Hannover Rueck SE · XETR:HNR1
Hannover Rueck — Hannover Rück — Corporate Update (February 2021)
28 slides from Hannover Rueck's corporate update, Feb 4, 2021
Slide 1: 1 January 2021 Property & Casualty Treaty Renewals
1 January 2021 Property & Casualty Treaty Renewals 4 February 2021 Jean-Jacques Henchoz, Chief Executive Officer Sven Althoff, Member of the Executive Board – Property & Casualty
Slide 2: Important note (1)
Important note (1) • 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 mai
Slide 3: Important note (2): Underwriting years
Important note (2) Time lag in premium distribution between underwriting year and financial year Financial years 2019 2020 2021 2022 2023 2024 10% 2022 50% 40% Underwriting years 10% 2021 50% 40% 10% 2020 50% 40% 10% 2019 50% 40% 2021 underwriting year results will contribute to FY 2021 results and
Slide 4: Reinsurance markets
somewhat dierent Reinsurance markets hannover re’
Slide 5: Fourth consecutive year of improving reinsurance markets
| 1 Reinsurance markets | 2 | 3 | 4 | 5 | 6 | Fourth consecutive year of improving reinsurance markets Key market highlights of 1 January 2021 renewals • Positive primary insurance pricing momentum • Positive trend from previous renewals continued in the reinsurance market and complements pricing ef
Slide 6: Our results
somewhat dierent Our results hannover re’
Slide 7: Favourable renewal season outcome
| 1 | 2 Our results | 3 | 4 | 5 | 6 | Favourable renewal season outcome 1 January 2021 renewal: increased premium at improved pricing • Successful renewal supported by our superior financial strength, favourable market positioning and long-standing customer relationships • We expanded our portfolio
Slide 8: Our portfolio
somewhat dierent Our portfolio hannover re’
Slide 9: 67% of traditional treaty reinsurance up for renewal at 1 January 2021
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | 67% of traditional treaty reinsurance up for renewal at 1 January 2021 Equates to 49% of the total P&C inforce premium Estimated premium income U/Y by reporting lines 15,938 Structured reinsurance 3,547 and ILS Facultative reinsurance 860 Traditional treaty re
Slide 10: We grew our book by 8.5% on the back of improved pricing
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | We grew our book by 8.5% on the back of improved pricing development in the insurance and reinsurance markets Total treaty reinsurance in m. EUR Change in Hannover Re shares: +1.8% Change in price +5.5% % on renewed: Change in volume +1.9% [100.0%] [-9.5%] [90
Slide 11: Price increases across all lines and regions
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Price increases across all lines and regions, with most dynamic development in US, UK and Specialty lines Traditional treaty reinsurance Reporting lines Premium 1/1/2020 Premium 1/1/2021 Premium changes Price changes EMEA1) 3,506 3,878 +10.6% +3.0% Americas 1)
Slide 12: Proportional business benefited from improved primary insurance markets
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Proportional business benefited from improved primary insurance markets 8.8% rate increase in non-proportional business Proportional Non-proportional Premium Premium Premium Premium Reporting lines Price changes Price changes 1/1/2021 changes 1/1/2021 changes
Slide 13: Fourth consecutive year with price increases in non-proportional business
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Fourth consecutive year with price increases in non-proportional (XL) business XL price changes at 1 January renewals 109.3% 110% +8.8% +0.5% -3.8% +5.9% -2.8% 100% +2.9% +1.1% -4.8% +4.0% -1.6% 90% 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/201
Slide 14: Strong growth in regional markets mainly from North America and UK
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Strong growth in regional markets mainly from North America and UK EMEA Americas APAC 2.906 5.000 4,376 4.500 2.543 4,003 (74) 446 3.914 3,483 3,722 4.000 3.788 3.661 3.535 (12) 252 2,106 47 9 2,163 3.409 2.180 3.283 3.500 3.156 3.030 3.000 2.904 1,806 1.816 1
