Interim report
Page 1
Hannover Re Q2 Half - yearly Financial Report 2026 somewhat diдerent
Page 2
Key figures in EUR million 2025 2026 +/- previous year 31.12. 1.4. – 30.6.¹ 1.1. – 30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Results Reinsurance revenue (gross) 6,368.7 13,338.5 6,395.4 12,918.5 -3.1 % Reinsurance service result (net) 904.7 1,419.6 849.8 1,739.9 +22.6 % Reinsurance finance result (net) ² -334.3 -667.6 -413.3 -773.4 -15.8 % Investment income 469.0 1,045.9 648.4 1,253.8 +19.9 % Operating profit / loss (EBIT) 1,065.4 1,761.9 961.3 1,932.4 +9.7 % Group net income 833.5 1,313.9 695.3 1,405.9 +7.0 % Balance sheet Policyholders' surplus 16,666.5 14,688.7 17,043.3 +2.3 % Equity attributable to shareholders of Hannover Rück SE 12,928.7 11,095.2 13,266.0 +2.6 % Non-controlling interests 1,001.7 858.6 1,039.8 +3.8 % Hybrid capital 2,736.0 2,734.9 2,737.5 +0.1 % Contractual service margin (net) 7,907.7 8,472.7 8,813.0 +11.4 % Risk adjustment for non-financial risk 3,740.6 3,635.6 3,956.9 +5.8 % Investments 66,339.2 62,627.3 69,394.9 +4.6 % Total assets 71,327.1 69,357.6 74,394.8 +4.3 % Share Earnings per share (basic and diluted) in EUR 6.91 10.90 5.77 11.66 +7.0 % Book value per share in EUR 107.21 92.00 110.00 +2.6 % Share price at the end of the period in EUR 266.20 267.20 242.40 -8.9 % Market capitalisation at the end of the period 32,103.0 32,223.6 29,232.7 -8.9 % Ratios Combined ratio (property and casualty reinsurance) ³ 82.1 % 88.4 % 82.8 % 83.2 % EBIT margin ⁴ 18.9 % 14.9 % 17.6 % 17.3 % Return on investment 2.9 % 3.3 % 3.8 % 3.7 % Return on equity 28.8 % 23.0 % 20.5 % 21.5 % Solvency ratio (Solvency II) ⁵ 256 % 254 % ¹ Information was not subject to an auditor’s review. ² Excluding exchange rate effects ³ Reinsurance service expenses (net) / reinsurance revenue (net) ⁴ EBIT / reinsurance revenue (net) ⁵ Foreseeable dividends recognised on a pro-rata basis. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 2Half-yearly Financial Report 2026
Page 3
Letter from the CEO Interim management report Consolidated financial statements Notes to the consolidated financial statements Responsibility statement Review report by the independent auditors Contact information and further links Imprint 4 5 15 21 46 47 48 48 Hannover Re Investor Relations 3Half-yearly Financial Report 2026 Contents
Page 4
Clemens Jungsthöfel Chairman of the Executive Board Hannover Re can look back on a successful first half of 2026. In an increasingly challenging market landscape, we have once again demonstrated our profitability and are very well on track to achieve our full- year earnings targets. Geopolitical uncertainties, an abundant supply of reinsurance capacity and falling prices in some parts of the market are currently shaping the business environment. It is particularly in conditions such as these that we benefit from our low expense ratio, which enables us to write profitable business even in a softening market. Thanks to our focus as a pure-play reinsurer, our consistently profit-oriented underwriting approach and our partnership-based customer relationships, we remain able to act selectively on market opportunities to create long- term value for our clients, business partners and shareholders. Group net income rose by seven percent in the first six months to EUR 1.4 billion. Our book of property and casualty reinsurance is developing highly satisfactorily given the current market conditions, while large losses in the first half-year were comfortably within our budget. What was striking, however, was a higher share of human-caused large losses, partly related to geopolitical tensions, whereas losses caused by natural catastrophes were on the moderate side. The combined ratio of 83.2 percent, which includes further strengthening of our resilience, was better than our target of less than 87 percent. Developments in life and health reinsurance remain positive: the new business generated lived up to our expectations and we were able to capitalise on attractive market opportunities, most notably in US financial solutions business. This puts us very well on course to achieve our targeted reinsurance service result of around EUR 925 million. The more robust interest rate level in our investment portfolio played a major part in Hannover Re’s profitability, which was further bolstered by the realisation of unrealised losses in 2025. Our capital adequacy ratio under Solvency II of 254 percent at the end of June was clearly above our target level of 200 percent. We thus continue to enjoy a very solid capital base. Hannover Re's success is grounded on close collaboration – both within our organisation and with our clients. Our long-term partnerships form a core element of our business model. At the same time, with their dedication and expertise, our people are pivotal in enabling us to master an increasingly complex risk landscape. It is with this strong team that we shall continue on our current course and remain a reliable long-term partner and attractive investment for you, our valued shareholders. On behalf of the Executive Board and all our employees, I would like to thank you for the trust you place in us. Yours sincerely, Clemens Jungsthöfel Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 4Half-yearly Financial Report 2026 Dear shareholders, ladies and gentlemen
Page 5
Report on economic position Business development Results of operations, financial position and net assets Property and casualty reinsurance Life and health reinsurance Investments Outlook Opportunities and risk report Risk report Opportunities report Overall assessment by the Executive Board 6 6 6 6 8 9 10 11 11 13 14 Hannover Re Investor Relations 5Half-yearly Financial Report 2026 Interim management report
Page 6
Report on economic position Business development – Group reinsurance revenue (gross) contracts by 3.1% to EUR 12.9 billion – Contractual service margin (net) increases by 11.4% to EUR 8.8 billion – Return on investment beats roughly 3.5% target at 3.7% – Group net income grows by 7.0% to EUR 1.4 billion – Return on equity reaches 21.5% Against a backdrop of persistent geopolitical uncertainties and an increasingly challenging market landscape, Hannover Re generated a very good result in the first half of 2026. In view of this business performance, it remains our expectation that we will achieve our full-year targets. Reinsurance revenue (gross) contracted by 3.1% as at 30 June to EUR 12.9 billion (previous year: EUR 13.3 billion). Growth would have reached 0.7% at constant exchange rates. The reinsurance service result (net), reflecting the profitability of underwriting activity after deduction of business ceded (primarily retrocessions and insurance-linked securities), rose by 22.6% to EUR 1,739.9 million (EUR 1,419.6 million). Adjusted for exchange rate effects, the reinsurance finance result (net) – which is structurally negative – amounted to EUR -773.4 million (EUR -667.6 million). The investment result increased by 19.9% year-on-year to EUR 1,253.8 million (EUR 1,045.9 million), driven in particular by stronger ordinary income from fixed-income securities. This was due to growth in the investment portfolio – which rose to EUR 69.4 billion (31 December 2025: EUR 66.3 billion) – and the higher interest rate level in the portfolio, supported by the realisation of unrealised losses in 2025. Positive currency effects were an additional factor here. The annualised return on investment stood at 3.7% and was thus ahead of the roughly 3.5% target set for the full year. The currency result amounted to EUR -52.9 million (EUR 236.1 million). While the previous year’s result had benefited from the depreciation of the US dollar in the first half of 2025, the strengthening of the US dollar in the first six months of 2026 gave rise to opposing effects. The adoption of euro / US dollar hedge accounting in the second half of 2025 made it possible to limit the impacts on the result. Other income and expenses amounted to EUR -235.1 million (EUR -272.1 million). The operating profit (EBIT) on the Group level improved by 9.7% to EUR 1,932.4 million (EUR 1,761.9 million). Group net income climbed by 7.0% to EUR 1,405.9 million (EUR 1,313.9 million). Earnings per share came in at EUR 11.66 (EUR 10.90). The shareholders‘ equity of Hannover Re as at 30 June 2026 increased to EUR 13.3 billion (31 December 2025: EUR 12.9 billion). This was driven primarily by the Group profit generated in the first half of the year less the dividend distributed to shareholders of Hannover Re for the 2025 financial year and to a lesser extent by exchange rate effects. The annualised return on equity reached 21.5% (previous year: 23.0%). The book value per share stood at EUR 110.00 (31 December 2025: EUR 107.21). The contractual service margin (net) rose by 11.4% to EUR 8,813.0 million (31 December 2025: EUR 7,907.7 million). The risk adjustment for non- financial risk increased by 5.8% to EUR 3,956.9 million (31 December 2025: EUR 3,740.6 million). The capital adequacy ratio under Solvency II, which measures the risk- carrying capacity of the Hannover Re Group, amounted to 253.7% at the end of June. The capital adequacy ratio constitutes information that has not been audited by the independent auditor. It allows for the foreseeable dividend on a pro-rata basis for 2026 as well as planned business growth in 2026 and is on a level still comfortably in excess of our long-term target of more than 200%. Results of operations, financial position and net assets Property and casualty reinsurance – Reinsurance revenue (gross) amounts to EUR 8.8 billion (EUR 9.5 billion) – Large losses in the first half-year below budgeted expectation – Combined ratio stands at 83.2% – New business CSM (net) decreases by 13.3% – Operating profit for the first half-year up by 17.7% to EUR 1.5 billion In the main renewal season for traditional property and casualty reinsurance as at 1 January of this year, we boosted the volume of business renewed by 3.3%. On the whole, Hannover Re successfully navigated a highly competitive market environment, achieving moderate but profitable growth. The quality of the business written remained on a good level overall, with an average inflation- and risk-adjusted price decline of 3.2%. We traditionally renew business in the Asia-Pacific region and North America as well as in some specialty lines as at 1 April. The negotiations here resulted in stable or slightly softer conditions with a continued attractive price level. The volume increased by 18.8% overall, while an inflation- and risk-adjusted price decline of 3.6% was booked on the renewed business. Treaty renewals in 2026 in % As at 1.1. As at 1.4. As at 1.6./1.7 Change in premium income +3.3 +18.8 +12.3 Price change -3.2 -3.6 -4.5 The new business CSM (net) decreased by 13.3% in the first half-year to EUR 1,728.9 million (EUR 1,994.5 million). This was due primarily to price declines in the most recent rounds of renewals as well as exchange rate effects, which were partially offset by an increased renewal volume – especially in the second quarter. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 6Half-yearly Financial Report 2026
Page 7
Reinsurance revenue (gross) in property and casualty reinsurance was down by 8.0% in the first six months to EUR 8,773.1 million (EUR 9,539.2 million). The reduction would have been 3.9% at constant exchange rates. Payments for large losses in the first half-year totalled EUR 784.7 million (EUR 976.1 million) and thus came in below our budgeted expectation of EUR 1,024.6 million. As usual, the entire large loss budget for the first six months was used as the basis for calculating the half-year result. The largest net individual losses from natural catastrophes for Hannover Re were Winter Storm Fern in the United States and Canada at the start of the year with expenditures of EUR 130.4 million, the severe Atlantic windstorms that impacted the Iberian Peninsula and Morocco to the tune of EUR 126.4 million as the year got underway and the June earthquake in Venezuela, for which an amount of EUR 75.0 million has initially been reserved. Hannover Re has set aside around EUR 200 million in total for potential impacts of the Iran war. The company also made provision for additional risks in the reporting period and further strengthened the resilience of its loss reserves. The reinsurance service result (net) increased by 29.4% to EUR 1,262.0 million (EUR 975.1 million). The new business LC (net) included here amounted to EUR 21.5 million (previous year: EUR 29.6 million). The combined ratio amounted to 83.2% (88.4%) and thus improved on our expectation of less than 87% for the full year. The reinsurance finance result (net) adjusted for exchange rate effects totalled EUR -667.1 million (EUR -571.7 million). Investment income in property and casualty reinsurance rose by 28.5% to EUR 1,069.0 million (EUR 832.1 million). The currency result amounted to -EUR -5.6 million (EUR 232.0 million). While the previous year’s period had been influenced by the sharp depreciation of the US dollar against the euro and a resulting substantial positive impact on earnings, more modest exchange rate fluctuations overall led to a significantly lower currency result in the reporting period. The stabilisation in the result was further supported by the US dollar hedge accounting adopted since the second half of 2025. The operating profit (EBIT) rose by 17.7% to EUR 1,524.2 million (EUR 1,294.7 million). Key figures for property and casualty reinsurance Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 7Half-yearly Financial Report 2026 in EUR million 2025 2026 +/- previous year 1.4. – 30.6.¹ 1.1. – 30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Reinsurance revenue (gross) 4,452.5 9,539.2 4,292.8 8,773.1 -8.0% Reinsurance service result (net) 703.4 975.1 626.0 1,262.0 +29.4% Reinsurance finance result (net) ² -288.9 -571.7 -354.9 -667.1 -16.7% Investment income 363.3 832.1 542.9 1,069.0 +28.5% Operating result (EBIT) 850.9 1,294.7 757.0 1,524.2 +17.7% EBIT margin ³ 21.7 % 15.4 % 20.8 % 20.2 % Combined ratio ⁴ 82.1 % 88.4 % 82.8 % 83.2 % New business CSM (net) 456.6 1,994.5 602.9 1,728.9 -13.3% 1 Information was not subject to an auditor’s review. 2 Excluding exchange rate effects 3 EBIT / reinsurance revenue (net) ⁴ Reinsurance service expenses (net) / reinsurance revenue (net)
Page 8
Life and health reinsurance – Reinsurance revenue (gross) increases by 9.1% to EUR 4.1 billion – New CSM generation (net) amounts to EUR 384.8 million – Contractual service margin (net) stands at EUR 6.7 billion (EUR 6.3 billion) – Reinsurance service result (net) of EUR 478.0 million very well on track for full-year target – Operating result down by 13.1% to EUR 408.2 million The Life & Health reinsurance business group developed in line with expectations in the first six months. New CSM generation (net), comprised of new business (net) and contract extensions (net), increased to EUR 384.8 million (previous year: EUR 364.7 million). The contractual service margin (net) grew by 6.1% to EUR 6,658.9 million (31 December 2025: EUR 6,275.4 million). The increase would have amounted to 3.6% adjusted for exchange rate effects. Reinsurance revenue (gross) in the Life & Health reinsurance business group climbed by 9.1% to EUR 4,145.4 million (EUR 3,799.3 million); this is equivalent to growth of 12.1% adjusted for exchange rate effects. The reinsurance service result (net) increased by 7.5% to EUR 478.0 million (EUR 444.5 million) and is thus very well on track to reach the full-year target of around EUR 925 million. The new business LC (net) included here amounted to EUR 4.9 million (EUR 16.3 million). The reinsurance finance result (net) before exchange rate effects, reflecting the interest accretion on technical reserves discounted in prior years, totalled EUR -106.3 million (EUR -95.9 million). Investment income in life and health reinsurance contracted by 13.4% to EUR 184.4 million (EUR 213.0 million), in part due to reduced income from participating interests carried at equity. The currency result came to EUR -47.3 million (EUR 4.0 million). Particularly crucial here were less favourable exchange rate movements recorded by various currencies relevant to the segment. The operating result (EBIT) declined by 13.1% to EUR 408.2 million (EUR 469.9 million). Financial solutions business developed favourably overall in the first half of the year. Rising demand was evident both in the United States and in some Asian markets, although US business remained a primary driver of growth. In China, transactions delivering solvency and capital relief generated another particularly pleasing profit contribution. Demand for longevity covers continued to develop favourably. Attractive growth opportunities opened up around the world, both in new and in-force annuity business. Solutions for the coverage of longevity risks enjoyed growing demand, most notably in a number of additional Southeast Asian markets. Traditional life and health reinsurance generally developed in line with expectations. We were able to renew business in Latin America at largely stable conditions. The most notable sources of growth impetus were Southern and Central Europe, North Africa and selected Asian markets. Key figures for life and health reinsurance Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 8Half-yearly Financial Report 2026 in EUR million 2025 2026 +/- previous year 1.4. – 30.6.¹ 1.1. – 30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Reinsurance revenue (gross) 1,916.2 3,799.3 2,102.6 4,145.4 +9.1% Reinsurance service result (net) 201.3 444.5 223.8 478.0 +7.5% Reinsurance finance result (net) ² -45.4 -95.9 -58.4 -106.3 -10.8% Investment income 105.3 213.0 105.4 184.4 -13.4% Operating result (EBIT) 216.9 469.9 204.1 408.2 -13.1% EBIT margin ³ 12.8 % 13.7 % 11.2 % 11.3 % New CSM generation (net) 133.0 364.7 136.2 384.8 +5.5% New business CSM (net) 84.6 216.6 37.3 201.1 -7.2 % New CSM from extensions on existing contracts (net) 48.4 148.1 98.9 183.7 +24.0 % ¹ Information was not subject to an auditor’s review ² Excluding exchange rate effects ³ EBIT / reinsurance revenue (net)
Page 9
