Hannover Rueck SE · XETR:HNR1
Hannover Rueck — Hannover Re — Investor Presentation (October 2017)
89 slides from Hannover Rueck's investor presentation, October 2017
Slide 1: Hannover Re: the somewhat different reinsurer
Hannover Re: the somewhat different reinsurer October 2017
Slide 2: Content
Content 01 – 18 | Overview 19 – 26 | Hannover Re Group 27 – 38 | Property & Casualty reinsurance 39 – 47 | Life & Health reinsurance 48 – 55 | Investment management 56 – 58 | Risk management 59 – 67 | Capital management 68 – 77 | Interim results 1H/2017 78 – 81 | Outlook 2017 I – VI | Appendix
Slide 3: Key facts about Hannover Re
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Key facts about Hannover Re Today Majority shareholder: 50.2% held by Talanx AG* 18 Feb 2004 Second Public Offering More than 100 subsidiaries, branches an
Slide 4: From in-house reinsurer to global player
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix From in-house reinsurer to global player >100 subsidiaries, branches/representative offices in ~20 countries 2017: India Branch started operations 2009: Op
Slide 5: Group structure supports our business model
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Group structure supports our business model Majority owner, but operational and financial independence Talanx AG* Free float 50.2% 49.8% 64.8% >100 subsidi
Slide 6: Executive Board of Hannover Rück SE
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Executive Board of Hannover Rück SE Ulrich Wallin Roland Vogel Chairman Finance and Accounting, Business Opportunity Information Technology, Management, Co
Slide 7: We are among the top reinsurers in the world
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix We are among the top reinsurers in the world Premium ranking 2016 in m. USD Rank Group Country GWP NPW 1 Swiss Re CH 35,622 33,570 2 Munich Re DE 33,154 31
Slide 8: Property & Casualty reinsurance in a global perspective
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Property & Casualty reinsurance in a global perspective Hannover Re outperforms the market Market size and concentration 2016 in bn. EUR 2012 2016 Δ CAGR T
Slide 9: Life & Health reinsurance in a global perspective
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Life & Health reinsurance in a global perspective Development of Hannover Re in line with market development Market size and concentration 2016 Other 6% in
Slide 10: Premium development in line with mid-term target
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Premium development in line with mid-term target 5-year CAGR: +6.2% Gross written premium in m. EUR 17,069 16,354 13,774 13,963 14,362 12,096 45% 44% 44% 4
Slide 11: Well balanced international portfolio
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Well balanced international portfolio Gross written premium (Group) in m. EUR 8,259 8,121 10,275 11,429 12,096 13,774 13,963 14,362 17,069 16,354 3% 3% Afr
Slide 12: Hannover Re is one of the most profitable reinsurers
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Hannover Re is one of the most profitable reinsurers 2012 2013 2014 2015 2016 2012 - 2016 Company RoE Rank RoE Rank RoE Rank RoE Rank RoE Rank avg. RoE Ran
Slide 13: Reinsurance market conditions will improve ...
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Reinsurance market conditions will improve ... ... when the RoE becomes sufficiently low 240% 236% 232% Development of return on equity and Guy Carpenter G
Slide 14: Low expense ratio is an important competitive advantage
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Low expense ratio is an important competitive advantage Hannover Re largely maintained its ratio in contrast to increasing industry trend Expense ratio Net
Slide 15: Accelerated value creation since 2009
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Accelerated value creation since 2009 10-year CAGR: +13.1% Increase of book value and accumulated paid dividends in EUR 107.59 32.98 28.23 23.98 17.98 20.9
Slide 16: Shareholders' equity up by 11.5%
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Shareholders' equity up by 11.5% Higher dividend payment offset by strong earnings and increasing OCI Policyholders' surplus in m. EUR Change in shareholde
Slide 17: A superior and highly profitable reinsurer ...
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix A superior and highly profitable reinsurer ... Hannover Re's business model Top rating (S&P: AA-) ensures attractive new business Strong market positioning
Slide 18: Our strategy: long-term success in a competitive business
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Our strategy: long-term success in a competitive business Our overriding target: profit and value creation Premium growth on a long-term basis above mark
Slide 19: Performance promise to our customers and shareholders
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Performance promise to our customers and shareholders Our value proposition to our Our profit targets to our customers shareholders Capital protection an
Slide 20: Sustainability at Hannover Re
Overview Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Sustainability at Hannover Re Our action fields and milestones Sustainability Strategy 2015 - 2017 Governance and Product Responsibility Employees Environm
Slide 21: Present on all continents
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Present on all continents Europe Spain Ireland United Kingdom France Germany Italy Sweden The Americas Madrid Dublin London Paris Hannover Milan Stoc
Slide 22: HR share outperforms indices over a 3-year rolling period
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix HR share outperforms indices over a 3-year rolling period Performance vs. indices Performance comparison (incl. reinvested dividends) 240% 220% 200%
Slide 23: How do we calculate our return targets?
