Hannover Rueck Se · XETR:HNR1
Hannover Rueck — Hannover Re — Investor Presentation (June 2018)
84 slides from Hannover Rueck's investor presentation, June 2018
Slide 1: Hannover Re: the somewhat different reinsurer
Hannover Re: the somewhat different reinsurer June 2018
Slide 2: Content
Content 01 – 26 | Hannover Re Group 27 – 39 | Property & Casualty reinsurance 40 – 48 | Life & Health reinsurance 49 – 55 | Investment management 56 – 64 | Capital management 65 – 73 | Interim Results Q1/2018 74 – 77 | Outlook 2018 I – IV | Appendix
Slide 3: Key facts about Hannover Re
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Key facts about Hannover Re 1990 1994 Founded by HDI Start of L&H reinsurance Initial Public Offering (P&C reinsurance only) as strategic growth segment of Hannov
Slide 4: From in-house reinsurer to global player
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix From in-house reinsurer to global player >140 subsidiaries, branches/representative offices worldwide 2017: India Branch started operations, acquisition of Lloyd’
Slide 5: Group structure supports our business model
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Group structure supports our business model Majority owner, but operational and financial independence Talanx AG* Free float 50.2% 49.8% 64.8% >140 subsidiaries,
Slide 6: Executive Board of Hannover Rück SE
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Executive Board of Hannover Rück SE Dr. Michael Pickel Dr. Klaus Miller Target Markets: North America, Life & Health Reinsurance: Continental Europe; United Kingd
Slide 7: We are among the top reinsurers in the world
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 31,891 3
Slide 8: Reinsurance has the character of a specialty market
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Reinsurance has the character of a specialty market With a share of ~6% of the overall insurance market Market size primary insurance vs. reinsurance 2017 Global
Slide 9: Growing Property and Casualty reinsurance market
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Growing Property and Casualty reinsurance market Hannover Re outperforms the market Market size and concentration 2017 in bn. EUR 4-year CAGR Market +5.2% 165 154
Slide 10: Life and Health reinsurance in a global perspective
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Life and Health reinsurance in a global perspective Concentrated market due to high entry barriers Market size and concentration 2017 in bn. EUR 4-year CAGR 79 Ma
Slide 11: Reinsurance market conditions will improve ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Reinsurance market conditions will improve ... ... when the RoE becomes sufficiently low 237% 233% Development of return on equity and Guy Carpenter Global Proper
Slide 12: Demand for reinsurance
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Reinsurance is and will be an attractive product Drivers for reinsurance demand Drivers Impact on insurance Value proposition R/I Global trends Strong capital b
Slide 13: Premium development in line with mid-term growth target
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Premium development in line with mid-term growth target 10-year CAGR: +8.0% Gross written premium in m. EUR 17,791 17,069 16,354 13,963 14,362 13,774 40% 12,096 4
Slide 14: Well balanced international portfolio growth
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Well balanced international portfolio growth Gross written premium (Group) in m. EUR 17,791 Africa 17,069 3% 16,354 6% 5% Australia 13,963 14,362 13,774 14% 1) La
Slide 15: Strong earnings track record since 2009
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Strong earnings track record since 2009 2017: satisfactory result despite exceptionally high NatCat losses Operating profit (EBIT) in m. EUR 1,755 1,689 1,466 1,3
Slide 16: Increased payout ratio allows stable dividends
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Increased payout ratio allows stable dividends Payout: EUR 3.50 ordinary dividend + EUR 1.50 special dividend per share Dividend per share in EUR Payout ratio: [0
Slide 17: RoE target outperformed again ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix RoE target outperformed again ... ... even in the year 2017 with sizeable insured market losses Return on Equity: yearly Return on Equity: average 8,533 +2.7% 8,7
Slide 18: Hannover Re is one of the most profitable reinsurers
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Hannover Re is one of the most profitable reinsurers 2013 2014 2015 2016 2017 2013 - 2017 Company RoE Rank RoE Rank RoE Rank RoE Rank RoE Rank avg. RoE Rank Hanno
Slide 19: Accelerated value creation since 2009
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Accelerated value creation since 2009 10-year CAGR: +13.1% Increase of book value and accumulated paid dividends in EUR 108.70 32.98 37.98 28.23 23.98 17.98 20.98
Slide 20: Shareholders' equity has grown significantly in the past 5 years
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Shareholders' equity has grown significantly in the past 5 years 2017: increased capital management action and stronger EUR Policyholders' surplus in m. EUR Chang
