Hannover Rueck SE · XETR:HNR1
Hannover Rueck — Hannover Re — UniCredit/Kepler, 10th German Investment Conference 2012
28 slides from Hannover Rueck's conference presentation, Sep 26, 2012
Slide 1: Hannover Re - The somewhat different reinsurer
Hannover Re - The somewhat different reinsurer Claude Chèvre Member of the Executive Board UniCredit/Kepler, 10th German Investment Conference Munich, 26 September 2012
Slide 2: Agenda
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Agenda Facts and figures 2012: a good start Our strategy 1. Our mission: Growing Hannover Re profitably 2. We have ambitious profit and growth targets 3.
Slide 3: Favourable results of Hannover Re's business
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Favourable results of Hannover Re's business 1H/2012 strong results largely unaffected by one-off effects Premium increase in non-life 1H/2012 results rein
Slide 4: Dedicated to a clear strategy
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Dedicated to a clear strategy 2. We have ambitious profit 3. We manage and growth targets risks actively 4. We are a 1. Growing preferred Hannover Re busines
Slide 5: Our mission is to grow Hannover Re profitably
Facts & figures 2012 | 1. Growing HR | 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 strengthened our position continuously Premium ranking 2011 in m. USD Rank Group Count
Slide 6: We have grown our non-life business profitably
Facts & figures 2012 | 1. Growing HR | 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 8.000 Central underw
Slide 7: We have strengthened our position in life/health
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | We have strengthened our position in life/health 5-year CAGR +12.3% Gross written premium in m. EUR Cornerstones of our life/health approach 6.000 We focus
Slide 8: We developed our business and improved diversification
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | We developed our business and improved diversification Gross written premium in m. EUR 12,096 10.000 9,317 8,320 44% 26% 8.000 25% 6.000 4.000 75% 74% 56% 3,
Slide 9: We seek to be one of the most profitable reinsurer
Facts & figures 2012 | 1. Growing HR | 2. Ambitious 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 Ra
Slide 10: Accelerated increase in book value per share
Facts & figures 2012 | 1. Growing HR | 2. Ambitious 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 57.10 10y CAGR: 10.0% 5y CAGR: 12.6% 50.97 50 15.88 13.58 40 11.48 3
Slide 11: Selective growth in non-life reinsurance
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Selective growth in non-life reinsurance Premium growth driven by profitability Different lines with different cycles GWP Profitability 2012 200% Latin Ameri
Slide 12: Hannover Re remains the absolute cost leader
Facts & figures 2012 | 1. Growing HR | 2. Ambitious 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 in
Slide 13: We manage risks actively
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage 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 probabil
Slide 14: Exposure management supported by capital management
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Exposure management supported by capital management Risk budget allocated to NatCat* Internal capital model sets the tone as % of economic capital 30% St
Slide 15: Diversification reduces capital requirements by a third
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage 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.
Slide 16: Diversification reduces capital requirements by 50%
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage 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 3.
Slide 17: Mutual beneficial relationships with our customers
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred 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 survey
Slide 18: Our rating makes us a strong partner
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred 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 Out
Slide 19: Numerous benefits of an above-average rating coupled with CRM
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Numerous benefits. . . . . .of an above-average rating coupled with our CRM approach We have a better showing of business than the average player • Not exc
Slide 20: We aim for stable investment income
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment 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 structure
Slide 21: Constant positive operating cash flow supports asset growth
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Constant positive operating cash flow supports asset growth Assets under own management increased by 50% in 5 years Operating cash flow in m. EUR Assets unde
Slide 22: Net investment income has grown by 9% (CAGR4y)
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Net investment income has grown by 9% (CAGR4y) Net investment income in m. EUR Ordinary investment income grew 709 significantly since 2009 despite 673 det
Slide 23: Solid and relatively high quality fixed income portfolio
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Solid and relatively high quality fixed income portfolio. . . . . .in the light of unstable capital market environment No material exposure in Southern Eur
Slide 24: Due to asset-liability matching 3.6% exposure in GIIPS
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Due to asset-liability matching 3.6% exposure in GIIPS Major part in corporates and covereds Total investment in GIPPS in % Semi-/Govermentals in GIIPS in m.
Slide 25: Continuously reduced share of bank exposure
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Continuously reduced share of bank exposure Unchanged focus on conservative title selection Corporate sector allocation in m. EUR by currencies 9,936 2,982 8
Slide 26: Guidance for 2012
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Guidance for 2012 Hannover Re Group Gross written premium (GWP)1) ……………………………………….~ +5% - +7% • Non-life reinsurance1) ……………………………………………………...…...~ +5% - +
Slide 27: Our Investor Relations team
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Our Investor Relations team Hannover Rückversicherung AG Karl-Wiechert-Allee 50 30625 Hannover, Germany www.hannover-re.com http://hannover-re.ir-portal.com
Slide 28: Disclaimer
Facts & figures 2012 | 1. Growing HR | 2. Ambitious targets | 3. Manage risks | 4. Preferred partner | 5. Stable investment income | Outlook | Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should see
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