Hannover Rueck SE · XETR:HNR1

Hannover Rueck — Hannover Rück — Corporate Update (February 2023)

25 slides from Hannover Rueck's corporate update, Feb 8, 2023

  1. Slide 1: Conference Call on 1 January 2023 P&C Treaty Renewals

    Conference Call on 1 January 2023 P&C Treaty Renewals 8 February 2023 Jean-Jacques Henchoz, Chief Executive Officer Sven Althoff, Member of the Executive Board – Property & Casualty

  2. Slide 2: Important note

    Important note • Unless otherwise stated, the renewals part of the presentation is based on Underwriting-Year (U/Y) figures. This basis is only remotely comparable with Financial-Year (FY) figures, which are the basis of quarterly and annual accounts. • The situation shown in this presentation mainl

  3. Slide 3: Reinsurance markets

    somewhat dierent Reinsurance markets hannover re’

  4. Slide 4: Reinsurance market shifted gears up in Jan 2023 renewals

    Reinsurance market shifted gears up in 1 Jan 2023 renewals Strongest price momentum since 2005 • Imbalance of reinsurance supply and demand led to significant upward pressure on reinsurance prices and terms − Strong demand due to inflation and elevated NatCat exposure − Decline in available market c

  5. Slide 5: Our results

    somewhat dierent Our results hannover re’

  6. Slide 6: Hannover Re's risk-return profile improved considerably (1)

    Hannover Re’s risk-return profile improved considerably (1) Increased retrocession capacity reduces volatility of future earnings Successful renewal … supported by superior financial strength, favourable market positioning and long-standing customer relationships Expansion of retro coverage … for Na

  7. Slide 7: Hannover Re's risk-return profile improved considerably (2)

    Hannover Re’s risk-return profile improved considerably (2) Terms & Conditions tightening leads to durable improvement of portfolio quality Quality of P&C portfolio improved substantially • Price increases combined with T&C tightening • Improving terms and conditions – not fully reflected in risk-ad

  8. Slide 8: Our portfolio

    somewhat dierent Our portfolio hannover re’

  9. Slide 9: 63% of traditional treaty reinsurance up for renewal at 1 January 2023

    63% of traditional treaty reinsurance up for renewal at 1 January 2023 Equates to 42% of the total P&C inforce premium Estimated premium income U/Y by reporting lines 23,261 Structured reinsurance 6,611 and ILS Facultative reinsurance 1,107 Traditional treaty reinsurance up for renewal at 1 January

  10. Slide 10: Portfolio enhanced significantly in quality and pricing

    Portfolio enhanced significantly in quality and pricing Total treaty reinsurance in m. EUR Change in Hannover Re shares: -4.4% Change in price: +8.0% % on renewed: Change in volume: +3.8% [100.0%] [-13.9%] [86.1%] [+7.4%] [+5.8%] [99.3%] 16,000 15,543 576 15,471 727 (1,376) 14,000 12,000 9,870 9,798

  11. Slide 11: Increase of overall prices by +8.0% across all reporting lines

    Increase of overall prices by +8.0% across all reporting lines Structural terms & conditions improvements are underestimated in price changes Traditional treaty reinsurance V Reporting lines o Premium 1/1/2022 Premium 1/1/2023 Premium changes Price changes l EMEA1) 4,184 4,288 +2.5% +7.2% Americas 1

  12. Slide 12: Very strong non-proportional renewal in property and some specialty lines

    Very strong non-proportional renewal in property and some specialty lines Disciplined underwriting in proportional as primary rates increased less strongly Proportional Non-proportional Premium Premium Premium Premium Reporting lines Price changes Price changes 1/1/2023 changes 1/1/2023 changes EMEA

  13. Slide 13: Sixth consecutive year with price increases in Hannover Re's XL portfolio

    Sixth consecutive year with price increases in Hannover Re's XL portfolio Non-proportional (XL) price changes at 1 January renewals 140% 131.1% 130% 120% +20.7% 110% +6.1% 100% +0.5% -3.8% +8.8% -2.8% +2.9% -4.8% +1.1% 90% +4.0% -1.6% 80% 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/201