Investments – Portfolio of investments grows to EUR 69.4 billion – Strong ordinary income, primarily from fixed-income securities – Investment result up sharply to EUR 1,253.8 million – Return on investment reaches 3.7% to stay ahead of roughly 3.5% target Our investments performed in line with our expectations in the first half of the year, even though they continued to feel the effects of heightened geopolitical and economic uncertainties – especially as a consequence of the Iran war. This resulted at times in rising interest rates, higher risk premiums on credit markets and elevated volatility on equity markets, although credit and stock markets broadly stabilised over the course of the second quarter. Central banks initially stood by their cautious monetary policy, until the European Central Bank hiked interest rates for the first time in almost three years in June. Despite occasional setbacks, global capital markets have generally proven robust. Overall, the movements in interest rates and on credit markets resulted in declines in the fair values of our fixed-income securities. These were, however, opposed by significant exchange rate gains recorded on some of our investments held in foreign currencies, especially those denominated in US dollars. Our investments benefited from our continued prudent posture. Furthermore, in the context of our asset/liability management we consistently strive for the most balanced possible interest rate positioning of our investments in relation to the technical reserves so that the opposing effects of changes in market interest rates on movements in the value of investments and reserves can be largely offset. Due to the applicable financial reporting standards IFRS 17 and IFRS 9, this is also reflected in the balance sheet. Our investment portfolio amounted to EUR 69.4 billion as at the end of June (31 December 2025: EUR 66.3 billion). Most notably, exchange rate effects associated with some of our investments held in foreign currencies – especially the US dollar – had a clearly positive impact here. Combined with the favourable operating cash flow, they comfortably offset the declines in the fair value of some fixed-income securities caused by interest rate increases. The net charges on debt instruments recognised at fair value through OCI in other income and expenses amounted to EUR 2.2 billion (31 December 2025: EUR 2.1 billion). We kept the rather cautious positioning of our asset allocation broadly stable in the first six months. Our real estate portfolio was strengthened through three acquisitions in the United States and Europe as well as two sales in the US and Asia. The other minimal adjustments were prompted mainly by our constant striving to ensure currency and interest rate matching with our technical liabilities. The duration of our fixed-income portfolio – at 4.3 (4.0) – was increased somewhat in comparison with the end of the previous year in accordance with the maturity profiles of our technical liabilities. The ordinary investment income of EUR 1,397.3 million was higher than in the comparable period (previous year: EUR 1,240.5 million), principally due to another increase in the income booked from fixed-income securities and infrastructure funds. Investment income in EUR million 2025 2026 +/- previous year 1.4. – 30.6.¹ 1.1. – 30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Ordinary investment income 603.7 1,240.5 753.3 1,397.3 +12.6 % Expected credit losses, impairment, depreciation and appreciation of investments -22.0 -42.5 -13.5 -29.1 +31.6 % Change in fair value of financial instruments 26.1 21.1 -13.5 18.3 -13.5 % Profit / loss from investments in associated companies and joint ventures -9.4 -1.5 -9.2 -27.9 -1,719.9 % Realised gains and losses on investments -76.5 -70.2 -16.0 -3.1 +95.6 % Other investment expenses 52.8 101.5 52.8 101.8 +0.3 % Net investment income 469.0 1,045.9 648.4 1,253.8 +19.9 % 1 Information was not subject to an auditor’s review The net balance of gains and losses realised on disposals totalled EUR -3.1 million (EUR -70.2 million) and can be attributed principally to amounts realised as part of regular portfolio maintenance and the positive income booked from the aforementioned real estate disposals. We recorded a net gain of EUR 2.1 million (expense of EUR 11.8 million) from the change in provisions established for expected credit losses (ECL). This can be attributed mainly to somewhat lower average default probabilities and is within the normal range of variation. Depreciation recognised on directly held real estate totalled EUR 31.1 million (EUR 30.7 million). The net changes in the fair value of our assets recognised at fair value through profit or loss amounted to EUR 18.3 million (EUR 21.1 million). Particularly significant here were positive changes in the fair values of equity and private equity funds. These were offset to some extent by opposing movements from funds in the fixed-income securities and real asset sectors. The investment result of EUR 1,253.8 million (EUR 1,045.9 million) was significantly above the level of the previous year's period. Our investments thus delivered an annualised average return of 3.7%, putting us ahead of the full-year target of around 3.5%. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 9Half-yearly Financial Report 2026
Page 10
Outlook – Group net income of at least EUR 2.7 billion expected – Property and casualty reinsurance: Reinsurance revenue (gross) in traditional business to show currency-adjusted growth in the mid-single-digit percentage range – Property and casualty reinsurance: Combined ratio of less than 87% – Life and health reinsurance: Reinsurance service result of around EUR 925 million – Return on investment target of around 3.5% Thanks to its profitable and resilient portfolio, disciplined underwriting and cost advantages, Hannover Re expects Group net income of at least EUR 2.7 billion for the 2026 financial year in an increasingly challenging market. Reinsurance revenue in traditional property and casualty reinsurance grew more modestly than originally anticipated in the first half of the year, with an increase of +0.2% year-on-year adjusted for exchange rate effects. The successful treaty renewals in the year under review are expected to have an appreciable positive impact on reinsurance revenue (gross) over the remainder of the year. With this in mind, currency-adjusted growth in reinsurance revenue (gross) in traditional business (excluding structured reinsurance) in the mid-single-digit percentage range remains attainable for the full financial year. In addition, Hannover Re expects a combined ratio of less than 87% in this business group. Hannover Re anticipates a reinsurance service result (net) of around EUR 925 million in life and health reinsurance. Our asset portfolio should continue to show moderate growth – assuming roughly stable exchange rates and interest rate levels – on the back of the expected positive cash flow generated from the technical account and the investments themselves. The return on investment is expected to reach around 3.5%. Hannover Re has raised its net large loss budget for 2026 to EUR 2.3 billion (EUR 2.1 billion) to reflect the growth of the property and casualty reinsurance portfolio and the further increase in losses expected from natural catastrophes. Achievement of the earnings guidance for 2026 is based on the premise that large loss expenditure does not significantly exceed this expected level and that there are no unforeseen distortions on capital markets. The treaty renewals in property and casualty reinsurance as at 1 June and 1 July 2026 brought continued price declines for Hannover Re. Parts of the North American portfolio, especially natural catastrophe risks, are traditionally renewed in June and July as well as business from Australia and New Zealand and in the credit and surety lines. The volume increased by altogether 12.3%. Prices on the renewed business retreated by 4.5% on an inflation- and risk-adjusted basis. In accordance with Hannover Re’s dividend policy, it is envisaged that the payout ratio for the dividend will be around 55% of IFRS Group net income. Furthermore, the goal is to distribute a dividend per share at least on the level of the previous year and to increase it over the long term. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 10Half-yearly Financial Report 2026
Page 11
Opportunities and risk report Risk Report – Hannover Re’s capital resources remain in excess of the defined threshold. The capital position is reviewed on an ongoing basis. – Our risk management system constantly monitors newly added and changing risks and is able to respond flexibly to changes in internal and external factors. The present opportunities and risk report summarises the key risk information for the first half of 2026. Strategic framework conditions Based on the foundations of sustainability and internal governance, the strategy rests on three beacons: focus, grow and accelerate. This is also anchored in the Group strategy entitled «Staying Focused. Thinking Ahead.» for the 2024–2026 strategy cycle . Our Risk Management Strategy derives from the corporate strategy. It is the core element of our risk management activities. The Risk Management Strategy, the risk register, the central system of limits and thresholds and the implementation of defined key controls are components of our Risk and Capital Management Guideline which is reviewed at least once a year. In this way we ensure that our risk management system is kept up to date. Our solvency ratio needs to be at least 180%; however, 200% is already the threshold we have set for the triggering of countermeasures should the solvency ratio fall below. This guarantees adherence to the regulatory requirement of a solvency ratio of at least 100%. Solvency capital requirements are monitored using our internal capital model and the Executive Board is informed quarterly of the adherence to the key thresholds as part of regular risk reporting. Major events or significant changes to the risk landscape are reported ad hoc to the Executive Board. In addition to the above-mentioned threshold of 200%, the capital adequacy is also influenced by the expectations of rating agencies and clients. Limits and threshold values for risk mitigation are defined across multiple organizational levels; overarching, at the level of individual risk categories, and at the level of individual transactions. Risk landscape of Hannover Re In the context of its business operations the Hannover Re Group takes a broad variety of risks. These risks are deliberately accepted, steered and monitored to seize the associated opportunities. The risk appetite and respective parameters set by the Executive Board are fundamental for the acceptance of risks by the Hannover Re Group. These decisions are based on risk bearing capacity calculations. In this context our risk management has crucial importance, among other things to ensure that risks remain calculable for the reinsurance portfolio and even exceptional major losses do not have an unduly adverse impact on the financial results. The risk landscape of Hannover Re encompasses: – underwriting risks in property & casualty and life & health reinsurance which originate from our business activities and manifest themselves inter alia in fluctuations in loss estimates as well as in unexpected catastrophes and changes in biometric factors such as mortality, – market risks which arise in connection with our investments, and also as a consequence of the valuation of sometimes long-term payment obligations associated with the technical account, – counterparty default risks resulting from our diverse business relationships and payment obligations inter alia with clients, retrocessionaires and banks, – operational risks which may derive, for example, from deficient processes or systems and – sustainability risks & reputation risks, liquidity risks, strategic risks and emerging risks. At the present time, our most significant individual risks are the default and spread risks within the market risks, the reserving and catastrophe risks within the underwriting risks of property & casualty reinsurance and the mortality risks (including catastrophe risk) within the underwriting risks of life & health reinsurance. Major external factors influencing risk management Geopolitical developments War in the Middle East and Strait of Hormuz closure The Iran War began on 28 February with large-scale military strikes by the United States and Israel against targets in Iran. The conflict escalated rapidly, encompassing reciprocal attacks across the region and significant disruption to shipping through the Strait of Hormuz, one of the world’s most important routes for energy trade. As transport volumes through the waterway declined, oil prices rose markedly, heightening concerns over global energy security. Although a ceasefire was agreed at the end of April and the Islamabad Memorandum of 17 June established a preliminary framework for a peace process, its effectiveness was severely undermined by repeated violations, including renewed military confrontations and attacks on commercial vessels. With the agreement now having been declared unsuccessful, the future course of the conflict remains uncertain and the prospects for a peaceful resolution appear increasingly doubtful. From an economic perspective, the conflict has had far-reaching global repercussions. The Strait of Hormuz is one of the world’s most significant maritime trade routes and is of particular importance for the supply of crude oil and liquefied natural gas (LNG) to South and East Asia. Disruptions to energy exports contributed to rising energy prices, intensified inflationary pressures, and increased transportation and production costs across numerous industries. Against the backdrop of a deteriorating economic outlook, the International Monetary Fund (IMF) revised its forecasts for global economic growth downwards. Supply chain disruptions affected a wide range of sectors, including petrochemicals, plastics manufacturing, the production of synthetic textiles, fertiliser manufacturing, and the agricultural sector. At the same time, war risk insurance premiums for maritime shipping increased significantly. For many shipping companies, routes through the region became progressively less economically viable, resulting in costly diversions, longer transit times, and higher freight rates. For Hannover Re, the military conflict has resulted in losses primarily within the Marine and Political Violence / Political Risk lines of business. Elevated Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 11Half-yearly Financial Report 2026
Page 12
inflation continues to affect our investment management activities, reinsurance pricing, and the level of expected future claims. Capital market environment During the reporting period, our investment portfolio continued to perform broadly in line with our expectations, although numerous geopolitical and macroeconomic challenges contributed to heightened volatility and a persistently elevated level of uncertainty. In particular, the conflict in the Middle East and the associated risks to energy supply and global transportation infrastructure represented significant factors influencing international capital markets. Temporary disruptions to key trade routes and the resulting fluctuations in energy prices increased uncertainty regarding inflation and economic growth prospects. These developments were reflected primarily in the interest rate markets, which, through the yield levels they provide, constitute a key external determinant of the returns achievable on our investments. Driven by rising inflation expectations and uncertainty over the economic implications of geopolitical tensions, government bond markets in our major currency areas recorded, in some cases, significant yield increases across large parts of the yield curve. Credit markets also experienced periods of heightened nervousness following the outbreak of the Iran conflict, which was reflected in wider credit spreads. By the end of the first half-year, however, spreads had largely returned to levels close to their long-term lows and were broadly in line with those observed prior to the escalation of the conflict. This development reflects both the generally robust financial position of many issuers and the continued investor demand for higher-yielding assets. Against this backdrop, the major central banks – notably the European Central Bank (ECB), the Bank of England and the US Federal Reserve (Fed) – maintained a cautious monetary policy stance. Expected interest rate cuts were initially postponed in light of renewed inflationary risks. Over the course of the year, market expectations shifted in part towards a prolonged period of stable or even more restrictive monetary policy settings. This culminated towards the end of the reporting period in the ECB’s first interest rate increase in almost three years. Overall, developments in interest rate and credit markets resulted in declines in the market values of our fixed-income securities. These effects were partly offset by valuation gains recorded on certain investments held in foreign currencies. As part of our asset-liability management, we consistently seek to maintain balanced interest rate and currency positions between our investments and technical provisions. Consequently, opposing movements in market interest rates and exchange rates generally have an offsetting effect on the overall valuation of investments and liabilities. Global equity markets proved resilient in the year to date, although they were subject to considerable volatility at times. Following a positive start to the year, the Iran conflict and the associated uncertainty triggered a temporary market correction and increased volatility. Markets subsequently stabilised, albeit to varying degrees across regions and sectors. Inflation remains a key factor warranting close attention. In particular, inflationary risks arising from higher energy prices increased market participants’ focus on future price developments during the reporting period. Against this backdrop, both the future path of inflation and the resulting monetary policy measures will remain important drivers of capital market performance and the earnings generated by our investment portfolio. We continue to be exposed to the market for private equity. Here, changes in market value are based less on general market conditions and more on company-specific assessments. The risks primarily relate to the business model and profitability and less to the interest component as part of the cash flow forecasts. We therefore also see the declines in the market value of individual investments in the reporting period as part of the risk profile specific to this asset class and these company characteristics. The importance of real estate risks remains significant for us due to our ongoing involvement in this area. We spread these risks through broadly diversified investments in high-quality markets worldwide, each of which is preceded by detailed property, manager and market analyses. As part of our liquidity management, we have defined portfolios that have proven to be highly liquid even in situations of financial stress such as the 2008 financial crisis. They consist primarily of free German, British and US government bonds and are intended to ensure that our solvency is guaranteed even in the event of a combination of assumed extreme events. This liquidity reserve amounted to EUR 11.1 billion as at the reporting date (previous year: EUR 10.2 billion). In addition, we manage the liquidity of the portfolio by monitoring the liquidity of the portfolio securities on each trading day. Thanks to these measures, the liquidity risk is effectively reduced. As far as our investments are concerned, we anticipate continuing elevated volatility on global capital markets in the immediate future, although we also see this as an opportunity and believe that we are appropriately prepared with our current investment posture. For further information please see the “Investments” section of the management report. Regulatory developments In the first half of 2026, there were numerous regulatory developments at the international, European, and national levels. Solvency-II-Review & IRRD The implementation of the Solvency II Review and the Insurance Recovery and Resolution Directive (IRRD) through the proposed Insurance Recovery, Resolution and Supervision Amendment Act (VSAAG) on national level is continuing. Important changes of relevance to the Hannover Re Group under the Solvency II review include, among others, the lowering of the cost-of-capital rate in the risk margin from 6% to 4.75%. Alongside the Solvency II Review, preparations for the implementation of the IRRD are advancing ahead of its application in 2027. BaFin is expected to assume responsibility for both recovery and resolution planning, supported by a dedicated resolution function that is organisationally separate from routine supervision. At the European and international levels, regulatory authorities have continued to develop the technical standards for the recovery and resolution framework for insurers. EIOPA has issued a range of technical instruments covering recovery and resolution planning, while further consultations remain ongoing. Sustainability-related developments The European Commission has launched a broader simplification agenda through revisions to the European Sustainability Reporting Standards (ESRS), including a reduction of mandatory data points of approximately 60%, stronger emphasis on materiality assessments, streamlined disclosure requirements, and simplified value-chain reporting. The Commission has also proposed targeted amendments to the EU Taxonomy framework aimed at simplifying technical screening criteria and reporting Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 12Half-yearly Financial Report 2026
