Hannover Re Expects Strong Demand for Reinsurance into 2025

Hannover Re anticipates strong demand for reinsurance protection in 2025, with stable pricing and conditions for property and casualty treaty renewals. The company foresees a balanced supply and demand across most markets, with slight rate reductions in some primary insurance areas. Inflation and extreme weather events will continue to challenge natural catastrophe reinsurance. 

During the 2024 renewals, prices and conditions improved or stabilized, allowing Hannover Re to expand its portfolio with both long-standing clients and new business. Nonproportional reinsurance remains a focus as price levels remain stable. 

"We want to grow with our clients and continue to offer them the best possible coverage and capacity. Insured losses are still trending higher," said Jean-Jacques Henchoz, CEO of Hannover Re. "Reliable reinsurance protection is indispensable." 

The reinsurer has focused on emerging risks and developed innovative coverage, such as the world's first cloud outage catastrophe bond. "While there is still a need for action on cyber risks, climate change remains one of the greatest challenges," said Sven Althoff, a member of the company's executive board. 

Hannover Re anticipates varying trends in key markets. 

• Europe. After a quieter year for natural disasters, prices in Europe have stabilized. However, extreme weather events and inflation remain concerns, particularly in Germany, where car insurance remains unprofitable. 
• North America. Short-tail lines have settled at adequate levels, with property business benefiting from higher premiums. Social inflation and litigation funding continue to challenge profitability in liability lines. 
• Latin America. The region saw significant losses in 2023 due to Hurricane Otis and floods in Brazil, leading to stronger demand for reinsurance. 
• Asia-Pacific. In China and India, natural catastrophe events are increasing, while Southeast Asia and Japan continue to see strong partnerships with Hannover Re.