Slide 21: A superior and highly profitable reinsurer ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix A superior and highly profitable reinsurer ... Hannover Re's business model Top rating (S&P: AA-) ensures attractive new business Strong market positioning – one
Slide 22: Our strategy: value creation through reinsurance
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Our strategy: value creation through reinsurance Our overriding target: profit and value creation Premium growth on a long-term basis above market average Min
Slide 23: Key performance indicators for the strategic cycle 2018 - 2020
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Key performance indicators for the strategic cycle 2018 - 2020 Target Matrix Business group Key figures 2018 Group Return on investment 1) ≥ 2.7% Return on equity
Slide 24: Sustainability at Hannover Re
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Sustainability at Hannover Re Strategic approach: We are committed to sustainability, integrity and compliance Commitment to a responsible and transparent corpo
Slide 25: Sustainability at Hannover Re
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Sustainability at Hannover Re Broad range of activities to support our strategic goals Sustainability Report since 2011 Development of sustainable insurance s
Slide 26: Present on all continents
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Present on all continents Europe Madrid Dublin London Paris Hannover Milan Stockholm The Americas Asia Manama Toronto Seoul Charlotte Chicago Tokyo Denver New Yor
Slide 27: HR share outperforms indices over a 3-year rolling period
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix HR share outperforms indices over a 3-year rolling period Performance vs. indices Performance comparison (incl. reinvested dividends) 200% 180% 160% +61% 140% +37
Slide 28: Yearly Total Shareholder Return (TSR) of 12.3%
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Yearly Total Shareholder Return (TSR) of 12.3% Value creation since IPO in m. EUR 2016 2017 Market capitalisation as of date 12,397 12,651 +1,348% - Market capita
Slide 29: We are a preferred business partner
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix We are a prefered business partner Property & Casualty reinsurance Central underwriting with local talent is key to our success • Secures consistent underwr
Slide 30: Strategy contribution of the P&C business group
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 value proposition
Slide 31: Our Property & Casualty reinsurance business divisions
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Our Property & Casualty reinsurance business divisions Target GWP split 2017 EUR 10,711 m. North America* markets Continental Europe* Specialty Marine Target
Slide 32: More than 2/3 of our business is written via brokers
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix More than 2/3 of our business is written via brokers Breakdown of treaties by volume Breakdown of business written Direct Non- business proportional 30% 33% P
Slide 33: Property & Casualty reinsurance: selective growth
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Property & Casualty reinsurance: selective growth GWP split by line of business in m. EUR GWP split by regions 10,711 Cat XL 3% Latin Africa Australia 4% 3% 9
Slide 34: Premium development in line with selective U/W approach
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Premium development in line with selective U/W approach EBIT margin exceeds target of 10% Gross written premium in m. EUR EBIT/EBIT margin in m. EUR 17.0% 16.
Slide 35: 2017: Combined Ratio slightly above MtCR
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix 2017: Combined Ratio slightly above MtCR Positive development of reserves led to exceptional aviation result EBIT Combined Ratio vs. MtCR margin Target North
Slide 36: At an MtCR of ~96% we earn 900 bps above risk free
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 Net premium ea
Slide 37: MtCR varies substantially by line of business
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix MtCR varies substantially by line of business 2018 Net premium earned (100%) + Economic revaluation - Capital margin = MtCR North America* 7.1% 12.0% 95.1% Co
Slide 38: Stable redundancy despite challenging environment
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Stable redundancy despite challenging environment Reserve study review by WillisTowers Watson confirms redundancies* Over the last 8 years, on average 2.4%
Slide 39: Several levels of protection provide more NatCat capacity ...
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Several levels of protection provide more NatCat capacity ... ... and thus create additional earnings at a defined risk appetite Agg. XL ~ EUR 200 m. Div. cat
Slide 40: The risk is manageable
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix The risk is manageable Stress tests for natural catastrophes after retrocessions Effect on forecast net income in m. EUR 2016 2017 100-year loss (391.4) (378.