Page 13
requirements. Together, these measures signal a clear policy shift towards a more proportionate and pragmatic sustainability reporting regime while maintaining the overall objectives of the EU Green Deal. In Germany, legislative work on the national transposition of the CSRD is continuing, with amendments already incorporated to align the draft legislation with the EU Omnibus simplifications. At the international level, sustainability reporting developments continue to evolve. The International Sustainability Standards Board (ISSB) is progressing work on nature-related financial disclosures, with new requirements expected to address biodiversity and nature-related risks. Digital & Artificial Intelligence Regulatory developments in the field of artificial intelligence continue to advance at a rapid pace, with the implementation of the EU AI Act remaining a key area of focus. In parallel, the EU AI Omnibus Package was provisionally agreed in May 2026. It is expected to postpone several key implementation deadlines under the AI Act. In particular, requirements for high-risk AI systems are expected to become applicable only in 2027 and 2028. This will provide organisations with additional time to prepare for compliance, while preserving fundamental safeguards relating to transparency, bias detection, and AI-generated content. The package has been received positively by many market participants, as it reduces the risk of short-term implementation bottlenecks while maintaining the overarching regulatory objectives of the AI Act. Beyond Europe, governance and risk management requirements relating to AI are also receiving increasing attention from supervisory authorities. The Australian Prudential Regulation Authority (APRA) has called on financial institutions to strengthen their oversight, governance, and control frameworks in response to the growing use of AI. These developments underscore the global trend towards enhanced regulatory scrutiny of the deployment and governance of artificial intelligence. Within the broader landscape of digital and data regulation, the European Commission has indicated that it does not intend to undertake a fundamental revision of the General Data Protection Regulation (GDPR) in the near term. Instead, regulatory efforts are focused on ensuring more effective enforcement of the existing data protection framework, particularly in light of the increasing adoption of AI and other digital technologies. This approach reflects a preference for targeted simplification measures in adjacent regulatory areas while preserving the core principles and structure of the current data protection regime. In addition, several non-European jurisdictions have further strengthened their cyber and data governance frameworks. In India, the 2026 Cyber Security Guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) introduce enhanced requirements relating to cybersecurity governance, exception management, audit processes, incident reporting, and third-party risk management. The revised framework places greater emphasis on organisational accountability and requires insurers to implement more structured controls for managing cyber risks and cloud service providers. In South Korea, recent amendments to data protection legislation significantly increase penalties for serious data breaches. This reflects a broader regulatory trend towards treating cyber and data protection risks as financial risks and regulating them accordingly. Climate change During the first half of 2026, major losses were driven by a winter storm in the United States and Canada and a severe storm affecting the Iberian Peninsula and the Maghreb region. To assess such events, we draw on a combination of internal and external models that incorporate current climate trends and are continuously refined. To analyse climate‑driven developments, we currently examine two potential temperature‑rise pathways through 2050. Here we also assess potential impacts on the stability of investments. In particular, we analyse the conditions under which assets could experience significant long-term value deterioration. We expect climate change to have a material impact on all risk categories over the long term (> 50 years). In the near term, particularly within the next five years, we anticipate notable effects in the natural catastrophe segment of Property & Casualty reinsurance. Through annual contract renewals, pricing adjustments, and the continuous recalibration of our large loss budget, we are able to respond to these risks. Despite these challenges, climate‑related developments also generate opportunities. These include innovative reinsurance solutions designed to address rising natural catastrophe losses, as well as products tailored to the effects of extreme temperatures in the Life & Health reinsurance space. Opportunities report Speed is one of the qualities used to measure successful knowledge adaptability. Hannover Re's ambition is to offer quick and effective solutions that keep us one step ahead of the competition. Hannover Re searches systematically for new business opportunities in order to generate sustainable growth and strengthen the company’s profitable development. With a view to identifying opportunities and successfully translating ideas into business, Hannover Re adopts a number of closely related approaches in order to assure holistic opportunity and risk management. Of significance here is the interplay without overlaps of the various functions within opportunity and risk management, which is ensured by defined interfaces. The focus of Hannover Re’s business opportunity management is on various market-specific innovations in the Life & Health and Property & Casualty reinsurance business groups (see Combined management report in Group Annual Report 2025). Trends affecting these business groups are systematically identified and analysed with the support of external sources and partners, and the needs of our clients are anticipated along the entire insurance-related value-added chain. Business opportunities that promise access to innovative technologies and enhance our appeal in the eyes of our clients are specifically pinpointed. With this in mind, Hannover Re cultivates relevant partnerships with outside accelerators, incubators, company builders, start- ups and research institutes in order to boost our competitiveness in the insurtech sector and the field of digital solutions. Various competence centres have been set up in the Hannover Re Group to evaluate the strategic and technical significance of innovative new digital technologies and the goals pursued by these innovation units have been put on a strategic footing. The interplay between these units is based on a dedicated approach that enhances the activities with specific expertise and efficiency. In addition, a property & casualty business unit for cyber and digital business was established to address the increasing demand for such products. The unit aims to bundle the cyber and digital expertise gathered at Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 13Half-yearly Financial Report 2026
Page 14
Hannover Re and apply a uniquely developed underwriting approach to the constantly changing risk landscape. In-house accelerator units covering life & health business and technology explore the specifics of their respective fields and maintain a close dialogue with one another. The tasks performed by these organisational units include, among others, global scaling of existing regional products and solutions, developing new sector- and customer-specific digital assets as well as providing systematic support for insurtechs as they build their digital business models. To deliver on this ambition, the new innovation platform Inspire was launched in March 2026. It showcases practical use cases as well as targeted internal and external solution offerings and makes them accessible to our clients. Close engagement and targeted collaboration with the market departments are key to these efforts, allowing us to build on existing networks and expertise. In this way, we strive to identify business opportunities at an early stage and provide the appropriate clients with innovative solutions. This broad spectrum of tasks is geared to the clearly defined goals of generating new profitable business potential for the Group, optimising risk assessment through the use of innovative tools, cultivating new strategic partnerships and acquiring new capabilities in the fields of digitalization, AI and data analytics. Especially in developing and emerging markets, there is a large gap between insured and uninsured losses (the «protection gap»), which is coupled with a particular sensitivity to climate and disaster risk. Adequate insurance coverage helps to strengthen the financial resilience of these countries. Hannover Re collaborates with partners from both the public and the private sector to further reduce this insurance protection gap and supports the related work of the Insurance Development Forum (IDF). As a reinsurer, Hannover Re provides risk capacity for the Natural Disaster Fund (NDF), for regional risk pools, and for a number of other reinsurance programmes that provide financial protection against natural disasters. The NDF is a public-private partnership whose parametric risk transfer programmes are targeted at poor and vulnerable populations worldwide. In 2025, the NDF covered 34.3 million poor and vulnerable beneficiaries in 70 countries. Parametric insurance solutions, which can pay out very quickly when a predefined event occurs, are particularly relevant for protecting financially against extreme weather and climate risks. The dynamic networking of the members of staff active in the field of innovation at Hannover Re gives rise to close links with other projects, working groups and bodies, such as with the working group on «Emerging Risks and Scientific Affairs» in regard to emerging risks and opportunities. This working group carries out qualitative assessments of emerging risks. As a result, not only the potential risks are explored but also any available business opportunities. Analyses are compiled here exploring how Hannover Re can counter megatrends such as climate change, digitalisation or shifting demographics with novel (re)insurance products or capital investments. In the first half of 2026, issues such as “Novel obesity therapies” and “Ultra-processed foods” were analysed. If a business idea is translated into reality and a new reinsurance product results, the normal procedure – provided the criteria defined for this purpose by risk management are applicable – is to work through the so-called new product process. This process is supported by risk management at Hannover Re. The process is always worked through if a contractual commitment is to be entered into in a form not previously used by Hannover Re or if a new type of risk is to be insured. If this is the case, all material internal and external influencing factors are examined beforehand by risk management (e.g., implications for the overall risk profile or the Risk Management Strategy) and evaluated. Risk management ensures that before it can be used or sold a new reinsurance product must be approved by the Executive Board. Overall assessment by the Executive Board Based on our current insights derived from a holistic analysis of the opportunities and risks, the Executive Board of Hannover Re does not observe any risks that could jeopardise the continuity of the Hannover Re Group in the short or medium term or have a material and lasting effect on its assets, financial position or net income. We are convinced that: – our established risk management system continuously allows us a transparent overview of the current risk situation, – our overall risk profile is appropriate, and – our opportunity management plays an important part in Hannover Re’s sustainable and profitable growth. As an internationally operating reinsurance group, we operate in a highly complex environment. Nevertheless, thanks to our business activities in all reinsurance segments we are able to achieve optimal risk spreading through geographical and risk-specific diversification whilst maintaining a balanced opportunities / risk profile. We consider the risks described in the above sections to be manageable, particularly because our steering and monitoring measures are effectively and closely interlinked. Despite these diverse measures, individual and especially accumulation risks can decisively affect our assets, financial position and net income. However, we understand that it is not only the risks but also the opportunities that need to be taken into account. We therefore only take those risks that offer corresponding opportunities. Our steering and monitoring tools as well as our organisational and operational structure ensure a timely identification of risks, and allow us to act proactively on our opportunities. Our group wide established risk management system is our central monitoring tool, which consolidates both qualitative and quantitative information. Our own evaluation of the manageability of existing risks is confirmed by various financial indicators and by external assessments of rating agencies (Standard & Poor’s and A.M. Best). Our central system of limits and thresholds for the material risks of the Hannover Re Group determines mandatory specific monitoring indicators, corresponding notification thresholds and potential escalation steps. As a result, the system provides us with a precise overview of potentially undesirable developments in the defined risk tolerances and enables us to react in a timely manner. Our capital adequacy is determined by the requirements of our internal capital model, solvency regulations, the assumptions of rating agencies for our target rating and the expectations of our clients and shareholders. Our capital cushion is sufficient to both absorb risks and act on lucrative business opportunities. Similarly, our financial strength ratings also attest to our financial stability. The quality of our risk management, for example, is assessed as “very good” by Standard & Poor's as a key factor in the rating process. Special consideration is given to our established risk management culture, which promotes the development of appropriate risk monitoring systems and supports strategic risk management. The rating encompasses in particular the areas of risk culture, risk controls, emerging risk management, risk models and strategic risk management. This external appraisal confirms the quality of our holistic approach to risk management. The Group-wide risk management system and the internal control system are also regularly audited by the internal audit function and are part of the assessment of the governance system by the Executive Board. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 14Half-yearly Financial Report 2026
Page 15
Consolidated balance sheet Consolidated statement of income Consolidated statement of comprehensive income Consolidated statement of changes in shareholders’ equity Consolidated cash flow statement Notes to the consolidated financial statements 16 17 18 19 20 21 Hannover Re Investor Relations 15Half-yearly Financial Report 2026 Consolidated financial statements
Page 16
Consolidated balance sheet Assets in EUR million 31.12.2025 30.6.2026 Financial investments - at fair value through OCI 57,316.6 60,005.3 Financial investments - at fair value through profit or loss 6,148.9 6,367.2 Investment property 2,671.8 2,830.3 Investments in associated companies and joint ventures 85.0 82.4 Other invested assets 116.9 109.7 Total investments 66,339.2 69,394.9 Recoverables on reinsurance contracts retroceded 1,107.2 1,095.3 Reinsurance contracts issued in an asset position 919.4 943.8 Goodwill 77.9 78.5 Deferred tax assets 373.5 404.2 Other assets 1,346.3 1,414.0 Cash and cash equivalents 1,051.5 1,064.1 Assets held for sale 112.2 — Total assets 71,327.1 74,394.8 Liabilities in EUR million 31.12.2025 30.6.2026 Liabilities from reinsurance contracts issued 47,425.8 50,271.3 Reinsurance contracts retroceded in a liability position 555.0 355.4 Provisions for pensions 144.1 143.0 Financing liabilities 4,142.3 4,131.2 Taxes 450.5 470.5 Deferred tax liabilities 2,001.4 2,039.6 Other liabilities 2,677.6 2,678.1 Total liabilities 57,396.6 60,089.0 Shareholders’ equity Common shares 120.6 120.6 Nominal value: 120.6 Conditional capital: 24.1 Additional paid-in capital 724.6 724.6 Common shares and additional paid-in capital 845.2 845.2 Cumulative other comprehensive income Unrealised gains and losses on investments -1,494.5 -1,659.3 Cumulative foreign currency translation adjustment -673.3 -252.9 Cumulative reinsurance finance income and expense 1,576.0 1,779.0 Other changes in cumulative other comprehensive income -25.0 -69.8 Total other comprehensive income -616.9 -203.0 Retained earnings 12,700.4 12,623.8 Equity attributable to shareholders of Hannover Rück SE 12,928.7 13,266.0 Non-controlling interests 1,001.7 1,039.8 Total shareholders’ equity 13,930.5 14,305.8 Total liabilities 71,327.1 74,394.8 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 16Half-yearly Financial Report 2026
Page 17
Consolidated statement of income in EUR million 2025 2026 1.4. – 30.6.¹ 1.1. – 30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Reinsurance revenue (gross) 6,368.7 13,338.5 6,395.4 12,918.5 Reinsurance service expenses (gross) 5,009.8 11,505.3 5,080.2 10,132.1 Reinsurance service result (gross) 1,358.9 1,833.2 1,315.2 2,786.3 Reinsurance revenue (retroceded) 744.8 1,496.3 923.0 1,762.0 Reinsurance service expenses (retroceded) 290.6 1,082.7 457.6 715.6 Result from reinsurance contracts (retroceded) -454.2 -413.6 -465.4 -1,046.4 Reinsurance service result (net) 904.7 1,419.6 849.8 1,739.9 Finance income or expenses from reinsurance contracts (gross) 1,114.9 1,493.8 -680.3 -1,524.7 Finance income or expenses from reinsurance contracts (retroceded) -56.4 -133.5 48.1 94.7 Reinsurance finance result (net) 1,058.5 1,360.3 -632.2 -1,430.0 thereof: Currency gains/losses from reinsurance finance result (net) ² 1,392.8 2,027.9 -218.9 -656.6 Reinsurance finance result (net) before currency gains and losses ² -334.3 -667.6 -413.3 -773.4 Ordinary investment income 603.7 1,240.5 753.3 1,397.3 Expected credit losses, impairment, depreciation and appreciation of investments -22.0 -42.5 -13.5 -29.1 Change in fair value of financial instruments 26.1 21.1 -13.5 18.3 Profit/loss from investments in associated companies and joint ventures -9.4 -1.5 -9.2 -27.9 Realised gains and losses on investments -76.5 -70.2 -16.0 -3.1 Other investment expenses 52.8 101.5 52.8 101.8 Investment result 469.0 1,045.9 648.4 1,253.8 Currency gains / losses on investments -1,201.7 -1,795.5 206.2 629.7 Currency gains/losses from reinsurance finance result (net) ² 1,392.8 2,027.9 -218.9 -656.6 Other currency gains/losses -21.4 3.7 -15.8 -26.0 Currency result ² 169.7 236.1 -28.5 -52.9 Other income 72.7 123.8 77.1 133.6 Other expenses 216.5 395.9 172.2 368.7 Other income / expenses -143.8 -272.1 -95.1 -235.1 Operating profit / loss (EBIT) 1,065.4 1,761.9 961.3 1,932.4 Financing costs 26.0 51.7 21.6 43.0 Net income before taxes 1,039.3 1,710.2 939.6 1,889.3 Taxes 195.6 374.1 206.5 410.8 Net income 843.8 1,336.1 733.2 1,478.5 thereof non-controlling interest in profit and loss 10.3 22.2 37.9 72.6 Group net income 833.5 1,313.9 695.3 1,405.9 Basic earnings per share 6.91 10.90 5.77 11.66 Diluted earnings per share 6.91 10.90 5.77 11.66 ¹ Information was not subject to an auditor’s review 2 In order to clarify the matching currency coverage of the technical liabilities by investments, the currency effects are initially eliminated from the reinsurance finance result within the meaning of IFRS 17 and subsequently reported in the net currency result Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 17Half-yearly Financial Report 2026
