Continuously strong performance
The Hannover Re share began 2012 at a price of EUR 38.325. After some volatile trading days early in January, the share touched its lowest point of the year on 9 January at EUR 37.355. In the days and weeks that followed, building on a broadly favourable round of renewals and a year of hitherto light losses, the price trended clearly higher. As early as 19 March the share broke through its historic all-time high of EUR 43.55. In the following months, which were overshadowed by concerns about the continued existence of the European Monetary Union, the share price tended to move sideways. It was only when the ECB announced that it would do everything necessary to stabilise the financial markets that they were able to breathe a huge sigh of relief. From July onwards the Hannover Re share enjoyed a consistently positive performance. Shortly before year-end, on 19 December, the share climbed to its highest point of the year at EUR 59.81 and at the same time set a new record high.
At the end of the financial year the Hannover Re share was listed 53.8% higher at EUR 58.96. It thus comfortably outperformed the DAX and MDAX benchmark indices as well as the Global Reinsurance Index, which posted a gain of 23.6%. In a three-year comparison (see chart below) the Hannover Re share delivered a performance (including reinvested dividends) of 113.2%, again clearly beating the DAX (27.8%), MDAX (58.7%) and Global Reinsurance Index (51.8%).
Based on the year-end closing price of EUR 58.96, the market capitalisation of the Hannover Re Group totalled EUR 7.1 billion at the end of the 2012 financial year, an increase of EUR 2.5 billion or 53.8% compared to the previous year’s figure of EUR 4.6 billion. According to the rankings drawn up by Deutsche Börse AG, the company placed sixth in the MDAX at the end of December with a free float market capitalisation of EUR 3,468.7 million. Measured by trading volume over the past twelve months, the share came in at number 11 in the MDAX with a volume of EUR 2,673.7 million. The Hannover Re Group thus continues to rank among the 40 largest listed companies in Germany.
With a book value per share of EUR 50.22 the Hannover Re share showed a price-to-book (P/B) ratio of 1.2 at the end of the year under review; compared to the average MDAX P/B ratio of 1.8 as at year-end the share thus continues to be very moderately valued.
