Hannover Re Signals Stability in Global Reinsurance Market

E+S Rückversicherung AG, the German subsidiary of the Hannover Re Group, has expressed a cautiously optimistic outlook for the 2026 financial year. While early signs indicate a slight softening in the Property & Casualty (P&C) reinsurance market, the firm anticipates overall stable growth and expects a balanced environment for policies renewing from 1 January onwards.

Speaking at this year’s reinsurance conference in Baden-Baden, Thorsten Steinmann, CEO of E+S Rück, stated, “Even in challenging market conditions, our clients can rely on us. Our robust, long-term relationships and strong capital base pave the way for profitable growth. As a leading reinsurer, we continue to provide comprehensive coverage and remain committed to developing innovative solutions, particularly in structured instruments that support efficient capital management.”

The company achieved a significant increase in premium income in 2025, underpinned by a continued demand for high-quality reinsurance coverage. Losses from natural catastrophes remained moderate, while the motor insurance sector, which faced substantial setbacks in the previous year, showed remarkable recovery. Nevertheless, German insurers operate in a complex environment influenced by geopolitical volatility, climate-driven extreme weather events, and claims inflation. For E+S Rück, accurate risk reflection through premium setting, policy terms, and related measures remains critical to ensuring long-term market stability.

The German motor insurance sector, the largest within P&C, has demonstrated notable resilience. Steinmann noted, “Motor insurers are regaining profitability, yet challenges persist. Rising costs of parts and workshop services, coupled with higher medical expenses for severely injured claimants, have contributed to claims inflation. Targeted premium adjustments are therefore essential.”

Coverage for natural catastrophes, industrial and commercial assets, liability—including Directors & Officers (D&O) insurance—and specialist lines such as marine and aviation remain closely linked to prevailing market risk conditions. Meanwhile, demand for cyber insurance is gradually increasing, particularly for non-proportional coverage.

In collaboration with Hannover Re, E+S Rück continues to deliver bespoke, innovative structured solutions encompassing capital optimisation, income volatility management, facultative coverage for individual risks, and insurance-linked securities (ILS). Drawing on decades of experience, the Hannover Re Group maintains leadership across all lines, ensuring stability and innovation for clients worldwide.