Page 18
Consolidated statement of comprehensive income in EUR million 2025 2026 1.4. – 30.6.¹ 1.1. –30.6. 1.4. – 30.6.¹ 1.1. – 30.6. Net income 843.8 1,336.1 733.2 1,478.5 Not reclassifiable to the consolidated statement of income Actuarial gains and losses 0.8 4.3 -0.9 -1.9 Investments in equity instruments 23.1 143.4 26.3 5.7 Currency translation -10.5 -10.6 1.3 5.0 Tax income (expense) -0.7 -3.6 -0.7 -2.6 Total not reclassifiable to the consolidated statement of income 12.7 133.5 25.9 6.2 Reclassifiable to the consolidated statement of income Unrealised gains and losses on investments Gains (losses) recognised directly in equity 395.2 654.6 347.8 -199.3 Transferred to the consolidated statement of income 74.8 91.5 -9.5 34.5 Currency translation Gains (losses) recognised directly in equity -948.0 -1,408.5 148.4 444.5 Changes from insurance contracts Gains (losses) recognised directly in equity -256.5 -429.1 -203.9 265.0 Changes from the measurement of associated companies and joint ventures Gains (losses) recognised directly in equity — — 0.1 0.2 Changes from hedging instruments Gains (losses) recognised directly in equity -12.3 -19.2 -66.5 -62.7 Tax income (expense) 3.6 53.0 -27.6 -31.5 Total reclassifiable income and expense recognised directly in equity -743.2 -1,057.8 188.8 450.7 Total income and expense recognised directly in equity -730.5 -924.2 214.7 456.9 Total recognised income and expense 113.3 411.9 947.9 1,935.4 thereof Attributable to non-controlling interests 14.7 25.7 41.1 89.8 Attributable to shareholders of Hannover Rück SE 98.6 386.2 906.8 1,845.6 ¹ Information was not subject to an auditor’s review Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 18Half-yearly Financial Report 2026
Page 19
Consolidated statement of changes in shareholders' equity in EUR million Common shares Additional paid-in capital Other reserves (cumulative other comprehensive income) Retained earnings Equity attributable to shareholders of Hannover Rück SE Non-controlling interests Total shareholders’ equity Unrealised gains/ losses Currency translation Insurance contracts Hedging instruments Actuarial gains/ losses Balance as at 1.1.2025 120.6 724.6 -1,997.4 667.5 1,712.0 12.4 -40.3 10,595.1 11,794.5 893.8 12,688.3 Net income — — — — — — — 1,313.9 1,313.9 22.2 1,336.1 Total income and expense recognised directly in equity — — 679.3 -1,334.0 -261.4 -14.2 2.6 — -927.7 3.5 -924.2 Total recognised income and expense — — 679.3 -1,334.0 -261.4 -14.2 2.6 1,313.9 386.2 25.7 411.9 Dividends paid — — — — — — — -1,085.4 -1,085.4 -35.6 -1,121.0 Changes in ownership interest with no change of control status — — — — — — — 0.1 0.1 -25.3 -25.2 Directly reclassified to retained earnings — — -13.5 — — — — 13.5 — — — Changes in the consolidated group — — — — — — — — — — — Capital increases/additions — — — — — — — — — — — Acquisition/disposal of treasury shares — — — — — — — -0.2 -0.2 — -0.2 Balance as at 30.6.2025 120.6 724.6 -1,331.5 -666.6 1,450.6 -1.9 -37.6 10,837.0 11,095.2 858.6 11,953.8 Balance as at 1.1.2026 120.6 724.6 -1,494.5 -673.3 1,576.0 12.2 -37.2 12,700.4 12,928.7 1,001.7 13,930.5 Net income — — — — — — — 1,405.9 1,405.9 72.6 1,478.5 Total income and expense recognised directly in equity — — -138.1 419.6 203.0 -43.4 -1.4 — 439.7 17.2 456.9 Total recognised income and expense — — -138.1 419.6 203.0 -43.4 -1.4 1,405.9 1,845.6 89.8 1,935.4 Dividends paid — — — — — — — -1,507.5 -1,507.5 -44.2 -1,551.6 Changes in ownership interest with no change of control status — — -0.1 — — — — — -0.1 — -0.1 Directly reclassified to retained earnings — — -26.5 0.8 — — — 25.7 — — — Changes in the consolidated group — — — — — — — -0.7 -0.7 -7.8 -8.5 Capital increases/additions — — — — — — — — — 0.2 0.2 Acquisition/disposal of treasury shares — — — — — — — — — — — Balance as at 30.6.2026 120.6 724.6 -1,659.3 -252.9 1,779.0 -31.3 -38.5 12,623.8 13,266.0 1,039.8 14,305.8 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 19Half-yearly Financial Report 2026
Page 20
Consolidated cash flow statement in EUR million 2025 2026 1.1. – 30.6. 1.1. – 30.6. I. Cash flow from operating activities Net income 1,336.1 1,478.5 Change in insurance contracts (gross) 1,725.9 1,622.5 Change in reinsurance contracts held (retroceded) -550.7 -170.3 Change in other receivables/liabilities -60.9 -56.6 Other non-cash expenses and income -227.2 120.1 Cash flow from operating activities 2,223.2 2,994.2 II. Cash flow from investing activities Outflows for acquisition of investment property -102.6 -177.9 Inflows from disposal of investment property 120.0 110.3 Outflows for acquisition of investments in affiliated companies and participating interests (not consolidated) -1.0 -45.2 Inflows from disposal of investments in affiliated companies and participating interests (not consolidated) 29.1 63.9 Outflows for acquisition of investments valued at FV through OCI -16,604.3 -18,286.7 Inflows from disposal of investments valued at FV through OCI 15,950.2 17,064.7 Outflows for acquisition of investments valued at FV through P&L -2,123.6 -2,148.6 Inflows from disposal of investments valued at FV through P&L 1,831.0 2,101.0 Short-term investments (net) -33.9 -50.4 Outflows for acquisition of other invested assets -1,533.9 -2,427.7 Inflows from disposal of other invested assets 1,903.7 2,425.4 Other changes 10.4 -43.9 Cash flow from investing activities -554.8 -1,415.2 III. Cash flow from financing activities Cash inflow from financing liabilities/financial/puttable instruments 57.0 14.3 Cash outflow from financing liabilities/financial/puttable instruments -610.9 -62.2 Cash inflow from capital measures — 0.2 Changes in interests in a subsidiary that do not result in a loss of control -25.2 — Cash outflow from dividends -1,121.0 -1,551.6 Other changes -0.2 — Cash flow from financing activities -1,700.3 -1,599.3 in EUR million 2025 2026 1.1. – 30.6. 1.1. – 30.6. IV. Exchange rate differences on cash -102.3 32.1 Cash and cash equivalents at the beginning of the period 1,253.1 1,051.5 Change in cash and cash equivalents (I. + II. + III. + IV.) -134.3 12.7 Cash and cash equivalents at the end of the period 1,118.9 1,064.1 Supplementary information on the cash flow statement ¹ Income taxes paid (on balance) -486.1 -240.7 Dividend receipts ² 101.5 86.8 Interest received 1,121.4 1,192.5 Interest paid – recognised in the cash flow from operating activities -113.2 -124.6 Interest paid – recognised in the cash flow from financing activities -31.8 -23.3 ¹ The income taxes paid, dividend received as well as interest received are included entirely in the cash flow from operating activities ² Including dividend-like profit participations from investment funds Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 20Half-yearly Financial Report 2026
Page 21
1. General reporting principles 2. Accounting principles including major accounting policies 3. Consolidated companies and consolidation principles 4. Group segment report 5. Notes on the individual items of the balance sheet 5.1 Investments 5.2 Technical assets and liabilities 5.3 Financing liabilities 5.4 Shareholders’ equity, non-controlling interests and treasury shares 6. Notes on the individual items of the statement of income 6.1 Reinsurance revenue 6.2 Investment result 7. Other notes 7.1 Derivative financial instruments and financial guarantees 7.2 Related party disclosures 7.3 Staff 7.4 Earnings per share 7.5 Contingent liabilities and commitments 7.6 Events after the end of the reporting period Responsibility statement Review report by the independent auditors 22 22 24 26 28 28 34 40 40 41 41 41 41 41 43 45 45 45 46 47 47 Hannover Re Investor Relations 21Half-yearly Financial Report 2026 Notes to the consolidated financial statements
Page 22
1. General reporting principles Hannover Rück SE and its subsidiaries (collectively referred to as the “Hannover Re Group” or “Hannover Re”) are 50.2% (rounded) owned by Talanx AG and included in its consolidated financial statement. Talanx AG is majority-owned by HDI Haftpflichtverband der Deutschen Industrie V. a. G. (HDI). Hannover Re is obliged to prepare a consolidated financial statement and group management report in accordance with § 290 German Commercial Code (HGB). Furthermore, HDI is required by §§ 341 i et seq. German Commercial Code (HGB) to prepare consolidated annual accounts that include the annual financial statements of Hannover Rück SE and its subsidiaries. Hannover Rück SE is a European Company, Societas Europaea (SE), and its registered office is located at Karl-Wiechert-Allee 50, 30625 Hannover, Germany. The present consolidated half-yearly financial report of Hannover Re was drawn up in conformity with IAS 34 and in accordance with the International Financial Reporting Standards (IFRS) that are to be used for interim reporting, as adopted by the EU. This also applies to all figures provided in this report for previous periods. The consolidated financial statement was drawn up in euros (EUR), the amounts shown have been rounded to EUR millions. Unless otherwise explicitly indicated, amounts in brackets refer to the previous year. The present consolidated financial statement was prepared by the Executive Board on 7 August 2026 and released for publication. 2. Accounting principles including major accounting policies The quarterly accounts of the consolidated companies included in the consolidated financial statement were drawn up as at 30 June 2026. In conformity with IAS 34, the accounting policies applied in the period under review were the same as those applied in the preceding consolidated annual financial statement, unless otherwise indicated. For more details of the accounting policies, please see the Group annual financial report for the previous year. All standards adopted by the IASB as at 30 June 2026 with binding effect for the period under review have been observed in the consolidated financial statement. Accounting standards applied for the first time The following amendments to existing standards were applied for the first time in the reporting period. These amendments did not have any significant implications for the consolidated financial statement: – Annual Improvements Volume 11 (endorsed by the EU in July 2025) – Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature- dependent Electricity (endorsed by the EU in June 2025) – Amendments to IFRS 9 and IFRS 7: Amendments to the Classification and Measurement of Financial Instruments Standards and changes in standards that have not yet entered into force or have not yet been applied In June 2026 the IASB issued “Amendments to IAS 28: Amendments to the Fair Value Option in IAS 28 Investments in Associates and Joint Ventures”. IAS 28 sets out the rules for the accounting of investments in associates and joint ventures. The amendments clarify which entities have the option to measure an investment in an associate or a joint venture at fair value through profit or loss in accordance with IFRS 9 “Financial Instruments”, instead of including it in the consolidated financial statements using the equity method. For the implementation of IFRS 18, it is important to establish clarity as to which entities are eligible to measure investments using the fair value option in IAS 28. The amendments make clear that in future this will also include entities whose main business activity consists of investing in certain types of assets, as described in IFRS 18. The amendments, which are to be applied concurrently with IFRS 18 and retrospectively for financial years beginning on or after 1 January 2027, have still to be endorsed by the EU. In April 2024 the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements”. The standard is to be applied retrospectively for financial years beginning on or after 1 January 2027, was endorsed by the EU in February 2026 and replaces the previous IAS 1 “Presentation of Financial Statements”. IFRS 18 requires adjustments to the structure of the consolidated income statement, introduces categories in the statement of income and sets out requirements to standardise the aggregation or disaggregation of items presented in financial statements. In the future, items presented in the consolidated income statement are to be classified into the categories operating, investing and financing, which are summarised by newly defined subtotals. Individual income and expense items are allocated to different categories than previously: for example, under the new provisions, shares of the profit or loss of associates and joint ventures accounted for using the equity method will in future be allocated to the investing category and hence no longer form part of the operating profit. In addition, certain expenses are to be reclassified to the financing category. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 22Half-yearly Financial Report 2026
Page 23
Furthermore, requirements for new disclosures in the notes on “management-defined performance measures” (MPMs) are formulated, insofar as such performance measures are used in the financial reporting. Additional disclosures required in the notes primarily relate to disclosures in the consolidated income statement for expenses that are presented in the operating result by function. For these items, the amounts for certain types of expenses specified by IFRS 18 (e.g. depreciation, amortisation, impairment losses and reversals of impairment losses) that are included therein must be disclosed. The presentation of the consolidated cash flow statement is also adjusted through targeted amendments to IAS 7 “Statement of Cash Flows”, essentially in that the calculation of the cash flows from operating activities will in future begin with the newly defined operating profit subtotal instead of with the Group net profit as was previously the case. Hannover Re is currently analysing the implications of IFRS 18 and preparing for its implementation. As a reinsurance company, Hannover Re will apply the rules for the specified main business activities when reporting certain items in the consolidated income statement. We will also introduce a note to the financial statements regarding the above- mentioned expenses according to their type and adjust the cash flow statement due to its new starting point. We do not expect IFRS 18 to have any significant implications above and beyond this. Furthermore, the IASB has issued the following amendments to existing standards, application of which was not yet mandatory in the reporting period. Hannover Re is refraining from early application of these amendments, which are not expected to have any significant implications for the Group's net assets, financial position or results of operations. – IFRS 19 Subsidiaries without Public Accountability: Disclosures (still to be endorsed by the EU) – Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (still to be endorsed by the EU) – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency – IFRS 20 Regulatory Assets and Regulatory Liabilities Key exchange rates The individual companies’ statements of income prepared in the respective functional currency are converted into euro at the average rates of exchange and transferred to the consolidated financial statement. The conversion of foreign currency items in the balance sheets of the individual companies and the transfer of these items to the consolidated financial statement are effected at the mean rates of exchange on the balance sheet date. Key exchange rates 1 EUR corresponds to: 31.12.2025 30.6.2026 1.1. – 30.6.2025 1.1. – 30.6.2026 Mean rate of exchange on the balance sheet date Average rate of exchange AUD 1.7551 1.6540 1.7272 1.6717 BHD 0.4436 0.4295 0.4121 0.4406 CAD 1.6118 1.6220 1.5432 1.6095 CNY 8.2247 7.7317 7.9137 8.0204 GBP 0.8715 0.8615 0.8393 0.8681 HKD 9.1550 8.9348 8.5187 9.1327 INR 105.6058 107.8533 93.7895 108.7448 KRW 1,697.9700 1,767.4400 1,560.9800 1,731.5543 MYR 4.7618 4.6541 4.7736 4.6616 USD 1.1762 1.1394 1.0928 1.1674 ZAR 19.5520 18.6508 20.0386 19.1720 Major discretionary decisions and estimates A s p r o v i d e d f o r b y I A S 3 4 , i n o u r p r e p a r a t i o n o f t h e c o n s o l i d a t e d i n t e r i m financial statement, consisting of the consolidated balance sheet, consolidated statement of income, consolidated statement of comprehensive income, consolidated cash flow statement, consolidated statement of changes in shareholders’ equity and selected explanatory notes, we draw on estimates and assumptions to a greater extent than is the case with the annual financial reporting. This can have implications for items in the balance sheet and the statement of income as well as for other financial obligations. Estimates and assumptions influence in particular the consolidation method, the recognition of reinsurance contracts and financial instruments, goodwill, provisions for non-technical matters and deferred taxes. Estimates are always based on realistic premises, but they are of course subject to uncertainties that may be reflected accordingly in the result. Risks connected with the impacts of climate change are of great significance to a reinsurance company's business model. The estimation of occurrence probabilities and loss amounts for climate-related storms, floods or droughts is a major integral component of our risk management system. It exerts a considerable influence on our underwriting policy for catastrophe-exposed risks and requires appropriate risk capital to be kept available. Physical risks such as extreme weather events and their consequences as well as long-term changes in climatic and environmental conditions, such as precipitation amounts, the rise in sea levels or the increase in average temperatures, can also affect the value of our real estate holdings or the measurement of securities in our investment portfolio. Along with the influence of these physical risks, the measurement of our investment portfolio is also subject to transition risks as a consequence of climate change. Transition risks refer to those risks connected with the effects of climate change that result from the shift towards a low-carbon economy. This transition is substantially initiated and supported by political regulatory policies. Insofar as such regulatory measures negatively affect, for example, issuers of shares or corporate bonds in our asset portfolio, there are corresponding implications for the measurement of these instruments. Overall, in addition to their implications for the technical account, the evaluation of climate risks is considered inter alia in the context of the impairment test for non-financial assets, including goodwill pursuant to IAS 36, in the determination of the useful life and residual value of assets pursuant to IAS 16 or IAS 38, in connection with the recognition and subsequent measurement of investments pursuant to IFRS 9 as well as in the establishment of provisions and the disclosure of contingent liabilities pursuant to IAS 37. Geopolitical risks also gave rise to estimation uncertainties in the reporting period. We performed analyses for all relevant lines of business, taking into consideration the information, market insights and pertinent case law available to us at the present moment in time and using them to determine our reserves based on our own estimates. For further discussion of the impacts of climate and geopolitical risks, we additionally refer to our remarks in the section of the risk report entitled “Major external factors influencing risk management”. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 23Half-yearly Financial Report 2026
Page 24
