Insurances - Hannover Re aims to significantly increase profit in 2024
Hannover Re, the world's third-largest reinsurer, is targeting a sharp jump in profits for the coming year. The DAX-listed company announced on Tuesday at its Investors' Day in Hannover that net income should reach more than 2.1 billion euros in 2024. The profit target is therefore 24 percent higher than the minimum of 1.7 billion that CEO Jean-Jacques Henchoz has set for 2023. He is even planning more money for possible major claims in the new year.
In the medium term, however, the Group's operating profit (EBIT) is unlikely to increase as much: The Executive Board is now targeting an average annual increase of more than five percent by 2026. The return on equity is expected to average more than 14%. Last year, it was 14.1 percent.
Meanwhile, shareholders can continue to expect high dividends. The basic dividend is set to increase annually from 2024 to 2026. In addition, the Executive Board is still considering special dividends if the Group's capital exceeds the requirements for future business growth.
Announcement
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Hanover Re, being based in Lower Saxony, Germany, intends to see a substantial leap in profits, aiming for net income of over 2.1 billion euros in 2024. This represents a 24% increase from the 1.7 billion euros minimum profit target set for 2023. Despite this ambitious plan, the company expects a more moderate increase in its medium-term operating profit (EBIT), aiming for an average annual rise of more than 5% by 2026.
Given Hannover Re's focus on profit growth, the company's location in Hanover, Germany, and being part of Germany's insurance sector, may contribute to potential opportunities and challenges in the domestic and international insurance markets.
Furthermore, Hanover Re's strong performance in the insurance industry is reflected in its ability to deliver high dividends to shareholders. Over the next three years, from 2024 to 2026, the basic dividend is expected to increase annually. Additionally, the Executive Board is still considering special dividends as a potential additional reward for shareholders, provided that the company's capital exceeds the requirements for future business growth.
Source: www.stern.de
