Company Announcements

E+S Rück anticipates a stable market environment in Germany for 2026 and continued growth in demand for reinsurance protection

• E+S Rück is the reliable partner and reinsurer for the German market within the Hannover Re Group
• Continued growth in demand for reinsurance protection, especially for natural catastrophe covers
• Motor insurance line recovering after tariff measures implemented by primary insurers and low expenditures to date for natural perils claims in 2025
• Property line in industrial business sees softening price trend
• Current environment shaped by consolidation and stable claims experience

Baden-Baden, 20 October 2025: E+S Rückversicherung AG, the Hannover Re subsidiary responsible for the Group's German business, is looking ahead with optimism to the coming 2026 financial year. Despite emerging signs of a softening market environment in property and casualty reinsurance, the company anticipates continued growth overall in a stable market environment for its upcoming 1 January renewals.

"Our clients know: We are always at their side as a reliable and consistent partner – even when the market environment is challenging," said Thorsten Steinmann, Chief Executive Officer of E+S Rück, at this year's reinsurance meeting in Baden-Baden. "Our strong and enduring business relationships coupled with our robust capital base will enable us to generate further profitable growth – together with our clients. Thanks to our business model as a pure-play reinsurer, we offer the entire spectrum of reinsurance coverage and are keen to explore innovative reinsurance concepts, including for example structured solutions for capital management."

Demand for high-quality reinsurance protection has continued to grow in the current financial year, enabling E+S Rück to further expand its premium volume. After the heavy losses recorded in previous years, expenditures due to natural catastrophes have so far remained moderate, while motor insurance has similarly enjoyed a significant recovery. At the same time, German insurers still find themselves facing a complex environment. Geopolitical uncertainties, extreme weather events caused by climate change and claims inflation continue to create challenges for the insurance sector. Against this backdrop, it remains crucial for E+S Rück that prices as well as terms and conditions adequately reflect the risks in order to offer stable reinsurance protection over the long term.

German motor insurance, the largest line of property and casualty insurance by volume, has enjoyed a significant recovery in 2025 following successful remedial actions taken by primary insurers and thanks to lower-than-average expenditures to date on natural perils claims. After two years of heavy losses, E+S Rück expects to see the sector post an underwriting profit again for the first time in 2025.

"German motor insurers are well on track to reclaim their profitability. But this does not mean that the journey towards a sustained return to the black is over," said Thorsten Steinmann. "Claims inflation is still clearly outpacing the general rate of inflation, notably driven by further increases in spare parts and workshop costs in motor own damage business. On the motor liability side, expenditures associated with major bodily injury claims are rising, in part due to higher treatment and care costs. Against this backdrop, further targeted rate increases are necessary in motor business because insurers must price in these higher costs."

After the heavy losses incurred in previous years, claims expenditures in natural catastrophe business have been moderate to date. Prudent underwriting and risk-adequate prices nevertheless remain indispensable – irrespective of the claims experience over the remainder of the financial year. Looking ahead to the coming year, E+S Rück expects its business to see a continued increase in demand overall for natural catastrophe covers.

In industrial and commercial business, a softening price trend can be observed in the property line. The number of large fire losses is down year-on-year, while claims expenditure due to natural perils is significantly below average – with positive implications for profitability. In the liability line, the market remains challenging: business is shaped by considerable pricing and competitive pressure, especially in directors and officers (D&O) insurance. In addition, emerging risks and geopolitical uncertainties are increasingly becoming a focus of attention for risk assessment.

The specialty lines of marine and aviation are currently feeling the effects of geopolitical events and tensions combined with existing surplus capacity. Conditions are therefore expected to remain broadly unchanged, while prices will reflect individual customer claims experiences and exposures. The importance of cyber insurance has been repeatedly demonstrated by both more modest incidents and sizeable individual losses. E+S Rück expects to see growing demand in cyber business, especially for non-proportional covers.

Innovative solutions complement the traditional range of reinsurance products

Along with the traditional solutions typically associated with property and casualty reinsurance, E+S Rück together with its parent Hannover Re offers its clients a broad range of additional protection options. Structured reinsurance provides tailored solutions designed to meet clients' particular needs – whether for capital optimisation or the management of earnings volatility. Furthermore, in its facultative business E+S Rück delivers specialised solutions for individual risks. Complementing these capabilities, the company offers coverage concepts geared towards the capital market in the insurance-linked securities (ILS) sector. In all three segments, the Hannover Re Group is equipped with many years of experience and enjoys a leading market position.
 

Hannover Re is one of the world’s leading reinsurers. It transacts all lines of property & casualty and life & health reinsurance and is present worldwide with around 4,000 staff. German business of the Hannover Re Group is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. 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".

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Contact

External Communications:
Oliver Suess
Tel. +49 511 5604-1502
oliver.suess@hannover-re.com

Verena Lilge
Tel. +49 511 5604-0101
verena.lilge@hannover-re.com

Investor Relations:
Karl Steinle
Tel. +49 511 5604-1500
karl.steinle@hannover-re.com

Axel Bock
Tel. +49 511 5604-1736
axel.bock@hannover-re.com

www.hannover-re.com