Discretionary decisions, estimates and assumptions are of considerable significance when it comes to the assets and liabilities from reinsurance contracts issued or held: the classification, the aggregation level and the measurement of reinsurance and retrocession contracts entail discretionary decisions. Depending on the assessment of whether they transfer a significant insurance risk, contracts are classified either as reinsurance or investment contracts. An appropriate aggregation level must be found because it is necessary to differentiate between contract portfolios by separating groups of contracts that are onerous upon initial recognition from those that do not have a significant probability of subsequently becoming onerous. In addition, assumptions are made and estimation uncertainties exist regarding the measurement of reinsurance and retrocession contracts. In measuring such contracts, the measurement method is to be defined that is used for estimating the risk adjustments for non-financial risk and the quantity of services to be rendered under a contract. Changes in material assumptions relating to discount rates (including illiquidity premiums), loss experience or future cash flows and differences between interest on credit balances and discount rates could result in significant changes in fulfilment values in the following financial year or in adjustment of the contractual service margin. Supplementary or complete estimates of the corresponding profit and loss items, assets and liabilities including relevant retrocessions are made where ceding company accounts with substantial premium income are missing. Missing ceding company accounts with a low premium volume are included in the following year. In applying statistical methods, separate consideration is given to large losses. By analysing a broad range of observable information, it is possible to classify losses as major individual loss events. Measurement of the obligations existing in this connection is carried out using a separate process, which is based largely on contract-specific estimates. When the carrying amounts of certain financial assets are established, it is sometimes necessary to make assumptions in order to calculate fair values and determine the risk provisioning for expected credit losses. In this regard we refer the reader to our comments on financial instruments measured at fair value through profit or loss and on impairments in section 5.1 "Investments" and section 6.2 "Investment result". For further information we additionally refer to our remarks in the previous annual financial report. 3. Consolidated companies and consolidation principles Capital consolidation The capital consolidation is carried out according to the requirements of I F R S 1 0 “ C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s ” o n t h e b a s i s o f a c o n s i s t e n t consolidation model for all entities that identifies control as the single basis for verifying the consolidation requirement, irrespective of whether control is substantiated in company law, contractually or economically. Group companies are consolidated from the point in time when Hannover Re gains control over them. Control exists if Hannover Re directly or indirectly has decision-making power over a Group company on the basis of voting rights or other rights, if it has exposure or rights to positive and negative variable returns from its involvement with the Group company and if it can use its power to influence these returns. All of these criteria must be met. Other circumstances may also give rise to control, for example the existence of a principal-agent relationship. In this case a party outside the Group with decision-making powers (agent) acts for Hannover Re, but does not control the company since it merely exercises decision-making powers that have been delegated by Hannover Re (principal). In the context of their operational activities some companies belonging to the Hannover Re Group enter into business relations with structured entities that are also to be examined in accordance with IFRS 10 in conjunction with IFRS 12 with an eye to their implications for consolidation. Structured entities are entities designed in such a way that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. Consolidation decisions are reviewed as necessary and at least once a year. Group companies are consolidated until the Hannover Re Group loses control over them. The accounting policies of Group companies are adjusted, where necessary, in order to ensure consistent application of the Hannover Re Group’s accounting policies. The capital consolidation is based on the acquisition method. In the context of the acquisition method the acquisition costs, measured at the fair value of the consideration rendered by the parent company on the acquisition date, are netted with the proportionate shareholders’ equity of the subsidiary at the time when it is first included in the consolidated financial statement after the revaluation of all assets and liabilities. After r e c o g n i t i o n o f a l l a c q u i r e d i n t a n g i b l e a s s e t s t h a t i n a c c o r d a n c e w i t h I F R S 3 “Business Combinations” are to be accounted for separately from goodwill, the difference between the revalued shareholders’ equity of the subsidiary a n d t h e p u r c h a s e p r i c e i s r e c o g n i s e d a s g o o d w i l l . U n d e r I F R S 3 g o o d w i l l i s not amortised, but instead impairment is taken where necessary on the basis of annual impairment tests. Immaterial and negative goodwill are recognised in the statement of income in the year of their occurrence. Costs associated with acquisition are expensed. Companies over which Hannover Re is able to exercise a significant influence or whose relevant activities can only be decided with the unanimous approval of the parties sharing control and in which we only have rights to the net assets are included as associated companies or joint ventures using the equity method of accounting. Under this method, we measure investments in associated companies and joint ventures with the proportion of the equity attributable to the Group. In accordance with the equity method of accounting required by IAS 28 "Investments in Associates and Joint Ventures", the goodwill attributable to associated companies and joint ventures is recognised together the carrying amount of the investments in associated companies and joint ventures. The share of the year-end result of an associated company or joint venture relating to the Group is included in the investment income and recognised separately in the consolidated statement of income. The equity and result are taken from the last available financial statement of the associated company or joint venture. Non-controlling interests in shareholders’ equity are reported separately w i t h i n G r o u p s h a r e h o l d e r s ’ e q u i t y i n a c c o r d a n c e w i t h I A S 1 “ P r e s e n t a t i o n of Financial Statements”. The non-controlling interest in profit or loss, which forms part of net income and is shown separately after net income as a “thereof ” note, amounted to EUR 72.6 million (EUR 22.2 million) as at 30 June 2026. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 24Half-yearly Financial Report 2026
Page 25
For further details we refer to the relevant information in the Group annual financial report as at 31 December 2025. Consolidation of business transactions within the Group Receivables and liabilities between the companies included in the consolidated financial statement are offset against each other. Profits and expenses from business transactions within the Group are also eliminated. Transactions between a disposal group and the continuing operations of t h e G r o u p a r e s i m i l a r l y e l i m i n a t e d i n a c c o r d a n c e w i t h I F R S 1 0 . Major acquisitions and new formations No major acquisitions or new formations took place in the period under review. Major disposals No major disposals took place in the period under review. Other corporate changes HCP Hannover Re Capital Partners Limited, Hamilton, Bermuda (formerly Bristol Re), which had previously not been included in Hannover Re’s consolidated financial statements on grounds of materiality, commenced operations during the year and has been fully consolidated since 1 January 2026. The same applies to Sustainable Forestry New Zealand Limited, Waverley, New Zealand. The company, which was established in 2025, was capitalised during the financial year and has been included in Hannover Re’s consolidated financial statements on a full consolidation basis since 1 January 2026. Sustainable Timber Asia GmbH, Cologne, Germany, lost the status of a fully consolidated subsidiary due to a joint venture agreement concluded in early June 2026 with the former co-shareholders, Talanx AG and HDIAI EUR Beteiligungs-GmbH, and will in future be included in Hannover Re’s consolidated financial statements as a joint venture using the equity method. We additionally refer to our remarks in section 7.2 "Related party disclosures". Hannover Re has entered into an agreement with the aim of selling its shares in Monument Insurance Group Limited, Hamilton, Bermuda, as part of a corporate restructuring, and acquiring shares in a newly established company in return. The transaction is expected to close in the fourth quarter of 2026. Revaluation of the carrying amount of the company accounted for using the equity method in accordance with IFRS 5 was not necessary because it is below the fair value of the investment. A separate disclosure in the consolidated balance sheet was also omitted on grounds of materiality. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 25Half-yearly Financial Report 2026
Page 26
4. Group segment report Property and casualty reinsurance Life and health reinsurance Consolidation Total in EUR million 31.12.2025 30.6.2026 31.12.2025 30.6.2026 31.12.2025 30.6.2026 31.12.2025 30.6.2026 Segment assets Financial investments - at fair value through OCI 46,373.5 48,694.2 10,928.2 11,294.4 14.9 16.7 57,316.6 60,005.3 Financial investments - at fair value through profit or loss 5,642.6 5,918.3 497.4 439.5 8.9 9.4 6,148.9 6,367.2 Investment property 2,671.8 2,830.3 — — — — 2,671.8 2,830.3 Investments in associated companies and joint ventures 74.1 82.4 11.0 — — — 85.0 82.4 Other invested assets 104.7 96.0 12.3 13.7 — — 116.9 109.7 Total investments 54,866.6 57,621.2 11,448.8 11,747.5 23.8 26.1 66,339.2 69,394.9 Recoverables on reinsurance contracts retroceded 792.1 764.4 315.1 330.9 — — 1,107.2 1,095.3 Reinsurance contracts issued in an asset position 46.5 22.4 872.9 921.4 — — 919.4 943.8 Cash and cash equivalents 753.0 754.8 294.0 305.7 4.4 3.7 1,051.5 1,064.1 Other segment assets 2,116.1 2,868.0 383.2 159.1 -1,423.8 -1,711.7 1,075.5 1,315.5 Assets held for sale 112.2 — — — — — 112.2 — Total segment assets 58,686.4 62,030.8 13,314.1 13,464.6 -1,395.6 -1,681.9 70,604.9 73,813.6 in EUR million Segment liabilities Liabilities from reinsurance contracts issued 38,318.5 40,588.9 9,107.3 9,682.4 — — 47,425.8 50,271.3 Reinsurance contracts retroceded in a liability position 398.2 197.1 156.7 158.2 — — 555.0 355.4 Financing liabilities 620.3 611.9 22.8 19.8 3,499.2 3,499.6 4,142.3 4,131.2 Other segment liabilities 2,024.9 1,729.4 2,204.3 2,763.3 -1,407.4 -1,671.7 2,821.7 2,821.0 Total segment liabilities 41,361.8 43,127.3 11,491.1 12,623.7 2,091.8 1,827.9 54,944.8 57,578.9 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 26Half-yearly Financial Report 2026
Page 27
Segment statement of income Property and casualty reinsurance Life and health reinsurance Consolidation Total in EUR million 1.1. – 30.6.2025 1.1. – 30.6.2026 1.1. – 30.6.2025 1.1. – 30.6.2026 1.1. – 30.6.2025 1.1. – 30.6.2026 1.1. – 30.6.2025 1.1. – 30.6.2026 Reinsurance revenue (gross) 9,539.2 8,773.1 3,799.3 4,145.4 — — 13,338.5 12,918.5 Reinsurance service expenses (gross) 8,181.7 6,485.0 3,323.5 3,647.2 — — 11,505.3 10,132.1 Reinsurance service result (gross) 1,357.5 2,288.1 475.7 498.3 — — 1,833.2 2,786.3 Reinsurance revenue (retroceded) 1,136.7 1,239.8 359.7 522.2 — — 1,496.3 1,762.0 Reinsurance service expenses (retroceded) 754.3 213.7 328.4 501.9 — — 1,082.7 715.6 Result from reinsurance contracts (retroceded) -382.4 -1,026.1 -31.2 -20.3 — — -413.6 -1,046.4 Reinsurance service result (net) 975.1 1,262.0 444.5 478.0 — — 1,419.6 1,739.9 Reinsurance finance result (net) before currency gains and losses -571.7 -667.1 -95.9 -106.3 — — -667.6 -773.4 Investment result 832.1 1,069.0 213.0 184.4 0.8 0.3 1,045.9 1,253.8 thereof Expected credit losses, impairment, depreciation and appreciation of investments -42.1 -28.8 -0.4 -0.2 — — -42.5 -29.1 Change in fair value of financial instruments 3.8 21.7 17.4 -3.4 -0.1 — 21.1 18.3 Profit/loss from investments in associated companies and joint ventures 0.7 -1.9 -2.3 -26.0 — — -1.5 -27.9 Currency result 232.0 -5.6 4.0 -47.3 — — 236.1 -52.9 Other income / expenses -172.8 -134.2 -95.7 -100.6 -3.5 -0.3 -272.1 -235.1 Operating profit / loss (EBIT) 1,294.7 1,524.2 469.9 408.2 -2.7 — 1,761.9 1,932.4 Financing costs 1.1 1.0 0.4 0.3 50.2 41.8 51.7 43.0 Net income before taxes 1,293.5 1,523.2 469.5 407.9 -52.9 -41.7 1,710.2 1,889.3 Taxes 374.1 410.8 Net income 1,336.1 1,478.5 thereof non-controlling interest in profit and loss 22.2 72.6 Group net income 1,313.9 1,405.9 The segment information shown here is based on the same principles as those applied in the consolidated financial statement as at 31 December 2025. It follows the system used for internal reporting purposes, on the basis of which the full Executive Board regularly evaluates the performance of segments and decides on the allocation of resources to them. The “Consolidation” column includes not only the elimination of cross-segment transactions but also, more significantly, companies whose business operations cannot be unambiguously allocated to property and casualty reinsurance or life and health reinsurance. These are principally the service and financing companies belonging to the Group. Since the performance indicators used to steer the segments correspond to the system according to which the consolidated financial statement is prepared, a separate reconciliation of the segment results with the Group result is not provided. We also refer to the relevant information in the Group annual financial report as at 31 December 2025. The corporate changes relating to the companies HCP Hannover Re Capital Partners Limited, Sustainable Forestry New Zealand Limited and Sustainable Timber Asia GmbH are allocable to the property and casualty reinsurance segment. Monument Insurance Group Limited forms part of the life and health reinsurance segment. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 27Half-yearly Financial Report 2026
Page 28
5. Notes on the individual items of the balance sheet 5.1 Investments Investments are classified and measured in accordance with IFRS 9 “Financial Instruments”. Hannover Re classifies investments in the categories of measured at fair value through other comprehensive income and at fair value through profit or loss, while measurement at amortised cost is only used in exceptional cases. The allocation and measurement of investments are determined by the investment intent (business model) and the type of cash flows. The investments also encompass investment property, investments in associated companies and joint ventures as well as other invested assets. I n v e s t m e n t s w h i c h a r e i n t e n d e d f o r s a l e a s d e f i n e d b y I F R S 5 a r e recognised separately in the consolidated balance sheet if appropriate facts and circumstances apply. As at 31 December 2025, the participating interest in Neue SEBA Beteiligungsgesellschaft mbH, Nuremberg, in a calculated proportionate amount of 15.85% was reported as a non-current asset held for sale in accordance with the requirements of IFRS 5 with a book value of EUR 63.7 million. In addition, cumulative changes in fair value amounting to EUR 26.5 million were recorded in OCI. The participating interest was disposed of effective 18 May 2026. The following table shows the regional origin of the investments. Investments by regional origin in EUR million 31.12.2025 30.6.2026 Germany 7,238.4 6,897.1 United Kingdom 4,254.2 4,058.3 France 2,704.6 2,705.4 Other 10,800.0 11,541.2 Europe 24,997.2 25,202.0 USA 20,832.6 22,655.4 Other 5,273.4 5,912.2 North America 26,106.0 28,567.6 Asia 8,424.1 8,198.2 Australia 4,345.9 4,765.1 Australasia 12,770.1 12,963.3 Other 2,466.0 2,662.0 Total 66,339.2 69,394.9 Maturities of the fixed-income and variable-yield securities in EUR million 31.12.2025 30.6.2026 Fair value Fair value Financial investments – at fair value through OCI due in one year 12,520.8 9,691.3 due after one through two years 4,721.7 5,494.3 due after two through three years 5,527.1 6,316.8 due after three through four years 4,901.2 7,313.4 due after four through five years 6,593.0 6,175.2 due after five through ten years 13,020.4 14,301.7 due after more than ten years 9,522.7 10,133.5 Total 56,806.7 59,426.2 Financial investments – at fair value through profit or loss due in one year 996.5 893.1 due after one through two years 144.9 162.2 due after two through three years 64.7 67.5 due after three through four years 31.6 13.9 due after four through five years 50.0 71.6 due after five through ten years 30.5 26.8 due after more than ten years 285.4 300.2 no maturity 4,468.8 4,749.4 Total 6,072.3 6,284.8 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 28Half-yearly Financial Report 2026
Page 29
Amortised cost, unrealised gains and losses and accrued interest on financial instruments measured at fair value through OCI as well as their fair value in EUR million 31.12.2025 30.6.2026 Cost or amortised cost incl. accrued interest thereof accrued interest Unrealised gains Unrealised losses Fair value Cost or amortised cost incl. accrued interest thereof accrued interest Unrealised gains Unrealised losses Fair value Debt instruments Government debt securities of EU member states 6,259.2 29.9 7.4 652.7 5,613.9 6,094.2 29.8 5.7 606.2 5,493.7 US Treasury notes 9,080.0 53.4 23.0 482.6 8,620.4 10,002.1 66.0 4.1 559.5 9,446.6 Other foreign government debt securities 6,518.2 56.3 81.2 186.7 6,412.7 7,122.4 59.3 85.0 189.9 7,017.5 Debt securities issued by semi-governmental entities 11,390.4 125.1 61.8 428.0 11,024.3 10,958.1 138.2 39.5 429.7 10,567.8 Corporate securities 21,083.5 249.0 193.4 542.6 20,734.4 22,295.4 251.8 129.7 585.2 21,839.9 Covered bonds/asset-backed securities 4,265.7 47.6 11.8 138.6 4,139.0 4,927.5 43.5 8.9 134.0 4,802.4 Other 309.9 6.0 0.4 48.3 262.1 305.2 7.6 1.6 48.5 258.3 Total 58,907.0 567.3 379.1 2,479.4 56,806.7 61,704.8 596.2 274.5 2,553.1 59,426.2 Equity instruments Shares 206.0 — 29.7 15.1 220.6 217.6 — 44.5 21.8 240.3 Participating interests – other 306.1 — 3.7 20.6 289.2 361.0 — 14.8 37.1 338.7 Total 512.1 — 33.4 35.7 509.8 578.6 — 59.3 58.9 579.0 Total 59,419.1 567.3 412.5 2,515.1 57,316.6 62,283.4 596.2 333.8 2,611.9 60,005.3 Amortised cost, unrealised gains and losses and accrued interest on financial instruments measured at fair value through OCI as well as their fair value in EUR million 31.12.2025 30.6.2026 31.12.2025 30.6.2026 31.12.2025 30.6.2026 Fair value before accrued interest Accrued interest Fair value after accrued interest Debt instruments Other foreign government debt securities 1.1 1.2 — — 1.1 1.2 Debt securities issued by semi-governmental entities 21.6 25.8 0.4 0.8 22.0 26.7 Corporate securities 436.8 445.3 9.6 11.8 446.4 457.1 Covered bonds/asset-backed securities 0.9 0.8 — — 0.9 0.8 Other 34.5 32.6 — 0.4 34.5 33.0 494.9 505.7 10.0 13.1 504.9 518.8 Equity instruments Participating interests – other (financial investments) 76.6 82.4 — — 76.6 82.4 Derivative instruments 166.8 185.6 -1.6 8.7 165.2 194.3 Investment funds measured at fair value through profit or loss 5,024.4 5,177.8 — — 5,024.4 5,177.8 Short-term investments 365.7 381.0 3.8 4.3 369.5 385.4 Other financial instruments at fair value through profit and loss 8.3 8.6 — — 8.3 8.6 5,565.2 5,753.0 2.2 13.0 5,567.4 5,766.1 Total 6,136.8 6,341.1 12.2 26.1 6,148.9 6,367.2 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 29Half-yearly Financial Report 2026
Page 30
