Analysts Have Made A Financial Statement On Hannover Rück SE's (ETR:HNR1) Second-Quarter Report
The quarterly results for Hannover Rück SE (ETR:HNR1) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of €6.4b were in line with what the analysts predicted, Hannover Rück surprised by delivering a statutory profit of €5.77 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Hannover Rück from eleven analysts is for revenues of €26.9b in 2026. If met, it would imply a notable 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.6% to €23.25. Before this earnings report, the analysts had been forecasting revenues of €27.0b and earnings per share (EPS) of €23.20 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Hannover Rück
There were no changes to revenue or earnings estimates or the price target of €285, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hannover Rück, with the most bullish analyst valuing it at €360 and the most bearish at €247 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Hannover Rück's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 41% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.9% annually. So it looks like Hannover Rück is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hannover Rück going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Hannover Rück's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.