Hannover Re posts 13% rise in net income as Group revenue hits €13.3bn in H1’25
Hannover Re reported strong financial performance in the first half of 2025, with revenue increasing to €13.3 billion and net income rising by 13% to €1.3 billion. This result reflects a solid return on equity of 23%, well above the company’s target, showing that it is using shareholders’ funds very efficiently to generate profit. The growth was driven by strong contributions from both its Property & Casualty and Life & Health reinsurance businesses. In P&C, despite notable catastrophe losses earlier in the year, Hannover Re kept its combined ratio at a very healthy 88.4%, which means that claims and expenses took up less than 90% of earned premiums, leaving a good margin for profit. Hannover Re’s Life & Health segment also remained strong, thanks to steady demand and careful risk selection. The company also increased its reserves, setting aside more funds to handle possible future claims, which reflects its cautious strategy and focus on long-term stability. Overall, the results demonstrate Hannover Re’s ability to balance growth and profitability while effectively managing an increasingly challenging risk environment.
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Munich Re ‘well on track’ to reach annual target with H1’25 result of €3.2bn
Munich Re delivered strong results in the first half of 2025, reporting a net profit of €3.2 billion, which keeps the company firmly on track to achieve its full-year target of €6 billion. This performance was supported by contributions from all of its business segments. Property and casualty reinsurance, as well as Global Specialty Insurance, achieved very strong combined ratios, showing that underwriting discipline and risk management remain effective even in a challenging environment. The life and health reinsurance business also showed resilience with steady demand and well-managed risks, while ERGO, Munich Re’s primary insurance arm, added consistent earnings to the overall results. Strong investment income further boosted profitability and helped balance out negative impacts from currency fluctuations, particularly from the weaker U.S. dollar. The company also benefited from successful contract renewals, which reflect favorable market conditions and allow for further profitable growth. Altogether, these results demonstrate that Munich Re is managing risks well, capitalizing on opportunities in the current insurance and reinsurance markets, and maintaining a clear path toward its ambitious full-year financial goal.
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AXA to acquire Italian MGA Prima
AXA has announced that it will acquire a 51% stake in Prima, a leading Italian managing general agent (MGA) that specializes in direct insurance. Founded in 2015 and based in Milan, Prima has become a major player in Italy’s retail motor insurance market, capturing around 10% market share and generating €1.2 billion in premiums in 2024. The acquisition, valued at €500 million, will strengthen AXA’s position in the Italian motor insurance sector and enhance its direct distribution capabilities across Europe. Prima’s advanced technology platform and data analytics have enabled efficient operations, reflected in a strong combined ratio of 90% in 2024. The deal also includes options for AXA to acquire the remaining 49% stake in the future, depending on Prima’s performance, with completion expected by the end of 2025, subject to regulatory approval.
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AXA XL premiums up 6% in H1’25 to €34bn
In the first half of 2025, AXA XL, the property and casualty (P&C) and specialty risk division of AXA, reported a 6% increase in gross written premiums (GWP) and other revenues, reaching €34.1 billion. This growth was fueled by an 11% rise in reinsurance business, a 5% increase in commercial insurance lines, and a 7% boost in personal lines, showing strong demand across multiple sectors. Overall, AXA Group saw its total GWP, and other revenues grow by 7% to €64.3 billion, while underlying earnings increased by 5% to €4.5 billion, demonstrating solid operational performance. Despite this, net income slightly decreased to €3.9 billion from €4 billion in the same period last year, mainly due to negative impacts from foreign exchange rates. However, underlying earnings per share rose by 8% to €2.03, supported by higher overall earnings, favorable share buybacks, and reduced financial charges. These results reflect AXA’s continued ability to grow its business, maintain profitability, and manage operational and financial factors effectively in a complex market environment.
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Aviation loss activity could drive market hardening into Q4, says Howden
The aviation insurance market, which had been fairly calm for much of 2025, is now showing signs of stress as a series of costly accidents has shaken confidence. At the start of the year, reinsurers were optimistic, with prices stable and competition keeping conditions favorable. But things began to change after several major aviation losses. In January, an American Airlines accident raised concerns, and just a few months later, in June, the devastating Air India crash emerged as one of the largest losses in recent history, with claims expected to exceed $400 million. On top of that, the industry is still grappling with unresolved costs from the Jeju Air crash, a tragic aviation accident in July 2024, when a Jeju Air Boeing 737 went down while trying to land in Muan, South Korea, during poor weather, as well as ongoing exposures linked to the Russia–Ukraine conflict, which continue to weigh heavily on insurers. These unexpected losses mean that reinsurers, who provide backup financial protection to primary insurers, are facing higher payouts than anticipated. According to Howden, this is likely to trigger a “hardening” of the aviation insurance market by the fourth quarter of 2025. A hardening market means premiums will rise, contract terms will tighten, and insurers will become more selective about the risks they are willing to cover. In practical terms, airlines and aviation companies could face higher insurance costs and stricter requirements going into 2026, marking a clear shift from the softer, more competitive market earlier in the year.
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L&H reinsurance earnings remain consistent for Europe’s Big Four: Fitch
In the first half of 2025, Europe’s four biggest reinsurers—Swiss Re, Munich Re, Hannover Re, and SCOR—showed steady and reliable results in their life and health (L&H) reinsurance business. According to Fitch Ratings, this stability comes from the way these companies manage long-term contracts: they release earnings gradually over time from reserves that were set aside when the contracts were first written. This approach makes their profits more predictable and less affected by short-term ups and downs. Most of the companies improved their profitability compared to last year, although SCOR is still catching up after making adjustments to its reserves in 2024, which temporarily lowered its margins. Munich Re and Hannover Re faced a few large individual claims, but the overall impact was limited. The fact that all four reinsurers were able to maintain strong earnings, even in a period of global uncertainty, highlights the resilience and importance of life and health reinsurance in providing financial stability.