ECL development in EUR million 30.6.2025 30.6.2026 Opening balance Transfer to Stage 1 Transfer to Stage 2 Transfer to Stage 3 Additions Disposals Utilisation Other¹ Closing balance Opening balance Transfer to Stage 1 Transfer to Stage 2 Transfer to Stage 3 Additions Disposals Utilisation Other¹ Closing balance Stage 1 46.3 0.5 -0.7 — 14.5 10.2 — 2.2 52.6 49.2 1.0 -0.8 -0.2 13.6 9.1 — -8.1 45.4 Stage 2 12.8 -0.5 0.7 — — 1.3 — 0.1 11.8 6.7 -1.0 0.8 -0.3 — 2.3 — 4.5 8.5 Stage 3 80.4 — — — — — — -7.1 73.4 22.1 — — 0.5 — — 0.2 1.3 23.7 Simplified impairment model 1.1 — — — -0.1 — — -0.3 0.7 0.9 — — — -0.1 — — — 0.8 Total 140.6 — — — 14.4 11.5 — -5.1 138.4 78.9 — — — 13.5 11.5 0.2 -2.3 78.4 ¹ Including changes in underlying risk parameters, including probability of default, point-in-time adjustment factor Information on fair values and fair value hierarchy The methods and models set out below are used to establish the fair value of financial instruments on the assets and liabilities side of the balance sheet. The fair value of a financial instrument corresponds in principle to the amount that Hannover Re would receive or pay if it were to sell or settle the said financial instrument on the balance sheet date. Insofar as market prices are listed on markets for financial instruments, their bid price is used. In other cases the fair values are established on the basis of the market conditions prevailing on the balance sheet date for financial assets with similar credit rating, duration and return characteristics or using recognised models of mathematical finance. Hannover Re uses a number of different valuation models for this purpose. The details are set out in the following table. Valuation model Financial instrument Parameter Pricing model Fixed-income securities Unlisted plain vanilla bonds, interest rate swaps Yield curve Present value method Unlisted structured bonds Yield curve, volatility surfaces Hull-White, Black-Karasinski, LIBOR market model etc. Unlisted ABS/MBS, CDO/CLO Risk premiums, default rates, prepayment speed and recovery rates Present value method Other invested assets Unlisted equities and equity investments Acquisition cost, cash flows, EBIT multiples, as applicable book value Capitalised earnings method, discounted cash flow method, multiple-based approaches Other financial assets Private equity funds, private equity real estate funds Net asset values (NAV) Net asset value method Unlisted bond, equity and real estate funds Net asset values (NAV) Net asset value method Inflation swaps Inflation swap rates (Consumer Price Index), historical index fixings, interest rate curve Present value method Forward exchange transactions, foreign exchange swaps, non-deliverable forwards Yield curves, spot and forward rates Interest parity model OTC stock options, OTC stock index options Listing of the underlying share, implicit volatilities, money-market interest rate, dividend yield Black-Scholes Insurance derivatives Fair values, actuarial parameters, yield curve Present value method Cross-currency swaps Yield curve, currency spot rates Present value method Total return swaps Listing of underlying, yield curve Present value method Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 30Half-yearly Financial Report 2026
Page 31
Fair value hierarchy F o r t h e p u r p o s e s o f t h e d i s c l o s u r e r e q u i r e m e n t s p u r s u a n t t o I F R S 1 3 “ F a i r Value Measurement”, it is necessary to assign financial assets and liabilities to a three-level fair value hierarchy. The fair value hierarchy, which reflects characteristics of the price data and inputs used for measurement purposes, is structured as follows: – Level 1: Assets or liabilities measured at (unadjusted) prices quoted directly in active and liquid markets. – Level 2: Assets or liabilities which are measured using observable market data and are not allocable to level 1. Measurement is based, in particular, on prices for comparable assets and liabilities that are traded on active markets, prices on markets that are not considered active as well as inputs derived from such prices or market data. – Level 3: Assets or liabilities that cannot be measured or can only be partially measured using observable market inputs. The measurement of such instruments draws principally on valuation models and methods. If input factors from different levels are used to measure a financial instrument, the level of the lowest input factor material to measurement is determinative. The operational units responsible for coordinating and documenting measurement are organisationally separate from the operational units that enter into investment risks. All relevant valuation processes and valuation methods are documented. Decisions on fundamental valuation issues are taken by a valuation committee that meets monthly. The following table shows the breakdown of financial assets and liabilities recognised at fair value into the three-level fair value hierarchy. Fair value hierarchy of financial assets and liabilitites recognised at fair value in EUR million 31.12.2025 30.6.2026 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Debt instruments — 56,270.8 536.0 56,806.7 — 58,777.2 649.0 59,426.2 Equity instruments 218.2 — 291.6 509.8 237.8 — 341.2 579.0 Financial investments - at fair value through OCI 218.2 56,270.8 827.6 57,316.6 237.8 58,777.2 990.2 60,005.3 Debt instruments — 429.0 84.2 513.2 — 435.8 91.6 527.4 Equity instruments — — 76.6 76.6 — — 82.4 82.4 Derivative instruments — 75.8 89.4 165.2 — 104.1 90.2 194.3 Investment funds 784.3 88.4 4,151.8 5,024.4 690.7 85.3 4,401.8 5,177.8 Short-term investments 369.5 — — 369.5 385.4 — — 385.4 Financial investments – at fair value through profit or loss 1,153.8 593.2 4,402.0 6,148.9 1,076.0 625.2 4,666.0 6,367.2 Other invested assets — — 116.9 116.9 — — 89.5 89.5 Negative market values from derivative instruments — 79.9 21.6 101.5 — 134.1 20.4 154.5 Financial liabilities (at fair value) — 79.9 21.6 101.5 — 134.1 20.4 154.5 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 31Half-yearly Financial Report 2026
Page 32
The following table provides a reconciliation of the fair values of financial assets and liabilities included in level 3 at the beginning of the period with the fair values as at the balance sheet date. Movements in level 3 financial assets and liabilities in EUR million 30.6.2025 30.6.2026 Financial investments – at fair value through OCI Financial investments – at fair value through profit or loss Other invested assets Financial liabilities (at fair value) Financial investments – at fair value through OCI Financial investments – at fair value through profit or loss Other invested assets Financial liabilities (at fair value) Debt instruments Equity instruments Debt instruments Derivative instruments Investment funds Negative fair values from derivative instruments Debt instruments Equity instruments Debt instruments Equity instruments Derivative instruments Investment funds Negative fair values from derivative instruments Net book value at 31 December of the previous year 987.1 127.9 93.4 138.8 4,095.2 591.1 4.7 536.0 291.6 84.2 76.6 89.4 4,151.8 116.9 21.6 Currency translation at 1 January -80.0 -11.9 -10.0 -15.1 -280.1 -1.9 -0.5 8.1 8.0 2.6 -1.8 1.1 82.8 1.2 0.7 Net book value after currency translation 907.1 116.0 83.4 123.7 3,815.1 589.2 4.2 544.1 299.7 86.8 74.8 90.5 4,234.6 118.1 22.2 Income and expenses recognised in the statement of income 0.7 — 6.5 20.7 -28.8 -4.4 0.2 -23.6 — 1.5 7.7 -2.0 -27.8 -13.4 — Income and expenses recognised directly in shareholders’ equity 13.4 -1.2 — — — 106.2 — 26.1 7.7 — — — — -1.2 — Purchases 104.5 97.9 3.5 — 368.4 0.9 — 168.6 34.3 4.9 — 7.8 379.2 29.8 — Sales 28.4 9.1 7.9 44.8 113.3 15.5 1.9 56.5 1.5 1.9 0.1 16.8 187.0 — 1.8 Settlements 48.4 — 0.8 — — — — 11.0 — — — — — — — Transfers from level 3 30.0 — — — — — — — — — — — — — — Transfers to level 3 — — — — — — — — — — — 10.5 — — — Change in consolidation — — — — — — — — — — — — — -43.9 — Reclassification to assets held for sale — — — — — 515.4 — — — — — — — — — Currency translation at 30 June of the year under review -2.4 -5.3 -0.1 13.2 -13.4 -0.1 1.3 1.5 1.0 0.3 — 0.2 2.7 — — Net book value at 30 June for the year under review 916.5 198.4 84.7 112.9 4,028.0 160.9 3.7 649.2 341.2 91.6 82.4 90.2 4,401.8 89.5 20.4 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 32Half-yearly Financial Report 2026
Page 33
The breakdown of income and expenses recognised in the statement of income in the reporting period in connection with financial assets and liabilities assigned to level 3 is as follows. Income and expenses from level 3 financial assets and liabilities in EUR million 30.6.2025 30.6.2026 Financial investments – at fair value through OCI Financial investments – at fair value through profit or loss Other invested assets Financial liabilities (at fair value) Financial investments – at fair value through OCI Financial investments – at fair value through profit or loss Other invested assets Financial liabilities (at fair value) Debt instruments Debt instruments Derivative instruments Investment funds Negative fair values from derivative financial instruments Debt instruments Debt instruments Derivative instruments Investment funds Negative fair values from derivative financial instruments Total in the financial year Ordinary investment income 0.6 2.0 — — — — 1.5 2.2 -0.3 — — — Realised gains and losses on investments 0.1 — — — — — -25.1 — — — — — Change in fair value of financial instruments — 4.5 20.7 -28.8 -4.4 -0.2 — -0.7 -1.6 -27.8 -13.4 — Thereof attributable to financial instruments included in the portfolio at 30 June Ordinary investment income 0.1 — — — — — 0.1 — — — — — Change in fair value of financial instruments — 5.5 2.9 -28.8 -4.4 0.8 — — 0.4 -27.8 — -0.2 If models are used to measure financial assets and liabilities included in level 3 under which the adoption of alternative inputs leads to a material change in fair value, IFRS 13 requires disclosure of the effects of these alternative assumptions. Of the financial assets included in level 3 with fair values of altogether EUR 5,745.8 million (EUR 5,346.5 million) as at the balance sheet date, Hannover Re measures financial assets with a volume of EUR 4,914.9 million (EUR 4,636.9 million) using the net asset value method. These items consist principally of shares in private equity and real estate funds. Assuming that the present values of the assets and liabilities contained in the funds would be 10% lower than used for measurement as at the balance sheet date, the fair values for these items would amount to EUR 4,423.4 million. The remaining financial assets included in level 3 with a volume of EUR 830.9 million (EUR 709.6 million) relate to financial assets, the valuation of which is based on actuarial and financial mathematical parameters. Derivative financial instruments in connection with the reinsurance business were recognised under the other liabilities included in level 3 in the year under review. Their performance is dependent upon the risk experience of an underlying group of primary insurance contracts with statutory reserving requirements. The application of alternative inputs and assumptions has no material effect on the consolidated financial statement. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 33Half-yearly Financial Report 2026
Page 34
5.2 Technical assets and liabilities In order to show the net technical liabilities remaining in the retention, the following table presents a summary comparison of the gross liabilities with the corresponding reinsurance recoverables, which are shown as assets in the balance sheet. Technical liabilities in EUR million Liability for incurred claims (LIC) Liability for remaining coverage (LRC) Total 31.12.2025 Issued 51,801.3 -4,375.5 47,425.8 Retroceded 1,897.3 -790.1 1,107.2 Net 49,904.0 -3,585.4 46,318.6 30.6.2026 Issued 55,334.4 -5,063.1 50,271.3 Retroceded 1,903.7 -808.4 1,095.3 Net 53,430.7 -4,254.7 49,176.0 The liability for incurred claims is in principle calculated on the basis of the information supplied by ceding companies. Additional IBNR reserves are established for losses that have already been incurred but not yet reported. The movement in the liability for remaining coverage is shown in the following tables. The presentation differentiates in each case between reinsurance contracts issued and retroceded. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 34Half-yearly Financial Report 2026
Page 35
Movement in carrying amount of the liabilities for remaining coverage and incurred claims – reinsurance contracts issued in EUR million 31.12.2025 30.6.2026 LRC excluding loss component Loss component LIC Total LRC excluding loss component Loss component LIC Total Opening balance – assets 1,416.6 -19.1 108.2 1,505.7 1,802.1 -9.5 -873.3 919.4 Opening balance – liabilities -2,385.7 816.4 50,486.9 48,917.5 -5,440.2 1,064.6 51,801.3 47,425.8 Opening balance – net -3,802.3 835.5 50,378.7 47,411.8 -7,242.3 1,074.1 52,674.6 46,506.4 Contracts under the modified retrospective approach -2,117.8 — — -2,117.8 -1,053.6 — — -1,053.6 Contracts under the fair value approach -4,242.7 — — -4,242.7 -2,053.2 — — -2,053.2 Other contracts -20,425.5 — — -20,425.5 -9,811.6 — — -9,811.6 Reinsurance revenue -26,786.0 — — -26,786.0 -12,918.5 — — -12,918.5 Incurred claims and other reinsurance service expenses 0.3 -205.1 19,784.7 19,579.9 0.1 -118.0 9,591.3 9,473.4 Amortisation of insurance acquisition cash flows 1,009.0 — — 1,009.0 477.4 — — 477.4 Losses and reversal of losses on onerous contracts — 478.4 — 478.5 — 243.0 — 243.0 Adjustments to liabilities for incurred claims — — 494.0 494.0 — — -61.7 -61.7 Reinsurance service expenses 1,009.4 273.3 20,278.7 21,561.3 477.5 125.0 9,529.6 10,132.1 Investment component -6,581.1 — 6,581.1 — -3,226.5 — 3,226.5 — Reinsurance finance result before currency gains/losses plus changes through OCI 834.4 20.4 721.3 1,576.1 297.6 12.3 304.6 614.4 Currency gains/losses 123.8 -55.1 -3,478.1 -3,409.4 -173.9 51.7 1,320.8 1,198.6 Reinsurance finance result 958.2 -34.7 -2,756.8 -1,833.3 123.7 63.9 1,625.4 1,813.0 Premiums received 32,723.8 — — 32,723.8 15,493.4 — — 15,493.4 Claims and other reinsurance service expenses paid, including investment components — — -21,807.0 -21,807.0 — — -11,147.5 -11,147.5 Insurance acquisition cash flows paid -4,764.3 — — -4,764.3 -551.6 — — -551.6 Cash flows 27,959.5 — -21,807.0 6,152.5 14,941.8 — -11,147.5 3,794.3 Closing balance – assets 1,802.1 -9.5 -873.3 919.4 1,534.1 -16.0 -574.4 943.8 Closing balance – liabilities -5,440.2 1,064.6 51,801.3 47,425.8 -6,310.2 1,247.1 55,334.4 50,271.3 Closing balance – net -7,242.3 1,074.1 52,674.6 46,506.4 -7,844.3 1,263.1 55,908.7 49,327.5 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 35Half-yearly Financial Report 2026
Page 36
Movement in carrying amount by measurement component – reinsurance contracts issued in EUR million 31.12.2025 30.6.2026 EPV of future cash flows Risk adjustment for non-financial risk CSM Total EPV of future cash flows Risk adjustment for non-financial risk CSM Total Contracts under modified retrospective approach Contracts under fair value approach Other contracts Contracts under modified retrospective approach Contracts under fair value approach Other contracts Opening balance – assets 2,424.1 -50.7 -107.5 -242.9 -517.3 1,505.7 2,260.3 -78.4 -106.5 -197.5 -958.4 919.4 Opening balance – liabilities 36,670.3 4,134.2 2,494.7 2,661.9 2,956.4 48,917.5 35,997.3 3,935.0 2,493.9 2,304.2 2,695.4 47,425.8 Opening balance – net 34,246.3 4,184.9 2,602.2 2,904.8 3,473.7 47,411.8 33,737.1 4,013.4 2,600.4 2,501.8 3,653.8 46,506.4 CSM recognised in the profit or loss for services provided — — -203.8 -336.1 -4,658.5 -5,198.4 — — -103.7 -141.0 -2,234.2 -2,479.0 Change in risk adjustment for non-financial risk expired — -322.1 — — — -322.1 — -120.3 — — — -120.3 Experience adjustments -677.0 — — — — -677.0 -368.6 — — — — -368.6 Reinsurance service result - changes relate to current service -677.0 -322.1 -203.8 -336.1 -4,658.5 -6,197.4 -368.6 -120.3 -103.7 -141.0 -2,234.2 -2,967.8 Contracts initially recognised in the year -4,902.2 362.9 — — 4,588.9 49.5 -2,817.3 232.2 — — 2,611.5 26.4 Changes in estimates that adjust the CSM -476.7 -229.7 223.9 136.5 346.3 0.4 -689.6 43.5 247.1 177.0 222.2 0.1 Changes in estimates that result in losses and reversal of losses on onerous contracts -27.0 455.9 — — — 428.9 223.3 -6.7 — — — 216.6 Reinsurance service result - changes relate to future service -5,405.9 589.1 223.9 136.5 4,935.2 478.8 -3,283.6 269.0 247.1 177.0 2,833.7 243.2 Reinsurance service result - changes that relate to past service 730.1 -236.1 — — — 494.0 -1.2 -60.5 — — — -61.7 Reinsurance finance result before currency gains / losses plus changes through OCI 1,102.4 118.1 85.1 59.6 210.8 1,576.1 426.4 7.2 44.2 29.1 107.6 614.4 Currency gains / losses -2,411.4 -320.4 -107.0 -263.0 -307.6 -3,409.4 843.8 123.1 42.7 80.1 108.9 1,198.6 Reinsurance finance result -1,308.9 -202.3 -21.9 -203.4 -96.7 -1,833.3 1,270.2 130.2 86.9 109.2 216.4 1,813.0 Premiums received 32,723.8 — — — — 32,723.8 15,493.4 — — — — 15,493.4 Claims and other reinsurance service expenses paid, including investment components -21,807.0 — — — — -21,807.0 -11,147.5 — — — — -11,147.5 Insurance acquisition cash flows paid -4,764.3 — — — — -4,764.3 -551.6 — — — — -551.6 Cash flows 6,152.5 — — — — 6,152.5 3,794.3 — — — — 3,794.3 Closing balance – assets 2,260.3 -78.4 -106.5 -197.5 -958.4 919.4 1,977.8 -80.1 -96.9 -137.4 -719.7 943.8 Closing balance – liabilities 35,997.3 3,935.0 2,493.9 2,304.2 2,695.4 47,425.8 37,126.1 4,151.8 2,733.8 2,509.5 3,750.0 50,271.3 Closing balance – net 33,737.1 4,013.4 2,600.4 2,501.8 3,653.8 46,506.4 35,148.3 4,231.9 2,830.7 2,646.9 4,469.7 49,327.5 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 36Half-yearly Financial Report 2026
Page 37
Movement in carrying amount of the liabilities for remaining coverage and incurred claims – reinsurance contracts held in EUR million 31.12.2025 30.6.2026 Reinsurance recoverables on LRC without loss recovery component Loss recovery component Reinsurance recoverables on LIC Total Reinsurance recoverables on LRC without loss recovery component Loss recovery component Reinsurance recoverables on LIC Total Opening balance – assets -1,102.4 37.9 2,566.1 1,501.5 -802.6 12.5 1,897.3 1,107.2 Opening balance – liabilities 1,630.0 14.7 -988.5 656.3 1,510.7 5.0 -960.8 555.0 Opening balance – net -2,732.4 23.1 3,554.5 845.2 -2,313.3 7.5 2,858.1 552.2 Reinsurance revenue (ceded) -3,500.9 — — -3,500.9 -1,762.0 — — -1,762.0 Incurred claims and other reinsurance service expenses 0.1 -0.5 1,874.9 1,874.4 — -1.0 714.0 713.0 Amortisation of insurance acquisition cash flows 79.4 — — 79.4 66.4 — — 66.4 Losses and reversal of losses on onerous contracts — -13.5 — -13.5 — 1.7 — 1.7 Adjustments to liabilities for incurred claims — — -168.0 -168.0 — — -65.5 -65.5 Reinsurance service result - net expenses from reinsurance contracts retroceded -3,421.3 -14.1 1,706.8 -1,728.5 -1,695.6 0.7 648.6 -1,046.4 thereof changes in non-performance risk of reinsurers 13.5 — — 13.5 4.4 — — 4.4 Investment component -421.3 — 421.3 — -228.2 — 228.2 — Reinsurance finance result before currency gains / losses plus changes through OCI 94.0 0.5 53.4 147.9 28.9 0.3 29.6 58.8 Currency gains / losses 232.3 -2.1 -260.8 -30.7 -44.7 0.2 61.8 17.4 Reinsurance finance result 326.3 -1.6 -207.4 117.2 -15.8 0.5 91.5 76.2 Premiums paid 3,938.6 — — 3,938.6 2,711.0 — — 2,711.0 Claims and other reinsurance service expenses received, including investment components — — -2,617.1 -2,617.1 — — -1,489.2 -1,489.2 Insurance acquisition cash flows -3.2 — — -3.2 -63.8 — — -63.8 Cash flows 3,935.4 — -2,617.1 1,318.3 2,647.2 — -1,489.2 1,158.0 Closing balance – assets -802.6 12.5 1,897.3 1,107.2 -819.0 10.5 1,903.7 1,095.3 Closing balance – liabilities 1,510.7 5.0 -960.8 555.0 786.9 1.9 -433.5 355.4 Closing balance – net -2,313.3 7.5 2,858.1 552.2 -1,605.9 8.6 2,337.2 739.9 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 37Half-yearly Financial Report 2026
