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Hannover Rueck SE (Hannover Rueck SE) ROA %

: 2.62% (As of Dec. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hannover Rueck SE's annualized Net Income for the quarter that ended in Dec. 2023 was $1,856 Mil. Hannover Rueck SE's average Total Assets over the quarter that ended in Dec. 2023 was $70,723 Mil. Therefore, Hannover Rueck SE's annualized ROA % for the quarter that ended in Dec. 2023 was 2.62%.

The historical rank and industry rank for Hannover Rueck SE's ROA % or its related term are showing as below:

HVRRY' s ROA % Range Over the Past 10 Years
Min: 1.24   Med: 1.78   Max: 2.83
Current: 2.83

During the past 13 years, Hannover Rueck SE's highest ROA % was 2.83%. The lowest was 1.24%. And the median was 1.78%.

HVRRY's ROA % is ranked better than
59.51% of 489 companies
in the Insurance industry
Industry Median: 2 vs HVRRY: 2.83

Hannover Rueck SE ROA % Historical Data

The historical data trend for Hannover Rueck SE's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hannover Rueck SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.87 1.29 1.77 1.21 2.86

Hannover Rueck SE Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.81 3.05 2.98 2.71 2.62

Competitive Comparison

For the Insurance - Reinsurance subindustry, Hannover Rueck SE's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hannover Rueck SE ROA % Distribution

For the Insurance industry and Financial Services sector, Hannover Rueck SE's ROA % distribution charts can be found below:

* The bar in red indicates where Hannover Rueck SE's ROA % falls into.



Hannover Rueck SE ROA % Calculation

Hannover Rueck SE's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=1989.967/( (66694.068+72505.234)/ 2 )
=1989.967/69599.651
=2.86 %

Hannover Rueck SE's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=1855.616/( (68941.089+72505.234)/ 2 )
=1855.616/70723.1615
=2.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Hannover Rueck SE  (OTCPK:HVRRY) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=1855.616/70723.1615
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1855.616 / -71163.36)*(-71163.36 / 70723.1615)
=Net Margin %*Asset Turnover
=-2.61 %*-1.0062
=2.62 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Hannover Rueck SE ROA % Related Terms

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Hannover Rueck SE (Hannover Rueck SE) Business Description

Traded in Other Exchanges
Address
Karl-Wiechert-Allee 50, Hannover, NI, DEU, 30625
Hannover Re is a reinsurance company headquartered in Hannover, Germany. Its roots go back to the 1920s when, in conjunction with the Gerling Group, Haftplichtverband founded Eisen- und Stahl to provide reinsurance services. In the 1960s ownership of the business was turned over to Haftplichtverband and Aktiengesellschaft fur Transport und- Ruckversichering was founded. This was the basis of Hannover Re. The business expanded into life and health reinsurance in the 1990s, and over the next 30 years expanded beyond its core domestic market of Germany to write business internationally. Hannover sold its commercial specialty insurance business to Talanx on Jan. 1, 2019. Hannover was listed in the '90s on the Frankfurt Stock Exchange.

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