Slide 41: Low expense ratio is an important competitive advantage
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Low expense ratio is an important competitive advantage Hannover Re largely maintained its ratio in contrast to increasing industry trend Expense ratio (P&C r
Slide 42: We are somewhat different
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix We are somewhat different Life & Health reinsurance We are committed to responsiveness and time to market • Rapid decision-making processes Responsive • In-depth
Slide 43: Strategy contribution of the L&H business group
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Strategy contribution of the L&H business group We have ambitious profit and growth targets Our value proposition to our Our profit contribution customers Financ
Slide 44: Writing attractive traditional life & health business
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Writing attractive traditional life & health business Whilst positioning ourselves for sustainable growth with a clear strategic focus Risk solutions Financial sol
Slide 45: Our clients are served in the markets by our network of offices
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 research Expert netw
Slide 46: Primary differences between L&H and P&C R/I business
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Primary differences between L&H and P&C R/I business Simplified illustration Accounting considerations (premium) Single Recurring IBNR reserve impact Low High Invo
Slide 47: We have well defined reporting categories
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix We have well defined reporting categories Financial solutions Profitability is less likely to be affected by the Transactions which include components to provide u
Slide 48: Life & Health reinsurance: a well diversified portfolio
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 3% 7,149 18% 7,
Slide 49: Good underlying profitability in Life & Health reinsurance
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Good underlying profitability in Life & Health reinsurance Recent results affected by legacy US mortality business Gross written premium in m. EUR EBIT/EBIT margin
Slide 50: Value of New Business (VNB) above target
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Value of New Business (VNB) above target 2016 VNB extraordinary high due to large transactions Value of New Business development in m. EUR 893 543 448 364 309 Targ
Slide 51: Continued positive operating cash flow
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Continued positive operating cash flow 2017: AuM -4.2% driven by strengthening of the Euro and higher dividend payment Operating cash flow in m. EUR Assets under
Slide 52: Very pleasing net investment income
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Very pleasing net investment income Decrease in total investments mainly driven by strengthening of EUR Total investments in m. EUR Investment income in m. EUR 53
Slide 53: Ordinary income supported by less liquid asset classes
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Ordinary income supported by less liquid asset classes Real estate and Private Equity boost ordinary income beyond target return Ordinary income split EUR 1,305 m
Slide 54: Barbell strategy stopped and slight risk reduction ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Barbell strategy stopped and slight risk reduction ... ... reflected at government bonds and corporates Asset allocation 1) Investment category 2014 2015 2016 201
Slide 55: Fixed-income book well balanced
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Fixed-income book well balanced Geographical allocation mainly in accordance with our business diversification Pfandbriefe, Short-term Semi- Governments Corporate
Slide 56: Currency allocation matches liability profile of balance sheet
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Currency allocation matches liability profile of balance sheet Duration-neutral strategy applied Currency split of investments Modified duration of fixed- Other
Slide 57: Stress tests on assets under own management
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Stress tests on assets under own management Unchanged focus on yields and credit spreads; reduced relevance of equities Change in market value Change in OCI befor
Slide 58: Our capital structure consists not only of equity
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 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 far the most expe
Slide 59: Financial strength ratings
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix Financial strength ratings Group S&P A.M. Best 1) General Reinsurance Corp. AA+ A++ Hannover Re AA- A+ Munich Re AA- A+ Swiss Re AA- A+ SCOR AA- A+ Everest Re A+ A+
Slide 60: An above-average rating has numerous benefits ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 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 average player Acce
Slide 61: Solvency II: Internal capital model approved by BaFin
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix Solvency II: Internal capital model approved by BaFin Solvency II Pillar I Pillar II Pillar III Quantitative requirements Qualitative requirements Disclosure require
Slide 62: Capital position even more comfortable due to OpRisk approval
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix Capital position even more comfortable due to OpRisk approval Capital adequacy above targets with substantial excess capital 1) 2) 3) Internal Metrics Solvency II So
Slide 63: Increasing buffer above Solvency II capital targets
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix Increasing buffer above Solvency II capital targets Despite significant changes in economic environment Development of the capital adequacy ratio (regulatory view)
Slide 64: High-quality capital base
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix High-quality capital base Own funds largely dominated by Tier 1 capital supplemented by hybrid capital Reconciliation (IFRS Shareholders’ Equity/Solvency II Own Fund
Slide 65: Capital efficiency supported by high diversification
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 Appendix Capital efficiency supported by high diversification Details of Solvency II capital requirements Risk capital for the 99.5% VaR (according to internal economic capit
Slide 66: Hannover Re is well diversified within each risk category ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1/2018 Outlook 2018 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 economic capital
Slide 67: Favourable start to 2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Favourable start to 2018 EBIT increase of +8.5% outperforms NPE growth GWP in m. NPE in m. EBIT in m. Group net income in m. 5,345 4,547 3,738 3,999 +17.6% +7.0% +8.5% 400 434 +3.