Page 38
Movement in carrying amount by measurement component – reinsurance contracts held in EUR million 31.12.2025 30.6.2026 EPV of future cash flows Risk adjustment for non-financial risk CSM Total EPV of future cash flows Risk adjustment for non-financial risk CSM Total Contracts under modified retrospective approach Contracts under fair value approach Other contracts Contracts under modified retrospective approach Contracts under fair value approach Other contracts Opening balance – assets 739.0 124.5 75.0 47.9 515.1 1,501.5 384.3 196.1 93.1 70.7 363.0 1,107.2 Opening balance – liabilities 892.8 -56.3 3.1 18.5 -201.8 656.3 953.1 -76.7 -1.4 -52.2 -267.9 555.0 Opening balance – net -153.9 180.8 72.0 29.4 716.9 845.2 -568.8 272.8 94.5 122.9 630.9 552.2 CSM recognised in the profit or loss for services provided — — -19.1 -3.8 -1,080.3 -1,103.2 — — -11.2 -1.6 -483.0 -495.8 Change in risk adjustment for non-financial risk expired — -31.4 — — — -31.4 — -18.2 — — — -18.2 Experience adjustments -426.0 — — — — -426.0 -473.1 — — — — -473.1 Reinsurance service result - changes relate to current service -426.0 -31.4 -19.1 -3.8 -1,080.3 -1,560.6 -473.1 -18.2 -11.2 -1.6 -483.0 -987.1 Contracts initially recognised in the year -1,160.7 122.3 — — 1,038.4 — -703.5 21.9 — — 681.6 — Changes in recoveries of losses on onerous underlying contracts 4.4 2.8 — — -3.0 4.2 0.2 — — — -0.1 0.1 Changes in estimates that adjust the CSM -250.0 132.2 24.6 101.2 -7.8 0.1 -55.8 3.2 48.7 -12.0 15.9 — Changes in estimates that result in losses and reversal of losses on onerous contracts 117.2 -134.9 — — — -17.7 2.6 -1.0 — — — 1.6 Reinsurance service result - changes relate to future service -1,289.1 122.4 24.6 101.2 1,027.6 -13.4 -756.6 24.2 48.7 -12.0 697.4 1.7 Reinsurance service result - changes that relate to past service -180.0 12.0 — — — -168.0 -50.9 -14.5 — — — -65.5 Reinsurance service result - Changes in non- performance risk of reinsurers 13.5 — — — — 13.5 4.4 — — — — 4.4 Reinsurance finance result before currency gains / losses plus changes through OCI 95.9 5.4 9.1 0.4 37.1 147.9 28.8 4.8 4.7 1.0 19.4 58.8 Currency gains / losses 52.5 -16.3 7.9 -4.3 -70.4 -30.7 -11.1 5.9 -2.1 2.7 21.9 17.4 Reinsurance finance result 148.3 -10.9 17.0 -3.9 -33.3 117.2 17.7 10.7 2.7 3.7 41.4 76.2 Premiums paid 3,938.6 — — — — 3,938.6 2,711.0 — — — — 2,711.0 Claims and other reinsurance service expenses received, including investment components -2,617.1 — — — — -2,617.1 -1,489.2 — — — — -1,489.2 Insurance acquisition cash flows -3.2 — — — — -3.2 -63.8 — — — — -63.8 Cash flows 1,318.3 — — — — 1,318.3 1,158.0 — — — — 1,158.0 Closing balance – assets 384.3 196.1 93.1 70.7 363.0 1,107.2 1.8 184.4 130.6 57.1 721.4 1,095.3 Closing balance – liabilities 953.1 -76.7 -1.4 -52.2 -267.9 555.0 671.2 -90.6 -4.0 -55.9 -165.2 355.4 Closing balance – net -568.8 272.8 94.5 122.9 630.9 552.2 -669.4 275.0 134.6 113.0 886.7 739.9 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 38Half-yearly Financial Report 2026
Page 39
Confidence level of the technical liabilities Using our "pricing margin approach" and allowing for risk diversification among the companies belonging to the Hannover Re Group, the confidence level for our technical liabilities is 82.2% (81.5%) as at the balance sheet date. In contrast to the risk capital calculation under Solvency II, an ultimate perspective – rather than a one-year horizon – is adopted to determine the confidence level. Presentation based on a one-year horizon would result in a higher confidence level. Contracts initially recognised - reinsurance contracts issued in EUR million 31.12.2025 30.6.2026 Profitable contracts issued¹ Onerous contracts issued Profitable contracts issued¹ Onerous contracts issued Expected present value of cash outflows 21,796.0 736.3 14,743.7 561.5 Insurance acquisition cash flows 1,012.5 15.4 676.5 13.6 Expected present value of cash inflows -27,754.0 -708.5 -18,258.7 -554.0 Risk adjustment for non-financial risk 356.6 6.3 226.9 5.3 Contractual service margin 4,588.9 — 2,611.5 — Loss component — 49.5 — 26.4 ¹ Profitable contract includes the buckets profitable and remaining Contracts initially recognised - reinsurance contracts held in EUR million 31.12.2025 30.6.2026 Contracts retroceded without loss recovery component Contracts retroceded with loss recovery component Contracts retroceded without loss recovery component Contracts retroceded with loss recovery component Expected present value of cash inflows 3,625.8 1,107.4 1,454.1 2.2 Insurance acquisition cash flows 58.9 — 63.0 — Expected present value of cash outflows -4,845.4 -1,103.0 -2,220.7 -2.1 Risk adjustment 122.3 2.8 21.9 — Contractual service margin 1,038.4 -3.0 681.6 -0.1 Loss recovery amount — 4.2 — 0.1 No significant portfolios were acquired in the reporting period. Separate disclosure of the measurement components would be required for such portfolios on initial recognition Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 39Half-yearly Financial Report 2026
Page 40
5.3 Financing liabilities Hannover Re recognised altogether five (five) bonds as at the balance sheet date. Of these, four (four) bonds are subordinated with an amortised cost of EUR 2,737.5 million (EUR 2,736.0 million). The bonds were placed on the European capital market. The outstanding subordinated bonds from the 2020 financial year with a volume of EUR 500.0 million and from the 2019, 2021 and 2022 financial years with volumes of EUR 750.0 million each were issued by Hannover Rück SE. The combined fair values amounted to EUR 2,703.3 million (EUR 2,673.0 million). In addition, Hannover Rück SE issued an unsecured, unsubordinated bond in April 2018 with a volume of EUR 750.0 million and a maturity of 10 years. The fair value of this bond was EUR 731.2 million (EUR 738.4 million) as at the balance sheet date. For further information regarding the maturity and coupon of these bonds please see the Group annual financial report for the previous year. Long-term debt of EUR 556.4 million (EUR 565.7 million), which is principally used for financing our real estate transactions, as well as lease liabilities of EUR 88.6 million (EUR 92.1 million) existed as at the balance sheet date. 5.4 Shareholders’ equity, non- controlling interests and treasury shares Shareholders’ equity is shown as a separate component of the financial s t a t e m e n t i n a c c o r d a n c e w i t h I A S 1 “ P r e s e n t a t i o n o f F i n a n c i a l S t a t e m e n t s ” a n d s u b j e c t t o I A S 3 2 “ F i n a n c i a l I n s t r u m e n t s : D i s c l o s u r e a n d P r e s e n t a t i o n ” in conjunction with IFRS 9 “Financial Instruments”. The change in shareholders’ equity comprises not only the net income deriving from the statement of income but also the changes in the value of asset and liability items not recognised in the statement of income. The common shares (share capital of Hannover Rück SE) amount to EUR 120,597,134.00. They are divided into 120,597,134 voting and dividend-bearing registered ordinary shares in the form of no-par shares. The shares are paid in in full. Each share carries an equal voting right and an equal dividend entitlement. Conditional capital of up to EUR 24.1 million (EUR 24.1 million) is available. It can be used to grant shares to holders of bonds and / or profit-sharing rights with conversion rights and warrants and has a time limit of 5 May 2031. In addition, authorised capital of up to EUR 24.1 million (EUR 24.1 million) is similarly available with a time limit of 5 May 2031. The subscription right of shareholders may be excluded in each case with the consent of the Supervisory Board under certain conditions. The Executive Board is authorised, with the consent of the Supervisory Board, to use an amount of up to EUR 1.0 million (EUR 1.0 million) of the existing authorised capital to issue employee shares. The Executive Board is further authorised, with the consent of the Supervisory Board, to acquire treasury shares in an amount of up to 10% of the share capital or up to 5% through the use of derivatives. The authorisation has a time limit of 6 May 2030. The Annual General Meeting of Hannover Rück SE resolved on 6 May 2026 to distribute a dividend of EUR 12.50 per share, altogether EUR 1,507.5 million (EUR 1,085.4 million), for the 2025 financial year. IAS 1 requires separate disclosure of treasury shares in shareholders’ equity. As part of this year’s employee share option plan Hannover Rück SE acquired altogether 8,705 (15,719) treasury shares during the second quarter of 2026 on the legal basis of § 71 Para. 1 No. 2 Stock Corporation Act (AktG) and delivered them to eligible employees at preferential conditions. The shares are blocked for four years. This transaction resulted in personnel expenditure of EUR 0,5 million (EUR 1,0 million) as well as a negligible brokerage fee recognised in other expenses. The company was no longer in possession of treasury shares as at the balance sheet date. Non-controlling interests in the shareholders’ equity of subsidiaries are reported separately within Group shareholders’ equity in accordance with IAS 1 “Presentation of Financial Statements". They amounted to EUR 1,039.8 million (EUR 1,001.7 million) as at the balance sheet date and were attributable largely to non-controlling interests in the shareholders’ equity of E+S Rückversicherung AG. The translation of long-term debt or loans with no maturity date extended to Group companies and branches abroad, which is recognised in equity, gave rise to a net increase of EUR 57,6 million in the financial year just ended (net decrease of EUR 141.3 million in the previous year) in the other reserves from currency translation. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 40Half-yearly Financial Report 2026
Page 41
6. Notes on the individual items of the statement of income 6.1 Reinsurance revenue The following tables show the breakdown of the gross reinsurance revenue into geographical origin and components. Reinsurance revenue (gross) by region in EUR million 1.1 – 30.6.2025 1.1 – 30.6.2026 Germany 749.2 703.6 United Kingdom 2,280.8 1,779.8 France 400.4 405.9 Other 1,110.7 1,068.4 Europe 4,541.1 3,957.8 USA 5,207.2 5,033.2 Other 608.1 777.6 North America 5,815.4 5,810.8 Asia 1,407.8 1,419.8 Australia 704.6 806.4 Australasia 2,112.3 2,226.2 Africa 256.4 304.5 Other 613.3 619.3 Total 13,338.5 12,918.5 Components of the reinsurance revenue (gross) in EUR million 1.1 – 30.6.2025 1.1 – 30.6.2026 Expected incurred claims and other insurance expenses 9,964.8 9,720.5 CSM recognised for services provided 2,576.4 2,479.0 Release of risk adjustment for non-financial risk 297.3 236.7 Experience adjustments for past or current services 20.9 4.9 Recovery of insurance acquisition cash flows 479.0 477.4 Total 13,338.5 12,918.5 6.2 Investment result Investment result in EUR million 1.1 – 30.6.2025 1.1 – 30.6.2026 Income from real estate and infrastructure investments 126.7 175.3 Dividends 69.9 52.3 Interest income on debt instruments 887.7 975.7 Other income and amortisation 156.2 194.1 Ordinary investment income 1,240.5 1,397.3 Expected credit losses -11.8 2.1 Impairments/Depreciation on real estate 30.7 31.1 Change in fair value of financial instruments 21.1 18.3 Profit / loss from investments in associated companies and joint ventures -1.5 -27.9 Realised gains on investments 62.0 63.3 Realised losses on investments 132.2 66.4 Other investment expenses 101.5 101.8 Investment result 1,045.9 1,253.8 We recorded a gain of EUR 2.1 million (expense of EUR -11.8 million) on balance from the change in the provisions for expected credit losses on financial instruments (ECL). This is primarily due to somewhat lower average default probabilities and is clearly within the normal range of variation. We carried fixed-income securities with a total fair value of EUR 23.7 million (EUR 22.1 million) in Stage 3 of our risk provisioning model as at the balance sheet date. We were not required to take any impairments for investments that are not covered by the 3-stage model for expected credit losses. The portfolio did not contain any overdue, unadjusted assets as at the balance sheet date. Interest income on investments in EUR million 1.1. – 30.6.2025 1.1. – 30.6.2026 Financial investments – at fair value through OCI 806.8 908.5 Financial investments – at fair value through profit or loss 78.5 67.2 Other 2.4 — Total 887.7 975.7 7. Other notes 7.1 Derivative financial instruments and financial guarantees Derivatives are financial instruments, the fair value of which is derived from an underlying trading instrument such as equities, bonds, indices or currencies. We use derivative financial instruments in order to hedge parts of our portfolio against interest rate and market price risks, optimise returns or realise intentions to buy / sell. In this context we take special care to limit the risks, select first-class counterparties and adhere strictly to the standards defined by investment guidelines. Hannover Re holds derivative financial instruments to hedge interest rate risks from loans connected with the financing of real estate; these gave rise to recognition of other liabilities in an amount of EUR 0.2 million (EUR 0.5 million). For the purpose of structuring the asset/liability management of non-current liabilities in certain currencies, with effect from the 2023 financial year onwards Hannover Re has used derivatives – in addition to those mentioned above and for other scenarios – for interest rate hedging that result in the recognition of financial assets at fair value through profit or loss in an amount of EUR 0.8 million (EUR 0.0 million) and other liabilities in an amount of EUR 12.5 million (EUR 18.3 million). Hannover Re’s portfolio contained forward exchange transactions that gave rise to recognition of other liabilities in an amount of EUR 63.0 million Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 41Half-yearly Financial Report 2026
Page 42
(EUR 57.5 million) and financial assets at fair value through profit or loss in an amount of EUR 93.6 million (EUR 43.5 million). The decrease in equity from hedging instruments recognised in OCI in the context of hedge accounting pursuant to IFRS 9 derived in an amount of EUR 56.2 million (EUR 7.6 million) from the forward exchange transactions taken out to hedge currency risks from long-term investments in foreign operations. These hedging instruments resulted in the recognition of financial assets at fair value through profit or loss in an amount of EUR 5.7 million (EUR 19.6 million) and other liabilities in an amount of EUR 47.3 million (EUR 0.9 million). The accounting of forward exchange transactions used to hedge currency risks from long-term investments in foreign operations follows the accounting treatment of cash flow hedges in accordance with IFRS 9. The effective portion of changes in the value of the hedging instrument is recognised as a change in equity in OCI (cash flow hedge reserve). The ineffective portion of the changes in the value of the hedging instrument is recognised in profit or loss within the changes in the fair values of financial assets and liabilities. The effectiveness of the hedging relationship is tested using the critical terms match method. Inflation swaps are taken out in the form of cash flow hedges to minimise the inflation risk associated with payments under a morbidity loss reserve portfolio. These swaps serve primarily to hedge volatility in reinsurance payments due. The structuring is such that separate inflation swaps are taken out for the loss payments incurred in each year. These financial instruments result in disclosure of financial assets at fair value through profit or loss in an amount of EUR 4.0 million (EUR 2.2 million) and other liabilities of EUR 0.0 million (EUR 0.3 million). The hedge gave rise to an increase in equity from hedging instruments recognised in OCI in an amount of EUR 2.1 million (decrease of EUR 1.2 million recognised in OCI). In order to hedge the risk of share price changes in connection with the stock appreciation rights granted under the share award plan, Hannover Re has taken out hedges in the form of so-called equity swaps since 2014. The fair value of these instruments amounted to EUR 11.2 million as at the balance sheet date (EUR 2.3 million) and was recognised under other liabilities. The hedge gave rise to a decrease in equity from hedging instruments recognised in OCI in an amount of EUR 8.6 million (EUR 10.4 million). The net changes in the fair value of these instruments increase the result of the period under review by EUR 1.6 million (decrease in the result of EUR 9.0 million). Derivative financial instruments in connection with reinsurance A number of treaties in life and health reinsurance meet criteria which require application of the stipulations contained in IFRS 17 “Insurance Contracts” governing embedded derivatives. These accounting regulations require that certain derivatives embedded in reinsurance contracts be separated from the underlying insurance contract (“host contract”), reported separately at fair value in accordance with IFRS 9 “Financial Instruments” and recognised under investments. Fluctuations in the fair value of the derivative components are to be recognised through profit and loss in subsequent periods. A number of transactions concluded in the life and health reinsurance business group in previous years, under which Hannover Re companies offer their contracting parties coverage for risks from possible future payment obligations arising out of hedging instruments, are also to be classified as derivative financial instruments. The payment obligations result from contractually defined events and relate to the development of an underlying group of primary insurance contracts with statutory reserving requirements. The contracts are to be categorised and recognised as stand-alone credit derivatives pursuant to IFRS 9. These derivative financial instruments were carried in OCI on initial recognition. These financial instruments result in disclosure of financial assets at fair value through profit or loss in an amount of EUR 8.5 million (EUR 0.0 million) and other liabilities of EUR 19.3 million (EUR 19.3 million). The change in value in subsequent periods is dependent upon the risk experience and has led to an improvement in investment income of EUR 0.4 million (EUR 17.8 million) in the course of the financial year to date. The portfolio contains a hedge against an extreme increase in mortality that protects the Hannover Re Group against a rise in mortality rates, for example due to pandemics, natural catastrophes or terrorist attacks. The risk swap is indexed against a weighted combination of US, UK and Australian population mortality. Payment under the cover is triggered proportionately between 110% and 120% of the mortality index. The derivative has no remaining value as at the balance sheet date. The change in the fair value of the derivative last resulted in a gain of EUR 0.5 million in the previous year. In the area of life and health reinsurance, a reinsurance treaty with a financing component was also written in the past under which the amount and timing of the return flows are dependent on lapse rates within an underlying primary insurance portfolio. This treaty and a corresponding retrocession agreement, which were classified as financial instruments pursuant to IFRS 9, resulted in the recognition of financial assets at fair value through profit or loss in an amount of EUR 73.2 million (EUR 89.4 million) and other liabilities of EUR 1.1 million (EUR 2.2 million). Altogether, these arrangements have given rise to a decline in income of EUR 0.1 million (improvement of EUR 2.7 million) in the course of the financial year to date. At the end of the 2017 financial year an index-linked cover was written for longevity risks. The resulting derivative was recognised as at the balance sheet date with a positive fair value of EUR 8.5 million (EUR 10.5 million) under financial assets at fair value through profit or loss. The change in the fair value of the derivative has given rise to a loss of EUR 2.0 million (gain of EUR 0.9 million) in the course of the year to date. All in all, application of the standards governing the accounting for derivatives in connection with the technical account led to recognition of assets totalling EUR 90.2 million (EUR 99.8 million) as well as recognition of liabilities in an amount of EUR 20.4 million (EUR 21.6 million) from the derivatives resulting from technical items as at the balance sheet date. Improvements in investment income amounting to EUR 0.4 million (EUR 22.0 million) and deteriorations in investment income of EUR 2.0 million (EUR 0.0 million) have been recognised in the current year under review from all separately measured derivatives in connection with the technical account. Financial guarantees Structured transactions were entered into in the life and health reinsurance segment in order to finance statutory reserves (so-called Triple-X or AXXX reserves) of US ceding companies. In each case such structures necessitated the involvement of a special purpose entity. The special purpose entities carry extreme mortality risks securitised by the cedants above a contractually defined retention and transfer these risks by way of a Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 42Half-yearly Financial Report 2026
