Hannover Re Aims to Boost Dividend With New Payout Policy

Dow Jones10-06
 

By Adria Calatayud

 

Hannover Re said it would aim to distribute a higher proportion of its net profits to shareholders as dividends and to boost its payout over time as part of a new dividend policy.

The German reinsurer said Sunday that it decided to realign its dividend policy, setting a payout ratio of 55% of net profit. Last year, the company's dividend amounted to 46% of its net profit.

Hannover Re said special dividends that in the past were declared routinely would become part of its regular dividend, and that going forward it would top up its regular distributions with additional special dividends only in exceptional circumstances.

Moreover, the company said it would aim to distribute dividends per share at least on par with those of the previous year, with the goal of increasing them over the long run.

The company said its new dividend policy, outlined ahead of an investor day later this week, would be applied for the first time in declaring payouts for this year.

"Hannover Re's very good capitalization will enable it to continue generating profitable growth along with the increased dividend distribution," it said.

 

Write to Adria Calatayud at adria.calatayud@wsj.com

 

(END) Dow Jones Newswires

October 06, 2025 01:35 ET (05:35 GMT)

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