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On Monday, Goldman Sachs began coverage on Hannover Rueck (ETR:HNRGn) SE (OTC:HVRRY) (HNR1:GR) (OTC: HVRRF), assigning a Buy rating to the stock along with a price target of EUR312.00. According to the firm, Hannover Re is poised to outperform its property and casualty reinsurance peers in terms of top-line growth. The company’s conservative approach to property and casualty reinsurance reserving and its cost of risk target, combined with its history of managing earnings volatility, were cited as key factors supporting this outlook.
The firm highlighted Hannover Re’s effective use of reserve releases, retro protection, and the consistent performance of its life and health reinsurance business as contributors to a more certain earnings delivery compared to its competitors. Goldman Sachs’ earnings projections for the company in 2025 and 2026 are approximately 4% higher than the consensus data visible on Alpha.
Goldman Sachs also mentioned that Hannover Re’s relative valuation premium has decreased when compared to other industry giants such as Munich Re and Swiss Re (OTC:SSREY). This compression in valuation premium is seen as an opportunity for investors to enter the stock, which is traditionally favored after peak rate cycles in the reinsurance market.
The analyst’s positive stance on Hannover Re reflects confidence in the company’s ability to navigate the reinsurance industry with a conservative yet effective strategy. The Buy rating and the EUR312.00 price target suggest that Goldman Sachs sees significant potential for the stock, considering its current performance and position in the market relative to its peers.
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