Page 43
fixed / floating swap to a member company of the Hannover Re Group. The total amount of the contractually agreed capacities of the transactions is equivalent to EUR 3,228.2 million (EUR 3,119.4 million); an amount equivalent to EUR 2,659.1 million (EUR 2,520.7 million) had been taken up as at the balance sheet date. The variable payments to the special purpose entities that are guaranteed by companies belonging to the Hannover Re Group cover their payment obligations. Under some of the transactions the payments resulting from the swaps in the event of a claim are reimbursed by the parent companies of the cedants by way of compensation agreements. In this case the reimbursement claims from the compensation agreements are to be capitalised separately from and up to the amount of the provision. Under IFRS 9 these transactions are to be recognised at fair value as financial guarantees. To this end Hannover Re uses the net method, according to which the present value of the agreed fixed swap premiums is netted with the present value of the guarantee commitment. The fair value on initial recognition therefore amounted to zero. The higher of the fair value and the amount carried as a provision on the liabilities side pursuant to IAS 37 is recognised at the point in time when utilisation is considered probable. This was not the case as at the balance sheet date. 7.2 Related party disclosures IAS 24 “Related Party Disclosures” defines related parties as group entities of a common parent, associated entities and joint ventures, legal entities under the influence of key management personnel and the key management personnel of the entity itself. Transactions between Hannover Rück SE and its subsidiaries, which are to be regarded as related parties, were eliminated through consolidation and are therefore not discussed in the notes to the consolidated financial statement. In the period under review the significant business relations described below existed with related parties. Talanx AG holds an unchanged majority interest of 50.2% in Hannover Rück SE. For its part, Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit (HDI), Hannover, holds a majority interest in Talanx AG. The business relationship between Hannover Rück SE and its subsidiary E+S Rückversicherung AG is based on a cooperation agreement. A retrocession by Hannover Rück SE to E+S Rückversicherung AG exists in property and casualty reinsurance. Companies belonging to the Talanx Group granted the Hannover Re Group insurance protection inter alia in the areas of motor, public liability, building, contractors all risks, group accident and business travel insurance. Divisions of Talanx AG also performed services for the Hannover Re Group in the areas of taxes and general administration. Divisions of Hannover Rück SE performed services in connection with the insurance and reinsurance business of HDI Global Specialty SE, a participating interest of HDI Global SE. Talanx Reinsurance Broker GmbH and Talanx AG grant Hannover Rück SE and E+S Rückversicherung AG a preferential position as reinsurers of cedants within the Talanx Group. In addition, Hannover Rück SE and E+S Rückversicherung AG are able to participate in the protection covers on the retention of Group cedants and share in the protection afforded by them. In certain circumstances Hannover Rück SE and E+S Rückversicherung AG are obliged to assume unplaced shares of the reinsurance of Group cedants from Talanx Reinsurance Broker GmbH or Talanx AG. The Hannover Re Group provides reinsurance protection for the HDI Group. To this extent, numerous underwriting business relations exist with related parties in Germany and abroad which are not included in Hannover Re’s consolidation. This includes business both assumed and ceded at usual market conditions. The reinsurance relationships with related parties for the year under review and the previous year are shown with their total amounts in the following table. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 43Half-yearly Financial Report 2026
Page 44
Business assumed and ceded in Germany and abroad in EUR million 1.1. – 30.6.2025 1.1. – 30.6.2026 Property and casualty reinsurance Life and health reinsurance Total Property and casualty reinsurance Life and health reinsurance Total Material items in the statement of income Business assumed Reinsurance revenue 447.7 20.3 467.9 328.5 19.2 347.6 Reinsurance service expenses -417.2 -9.0 -426.2 -253.4 -10.0 -263.4 Reinsurance service result 30.4 11.3 41.7 75.1 9.2 84.3 Business ceded Reinsurance expenses -2.1 -14.8 -16.9 -21.0 -7.0 -28.0 Income from reinsurance contracts held -1.9 11.0 9.1 11.5 6.0 17.5 Net result from reinsurance contracts held -4.0 -3.8 -7.8 -9.6 -0.9 -10.5 Reinsurance service result (net) 26.4 7.4 33.8 65.5 8.2 73.8 31.12.2025 30.6.2026 Material items in the balance sheet Assets Reinsurance recoverables on liability for incurred claims 11.0 — 11.0 13.4 — 13.4 Reinsurance recoverables on liability for remaining coverage 0.8 — 0.8 — — — Recoverables on reinsurance contracts retroceded 11.8 — 11.8 13.4 — 13.4 Reinsurance contracts issued in an asset position 0.7 37.9 38.7 47.3 32.5 79.7 Liabilities Liability for incurred claims LIC 2,915.7 33.8 2,949.5 2,857.7 20.8 2,878.6 Liability for remaining coverage LRC -110.1 -12.5 -122.7 -41.0 3.8 -37.3 Liabilities from reinsurance contracts issued 2,805.6 21.2 2,826.8 2,816.7 24.6 2,841.3 Reinsurance contracts ceded in a liability position — 7.5 7.5 12.5 1.2 13.7 In addition, other assets of EUR 80.7 million (EUR 63.4 million) as well as other liabilities of EUR 45.5 million (EUR 51.9 million) exist with respect to Talanx AG and its subsidiaries, which do not belong to the scope of consolidation of the Hannover Re Group. On the basis of a joint venture agreement concluded with the existing co- shareholders Talanx AG and HDIAI EUR Beteiligungs-GmbH in early June 2026, the company Sustainable Timber Asia GmbH, Cologne, Germany is losing the status of a fully consolidated subsidiary. When the joint venture agreement comes into effect, Hannover Re will relinquish its previous controlling position and accept joint control of the company with the joint venture partner. Separate remuneration for relinquishment of the position of control or voting rights is not envisaged. It is the assumption of the parties that the participation and governance structure forms an integral part of the overall agreement and that the rights and obligations taken on by both sides as well as the anticipated economic benefits of the joint venture as a whole establish a relationship based on balanced reciprocal performance. A loan receivable from Sustainable Timber Asia GmbH, a joint venture accounted for using the equity method, also exists as at the balance sheet date in the amount of EUR 16.7 million (EUR 0.0 million). The loan is used to finance the operational activities of one of its subsidiaries. The maturity date of the loan is 31 December 2036. The borrower has not furnished any collateral to the lenders; in return, the lenders receive revenue-based remuneration. Within the contractually agreed framework, Ampega Asset Management GmbH performs real estate management services as well as investment and asset management services for Hannover Rück SE and the majority of its subsidiaries. Altogether EUR 38.8 million (EUR 36.4 million) was recognised in profit or loss in the reporting period for the rendering of these services. Corresponding services are also performed for existing investment vehicles. Hannover Rück SE has concluded agreements with Ampega Asset Management GmbH and Talanx Reinsurance Broker GmbH that enable these companies to use software for screening sanctions lists. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 44Half-yearly Financial Report 2026
Page 45
IT and management services were also performed for Talanx Reinsurance Broker GmbH, Hannover, under service contracts. The provision of IT services to Talanx Reinsurance Broker GmbH ended in May 2026. Actuarial opinions with respect to the pension commitments given to staff are drawn up for Hannover Rück SE and E+S Rückversicherung AG by HDI Pensionsmanagement AG under an actuarial service contract. Talanx AG performs various services in the area of taxes for a number of investment vehicles of the Hannover Re Group in the asset classes of private equity and real estate. In this regard corresponding agreements have been concluded with Hannover Re companies. Since 2012 a service agreement has existed between Hannover Rück SE and Talanx AG regarding the use of data acquisition software for Group accounting purposes. Hannover Rück SE performed IT services for HDI Global Specialty SE and for Talanx AG. The provision of service to Talanx AG existed until May 2026. With the exception of one system, the provision of service to HDI Global Specialty SE was discontinued in the first half of 2026. In addition, since May 2024 Hannover Rück SE has made joint use with HDI AG of data centre space leased from a provider. In this context HDI AG holds the lease agreement with the provider, while Hannover Rück SE is the sub-lessee. Hannover Rück SE has concluded a contract with Talanx Service AG regarding the reciprocal provision of business continuity management services. Since 2004 a service agreement has existed between Hannover Rück SE, E+S Rückversicherung AG and Talanx Reinsurance Broker GmbH regarding the receipt of market security services and access to the business partner information system of Hannover Rück SE. 7.3 Staff As at the balance sheet date altogether 4,090 (4,013) staff were employed by the Hannover Re Group, with 1,876 (1,846) employed in Germany and 2,214 (2,167) working for the consolidated Group companies abroad. 7.4 Earnings per share Calculation of the earnings per share 1.1.–30.6.2025 1.1.–30.6.2026 Group net income in EUR million 1,313.9 1,405.9 Weighted average of issued shares 120,596,872 120,596,989 Basic earnings per share in EUR 10.90 11.66 Diluted earnings per share in EUR 10.90 11.66 The earnings per share is calculated by dividing the net income attributable to the shareholders of Hannover Rück SE by the weighted average number of shares outstanding within the period under review. Neither in the period under review nor in the previous reporting period were there any dilutive effects. The weighted average number of issued shares was slightly below the number of shares outstanding as at the balance sheet date. On the basis of this year’s employee share option plan Hannover Rück SE acquired treasury shares in the course of the second quarter of 2026 and sold them to eligible employees at a later date. The weighted average number of shares does not include 8,705 (15,719) treasury shares pro rata temporis for the duration of the holding period. For further details please see our comments in section 5.4 “Shareholders’ equity, non-controlling interests and treasury shares”. There were no other extraordinary components of income which should have been recognised or disclosed separately in the calculation of the earnings per share. The earnings per share could potentially be diluted in future through the issue of shares or subscription rights from the authorised or conditional capital. 7.5 Contingent liabilities and commitments As security for technical liabilities to our US clients, we have established two trust accounts (master trust and supplemental trust) in the United States. They amounted to EUR 3,205.5 million (EUR 3,117.5 million) and EUR 316.5 million (EUR 306.7 million) respectively as at the balance sheet date. The securities held in the trust accounts are recognised as investments measured at fair value through OCI. In addition, we furnished further collateral to ceding companies in an amount of EUR 6,175.6 million (EUR 7,805.6 million) in the form of so-called “single trust funds”. This amount includes a sum equivalent to EUR 5,756.2 million (EUR 7,399.2 million) which was furnished by investors as security for potential reinsurance obligations from ILS transactions. As part of our business activities we hold collateral available outside the United States in various blocked custody accounts and trust accounts, the total amount of which in relation to the Group’s major companies was EUR 3,661.3 million (EUR 3,410.9 million) as at the balance sheet date. The securities held in the blocked custody accounts and trust accounts are recognised predominantly as financial assets measured at fair value through OCI in the investments. As security for technical liabilities, various financial institutions have furnished sureties in the form of letters of credit. The total amount as at the balance sheet date was EUR 1,959.3 million (EUR 1,887.1 million). We put up own investments with a book value of EUR 58.6 million (EUR 39.8 million) as collateral for existing derivative transactions. We received collateral with a fair value of EUR 20.7 million (EUR 27.9 million) for existing derivative transactions. As collateral for commitments in connection with participating interests in real estate companies and real estate transactions, the usual collateral under such transactions has been furnished to various banks, the amount of which totalled EUR 1,091.2 million (EUR 970.2 million) as at the balance sheet date. Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 45Half-yearly Financial Report 2026
Page 46
Outstanding capital commitments with respect to alternative investments exist on the part of the Group in an amount of EUR 2,562.5 million (EUR 2,815.0 million). These primarily involve as yet unfulfilled payment obligations from investment commitments given to private equity funds and venture capital firms. Hannover Rück SE has put up a guarantee limited to GBP 10.0 million, equivalent to EUR 11.6 million as at the balance sheet date (EUR 11.5 million), for an indefinite period in favour of the pension scheme "The Congregational & General Insurance Plc Pension and Life Assurance Scheme" of the liquidated company Congregational & General Insurance Plc., Bradford, UK, at usual market conditions. Group companies are members of the association for the reinsurance of pharmaceutical risks and several atomic and nuclear pools. The failure of one of the other pool members to meet its liabilities would result in an additional call according to the quota participation. The application of tax regulations may not have been resolved at the time when tax items are brought to account. The calculation of tax refund claims and tax liabilities is based on what we consider to be the regulations most likely to be applied in each case. The revenue authorities may, however, take a differing view, as a consequence of which additional tax liabilities could arise in the future. Hannover Rück SE enters into contingent liabilities as part of its normal business operations. A number of reinsurance treaties concluded by Group companies with outside third parties include letters of comfort, guarantees or novation agreements under which Hannover Rück SE guarantees the liabilities of the subsidiary in question or enters into the rights and obligations of the subsidiary under the treaties if particular constellations materialise. 7.6 Events after the end of the reporting period Large loss events have already occurred since the balance sheet date of 30 June 2026. They include, among others, severe storms in Europe, ongoing wildfires in France and Spain and the Kumamoto earthquake in Japan. In addition, tropical storms have caused damage in North America, Taiwan and the People’s Republic of China. The extent of the insured losses cannot yet be definitively estimated for Hannover Re at this point in time. Overall, though, we anticipate that large loss expenditure for the events known to date will probably not exceed our expectation for such events in the third quarter of 2026. Hannover, 7 August 2026 Executive Board Jungsthöfel Althoff Chèvre Dr. Hermelingmeier Magee Ooi Sehm Steinmann Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year. Hannover, 7 August 2026 Executive Board Jungsthöfel Althoff Chèvre Dr. Hermelingmeier Magee Ooi Sehm Steinmann Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 46Half-yearly Financial Report 2026
Page 47
Review report by the independent auditors To Hannover Rück SE, Hannover We have reviewed the condensed consolidated interim financial statements – comprising the consolidated statement of financial position, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and selected explanatory notes – and the interim group management report of Hannover Rück SE, Hanover, for the period from January 1 to June 30 2026, which are part of the half-year financial report pursuant to § (Article) 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the company's management. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review. We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion. Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. Hannover, 10 August 2026 PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft Martin Eibl Maximilian Roestel Wirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor) Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 47Half-yearly Financial Report 2026
Page 48
Contact information Investor & Rating Agency Relations Karl Steinle Tel. +49 511 5604-1500 karl.steinle@hannover-re.com Axel Bock Tel. +49 511 5604-1736 axel.bock@hannover-re.com Media Relations Oliver Süß Tel. +49 511 5604-1502 oliver.suess@hannover-re.com Further links Locations Hannover Re - Our officesä Glossary Hannover Re - Glossaryä Strategy Hannover Re - Group strategy at a glanceä Remuneration report Hannover Re - Remuneration report and systemä For reasons of sustainability Hannover Re does not print or mail out annual and interim reports. The present Half-yearly Financial Report of Hannover Re is available online in English and German in PDF format: www.hannover-re.com Rounding differences Amounts and values in this report are rounded in accordance with standard commercial practice and sometimes presented in thousands, millions or billions. These roundings may result in minor differences, particularly if individual rounded absolute or relative values are added, subtracted or considered in relation to other values. We always base our calculations on non-rounded values. Imprint Published by Hannover Rück SE Karl-Wiechert-Allee 50 30625 Hannover, Germany Tel. +49 511 5604-0 Picture credits Werner Bartsch Page 4 Hannover Re Contents Letter from the CEO Interim management report Consolidated financial statements Investor Relations 48Half-yearly Financial Report 2026
Page 49
www.hannover-re.com