E+S Rückversicherung AG, a Hannover Re subsidiary, expects growth in a stable market for its Jan. 1 renewals despite indications of softening in property and casualty reinsurance.
Thorsten Steinmann (pictured above), CEO of E+S Rück, said at the annual reinsurance meeting in Baden-Baden that clients view the company as a reliable partner in challenging markets.
“Thanks to our business model as a pure-play reinsurer, we offer the entire spectrum of reinsurance coverage and are keen to explore innovative reinsurance concepts, including for example structured solutions for capital management,” he said.
Parent company Hannover Re reported a 3.3% rise in gross reinsurance revenue to €13.3 billion for the first half of 2025, driven by 4.8% growth in property and casualty to €9.5 billion amid currency-adjusted increases of up to 6%.
The firm's return on equity reached 23.0% in the same period, exceeding its strategic target, while shareholders' equity stood at €11.1 billion as of June 30, 2025, underscoring balance sheet resilience despite elevated large losses of €976.1 million.
Demand for reinsurance protection increased in the current year, leading E+S Rück to expand its premium volume. Natural catastrophe claims stayed moderate after prior heavy losses, and motor insurance showed recovery, though the sector faces geopolitical risks, climate-driven weather events and claims inflation.
German motor insurance, the largest segment in property and casualty by volume, recovered in 2025 due to corrective measures by primary insurers and below-average natural peril claims. E+S Rück anticipates the sector will record an underwriting profit in 2025 for the first time after two years of losses.
"German motor insurers are well on track to reclaim their profitability. But this does not mean that the journey towards a sustained return to the black is over," Steinmann said.
He noted that claims inflation exceeds general inflation rates, fueled by rising spare parts and workshop costs in motor own damage coverage. In motor liability, costs for major bodily injury claims have increased due to higher treatment and care expenses, requiring further rate adjustments to account for these elevations.
Natural catastrophe claims remained moderate this year after previous heavy losses. E+S Rück stresses the need for prudent underwriting and risk-based pricing regardless of remaining claims in the year, and anticipates continued growth in demand for natural catastrophe covers in 2026, aligning with stable market conditions despite softening trends that could influence broader reinsurance dynamics.
In industrial and commercial property lines, prices have softened. Large fire losses decreased year-over-year, and natural peril claims fell below average, affecting profitability.
The liability market continues under pricing and competitive pressures, particularly in directors and officers insurance. Emerging risks and geopolitical factors increasingly influence risk evaluations.
Specialty lines in marine and aviation face impacts from geopolitical tensions and excess capacity. E+S Rück expects conditions to stay stable, with prices tied to individual client claims and exposures.
Cyber insurance demand has grown amid incidents ranging from minor to major losses. The company foresees increased interest in non-proportional cyber covers.
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