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix How do we calculate our return targets? Our pricing is based 900 bps above risk free Risk capital X Factor ⇒ Net income / (1 - tax) ⇒ EBIT bps risk f
Slide 24: How do we calculate the capital margin ...
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix How do we calculate the capital margin ... ... for our underwriters and our investment decisions? Capital margin Admin. Total margin Risk X MRC / NPE
Slide 25: Strong earnings track record since 2009
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Strong earnings track record since 2009 Record EPS in 2016 Operating profit (EBIT) in m. EUR 1,755 1,689 1,394 1,466 1,178 1,229 1,142 928 841 148 20
Slide 26: Growth in ordinary dividend reflects strong earnings power
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Growth in ordinary dividend reflects strong earnings power Payout: EUR 3.50 ordinary dividend + EUR 1.50 special dividend per share Dividend per shar
Slide 27: Yearly Total Shareholder Return (TSR) of 12.6%
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Yearly Total Shareholder Return (TSR) of 12.6% Value creation since IPO in m. EUR 2015 2016 Market capitalisation as of date 12,741 12,397 +1,269% -
Slide 28: RoE on very attractive level, despite continued capital growth
Overview Hannover Hannover Re Group Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix RoE on very attractive level, despite continued capital growth Continuous outperformance of minimum RoE target Return on Equity: yearly Return on Equ
Slide 29: We are somewhat different: Property & Casualty reinsurance
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix We are somewhat different Property & Casualty reinsurance Central underwriting with local talent is key to our success • Secures consistent u
Slide 30: Strategy contribution of the P&C business group
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Strategy contribution of the P&C business group Be among world's most profitable R/I & steer volatility in line with our profit targets Our val
Slide 31: Our Property & Casualty reinsurance business divisions
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Our Property & Casualty reinsurance business divisions Target GWP split 2016 North America* markets Continental Europe* Specialty Target Marine
Slide 32: Roughly 2/3 of our business is written via brokers
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Roughly 2/3 of our business is written via brokers Breakdown of treaties by volume Breakdown of business written Direct Non- business proportio
Slide 33: Property & Casualty reinsurance: selective growth
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Property & Casualty reinsurance: selective growth GWP split by line of business in m. EUR GWP split by regions 9,338 9,205 Cat XL 4% 4% Latin A
Slide 34: Premium development in line with selective U/W approach
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Premium development in line with selective U/W approach EBIT stable Gross written premium in m. EUR EBIT/EBIT margin in m. EUR CAGR: 17.0% 16.6
Slide 35: Effective cycle management at work
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Effective cycle management at work US casualty total inforce premium development in m. USD 1,040 1,012 924 829 749 788 731 678 606 587 625 553
Slide 36: Ensuring the quality of our portfolio
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Ensuring the quality of our portfolio Our quotation process in Property & Casualty reinsurance Step 1: Step 2: Step 3: Calculation of the loss
Slide 37: At an MtCR of ~96% we earn 900 bps above risk free
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix At an MtCR of ~96% we earn 900 bps above risk free NPE + Economic revaluation - Capital margin = MtCR Discount effect on Capital margin Maximum
Slide 38: MtCR varies substantially by line of business
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix MtCR varies substantially by line of business 2017 Net premium earned (100%) + Economic revaluation - Capital margin = MtCR North America* 7.4%
Slide 39: Diversified reinsurance portfolio outperforms the MtCR
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Diversified reinsurance portfolio outperforms the MtCR EBIT 2016: Combined Ratio vs. MtCR margin Target North America* 91.0% 26.1% markets Cont
Slide 40: Further increasing reserve redundancies in 2015
Overview Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Further increasing reserve redundancies* in 2015 7-year average impact on net loss ratio: 2.9% Redundancy Increase redundancy P&C net premium e
Slide 41: We are somewhat different: Life & Health reinsurance
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix We are somewhat different Life & Health reinsurance We are committed to responsiveness and time to market • Rapid decision-making processes Respon
Slide 42: Strategy contribution of the L&H business group
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Strategy contribution of the L&H business group We have ambitious profit and growth targets Our value proposition to our Our profit contribution cus
Slide 43: Writing attractive traditional life & health business
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Writing attractive traditional life & health business Whilst positioning ourselves for sustainable growth with a clear strategic focus Risk solution
Slide 44: Our clients are served by our network of offices
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Our clients are served in the markets by our network of offices and by our solution-orientated expert networks Automated Biometric U/W systems resea
Slide 45: Primary differences between L&H and P&C business
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Primary differences between L&H and P&C business Simplified illustration Accounting considerations (premium) Single Recurring IBNR reserve impact Lo
Slide 46: We have well defined reporting categories
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix We have well defined reporting categories Financial solutions Profitability is less likely to be affected by the Transactions which include componen
Slide 47: Life & Health reinsurance: a well diversified portfolio
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Life & Health reinsurance: a well diversified portfolio GWP split by reporting categories in m. EUR GWP split by regions 7,731 Germany Africa Latin
Slide 48: We have a successful track record
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix We have a successful track record Gross written premium in m. EUR EBIT/EBIT margin in m. EUR CAGR: 4.2% 7,731 7,149 6,459 6.2% 6,058 6,145 5.3% 5.1%
Slide 49: Strong increase in Value of New Business ...
