Hanover Rück will pay around 55 percent of the net profit according to IFRS as a dividend.
The board of directors of the reinsurer decided to adapt a corresponding adjustment of the dividend policy based on “very good capitalization”, as the company said. It should be used from the current financial year. Part of the future dividend policy is also to release at least one dividend per share at the previous year’s level and increase it in the long term.
In the future, there will only be special dividends paid in exceptional situations. Investors had received a total distribution rate of 46 percent for the past financial year.
Hanover is more money on shareholders and competitions
The announced increase in the distribution rate to the shareholders of the Hanover Rück catapulted the reinsurers’ papers under the peak values in the almost unchanged DAX on Monday. Other insurers also benefited from the reiners’ statements.
Together with the Hanover shares, the Munich Re took one of the top places in the German leading index each with 1.9 percent. For the Hanover Rück, it went up to EUR 261.70, for Munich Re to 562.20 euros. Only BMW increased a little stronger at plus 2.0 percent.
Talanx as the parent company of Hanover Rück won 2.2 percent in the MDAX to 113.10 euros. For the DAX company Allianz, on the other hand, it was only slightly up to EUR 362.40 with a plus 0.3 percent.
In Switzerland, Swiss Re benefits from the news with a surcharge of 1.8 percent to CHF 149.75, while the shares of Zurich Insurance rose by 1.0 percent to CHF 573.90.
As the Hanover Rück announced on Sunday evening, she wants to distribute more of her profit as a regular dividend in the future. Instead of 46 percent of the net gain (total dividend 2024), it should now be around 55 percent regularly. At the same time, the usual special dividend release should become part of the regular dividend.
The announced innovation opened as a whole into a higher distribution and is therefore a positive step, Analyst wants to judge Hardcastle from the major Swiss bank UBS. On the one hand, he expects more security for shareholders. On the other hand, the average analysis estimates (consensus estimates) are likely to increase significantly, he wrote.
RBC expert Mandeep Jagpal, for example, expects an eleven percent increasing consensus estimate for 2025. In addition, the dividend yield of the Hanover Rück will exceed that of the competitor Munich Re and reach the level of Swiss Re.
RBC leaves Hanover back on ‘Outperform’ – destination 295 euros
The Canadian Bank RBC left Hanover back to “Outperform” with a price target of 295 euros. The consensus estimate for 2025 increased by 11 percent that the reinsurer has raised the regular distribution ratio and did not want to pay any regular special dividends. This increases the dividend yield via that of competitor Munich Re and reach the level of Swiss Re.
UBS leaves Hanover back on ‘Buy’ – destination 280 euros
The major Swiss bank UBS left Hanover back to “Buy” with a price target of 280 euros. The revised dividend policy of the dismissal coating in a higher distribution and is a positive step, Hardcastle wrote in a first reaction on Monday. This should not only increase the consensus estimate by more than 10 percent – the change also ensures more security.
Dow Jones / DPA-AfX Broker / Frankfurt (dpa-Afx)
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