceptional profitability and a highly resilient balance sheet. Trading at €269.80, the stock remains attractively valued below historically normalized P/E multiples, offering compelling upside potential alongside a well-covered 4.69% dividend yield. Worth considering for new positions at current levels, as the company's recent record profits and massive free cash flow generation highlight its structural quality.
Sector Context
Reinsurance companies act as the financial backbone of the global insurance industry by absorbing large-scale risks (such as natural disasters or pandemics) from primary insurers. For dividend investors, this sector offers highly cash-generative models and strong long-term compounding, though it requires tolerance for cyclical payout volatility driven by unpredictable catastrophic events. Unlike traditional corporates, higher debt-to-equity ratios are normal in insurance, though Hannover Rück's 0.32x ratio is exceptionally conservative.
📊 Strategy Analysis
- • Trading at €269.80 with a P/E of 12.32, placing it squarely in the optimal 8-15x value range for quality financial institutions.
- • Exceptional capital efficiency demonstrated by a 20.79% ROE and a highly conservative balance sheet (Net Debt/EBITDA of just 0.12x).
- • Highly secure 4.69% dividend yield supported by a conservative 41.10% payout ratio and massive free cash flow coverage (5.07x).
- • Outstanding long-term fundamental trajectory with 10-year EPS CAGR of 16.5% and recent announcements of record €2.6 billion net income.
⚠ What to Watch
- • The reinsurance business model carries inherent exposure to unpredictable natural catastrophes, which historically necessitated temporary dividend adjustments (such as the 17% cut during the 2021 crisis).
- • Net margins have contracted to 9.8% compared to the 5-year average of 33.4%, requiring ongoing monitoring despite the exceptionally strong ROE.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.