What they did
In Monte Carlo in September it said it expects broadly risk-adequate, slightly lower prices and largely unchanged terms for 1 January 2027, and will offer at least stable capacity. Its subsidiary E+S Rück said in Baden-Baden on 19 October that additional capacity is sharpening competition in natural catastrophe and industrial fire. The group has reserved €200 million for conflict-related losses and sponsored the $200 million 3264 Re catastrophe bond in the third quarter.
Why
Chief executive Clemens Jungsthöfel says geopolitical tension, inflation, digital threats and climate risk make long-run claims costs harder to measure, while rising competition is pulling prices down at the same time. E+S Rück says cyber exposure is growing faster than capacity and that players face pressure from a higher cost of capital.
What they must do
It has to keep its capacity pledge conditional on risk-adequate pricing and walk away from business that misses its profitability threshold. By year-end it needs to establish whether Middle East conflict losses have outrun the €200 million reserve.
What comes next
Third-quarter results in November and the pricing decision on German and European natural catastrophe programmes at the 1 January 2027 renewal. Whether cyber capacity expands or is curbed is the second item.
Preference
Grow only where price matches risk; use capital markets as complementary capacity.
Observed behaviour
It holds terms while prices fall and ties capacity to conditions; through catastrophe bonds it also passes on its own risk.
Sources
- Hannover Re — E+S Rück expects demand for high-quality reinsurance protection to remain strong (19 October 2026)
- Reinsurance News — Hannover Re expects risk-adequate prices for Jan 1 renewals (7 September 2026)
- Business Insurance — Political violence, Iran war losses mount (10 September 2026)
- Artemis — Q3 2026 Catastrophe Bond & ILS Market Report