Overview Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Strong increase in Value of New Business ... ... mainly driven by financial solutions business Value of New Business development in m. EUR Target ≥
Slide 50: Continued positive operating cash flow
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Continued positive operating cash flow AuM -3.4% driven by strengthening of the Euro and dividend payment Operating cash flow in m. EUR Assets unde
Slide 51: Very pleasing net investment income
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Very pleasing net investment income Increase in total investments despite less valuation reserves and dividend payment Total investments in m. EUR
Slide 52: Ordinary income supported by less liquid asset classes
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Ordinary income supported by less liquid asset classes Low yield environment has major impact on government bonds Ordinary income split EUR 641 m.
Slide 53: Barbell strategy visible in fixed income composition
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Barbell strategy visible in fixed income composition Only minor changes to asset allocation in first half of the year Asset allocation 1) Investmen
Slide 54: Fixed-income book well balanced
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Fixed-income book well balanced Geographical allocation mainly in accordance with our business diversification Pfandbriefe, Short-term Semi- Govern
Slide 55: Currency allocation matches liability profile of balance sheet
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Currency allocation matches liability profile of balance sheet Duration-neutral strategy applied Currency split of investments Modified duration
Slide 56: Active management of credit risk
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Active management of credit risk High level of diversification; Portion of banks slightly decreasing Corporate allocation in m. EUR Total bank expo
Slide 57: Stress tests on assets under own management
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Stress tests on assets under own management Unchanged focus on yields and spreads while relevance of (private) equities rises Change in market valu
Slide 58: Several levels of protection provide more NatCat capacity ...
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk Risk mgmt. mgmt. Capital mgmt. 1H/2017 Outlook Appendix Several levels of protection provide more NatCat capacity ... ... and thus create additional earnings at a defined risk appetite Agg. XL ~ EUR 215 m. Div
Slide 59: Equity Substitutes
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk Risk mgmt. mgmt. Capital mgmt. 1H/2017 Outlook Appendix Equity Substitutes We pioneered securitisations (transfer of risks into capital markets) In 1994 Hannover Re pioneered the Expired transactions in m. f
Slide 60: The risk is manageable
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk Risk mgmt. mgmt. Capital mgmt. 1H/2017 Outlook Appendix The risk is manageable Stress tests for natural catastrophes after retrocessions Effect on forecast net income in m. EUR 2015 2016 100-year loss (469.6)
Slide 61: Our capital structure consists not only of equity
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Our capital structure consists not only of equity Use of hybrids, securitisations etc. lowers cost of capital and levers RoE Equity capital is by fa
Slide 62: Financial strength ratings
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Financial strength ratings Group S&P A.M. Best 2) General Reinsurance Corp. AA+ A++ Hannover Re AA- A+ Munich Re AA- A+ Swiss Re AA- A+ SCOR AA- A+ Ev
Slide 63: An above-average rating has numerous benefits ...
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix An above-average rating has numerous benefits ... ... although we might not (yet) get paid for it We have a better showing of business than the averag
Slide 64: Solvency II: Internal capital model approved by BaFin
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Solvency II: Internal capital model approved by BaFin Solvency II Pillar I Pillar II Pillar III Quantitative requirements Qualitative requirements Dis
Slide 65: Hannover Re Group maintains comfortable capital position
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Hannover Re Group maintains comfortable capital position Capital adequacy above target with substantial excess capital 31.12.2016 31.12.2016 31.12.201
Slide 66: Hannover Re Group is well capitalised under Solvency II
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Hannover Re Group is well capitalised under Solvency II From economic view to regulatory view Available Required in m. EUR Capital Capital CAR Econo
Slide 67: High-quality capital base
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix High-quality capital base Own funds largely dominated by Tier 1 capital supplemented by hybrid capital Reconciliation (IFRS Shareholders’ Equity/Solve
Slide 68: Capital efficiency supported by high diversification
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Capital efficiency supported by high diversification Breakdown of Solvency II capital requirements Risk capital for the 99.5% VaR (according to Solven
Slide 69: Hannover Re is well diversified within each risk category...
