HVRRY (Hannover Rueck SE) Probability of Financial Distress (%): 0.01% (As of Jun. 25, 2026)


HVRRY Hannover Rueck SE HVRRY
71 GF Score
Price $45.12
GF Value $60.39
Valuation Modestly Undervalued
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What is Hannover Rueck SE Probability of Financial Distress (%)?

Hannover Rueck SE HVRRY +1.10% 71 Probability of Financial Distress (%) is 0.01% as of Jun. 25, 2026. GuruFocus rates HVRRY with a GF Score™ of 71/100 and a GF Value™ of $60.39 (Modestly Undervalued).

Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Hannover Rueck SE's Probability of Financial Distress (%) is 0.01%.

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

Hannover Rueck SE  (OTCPK:HVRRY) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.

Hannover Rueck SE Probability of Financial Distress (%) Related Terms

HVRRY vs RGA, EG, RNR: Probability of Financial Distress (%) Comparison

For the Insurance - Reinsurance subindustry, Hannover Rueck SE's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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 Probability of Financial Distress (%) vs Insurance Industry

For the Insurance industry and Financial Services sector, Hannover Rueck SE's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Hannover Rueck SE's Probability of Financial Distress (%) falls into.


HVRRY
71GF Score
Hannover Rueck SE HVRRY
Probability of Financial Distress (%) is just one metric. See GF Score™, valuation, warning signs, and more.
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Hannover Rueck SE Probability of Financial Distress (%) Calculation

Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.

The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:

LPFD= -20.12 * NIMTAAVG + 1.60 * TLMTA - 7.88 * EXRETAVG + 1.55 * SIGMA - 0.005 * RSIZE - 2.27 * CASHMTA + 0.070 * MB - 0.09 * PRICE -8.87
=-8.99

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=0.01%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.

2. TLMTA = Total liabilities to Market Total Assets

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For insurance companies, CASHMTA is measured as:

CASHMTA=(Balance Sheet Cash And Cash Equivalents + Short-term investments) / Market Total Assets

4. EXRETAVG = Excess Return compared to the S&P 500

EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.

5. SIGMA = Standard Deviation of Daily Returns

For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).

6. RSIZE = Relative Size

RSIZE=log (Market Cap / Total Market Cap of S&P 500 companies)

7. MB = Market to Adjusted Book Equity Ratio

MB=Market Cap / Adjusted Book Equity
=Market Cap / (Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

What does a Probability of Financial Distress (%) of 0.01% mean?
Hannover Rueck SE (HVRRY) has a Probability of Financial Distress (%) of 0.01% as of Jun. 25, 2026.
Is Hannover Rueck SE's Probability of Financial Distress (%) too high?
Hannover Rueck SE's current Probability of Financial Distress (%) is 0.01%. Overall, Hannover Rueck SE has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hannover Rueck SE's Probability of Financial Distress (%) compare to RGA and EG?
Hannover Rueck SE's Probability of Financial Distress (%) of 0.01% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for an Insurance company?
A good Probability of Financial Distress (%) depends on the Insurance industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Hannover Rueck SE's current Probability of Financial Distress (%) is 0.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hannover Rueck SE stock overvalued right now?
Based on GuruFocus' analysis, Hannover Rueck SE (HVRRY) is currently considered Modestly Undervalued. The stock's GF Value™ is $60.39, compared to a current price of $45.12 — trading 25.3% below its estimated fair value. The current Probability of Financial Distress (%) is 0.01%. Hannover Rueck SE's overall GF Score™ is 71/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Hannover Rueck SE (HVRRY), the current Probability of Financial Distress (%) is 0.01% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hannover Rueck SE (HVRRY) Overvalued in 2026?

Based on GuruFocus' analysis, Hannover Rueck SE stock appears to be undervalued. The current stock price of $45.12 is trading 25.3% below its estimated GF Value™ of $60.39. GuruFocus considers Hannover Rueck SE to be Modestly Undervalued.

Key valuation signals for HVRRY:

  • Probability of Financial Distress (%): 0.01%
  • GF Value™: $60.39 vs. price of $45.12 (25.3% below fair value)
  • GF Score™: 71/100

No single metric tells the full story. See the HVRRY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hannover Rueck SE Business Description

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, Haftpflichtverband founded Eisen- und Stahl-Industrie to provide reinsurance services. In the 1960s ownership of the business was turned over to Haftpflichtverband, and Aktiengesellschaft für Transport und- Rückversicherung 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 in January 2019. Hannover was listed in the 1990s on the Frankfurt Stock Exchange.
71GF Score

Get the complete analysis for HVRRY

Probability of Financial Distress (%) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$45.12
Price
$60.39
GF Value