Kepler Cheuvreux initiates Hannover Rueck, Swiss Re with contrasting earnings views

** Kepler Cheuvreux initiates coverage of reinsurers Hannover Rueck HNRGn.DE at "hold" and Swiss Re SRENH.S at "reduce", citing Hannover Re's stable earnings and Swiss Re's weaker earnings trajectory

** Kepler points to Hannover Re's low cost base, conservative reserving and "sophisticated use of retrocession and capital markets"

** It has delivered high and unusually stable returns without relying on a large primary-insurance business, the broker adds

** As for Swiss Re, it has improved over the past two years with stronger US casualty reserves and more stable commercial insurance earnings, Kepler says

** However, Kepler expects weaker P&C reinsurance renewals to weigh more clearly on the Swiss reinsurer's FY 2027-28 earnings

** In contrast to Hannover Re, Swiss Re screens less attractively on the combination of earnings trajectory, ROE, and current multiples, Kepler says