E+S Rückversicherung AG, the German subsidiary of Hannover Re responsible for the Group’s domestic operations, has expressed cautious optimism for the 2026 financial year. Despite early signs of a softening market in property and casualty (P&C) reinsurance, the company anticipates steady overall growth and a broadly stable environment for its upcoming 1 January renewals.
“Our clients know they can rely on us consistently, even in challenging market conditions,” said Thorsten Steinmann, Chief Executive Officer of E+S Rück, speaking at this year’s reinsurance meeting in Baden-Baden. “Our long-standing business relationships, supported by a robust capital base, allow us to pursue profitable growth alongside our clients. As a pure-play reinsurer, we offer a comprehensive spectrum of coverage and are keen to develop innovative reinsurance solutions, including structured arrangements for capital management.”
Demand for high-quality reinsurance protection has remained strong throughout 2025, allowing E+S Rück to expand its premium volume. Expenditures linked to natural catastrophes have stayed moderate, while motor insurance has rebounded significantly following the heavy losses of previous years. Yet German insurers continue to operate in a complex environment, influenced by geopolitical uncertainties, climate-driven extreme weather events, and claims inflation. Against this backdrop, it remains crucial for E+S Rück that pricing, terms, and conditions accurately reflect risk to maintain long-term stability.
The German motor insurance sector—the largest P&C line by volume—has shown marked recovery, benefiting from remedial measures by primary insurers and relatively low natural peril claims. E+S Rück expects this segment to return to underwriting profitability in 2025 for the first time in several years. Steinmann noted, “Motor insurers are on track to restore profitability, but challenges remain. Claims inflation continues to outpace general inflation, driven by rising spare parts and workshop costs, as well as higher treatment and care expenses in major bodily injury claims. Targeted rate adjustments are therefore essential.”
Across natural catastrophe lines, claims have so far been moderate, though prudent underwriting and risk-appropriate pricing remain vital. In industrial and commercial lines, property prices are softening, while liability insurance, particularly directors and officers (D&O), remains competitive and challenging. Specialty lines, such as marine and aviation, continue to be influenced by geopolitical tensions and market capacity, with prices reflecting individual claims experience. Meanwhile, cyber insurance demand is steadily growing, particularly for non-proportional covers.
Complementing traditional P&C offerings, E+S Rück and Hannover Re provide innovative structured solutions tailored to client-specific needs, including capital optimisation, earnings volatility management, facultative coverage for individual risks, and insurance-linked securities (ILS). With decades of experience, the Hannover Re Group maintains a leading market position across all segments, reinforcing its commitment to delivering stability and innovation to clients worldwide.