Analyst research

All in all, 38 analysts handed down more than 220 recommendations for Hannover Re in 2010. The extent of our analyst coverage remained very stable overall, although fluctuation among the analysts was comparatively high. We were pleased to note that the cessation of research activities as a consequence of takeovers was offset by the fact that four new analysts began to follow us. The analysts’ average target price developed favourably in the course of the year, climbing incrementally from EUR 36.71 at the start of the year to EUR 41.43 by year-end. The average analysts’ opinion tended to move sideways during the year, declining only in the fourth quarter in the context of the rise in price of the Hannover Re share. Based on the data for the first nine months of 2010, 33 analysts published their opinion at year-end: twelve analysts recommended the Hannover Re share as “buy” or “overweight”; altogether fifteen opinions were a “hold”, making this the most common, while only six “underweight” or “sell” recommendations were handed down.