DB:HNRB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record second-rate dividend payer.


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


Market Performance


7 Day Return

1.3%

HNRB

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

28.9%

HNRB

22.0%

DE Insurance

3.7%

DE Market

Return vs Industry: HNRB exceeded the German Insurance industry which returned 22% over the past year.

Return vs Market: HNRB exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

HNRBIndustryMarket
7 Day1.3%2.9%1.4%
30 Day4.7%4.4%1.8%
90 Day9.1%3.4%3.4%
1 Year32.8%28.9%27.3%22.0%7.0%3.7%
3 Year75.6%59.8%70.6%50.0%18.5%8.3%
5 Year188.5%144.7%119.6%75.9%42.2%22.9%

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?

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HNRB (€78) is trading below our estimate of fair value (€109.3)

Significantly Undervalued: HNRB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HNRB is poor value based on its PE Ratio (16.3x) compared to the Insurance industry average (13.4x).

PE vs Market: HNRB is good value based on its PE Ratio (16.3x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: HNRB is poor value based on its PEG Ratio (8.5x)


Price to Book Ratio

PB vs Industry: HNRB is overvalued based on its PB Ratio (2x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Hannover Rück forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNRB's forecast earnings growth (1.9% per year) is above the savings rate (0.2%).

Earnings vs Market: HNRB's earnings (1.9% per year) are forecast to grow slower than the German market (12.6% per year).

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

Revenue vs Market: HNRB's revenue (4.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HNRB's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HNRB's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Hannover Rück performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HNRB's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: HNRB's earnings growth over the past year (19.2%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: HNRB earnings growth over the past year (19.2%) exceeded the Insurance industry 15.2%.


Return on Equity

High ROE: HNRB's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: HNRB has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: HNRB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hannover Rück's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HNRB has a low level of unsold assets or inventory.

Debt Coverage by Assets: HNRB's debt is covered by short term assets (assets are 8.650570x debt).


Financial Institutions Analysis

Asset Level: HNRB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HNRB has a sufficient allowance for bad loans.

Low Risk Liabilities: HNRB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HNRB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HNRB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HNRB has an appropriate level of bad loans.


Next Steps

Dividend

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

3.32%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HNRB's dividend (3.32%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: HNRB's dividend (3.32%) is low compared to the top 25% of dividend payers in the German market (3.8%).

Stable Dividend: Whilst dividend payments have been stable, HNRB has been paying a dividend for less than 10 years.

Growing Dividend: HNRB's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), HNRB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HNRB's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

What is the CEO of Hannover Rück's salary, the management and board of directors tenure and is there insider trading?

8.5yrs

Average management tenure


CEO

Jean-Jacques Henchoz (55yo)

0.4yrs

Tenure

0

Mr. Jean-Jacques Henchoz has been Member of Management Board at Talanx AG since April 1, 2019. Mr. Henchoz has been Chief Executive Officer of Hannover Rück SE since May 8, 2019 and has been its Member of  ...


Management Age and Tenure

8.5yrs

Average Tenure

55yo

Average Age

Experienced Management: HNRB's management team is seasoned and experienced (8.5 years average tenure).


Board Age and Tenure

1.4yrs

Average Tenure

60yo

Average Age

Experienced Board: HNRB's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Michael Pickel (59yo)

    Member of the Executive Board

    • Tenure: 19.8yrs
    • Compensation: €1.30m
  • Roland Vogel (60yo)

    CFO & Member of the Executive Board

    • Tenure: 10.5yrs
    • Compensation: €1.25m
  • Karl Steinle

    Head of Corporate Communications

    • Tenure: 9.9yrs
  • Jean-Jacques Henchoz (55yo)

    CEO & Chairman of the Executive Board

    • Tenure: 0.4yrs
  • Klaus Miller (59yo)

    Member of the Executive Board

    • Tenure: 9.1yrs
    • Compensation: €1.03m
  • Claude Chèvre (52yo)

    Member of the Executive Board

    • Tenure: 7.9yrs
    • Compensation: €1.13m
  • Sven Althoff (50yo)

    Member of the Executive Board

    • Tenure: 5.2yrs
    • Compensation: €968.10k
  • Derek Spafford

    Head of Canadian Branch

    • Tenure: 0yrs
  • Julia Hartmann

    Senior IR Manager- Corporate Communications

    • Tenure: 0yrs
  • Silke Sehm (50yo)

    Member of Executive Board

    • Tenure: 0.6yrs

Board Members

  • Erhard Schipporeit (70yo)

    Member of the Supervisory Board

    • Tenure: 12.4yrs
    • Compensation: €80.20k
  • Herbert Haas (65yo)

    Member of the Supervisory Board

    • Tenure: 17.8yrs
    • Compensation: €283.50k
  • Frauke Heitmüller (51yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €66.00k
  • Torsten Leue (53yo)

    Chairman of Supervisory Board

    • Tenure: 0.4yrs
    • Compensation: €116.80k
  • Andrea Maria Pollak (60yo)

    Member of the Supervisory Board

    • Tenure: 8.4yrs
    • Compensation: €66.00k
  • Ursula Lipowsky (61yo)

    Member of the Supervisory Board

    • Tenure: 1.4yrs
    • Compensation: €52.90k
  • Michael Ollmann (61yo)

    Supervisory Board Member

    • Tenure: 0.4yrs
  • Natalie Ardalan (47yo)

    Member of Supervisory Board

    • Tenure: 0.8yrs
  • Ilka Hundeshagen (46yo)

    Member of Supervisory Board

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Hannover Rück SE
  • Ticker: HNRB
  • Exchange: DB
  • Founded: 1966
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: €19.066b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HVRR.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDDec 1994
HNR1DB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 1994
HNR1XTRA (XETRA Trading Platform)YesRegistered SharesDEEURDec 1994
0M9ALSE (London Stock Exchange)YesRegistered SharesGBEURDec 1994
HNR1DBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURDec 1994
HNR1SWX (SIX Swiss Exchange)YesRegistered SharesCHCHFDec 1994
HNR1WBAG (Wiener Boerse AG)YesRegistered SharesATEURDec 1994
HVRR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2000
HNRBDB (Deutsche Boerse AG)SPONSORED ADRDEEURFeb 2000

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 Analysis2019/10/19 21:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.