DB:HNR1

Stock Analysis Report

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Market Cap

€17.3b

Last Updated

2021/06/20 17:52 UTC

Data Sources

Company Financials +

Executive Summary

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Hannover Rück's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HNR1 is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: HNR1's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

HNR1

0.5%

DE Insurance

-1.4%

DE Market


1 Year Return

-6.4%

HNR1

11.3%

DE Insurance

27.0%

DE Market

Return vs Industry: HNR1 underperformed the German Insurance industry which returned 11.3% over the past year.

Return vs Market: HNR1 underperformed the German Market which returned 27% over the past year.


Shareholder returns

HNR1IndustryMarket
7 Day1.6%0.5%-1.4%
30 Day-0.2%0.5%2.3%
90 Day-7.1%-2.7%4.8%
1 Year-3.6%-6.4%16.0%11.3%31.4%27.0%
3 Year48.5%33.4%43.3%24.8%27.9%17.4%
5 Year85.6%52.8%102.6%62.1%64.7%42.1%

Long-Term Price Volatility Vs. Market

How volatile is Hannover Rück's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hannover Rück undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HNR1 (€144.25) is trading below our estimate of fair value (€298.35)

Significantly Below Fair Value: HNR1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HNR1 is poor value based on its PE Ratio (19.5x) compared to the German Insurance industry average (12x).

PE vs Market: HNR1 is good value based on its PE Ratio (19.5x) compared to the German market (27.1x).


Price to Earnings Growth Ratio

PEG Ratio: HNR1 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: HNR1 is overvalued based on its PB Ratio (1.6x) compared to the DE Insurance industry average (1.1x).


Future Growth

How is Hannover Rück forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNR1's forecast earnings growth (11.9% per year) is above the savings rate (0.01%).

Earnings vs Market: HNR1's earnings (11.9% per year) are forecast to grow slower than the German market (15% per year).

High Growth Earnings: HNR1's earnings are forecast to grow, but not significantly.

Revenue vs Market: HNR1's revenue (2.1% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: HNR1's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HNR1's Return on Equity is forecast to be low in 3 years time (13.1%).


Past Performance

How has Hannover Rück performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNR1 has high quality earnings.

Growing Profit Margin: HNR1's current net profit margins (3.7%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: HNR1's earnings have declined by 1.7% per year over the past 5 years.

Accelerating Growth: HNR1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HNR1 had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the Insurance industry average (8.6%).


Return on Equity

High ROE: HNR1's Return on Equity (7.8%) is considered low.


Financial Health

How is Hannover Rück's financial position?


Financial Position Analysis

Short Term Liabilities: HNR1's short term assets (€22.1B) exceed its short term liabilities (€9.4B).

Long Term Liabilities: HNR1's short term assets (€22.1B) do not cover its long term liabilities (€55.8B).


Debt to Equity History and Analysis

Debt Level: HNR1's debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: HNR1's debt to equity ratio has increased from 19.7% to 34.6% over the past 5 years.

Debt Coverage: HNR1's debt is well covered by operating cash flow (97.1%).

Interest Coverage: HNR1's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Dividend

What is Hannover Rück current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HNR1's dividend (3.13%) is higher than the bottom 25% of dividend payers in the German market (1.01%).

High Dividend: HNR1's dividend (3.13%) is low compared to the top 25% of dividend payers in the German market (3.17%).


Stability and Growth of Payments

Stable Dividend: HNR1's dividends per share have been stable in the past 10 years.

Growing Dividend: HNR1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.1%), HNR1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HNR1's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Jean-Jacques Henchoz (56 yo)

2.08yrs

Tenure

€2,147,000

Compensation

Mr. Jean-Jacques Henchoz is Chairman of the Board at Hannover Re (Ireland) DAC since June 10, 2019. Mr. Henchoz has been Member of Management Board at Talanx AG since April 1, 2019. Mr. Henchoz has been Ch...


CEO Compensation Analysis

Compensation vs Market: Jean-Jacques's total compensation ($USD2.55M) is below average for companies of similar size in the German market ($USD5.04M).

Compensation vs Earnings: Jean-Jacques's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HNR1's management team is seasoned and experienced (8.2 years average tenure).


Board Members

Experienced Board: HNR1's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hannover Rück SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hannover Rück SE
  • Ticker: HNR1
  • Exchange: DB
  • Founded: 1966
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: €17.336b
  • Shares outstanding: 120.60m
  • Website: https://www.hannover-re.com

Number of Employees


Location

  • Hannover Rück SE
  • Karl-Wiechert-Allee 50
  • Hanover
  • Lower Saxony
  • 30625
  • Germany

Listings


Biography

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide. It operates through Property & Casualty Reinsurance, and Life & Health Reinsurance segments. The Prop...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 17:52
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.