LSE:0M9A

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record established 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

Stable Share Price: 0M9A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

0M9A

10.8%

GB Insurance

3.9%

GB Market


1 Year Return

0.5%

0M9A

-29.3%

GB Insurance

-22.4%

GB Market

Return vs Industry: 0M9A exceeded the UK Insurance industry which returned -29.4% over the past year.

Return vs Market: 0M9A exceeded the UK Market which returned -23% over the past year.


Shareholder returns

0M9AIndustryMarket
7 Day2.1%10.8%3.9%
30 Day-18.9%-17.6%-16.1%
90 Day-22.7%-27.5%-26.1%
1 Year4.6%0.5%-21.4%-29.3%-18.2%-22.4%
3 Year36.8%20.4%-17.7%-32.3%-11.7%-23.1%
5 Year65.3%32.3%-9.6%-32.7%1.9%-21.5%

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?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0M9A (€130.55) is trading below our estimate of fair value (€245.68)

Significantly Below Fair Value: 0M9A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0M9A is good value based on its PE Ratio (12.3x) compared to the Insurance industry average (12.9x).

PE vs Market: 0M9A is good value based on its PE Ratio (12.3x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: 0M9A is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 0M9A is overvalued based on its PB Ratio (1.5x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

How is Hannover Rück forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0M9A's forecast earnings growth (3% per year) is above the savings rate (0.5%).

Earnings vs Market: 0M9A's earnings (3% per year) are forecast to grow slower than the UK market (15.5% per year).

High Growth Earnings: 0M9A's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0M9A's revenue (6.8% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: 0M9A's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0M9A's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has Hannover Rück performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0M9A has high quality earnings.

Growing Profit Margin: 0M9A's current net profit margins (6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 0M9A's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: 0M9A's earnings growth over the past year (21.2%) exceeds its 5-year average (2% per year).

Earnings vs Industry: 0M9A earnings growth over the past year (21.2%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0M9A's Return on Equity (12.1%) is considered low.


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: 0M9A has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0M9A's debt is covered by short term assets (assets are 6.6x debt).


Financial Institutions Analysis

Asset Level: 0M9A's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0M9A has a sufficient allowance for bad loans.

Low Risk Liabilities: 0M9A reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0M9A has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0M9A has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0M9A has an appropriate level of bad loans.


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0M9A's dividend (4.2%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: 0M9A's dividend (4.2%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

Stable Dividend: 0M9A's dividends per share have been stable in the past 10 years.

Growing Dividend: 0M9A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), 0M9A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0M9A's dividends in 3 years are forecast to be covered by earnings (55.8% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Jean-Jacques Henchoz (55yo)

0.83

Tenure

€2,961,703

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Jean-Jacques's total compensation ($USD3.27M) is below average for companies of similar size in the UK market ($USD5.40M).

Compensation vs Earnings: Insufficient data to compare Jean-Jacques's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Jacques Henchoz
CEO & Chairman of the Executive Board0.83yr€2.96mno data
Roland Vogel
CFO & Member of the Executive Board10.83yrs€1.25mno data
Michael Pickel
Member of the Executive Board20.17yrs€1.30mno data
Klaus Miller
Member of the Executive Board9.42yrs€1.17mno data
Claude Chèvre
Member of the Executive Board8.25yrs€1.14mno data
Sven Althoff
Member of the Executive Board5.58yrs€1.08mno data
Silke Sehm
Member of Executive Board1yr€894.53kno data
Julia Hartmann
Senior IR Manager- Corporate Communicationsno datano datano data
Karl Steinle
Head of Corporate Communications10.25yrsno datano data
Derek Spafford
Head of Canadian Branchno datano datano data

8.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 0M9A's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Erhard Schipporeit
Member of Supervisory Board12.83yrs€75.50kno data
Herbert Haas
Member of Supervisory Board17.83yrs€166.20kno data
Frauke Heitmüller
Employee Representative Member of Supervisory Board7.83yrs€65.00kno data
Torsten Leue
Chairman of Supervisory Board0.83yr€242.30kno data
Andrea Maria Pollak
Independent Member of Supervisory Board8.83yrs€65.00kno data
Ursula Lipowsky
Independent Member of the Supervisory Board1.83yrs€82.90kno data
Michael Ollmann
Independent Member of Supervisory Board0.83yr€41.60kno data
Natalie Ardalan
Employee Representative Member of Supervisory Board0.83yr€41.60kno data
Ilka Hundeshagen
Employee Representative Member of Supervisory Board0.83yr€41.60kno data

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 0M9A's board of directors are not considered experienced ( 1.8 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: 0M9A
  • Exchange: LSE
  • Founded: 1966
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: €15.545b
  • Shares outstanding: 120.60m
  • Website: https://www.hannover-rueck.de

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
HNR1ETLX (Eurotlx)YesRegistered SharesITEURDec 1994
HNR1WBAG (Wiener Boerse AG)YesRegistered SharesATEURDec 1994
HVRR.YOTCPK (Pink Sheets LLC)ADR (EACH REP 0.5 COM SHS) (SPONS)USUSDFeb 2000
HNRBDB (Deutsche Boerse AG)ADR (EACH REP 0.5 COM SHS) (SPONS)DEEURFeb 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 Property & Casualty Reinsurance segment offers specialty lines comprising marine, aviation, facultative, credit, surety, and political risks reinsurance products; and treaty, catastrophe XL, and structured reinsurance, as well as insurance-linked securities. This segment also provides risk solutions for casualty and property, as well as for agricultural, livestock, and bloodstock businesses; aviation and space business; and marine and offshore energy business. The Life & Health Reinsurance segment offers credit life, enhanced annuities, group life and health, 60+, and Sharia-compliant Takaful reinsurance products. This segment also provides risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, it offers various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and divestiture of non-core businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. The company was founded in 1966 and is headquartered in Hanover, Germany. Hannover Rück SE is a subsidiary of Talanx AG. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:22
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.