By Ulrike Dauer and Ed Frankl 

Hannover Rueck SE said Thursday that it would amend its dividend policy to prioritize guaranteeing an increasing basic dividend each year over a mix with yearly special payouts.

The German reinsurer said at its investor day that it expects to pay an ordinary dividend per share at least on par with the previous year's level in the future, changing its dividend metric by pivoting away from a combination with a special dividend and also doing away with a yearly payout-ratio target.

Shares climbed slightly to EUR152.25, up 0.8%, on the news.

Previously, Hannover Re said it would target a payout ratio of 35% to 45% of net income for its basic dividend.

A special dividend would still be paid in years in which capital resources exceed capital requirements for future growth and profit targets are reached, the company said.

For 2020, the company paid a basic dividend of 4.50 euros ($5.22) per share, corresponding to a payout ratio of 61%, it said. Because of the fall in profits during the Covid-19 pandemic, it didn't offer a special dividend in 2020.

However, in 2019 it offered EUR4 in an ordinary dividend and EUR1.50 in a special dividend, according to the company.

Hannover Re added that it is on track to meet its 2023 targets, and that its expected property & casual losses from the pandemic are unchanged since December 2020.

Write to Ed Frankl at edward.frankl@dowjones.com