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Hannover Rück SE (HNR1) Fair Value & Analysis

Financial Services · DE · Market cap €30.7B · ISIN DE0008402215

What is Hannover Rück SE really worth?

HR Hannover Rück SE HNR1 · XETRA
Price€260.60
Fair Value€216.20
Upside−17.0%
Quality60/100

A solid business, but trading 21% above our fair value of €216.20.

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Strengths

Solidly profitable · 11.8% net margin
Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +3.0 %/yr)
!Trails peers (4/15)
!Moderate moat 57/100
!Weak on valuation: 11 out of 100

For context

·4.80% dividend yield
Evidence: High Range €162.15 – €270.25

Fair value as of: Sep 1, 2026

From 6 valuation models · updated 4 days ago

Share price +4.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

€270.56 €113.73 Fair Value €216.20 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range €113.73 – €270.56 · fair‑value band €162.15 – €270.25 · the €260.60 price screens above the €216.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Hannover Rück SE (HNR1) currently trades at €260.60, while our model-based Fair Value estimate is €216.20, implying the stock looks roughly 20.5% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Financial Services sector. Bull case: the Economic Profit group reads highest at a median of €186.64 per share, and 1 of the 6 models we run sit above the €260.60 price. Bear case: the Asset-Based group reads lowest at €71.83, and 5 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hannover Rück SE generated revenue of €24.3B at a net margin of 11.8%. Revenue declined 22.8% year over year. It earns a return on equity of 21.7%. Net debt stands at €3.1B. Fundamentals as of Sep 1, 2026

Our scenario range runs from €162.15 (bear case) to €270.25 (bull case); at €260.60, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 17% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 55% fair-value upside, at −17%, HNR1 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €7.66 per share, which is 3.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM €85.39 €177.54 €281.64 64
DDM Multi-Stage €85.39 €149.70 €186.33 64
P/E Multiple €213.44 €284.58 €355.73 63
All 6 models by family
Dividend Discount
Gordon GGM €85.39 €177.54 €281.64 64
DDM Multi-Stage €85.39 €149.70 €186.33 64
Multiples
P/E Multiple €213.44 €284.58 €355.73 63
P/B Multiple €112.57 €150.09 €187.61 55
Asset-Based
NCAV (Graham) €53.60 €71.83 €107.21 54
Economic Profit
Residual Income €144.19 €186.64 €726.28 61

Widest divergence: Economic Profit (€186.64) versus Asset-Based (€71.83). Highest evidence: Gordon GGM (64).

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Key figures & financial health

P/E ratio 10.9
P/S ratio 1.08 P/E × margin
EPS (TTM) €23.81 price ÷ EPS = P/E 10.9
Dividend yield 4.8% payout 52.5%
Net margin 9.9% FY2025
Return on equity 21.7% TTM
More key figures
Profitability
Return on assets (EBIT) 9.8% avg 5y
Operating margin 9.9% TTM
Growth
Revenue (TTM) €24.3B TTM
Revenue growth (YoY) −22.8% 3y avg +168%
EPS growth (YoY) +48.0%
Balance sheet & cash flow
Free cash flow €5.7B FY2025
Net debt €3.1B FY2025 · ≈ 0.5 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 50 · Market factors (momentum, volatility) 69

Profitability 49
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 5
Balance sheet, leverage, solvency risk
Investment 39
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments.

Full company description

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments. The company provides property and casualty reinsurance solutions for agricultural, livestock, and bloodstock; aviation and space; natural catastrophe; credit, surety, and political risks; cyber; digital; marine and upstream energy; natural catastrophes; advanced and facultative business, insurance-linked securities and structured reinsurance; and parametric solutions. It also offers risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, the company offers group life, retirement, lifestyle, credit life, and Takaful reinsurance products. Further, the company provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and reinsurance and solvency II businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. Hannover Rück SE was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE operates as a subsidiary of Talanx AG.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hannover Rück SE reported revenue of €26.8B in FY2025 versus €26.3B in FY2021, a compound +0.5%/yr. Reported net income was €2.6B in FY2025, compounding +21.0%/yr from FY2021.

Growth Quality 60/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€26.8B
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+21.3% (16.5 + 4.8)
Revenue +0.5%/yr
FY21 €26.3B
FY22 €1.4B
FY23 €22.0B
FY24 €2.7B
FY25 €26.8B
Net income +21.0%/yr
FY21 €1.2B
FY22 €781M
FY23 €1.8B
FY24 €2.3B
FY25 €2.6B
Character of growth · EPS growth decomposed (2013-2024) +5.6 % p.a.
Revenue per share −5.7 %

of which total revenue −5.7 % · buybacks/dilution +0.0 %

EBIT margin +11.2 %
Tax rate +0.2 %
Residual (interest, one-offs) +0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

HNR1 screens 21% overvalued. Compare with MUV2 →

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Cite: Fair Value Calculator (2026). "Hannover Rück SE Fair Value". https://www.fairvalue-calculator.com/stock/HNR1

Peer Group

Insurance - Reinsurance · 29 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside −17% · Bottom 25%
Return on equity (TTM) 22% · Top 25%
Return on assets 4% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 10% · Below median
Revenue growth −23% · Bottom 25%
Dividend yield (TTM) 4.8% · Above median
Debt / equity 0.31× · Higher than median

Valuation Multiples vs Insurance - Reinsurance median · lower = cheaper

P/E (TTM) 10.9× · Pricier than 75% of peers
P/B 2.75× · Pricier than 75% of peers
P/S (TTM) 1.47× · Pricier than 75% of peers
P/FCF 6.3× · Pricier than median
EV/EBITDA 7.8× · Pricier than median
PEG 4.68× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE11 · sector 70
FUTURE0 · sector 0
PAST87 · sector 55
HEALTH84 · sector 89
DIVIDEND96 · sector 85

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Insurance - Reinsurance stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
MUV2 MUV2 €518.00 €460.14 −11%
Swiss Re AG SREN CHF 141.15 CHF 137.55 −3%
Reinsurance Group RGA $246.02 $261.04 +6%
Everest Group EG $370.06 $507.47 +37%
RenaissanceRe Holdings RNR $330.41 $563.91 +71%
SCOR SE SDRC €34.14 €66.75 +96%
General Insurance Corporation GICRE ₹355.85 ₹594.47 +67%
China Reinsurance (Group) Corporation 1508 HK$1.22 HK$2.43 +100%
Hamilton Insurance Group HG $35.35 $54.04 +53%
SiriusPoint Ltd SPNT $23.98 $37.12 +55%

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Frequently asked questions

Is Hannover Rück SE (HNR1) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of €216.20 versus a price of €260.60, about −17% upside (overvalued).
What is the fair value of HNR1?
Our model-based fair value for Hannover Rück SE is €216.20 (as of Sep 1, 2026), built from audited fundamentals. The current price: €260.60.
What is the quality score of HNR1?
Hannover Rück SE has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hannover Rück SE (HNR1)?
Hannover Rück SE reported trailing-twelve-month revenue of about €24.3B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of HNR1?
The net profit margin of Hannover Rück SE is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Hannover Rück SE pay a dividend?
Hannover Rück SE currently shows a dividend yield of about 4.80% relative to its recent price (as of Sep 1, 2026).
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