Hannover Re Forecasts Up as Berenberg Notes Q2 Results; Buy Rating Kept

05:56 AM EDT, 08/13/2026 (MT Newswires) -- Berenberg raised its Hannover Re (HNR1.F) estimates following the German reinsurance company's second-quarter results. "With the mid-year renewals, Hannover Re renewed almost its entire portfolio that is up for renewal this year, achieving a 7.2% premium growth with a price decline of 3.9%, implying strong volume growth. Pricing pressure at the mid-year renewals was concentrated in property catastrophe and marine, both areas grappling with capital oversupply, with terms and conditions remaining broadly stable," analysts said Thursday. The research firm also took note of the 82.8% combined ratio for the quarter, saying it "understates the division's profitability" amid resiliency reserve and Middle East-related provisions. Berenberg expects a combined ratio of 83% for 2026, 85% for 2027, and 86% for 2028. "Hannover Re remains well placed to navigate the softening reinsurance market conditions and deliver growing earnings and dividends, in our view. Disciplined volume growth, underpinned by a cost edge, softens the pricing impact in the near term, while its resiliency reserve can provide earnings support, helping the company to weather the cycle, in our view," Berenberg wrote. As such, the research firm raised its net income and adjusted operating EPS expectations for 2026 through 2028, with the stock's buy rating and price target of 330 euros maintained.