Hannover Rueck SE · XETR:HNR1

Hannover Rueck — Hannover Re — Commerzbank German Investment Seminar 2013

29 slides from Hannover Rueck's conference presentation, Jan 15, 2013

  1. Slide 1: Hannover Re: The somewhat different reinsurer

    Hannover Re: The somewhat different reinsurer Ulrich Wallin, Chief Executive Officer Commerzbank, German Investment Seminar New York, 15 January 2013

  2. Slide 2: Agenda

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Agenda  Facts & figures  Our strategy 1. Our mission: Growing Hannover Re profitably 2. We have ambitious profit and growth targets 3. We manage risks actively 4. We are a p

  3. Slide 3: Strong results further increase Hannover Re's financial strength

    Facts && figures Facts figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Strong results further increase Hannover Re's financial strength Aided by a benign major loss situation and favourable investment results  Non-life reinsurance

  4. Slide 4: Our mission is to grow Hannover Re profitably

    Facts & figures 1. 1.Our Our mission mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Our mission is to grow Hannover Re profitably Within the last years we strenghthened our position continuously Premium ranking 2011 in m. USD Rank Group Country

  5. Slide 5: We have grown our non-life business profitably

    Facts & figures 1. 1.Our Our mission mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook We have grown our non-life business profitably 5-year CAGR +7.7% Gross written premium in m. EUR Cornerstones of our non-life approach  Central underwriting com

  6. Slide 6: We have strengthened our position in life and health

    Facts & figures 1. 1.Our Our mission mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook We have strengthened our position in life and health 5-year CAGR +12.3% Gross written premium in m. EUR Cornerstones of our life and health approach  We focus o

  7. Slide 7: Well balanced international portfolio

    Facts & figures 1. Our mission 2.2.Ambitious Ambitious targets targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Well balanced international portfolio Strongest growth in UK and emerging markets Gross written premium (Group) in m. EUR 12,463 11,343 9,567 9,317 9,289 8,

  8. Slide 8: We seek to be one of the most profitable reinsurer

    Facts & figures 1. Our mission 2.2.Ambitious Ambitious targets targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook We seek to be one of the most profitable reinsurer Our minimum target is 750 bps above risk free 2007 2008 2009 2010 2011 2007 - 2011 Company RoE Rank RoE R

  9. Slide 9: Accelerated increase in book value per share

    Facts & figures 1. Our mission 2.2.Ambitious Ambitious targets targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Accelerated increase in book value per share Book value per share, paid dividends in EUR 67.01 2003-2012 CAGR 11.5% 57.10 17.98 2008-2012 CAGR 17.7% 15.88 1

  10. Slide 10: Selective growth

    Facts & figures 1. Our mission 2.2.Ambitious Ambitious targets targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Selective growth Premium growth driven by profitability Different lines with different cycles GWP Profitability 2012 200% Latin America + 180% Credit & Sure

  11. Slide 11: Hannover Re remains the absolute cost leader

    Facts & figures 1. Our mission 2.2.Ambitious Ambitious targets targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Hannover Re remains the absolute cost leader Our overhead ratio is less than half of the industry average Administrative expense ratio1)  Lean, efficient i

  12. Slide 12: We manage risks actively

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook We manage risks actively  Our capital model is the cornerstone of Hannover Re  We manage our risk exposure to achieve a positive net income with a probabilit

  13. Slide 13: How do we calculate the capital margin. . .

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook How do we calculate the capital margin. . . . . .for our underwriters and our investment decisions Capital margin Capital margin Risk X / = + Admin. = MRC NPE

  14. Slide 14: MtCR translates our economic targets into IFRS

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook MtCR translates our economic targets into IFRS NPE + Economic revaluation - MRC = MtCR Discount effect on Minimum Return on Net premium Maximum tolerable non-l

  15. Slide 15: Exposure management supported by capital management

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook Exposure management supported by capital management Risk budget allocated to NatCat* as % of economic capital  Internal capital model sets 30% the tone  Stri

  16. Slide 16: Diversification reduces capital requirements by a third

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook Diversification reduces capital requirements by a third Capitalisation ratio 160% Risk capital for the 99.97% VaR (according to economic capital model) in m. E

  17. Slide 17: Diversification reduces capital requirements by 50%

    Facts & figures 1. Our mission 2. Ambitious targets 3. 3. Manage Manage risks risks 4. Preferred partner 5. Stable investment income Outlook Diversification reduces capital requirements by 50% Non-life business group Risk capital for the 99.5% VaR (according to economic capital model) in m. EUR 263

  18. Slide 18: Mutual beneficial relationships with our customers

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. 4.Preferred Preferred partner partner 5. Stable investment income Outlook Mutual beneficial relationships with our customers Loyal and long-term oriented, consistent approach to CRM Preferred business partner USA: Flaspöhler surv

  19. Slide 19: Our rating makes us a strong partner

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. 4.Preferred Preferred partner partner 5. Stable investment income Outlook Our rating makes us a strong partner Standard & Poor's A.M. Best Insurance Day AA- A+ Reinsurer of the year "Very strong" "Superior" 2012 Outlook: stable O

  20. Slide 20: Numerous benefits of an above-average rating

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. 4.Preferred Preferred partner partner 5. Stable investment income Outlook Numerous benefits of an above-average rating  We have a better showing of business than the average player • Not excluded from virtually any business/acce

  21. Slide 21: We aim for stable investment income

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5.5.Stable Stableinvestment investment income income Outlook We aim for stable investment income Main facts of our approach  Our risk taking is weighted towards reinsurance rather than investment risks  The st

  22. Slide 22: Positive operating cash flow continues to support asset growth

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5.5.Stable Stableinvestment investment income income Outlook Positive operating cash flow continues to support asset growth Assets under own management increased by 55% in 5 years Operating cash flow in m. EUR A

  23. Slide 23: Net investment income increased by 27% in 2012

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5.5.Stable Stableinvestment investment income income Outlook Net investment income increased by 27% in 2012 Net investment income in m. EUR  Ordinary investment income grew significantly since 2009 despite yiel

  24. Slide 24: Solid and relatively high quality fixed-income portfolio

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5.5.Stable Stableinvestment investment income income Outlook Solid and relatively high quality fixed-income portfolio. . . . . .in the light of challenging capital market environment Fixed-income book by rating

  25. Slide 25: Small exposure in GIIPS (3.1% of AuM)

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5.5.Stable Stableinvestment investment income income Outlook Small exposure in GIIPS (3.1% of AuM) Major part in coporates and covereds Total investment in GIIPS Semi-/Governments in GIIPS in m. EUR Governments

  26. Slide 26: New Guidance for 2012

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Outlook New Guidance for 2012 Hannover Re Group  Gross written premium (GWP)1) +8% - +9% • Non-life reinsurance1) ~ +8% - +9% • Life and health reinsurance1)2) ~ +8% - +9% 

  27. Slide 27: Guidance for 2013

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Outlook Guidance for 2013 Hannover Re Group  Gross written premium (GWP)1) ~ +5% • Non-life reinsurance1) ~ +3% - +5% • Life and health reinsurance1)2) ~ +5% - +7%  Return o

  28. Slide 28: Our Investor Relations team

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Outlook Our Investor Relations team Karl Steinle Julia Hartmann Axel Bock General Manager IR Manager Deputy IR Manager Corporate Communications Corporate Communications Corpor

  29. Slide 29: Disclaimer

    Facts & figures 1. Our mission 2. Ambitious targets 3. Manage risks 4. Preferred partner 5. Stable investment income Outlook Outlook Outlook Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek

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