German reinsurers shares slip, wildfires hit profit

Hannover Rueck SE

13/05/2025 08:28

** Shares in Germany's reinsurers Munich Re MUVGn.DE and Hannover Re HNRGn.DE slip 3-4% after the firms reported a hit to their first-quarter profit due to claims stemming from Los Angeles wildfires

** Analysts at Jefferies say in a note that at a group level, results at Munich Re are broadly in line with consensus

** "However, this result belies a substantial +30% beat in L&H Re and an equally material -20% miss in P&C Re," they note

** On Hannover Re, the brokerage says that the disappointment on the revenue miss was offset by investment income, which drove operating profit to a +6% beat

** "Not a particularly pretty set of numbers, but we continue to have faith in the name to deliver due to the balance sheet strength (reserve surplus and Solvency II ratio) and conservatism built into guidance," - J.P. Morgan on Hannover Re

** Germany's largest reinsurers reported a fall in Q1 profit after a combined 1.7 billion euros ($1.89 billion) in claims relating to the Los Angeles wildfires this year.

($1 = 0.9003 euros)

(Reporting by Paolo Laudani)

((Paolo.laudani@thomsonreuters.com))