Hannover Re generated group net income of €2.6 billion (about $3.6 billion) in 2025, growing its premium volume despite a highly competitive market and achieving its earnings target — raised in the fourth quarter of 2025.

The firm increased the premium income in traditional property and casualty reinsurance by 3.3 per cent in the treaty renewals as of January 1.

“With the quality of the renewed business still good overall, an average risk-adjusted price decline of 3.2 per cent was recorded,” Hannover Re said in a press release today.

Chief executive Clemens Jungsthöfel attributed the firm’s strong market position to longstanding, partnership-focused client relationships as well as cost advantages.

“We were able to partially offset more significant price reductions in certain lines within our overall portfolio thanks to our broad positioning,” he said.

The executive said in areas where business was profitable, they were able to add to their market shares.

“The quality of our written portfolio remains on a good level overall,” he said.

Treaties with a premium volume of €10.196 billion were up for renewal.

Hannover said this corresponded to 61 per cent of business in traditional property and casualty reinsurance, excluding facultative reinsurance, ILS business and structured reinsurance.

Hannover Re renewed treaties with a volume of €9.369 billion, while treaties worth €827 million were cancelled. Together with €1.165 billion from new and restructured treaties and from changes in prices and treaty shares, the total renewed premium volume grew by 3.3 per cent to €10.535 billion.

“While treaty terms and conditions remained largely stable, price declines were more pronounced than anticipated — especially in highly competitive lines and for contracts with a moderate loss experience,” said Sven Althoff, a member of Hannover Re’s executive board with responsibility for property and casualty reinsurance.

He said the price was nevertheless above the multiyear average and remained commensurate with the risks.