  14. Slide 14: Strong price momentum achieved in all regions

    Strong price momentum achieved in all regions … most pronounced in the Americas and EMEA EMEA Americas APAC 5,934 5,808 5,681 5,934 5,808 5,681 5,328 (131) 296 5,493 5,934 5,808 5,681  in share: 5,555 5,555 5,555 5,429 5,303 4,776 477 4,879 5,429 5,303 5,429 5,303 -13.1% 5,176 (373) 5,176 5,176  i

  15. Slide 15: Worldwide markets: further increase in quality and pricing

    Worldwide markets: further increase in quality and pricing Credit, Surety and Political Risks Aviation and Marine Agricultural Risks 1,200 1,067 1,017 (69) 58 1,006 1,063 (13) 3 1,053 1,000 1,000  in share: +0.9% 800  in price: +17.2% 800  in share: -2.2%  in volume: +5.1%  in share: -4.8%  in

  16. Slide 16: Further growth outside 1/1 renewal lines and in later renewals expected

    Further growth outside 1/1 renewal lines and in later renewals expected Exceptional reporting on Structured R/I, Facultative R/I and NatCat business • Stronger demand for tailor-made reinsurance solutions expected due to global reduction in reinsurance capacity • Further premium growth expected with

  17. Slide 17: Increase in NatCat retrocession from EUR 0.86 to 1.34 bn.

    Increase in NatCat retrocession from EUR 0.86 to 1.34 bn. Long-term partners sought to participate in reinsurance rate improvements • Increase in retrocession programmes: Agg. XL • Offering additional NatCat capacity to our clients ~ EUR 71 m. 2022: ~ EUR 113 m. • Defined net-risk appetite in NatCat

  18. Slide 18: Guidance 2023

    somewhat dierent Guidance 2023 hannover re’

  19. Slide 19: Guidance for 2023 based on new accounting standards IFRS 17/9

    Guidance for 2023 based on new accounting standards IFRS 17/9 Hannover Re Group • Reinsurance revenue1) ≥ 5% growth • Return on investment 2) ≥ 2.4% • Group net income2) ≥ EUR 1.7 bn. • Ordinary dividend ≥ prior year • Special dividend if capitalisation exceeds capital requirements for future growth

  20. Slide 20: Appendix

    somewhat dierent Appendix hannover re’

  21. Slide 21: Decreased volume of proportional business at improved profitability

    Decreased volume of proportional business at improved profitability Treaty reinsurance - proportional in m. EUR Change in Hannover Re shares: -6.5% Change in price: +3.4% % on renewed: Change in volume: +3.4% 12,600 [100.0%] [-13.2%] [86.8%] [+0.4%] [+4.2%] [91.3%] 11.074 11,200 302 10.445 (958) 27

  22. Slide 22: Stronger emphasis on non-proportional business due to higher expected profitability

    Stronger emphasis on non-proportional business due to higher expected profitability supported by an average rate increase of +20.7% Treaty reinsurance - non-proportional in m. EUR Change in Hannover Re shares: +1.3% Change in price: +20.7% % on renewed: Change in volume: +4.9% [100.0%] [-16.0%] [84.

  23. Slide 23: 37% of traditional treaty reinsurance comes up for renewal later

    37% of traditional treaty reinsurance comes up for renewal later in a favourable market environment Estimated premium income U/Y by regions 15,543 206 324 7% 5,673 294 Remaining renewals 1,390 19% 2 Apr - 1 Jul renewals 2,868 10% 2 Jan - 1 Apr renewals 591 693 63% 319 1 January renewal 769 1,444 9,8

  24. Slide 24: Disclaimer

    Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities. While Han

  25. Slide 25: Financial calendar and our Investor Relations contacts

    Financial calendar and our Investor Relations contacts 8 February 2023 Karl Steinle General Manager 1 January P&C Treaty Renewals Phone: +49 511 5604 - 1500 [email protected] 9 March 2023 Press Conference and Analysts’ Conference Axel Bock Senior Investor Relations Manager 3 May 2023 Annu

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