Hannover Re Shares Fall on New Guidance


By Ed Frankl

Hannover Re shares fell on Wednesday after it published new guidance for 2023 that lagged expectations.

Shares at 0830 GMT were down 3.8% to EUR179.05.

The German reinsurer said net profit would increase in 2023 to at least 1.7 billion euros ($1.85 billion), based on what it said was a continued favorable market.

But the guidance is around 11% below consensus, according to analysts at Jefferies in a note, although that could be down to the company’s customary prudence, they wrote.

Hannover Re said it would also beef up its major-loss budget for 2023 to EUR1.725 billion from EUR1.4 billion in 2022, on the expectation of higher loss expectations from natural catastrophes.

The DAX-listed company also said Wednesday that its net profit in 2022 was EUR1.41 billion, in line with prior guidance to be at the lower end of a EUR1.4 billion-EUR1.5 billion range.

It came as its property-and-casualty business was hampered by high claims, although its life-and-health operations came in above expectations, Hannover Re said.

The 2022 and 2023 results aren’t directly comparable, the company cautioned, as insurers switch to new IFRS regulations this year.

Despite the share-price fall in Wednesday trading, the stock is up almost 30% in the past six months.

Reinsurance peers Munich Re, Swiss Re and Scor also fell in Wednesday trading, down 2.1%, 1.3% and 1.8% respectively.

Write to Ed Frankl at edward.frankl@dowjones.com

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