HANNOVER RE (+) : Q1 2026 conference call: Keep calm and add prudence

Research evidence excerpt

HANNOVER RE (+) : Q1 2026 conference call: Keep calm and add prudence

EQUITIES

INSURANCE

HANNOVER RE OUTPERFORMPRICE* EUR244.6  TARGET PRICE EUR305 (UPSIDE 25%)

FLASH NOTE

Q1 2026 conference call: Keep calm and add prudence

11 MAY 2026 Securities Research Report Production time: 10:53* (London time)

Research Analyst & Publishing Entities

Iain Pearce BNP Paribas London Branch +44 7435 660 628 iain.pearce@uk.bnpparibas.com

What happened?

Hannover Re management hosted a conference call following the company’s Q1 2026 results. Despite the insurance

revenue decline reported, notably the decline in Structured Business in Q1, management reiterated topline guidance

on Traditional Business and guided constructively on the outlook for Structured Business. There were numerous

questions on the continued prudency build implied by the results. Here, management stated that they continue to expect

substantial prudence in 2026 and see no need to tap the reserve resiliency to meet expectations given where pricing

is. Overall, we came away somewhat more relaxed about the outlook for Hanover Re as well.

BNPP View:

- What has driven the decline in Structured: The Structured Business declined in the double digits in Q1, leading

the FX-adjusted decline in insurance revenue at a group level. This was attributed to some reductions in cession

rates amongst large clients, with one in particular the result of industry M&A. Management remains confident that

this decline in cession rates will not be repeated throughout the year and the pipeline for Structured Business

remains solid. As such, the expectation is that Structured volumes can be similar to 2025.

- Structured movement drive the lower retention rates: The retention rate fell in Q1 yoy. Management attributed