In its new strategy cycle through to 2026, reinsurance giant Hannover Re has asserted it aims to showcase “industry-leading performance” in terms of profitability and earnings growth, alongside maintaining its “lasting stability and resilience.”
As per Hannover Re, this new strategy is guided by three main beacons; Focus, Grow and Accelerate.
The firm also noted that it intends to remain true to its “somewhat different” approach, the basis of which is a “lean and capital-efficient business model with an unchanged clear focus on reinsurance.”
Outlining the particulars of the Grow beacon, Hannover Re said that expanding profitably and achieving outperforming underwriting portfolios continue to be essential.
“We will achieve this by enabling our clients to grow and succeed, by enhancing our cycle management and portfolio steering, and through innovation and leadership in promising areas such as tailored solutions, longevity and insurance-linked securities,” the firm explained.
Sven Althoff, Board Member, Property & Casualty, added, “To us, profitability always comes first. This being said, we see a number of growth opportunities and are well equipped to continue on our path of healthy growth over the next years.”
Touching on the Focus beacon, the reinsurer observed that it has re-confirmed its core strengths, which has kept it on a successful path, “namely being a pure-play reinsurer and the preferred business partner, building on our lean and capital-efficient operating model.”
Silke Sehm, Board Member, Property & Casualty, said, “Being ‘somewhat different’ runs in our DNA and has been a key feature of our strategic approach. It has greatly contributed to our success. The beacon ‘Focus’ in our group strategy emphasises and demonstrates/manifests our core strengths.”
Speaking on the Acceleration beacon, Hannover Re outlined that this entails its response to the opportunities and challenges associated with rapid technological and social change.
“To enable global industry leadership, we will think ahead and prioritise investments into further expanding our data and analytics capabilities, driving operational efficiency and automation and developing our people,” the firm said.
Claude Chèvre, Board Member, Life & Health, continued, “We strive for resilience from two perspectives: social and technological. Our beacon ‘Accelerate’ summarises the strategic step changes we plan to make in the course of this strategy cycle.”
Concluding, Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re, commented, “The new strategy cycle puts the focus squarely on what Hannover Re stands for: we are pragmatic, client-centric and have a business model geared to the utmost efficiency. Our financial ambition thus builds on our robust foundation to ensure Hannover Re’s lasting stability and resilience.
“We shall actively engage with the major trends affecting our business, the increasing global competition for talent, digitalisation and not least climate change, and develop tangible solutions to tackle our clients’ current and future challenges.”
In related news, earlier today, Hannover Re revealed it is anticipating a net income of at least €2.1 billion for 2024 and a combined ratio of below 89% in its property and casualty reinsurance business in the period.