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital Capital mgmt. mgmt. 1H/2017 Outlook Appendix Hannover Re is well diversified within each risk category... ..and has a well balanced risk profile Risk capital for the 99.5% VaR (according to econo
Slide 70: Half-year results in line with full-year targets
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Half-year results in line with full-year targets Group Gross written premium: EUR 8,998 m. (+8.6%) Attractive GWP growth (f/x adjusted +8.7%) Net premium earn
Slide 71: Overall satisfying business development
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Overall satisfying business development Strong growth in Property & Casualty reinsurance Group figures in m. EUR Q2/2016 Q2/2017 Δ 1H/2016 1H/2017 Δ Gross written p
Slide 72: Solid underwriting result in a competitive environment
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Solid underwriting result in a competitive environment Remarkable growth mainly driven by tailor-made structured R/I Property & Casualty R/I in m. EUR Q2/2016 Q2/20
Slide 73: Major losses well below budget for 1H/2017
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Major losses well below budget for 1H/2017 Remaining unused large loss budget of EUR 702 m. for the year Natural and man-made catastrophe losses* in m. EUR 1,730 98
Slide 74: Overall very benign large loss experience in 1H/2017
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Overall very benign large loss experience in 1H/2017 Absence of major losses in Q2/2017 Catastrophe losses* in m. EUR Date Gross Net Storm / Tornados, USA 18 - 21 J
Slide 75: Overall profitability in Life & Health below expectation
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Overall profitability in Life & Health below expectation Strong earnings contribution from Financial solutions Life & Health R/I in m. EUR Q2/2016 Q2/2017 1H/2016 1
Slide 76: Excellent investment performance
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Excellent investment performance Low yielding FIS portfolio more than offset by private equities and real estates in m. EUR Q2/2016 Q2/2017 1H/2016 1H/2017 RoI YTD
Slide 77: Target Matrix 2017
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Target Matrix 2017 Profit targets largely achieved Strategic targets Business group Key figures 1H/2017 for 2017 1) Group Return on investment >2.7% 3.2% Return on
Slide 78: Our strategic business groups at a glance (1H)
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Our strategic business groups at a glance 1H/2017 vs. 1H/2016 Property & Casualty R/I Life & Health R/I Total in m. EUR 1H/2016 1H/2017 Δ 1H/2016 1H/2017 Δ 1H/2016
Slide 79: Our strategic business groups at a glance (Q2)
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Our strategic business groups at a glance Q2/2017 vs. Q2/2016 Property & Casualty R/I Life & Health R/I Total in m. EUR Q2/2016 Q2/2017 Δ Q2/2016 Q2/2017 Δ Q2/2016
Slide 80: Guidance for 2017
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Outlook Appendix Guidance for 2017 Hannover Re Group Gross written premium1) more than 5% Return on investment2) 3) more than 2.7% Group net income2) to be determined
Slide 81: Overall profitability still above margin requirements
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Outlook Appendix Overall profitability still above margin requirements Property & Casualty reinsurance: mixed picture by line of business Lines of business Volume1) Profitab
Slide 82: Good underlying profitability affected by legacy US mortality
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Outlook Appendix Good underlying profitability affected by legacy US mortality Reporting categories Volume1) Profitability2) Financial solutions Financial solutions ++ Longe
Slide 83: Rationale for our short- and midterm outlook
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Outlook Appendix Rationale for our short- and midterm outlook Property & Casualty reinsurance results Positioned to outperform High confidence level of reserves supporting
Slide 84: Financial calendar
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix Financial calendar 19 October 2017 7 February 2018 7 May 2018 Investors’ Day 1 January Annual 2017 P&C Treaty General Renewals Meeting Quarterly Statement
Slide 85: Basic information on the Hannover Re share
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix Basic information on the Hannover Re share Basic information International Securities Identification Number (ISIN) DE 000 840 221 5 Ticker symbols - Bloomb
Slide 86: List of abbreviations
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix List of abbreviations A MCEV Market Consistent Embedded Value ABS Asset-Backed Securities MCR Minimum Capital Requirements ADR American Depositary Receipts
Slide 87: Our Investor Relations team
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix Our Investor Relations team Karl Steinle Julia Hartmann Axel Bock General Manager Senior IR Manager IR Manager Corporate Communications Corporate Communica
Slide 88: Details on reserve review by Willis Towers Watson
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix Details on reserve review by Willis Towers Watson The scope of Willis Towers Watson’s work was to review certain parts of the held loss and loss adjustme
Slide 89: Disclaimer
Overview Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Risk mgmt. Capital mgmt. 1H/2017 Outlook Appendix Appendix Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should s