E+S Rück expects demand for high-quality reinsurance protection to remain strong in the German market

Hannover Rück SE / Key word(s): Miscellaneous


19.10.2026 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Risks are increasing despite moderate catastrophe loss expenditure of late Motor insurance is stabilising, earnings pressure from claims inflation persists Competition intensifying in industrial property lines Insurance-linked securities (ILS) open up additional capital market capacity Market environment expected to remain stable overall, with growing capacities and increasing competition Baden-Baden, 19 October 2026: E+S Rückversicherung AG, the Hannover Re subsidiary responsible for the German property and casualty reinsurance business, anticipates further strong demand in the upcoming rounds of renewals. The underlying risks continue to increase despite moderate catastrophe loss expenditure in recent years. At the same time, competition is intensifying in certain market segments. "The moderate catastrophe losses of the past few years should not obscure what remains a demanding and highly uncertain risk landscape. Natural perils, inflation, cyber risks and geopolitical instabilities are adding to the potential for losses and confronting insurers and reinsurers alike with increasingly complex challenges," said Thorsten Steinmann, Chief Executive Officer of E+S Rück and the member of Hannover Re's Executive Board responsible for property and casualty reinsurance in Continental Europe, Latin America and North Africa. "At the same time, many primary insurers have significantly strengthened their earnings and capital position. This builds stability and establishes a good foundation for the upcoming renewals. With certain segments becoming increasingly competitive, we continue to view a disciplined underwriting policy as well as risk-adequate prices and conditions as essential for ensuring the long-term availability and viability of reinsurance protection." Inflation and costs continue to rise, most strikingly in property and casualty insurance. At the same time, new and more complex risk areas – including for example in cyber business – are putting increasing demands on risk management. Added to this are emerging opportunities and potential risks due to advancing digitalisation and the growing use of artificial intelligence, the implications of which for liability, cyber and operational risks cannot yet be definitively quantified. The impacts of these developments on specific areas of business vary across individual market segments. "We are seeing a market that is well placed overall. Some clients are using their improved earnings position to deploy reinsurance selectively," said Steinmann. "It is particularly in this environment that reinsurance remains a key tool for reducing volatility, enabling growth and securing financial stability. We work together with our clients to develop sustainable solutions that meet these needs and offer planning reliability across the entire cycle." German motor insurance, the largest line of property and casualty insurance by volume, has broadly stabilised. The tariff adjustments made in recent years are having an effect. Technical results have moved marginally back into positive territory and profitability is improving appreciably. In E+S Rück's view, however, the trend remains fragile. Costs for spare parts and repairs continue to clearly outpace the general rate of inflation and therefore remain the most significant drivers of claims inflation in the motor market.  In natural catastrophe business, E+S Rück has observed that many customers' programmes are now adequately priced to reflect the risks. At the same time, additional capacity is leading to more intense competition and adding to the pressure on prices and conditions. The recent increased expenditures caused by hail events in Switzerland, southern Germany, northern Italy and the neighbouring Alpine regions show that the underlying risks remain high. In the upcoming renewals, therefore, the individual claims experience, the quality of the programmes as well as risk-appropriate prices and conditions will continue to be decisive factors for E+S Rück. In industrial and commercial lines, following good results of late, additional capacities – most notably in industrial fire business – are leading to more intense competition. From the perspective of E+S Rück, prices and conditions in some segments of industrial insurance are consequently coming under pressure. The specialty lines of marine and aviation are feeling the effects of geopolitical uncertainties, the claims experience globally and an excess supply of capacity. Based on E+S Rück's observations, treaty conditions are holding stable. E+S Rück considers the individual client's portfolio quality and business performance to be crucial for risk-adequate pricing, with the company maintaining its focus on profitability and holistic client relationships. In cyber insurance, economic dependence on digital infrastructure and IT systems is currently growing faster than the capacities made available to cover such risks. At the same time, we are seeing the results reported by many market players coming under pressure from fierce competition and the higher cost of capital. Catastrophe bonds and other capital market solutions open up additional capacity Given the increasing risks associated with natural disasters, the impacts of climate change, rising value concentrations and persistent widespread protection gaps in many areas, alternative risk transfer solutions continue to gain in importance. Insurance-linked securities (ILS) complement traditional reinsurance by providing additional capital market capacity. In cooperation with Hannover Re, E+S Rück offers its clients access to ILS solutions. 
  Hannover Re is one of the world's leading reinsurers. We transact all lines of property & casualty and life & health reinsurance and are present worldwide with around 4,000 staff. Property and casualty reinsurance in Germany is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück very good financial strength ratings: Standard & Poor’s AA- "Very Strong" and A.M. Best A+ "Superior". This press information is provided without any guarantee whatsoever. Please find further important information in this regard here. Media Relations:
Oliver Suess
tel. [phone]
[e-mail]   Verena Lilge
tel. [phone]
[e-mail] Investor Relations:
Karl Steinle
tel. [phone]
[e-mail] Axel Bock
tel. [phone]
[e-mail] www.hannover-re.com 

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Language:	English
Company:	Hannover Rück SE
	Karl-Wiechert-Allee 50
	30625 Hannover
	Germany
Phone:	[phone]
Internet:	www.hannover-re.com
ISIN:	DE0008402215
WKN:	840 221
Indices:	DAX
Listed:	Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate BSX; Luxembourg Stock Exchange
LEI Code:	529900KIN5BE45V5KB18
EQS News ID:	2416684

End of News	EQS News Service

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2416684  19.10.2026 CET/CEST