Slide 15: Worldwide markets: significant price development across most Specialty lines
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Worldwide markets: significant price development across most Specialty lines Credit, Surety and Political Risks Aviation and Marine Agricultural Risks 900 779 (7) 35 807 900 800 800 700 620 19 700 557 600 in share: -2.3% 18 (45) 538 11 567 533 in price 600
Slide 16: Exceptional reporting on Structured R/I, Facultative R/I and cat business
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Exceptional reporting on Structured R/I, Facultative R/I and cat business2) Structured R/I 1) Facultative R/I 1) Cat business 2) • High demand for solvency-relief • Positive market dynamics seen in the • Overall quality of the portfolio improved transactions w
Slide 17: Successful renewal of retro programmes
| 1 | 2 | 3 Our portfolio | 4 | 5 | 6 | Successful renewal of retro programmes supported by long-term relationships Risk-adjusted pricing changes well in line with R/I pricing Agg. XL Net risk appetite at targeted level as retro capacity ~ EUR 225 m. was available at reasonable prices Div. cat swaps
Slide 18: Guidance 2021
somewhat dierent Guidance 2021 hannover re’
Slide 19: Overall profitability above margin requirements in Property & Casualty
| 1 | 2 | 3 | 4 Guidance 2021 | 5 | 6 | Overall profitability above margin requirements in Property & Casualty Financial year 2021 1) 2) Reporting categories Volume Profitability Regional EMEA 3) + markets Americas3) + APAC3) +/- Structured Reinsurance and ILS ++ Credit, Surety and Political Risks +
Slide 20: Guidance for 2021
| 1 | 2 | 3 | 4 Guidance 2021 | 5 | 6 | Guidance for 2021 Hannover Re Group • Gross written premium1) ~ 5% growth • Return on investment2) 3) ~ 2.4% • Group net income2) EUR 1.15 - 1.25 bn. • Ordinary dividend pay-out ratio4) 35% - 45% • Special dividend additional pay-out if profit target is reache
Slide 21: Preliminary figures
somewhat dierent Preliminary figures hannover re’
Slide 22: Strong net income fully meets expectations
| 1 | 2 | 3 | 4 | 5 Preliminary figures | 6 | Strong net income fully meets expectations Preliminary key figures for 2020 Hannover Re Group Previous guidance Preliminary figures growth in the upper single-digit Gross written premium EUR 24.8 bn. (~ +12%1)) percentage range1) Return on investment fro
Slide 23: Appendix
somewhat dierent Appendix hannover re’
Slide 24: Above-average growth in proportional business
| 1 | 2 | 3 | 4 | 5 | 6 Appendix | Above-average growth in proportional business stemming from solid underlying primary markets and new business acquired Treaty reinsurance - proportional in m. EUR Change in Hannover Re shares: +2.0% Change in price +4.4% % on renewed: Change in volume +2.3% [100.0%
Slide 25: Strong rate movement in non-proportional business
| 1 | 2 | 3 | 4 | 5 | 6 Appendix | Strong rate movement (+8.8%) in non-proportional business leading to a pleasing growth of 9.3% Treaty reinsurance - non-proportional in m. EUR Change in Hannover Re shares: +1.4% Change in price +8.8% % on renewed: Change in volume +0.8% [100.0%] [-12.1%] [87.9%] [
Slide 26: 33% of traditional treaty reinsurance comes up for renewal later
| 1 | 2 | 3 | 4 | 5 | 6 Appendix | 33% of traditional treaty reinsurance comes up for renewal later in a favourable market environment Estimated premium income U/Y by regions 11,531 191 183 8% 3,778 246 Remaining renewals 742 16% 2 Apr - 1 Jul renewals 1,917 9% 2 Jan - 1 Apr renewals 498 437 67% 1 J
Slide 27: Disclaimer
| 1 | 2 | 3 | 4 | 5 | 6 Appendix | 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
Slide 28: Financial calendar and our Investor Relations contacts
| 1 | 2 | 3 | 4 | 5 | 6 Appendix | Financial calendar and our Investor Relations contacts 11 March 2021 Karl Steinle General Manager Press Conference and Analysts’ Conference Phone: +49 511 5604 - 1500 karl.steinle@hannover-re.com 5 May 2021 Annual General Meeting Quarterly Statement as at 31 March