BofA resumes European reinsurers on 'peak' quality, pricing, multiples

Hannover Rueck SE

02/05/2025 11:54

** BofA Global Research analysts reinstate coverage of major players in Europe's reinsurance sector on "attractive fundamentals" playing well with "premium valuations"

** BofA rates SCOR SCOR.PA "buy", citing "depressed valuation with substantial upside" and expecting earnings and capital returns recovery

** The analysts rate the fairly-valued "soft-market winner" Hannover Re HNRGn.DE "neutral", and give the same rating to Swiss Re SRENH.S, citing its ability to build premium in domestic market

** BofA rates Munich Re MUVGn.DE "underperform", as the valuation reflects its being the highest quality name in the space

** "Reinsurers entered 2025 in a position of strength, with excessively capitalised balance sheets and stable earnings, and dividend momentum" BofA says, estimating RoE at around 18%

 (Reporting by Mateusz Rabiega)

 ((Mateusz.rabiega@thomsonreuters.com))