As evidenced by the fall in the share price a few days before publication, the market was undoubtedly preparing for the end of an exceptional sequence, of which the entire sector - with the exception of Scor, still weighed down by the terrible legacy left by Denis Kessler - was the main beneficiary. with the exception of Scor, still weighed down by the terrible legacy left by Denis Kessler - has been reaping the full benefits since the end of the pandemic.

With the same fixed-cost structure, this growth is largely due to the substantial price increases achieved in the past in an inflationary context. After overheating, these increases are now tending to stabilize, although they remain in positive territory, with Hannover posting a +1.3% increase over the last three months.

Thanks to its reputation for meticulous management and a particularly favorable claims experience - with combined ratios still well below their historical average - Hannover has once again beaten the odds: buoyed by the P&C segment, revenues and profits were up - net income by 21% - on the already exceptional first half of the previous year.

Return on equity (ROE) remains at an all-time high, at 22% for the first half, and above its average. Compared to the two behemoths Munich Re and Swiss Re, as we wrote earlier this year, Hannover has distinguished itself by its faster expansion and not only superior, but also more consistent financial performance.

Not one to go unnoticed, this feat has for some time earned Hannover a clear valuation premium over them. In this respect, it is noteworthy that the recent improvement in Swiss and Munich's profitability has not impacted their valuations. At Hannover, investors are rewarding growth performance and market share gains.

Nevertheless, at x2.5 shareholders' equity and a dividend yield far more modest than its peers. Current levels of both profitability and valuation appear difficult to sustain, especially following an unusually good first half of 2024 in terms of claims experience.