E+S Rückversicherung AG, the German subsidiary of Hannover Re Group, has expressed cautious optimism for the upcoming 2026 financial year. While early signs of softening have emerged in the property and casualty (P&C) reinsurance market, the firm anticipates overall stable growth and a well-balanced environment for renewals due from 1 January.
Thorsten Steinmann, CEO of E+S Rück, addressed delegates at this year’s reinsurance conference in Baden-Baden, stating: “Our clients can rely on us even in challenging market conditions. Strong, long-term relationships combined with a solid capital foundation enable us to achieve profitable growth. As a leading reinsurance provider, we offer comprehensive coverage and remain committed to developing innovative solutions, particularly structured instruments that support effective capital management.”
The company has successfully increased its premium income in 2025, driven by sustained demand for high-quality reinsurance coverage. Losses from natural catastrophes were moderate, and the motor insurance sector, which had experienced significant setbacks last year, has notably recovered. Nevertheless, German insurers continue to operate within a complex environment influenced by geopolitical uncertainty, climate-driven extreme weather events, and claims inflation. For E+S Rück, it remains crucial that premium pricing, policy terms, and related measures accurately reflect risk, ensuring long-term market stability.
The German motor insurance segment—the largest within P&C—has shown remarkable recovery. E+S Rück expects the sector to return to underwriting profitability in 2025 for the first time in several years. Steinmann noted: “Motor insurers are regaining profitability, but challenges persist. Rising spare parts and workshop costs, coupled with increased medical expenses for severe bodily injuries, have driven claims inflation beyond general inflation levels. Targeted premium adjustments are therefore essential.”
Natural catastrophe coverage, industrial and commercial property, liability lines—including directors and officers (D&O) insurance—and specialist sectors such as marine and aviation remain closely tied to prevailing market and risk conditions. Demand for cyber insurance is gradually increasing, particularly in non-proportional coverage.
Supporting its traditional P&C offerings, E+S Rück, alongside Hannover Re, continues to provide bespoke, innovative structured solutions tailored to client needs, including capital optimisation, management of income volatility, facultative coverage for individual risks, and insurance-linked securities (ILS). Leveraging decades of experience, the Hannover Re Group maintains its leading position across all sectors, delivering stability and innovation to clients worldwide.