Hannover Re Stock Drops After 48% Profit Jump as Price Pressure Bites
Shares in Hannover Re slipped on Monday, down 2.25% to 239.10 euros by mid-afternoon, MarketScreener data showed, despite a 48% surge in first-quarter earnings. Investors shrugged off a quarter with fewer claims, zeroing in instead on the subdued pricing environment in property-and-casualty reinsurance. Pricing power is under strain. In its April treaty renewals—where insurers secure protection for blocks of risk—Hannover Re reported a 3.6% drop in risk-adjusted prices. Swiss Re, the bigger player, logged price declines in those same April renewals, driving home that this squeeze extends beyond Hannover Re.