Slide 68: Strong growth in both business groups and pleasing NII ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Strong growth in both business groups and pleasing NII ... ... produces favourable Group net income Group figures in m. EUR Q1/2017 Q1/2018 Δ Gross written premium 4,547 5,345 +17
Slide 69: Significant top and bottom line growth
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Significant top and bottom line growth Increased underwriting result and strong investment income Property & Casualty R/I in m. EUR Q1/2017 Q1/2018 Δ YTD GWP f/x-adjusted +38.8%
Slide 70: Major losses below budget of EUR 167 m. for Q1/2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Major losses below budget of EUR 167 m. for Q1/2018 Natural and man-made catastrophe losses* in m. EUR 1,730 1,790 1,127 981 863 846 724 714 672 662 662 578 559 627 478 573 458 42
Slide 71: Overall benign large loss experience in Q1/2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Overall benign large loss experience in Q1/2018 Catastrophe losses* in m. EUR Date Gross Net Storm "Friederike", Europe 17. - 18. Jan 47.9 31.5 1 Natural catastrophe 47.9 31.5 1 P
Slide 72: Pleasing EBIT growth of 6.9%
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Pleasing EBIT growth of 6.9% US mortality results better than expected Life & Health R/I in m. EUR Q1/2017 Q1/2018 Δ YTD GWP f/x-adj. +9.2%, mainly from Asia and United Gross wr
Slide 73: Net investment income well above 2.7% target for 2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Net investment income well above 2.7% target for 2018 Unrealised gains lower due to higher interest rates and credit spreads in m. EUR Q1/2017 Q1/2018 RoI YTD Ordinary investment
Slide 74: Target Matrix
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Target Matrix Strategic targets for Business group Key figures Q1/2018 2018 Group Return on investment 1) ≥ 2.7% 3.4% Return on equity 2) ≥ 9.5% 13.0% Earnings per share growth (y
Slide 75: Our strategic business groups at a glance
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Our strategic business groups at a glance Q1/2018 vs. Q1/2017 Property & Casualty R/I Life & Health R/I Total in m. EUR Q1/2017 Q1/2018 Δ Q1/2017 Q1/2018 Δ Q1/2017 Q1/2018 Δ Gross
Slide 76: Revised guidance for 2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook Outlook 2018 2018 Appendix Revised guidance for 2018 Hannover Re Group Gross written premium1) more than 10% growth Return on investment2) 3) at least 2.7% Group net income2) more than EU
Slide 77: Overall profitability above margin requirements
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook Outlook 2018 2018 Appendix Overall profitability above margin requirements Good growth opportunities in several lines of business Lines of business Volume1) Profitability2) Target North America
Slide 78: Good underlying profitability in L&H business
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook Outlook 2018 2018 Appendix Good underlying profitability in L&H business Further strains from legacy US mortality business expected in 2018 Reporting categories Volume1) Profitability2) Financi
Slide 79: Rationale for our short- and medium-term outlook
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook Outlook 2018 2018 Appendix Rationale for our short- and medium-term outlook P&C reinsurance L&H reinsurance Investments Improved rates should Attractive earnings contribution Normalised o
Slide 80: Financial calendar and our Investor Relations contacts
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Appendix Financial calender and our Investor Relations contacts 9 August 2018 Karl Steinle General Manager Half-yearly Report as at 30 June 2018 Tel: +49 511 5604 - 1500 karl.stei
Slide 81: Basic information on the Hannover Re share
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Appendix Basic information on the Hannover Re share Basic information International Securities Identification Number (ISIN) DE 000 840 221 5 Ticker symbols - Bloomberg HNR1 - Thom
Slide 82: List of abbreviations
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Appendix List of abbreviations A MCEV Market Consistent Embedded Value ABS Asset-Backed Securities MCR Minimum Capital Requirements ADR American Depositary Receipts mgmt. manageme
Slide 83: Details on reserve review by Willis Towers Watson
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 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 adjustment expense rese
Slide 84: Disclaimer
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1/2018 Outlook 2018 Appendix Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professi