Hannover Re's Results Were Misunderstood -- Market Talk

Dow Jones05-16

0850 GMT - Investors drew the wrong conclusions from Hannover Re's first-quarter print, Jefferies says in a research note following share weakness earlier this week. This wasn't a low-quality beat with currency gains offsetting softer underwriting, Philip Kett writes. Instead, the German reinsurer "opts to delay the emergence of one-off gains in earnings, trading it for balance sheet prudence that can smooth volatility later," he adds. This is a strategy management has used before, Kett adds. The long-term consequences of this delayed earnings recognition pattern is the accumulation of resilience reserves above the required levels, he adds. Shares recoup recent losses and trade up 1.7% at 280.8 euros. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 16, 2025 04:50 ET (08:50 GMT)

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The long-term consequences of this delayed earnings recognition pattern is the accumulation of resilience reserves above the required levels, he adds. Shares recoup recent losses and trade up 1.7% at 280.8 euros. 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