Slide 1: Conference Call on Interim Report 3/2014
Conference Call on Interim Report 3/2014 Hannover, 5 November 2014
Slide 2: Strong nine-month result
Group Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Strong nine-month result Group net income increased by 10.3% Group Gross written premium: EUR 10,704 m. (+1.6%) GWP f/x-adjusted growth of 2.9% in line with Net premium earned: EUR 8,966 m. (-1.7%) expectat
Slide 3: Improved results from both underwriting and investments
Group Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Improved results from both underwriting and investments Group figures in m. EUR Q3/2013 Q3/2014 Q1-3/2013 Q1-3/2014 YTD Gross written premium 3,311 3,640 10,538 10,704 GWP f/x-adjusted growth +2.9% Net premium
Slide 4: Shareholders' equity increased by 18.8%
Group Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Shareholders' equity increased by 18.8% Driven by growing valuation reserves Policyholders' surplus in m. EUR Change in shareholders' equity in m. EUR 9,635 8,947 8,768 1,937 322 6,996 7,338 2,233 2,238 695 362 4
Slide 5: Continued positive cash flow
Group Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Continued positive cash flow AuM increased by 9.9% partly driven by strengthening of USD Operating cash flow in m. EUR Assets under own management (AuM) in m. EUR 35,033 2,637 31,874 31,875 2,523 28,341 493 2,225
Slide 6: Good U/W profitability in a competitive environment
Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investments Outlook 2014 Appendix Good U/W profitability in a competitive environment EBIT up by 5.2% aided by strong investment income Property & Casualty R/I in m. EUR Q3/2013 Q3/2014 Q1-3/2013 Q1-3/2014 YTD Gross written premium
Slide 7: Overall portfolio outperforms the MtCR
Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investments Outlook 2014 Appendix Overall portfolio outperforms the MtCR Aviation impacted by high claims burden Combined Ratio Q1-3/2014 vs. MtCR Target North America* markets Continental Europe* Marine (incl. energy) Aviation Spe
Slide 8: Major losses significantly below expectation
Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investments Outlook 2014 Appendix Major losses significantly below expectation Remaining large loss budget provides comfortable cushion for Q4/2014 Natural and man-made catastrophe losses1) in m. EUR 2,373 1,730 1,070 981 863 775 7
Slide 9: Benign large loss experience in Q1-3/2014
Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investments Outlook 2014 Appendix Benign large loss experience in Q1-3/2014 Catastrophe losses* in m. EUR Date Gross Net Snowstorm, Japan 14 Feb 23.3 10.2 Earthquake, Chile 1 Apr 11.0 6.1 Storm, USA 2 Jun 11.6 8.1 Storm "Ela", Fran
Slide 10: Significantly improved result in Life & Health reinsurance
Group Property & Casualty R/I Life Life & Health Health R/I R/I Investments Outlook 2014 Appendix Significantly improved result in Life & Health reinsurance Premium growth accelerated in Q3 Life & Health R/I in m. EUR Q3/2013 Q3/2014 Q1-3/2013 Q1-3/2014 YTD GWP f/x-adjusted growth +2.6%, mainly fr
Slide 11: Return on Investments above target of 3.2%
Group Property & Casualty R/I Life & Health R/I Investments Investments Outlook 2014 Appendix Return on Investments above target of 3.2% in m. EUR Q3/2013 Q3/2014 Q1-3/2013 Q1-3/2014 RoI YTD Ordinary investment income* 281 303 791 797 3.2% Despite continued low interest rate Realised gains/losses
Slide 12: Target Matrix 2014
Group Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Target Matrix 2014 Business group Key figures Strategic targets Q1-3/2014 Group Return on investment 1) ≥3.2% 3.4% 2) Return on equity ≥11.1% 14.4% Earnings per share growth (y-o-y) ≥6.5% 10.3% Value creation per
Slide 13: Outlook 2014
somewhat diyerent Outlook 2014 hannover re’
Slide 14: Guidance for 2014
Group Property & Casualty R/I Life & Health R/I Investments Outlook Outlook 2014 2014 Appendix Guidance for 2014 Hannover Re Group Gross written premium1) flat to low single-digit increase in volume Return on investment2) ~ 3.2% Group net income3) ~ EUR 850 m. Dividend pay-out ratio4) 35% -
Slide 15: Selective growth and satisfying profitability expected
Group Property & Casualty R/I Life & Health R/I Investments Outlook Outlook 2014 2014 Appendix Selective growth and satisfying profitability expected Development of Property & Casualty R/I lines of business (2014e) Lines of business Volume1) Profitability 2) Target North America3) + markets Continen
Slide 16: Increased profitability expected for Life & Health R/I
Group Property & Casualty R/I Life & Health R/I Investments Outlook Outlook 2014 2014 Appendix Increased profitability expected for Life & Health R/I Development of lines of business (2014e) Lines of business Volume1) Profitability2) Financial Financial solutions ++ solutions Longevity + Risk soluti
Slide 17: Guidance for 2015
Group Property & Casualty R/I Life & Health R/I Investments Outlook Outlook 2014 2014 Appendix Guidance for 2015 Hannover Re Group Gross written premium1) flat to low single-digit growth rate Return on investment2) 3) ~ 3.0% Group net income2) ~ EUR 875 m. Dividend pay-out ratio4) 35% - 40%
Slide 18: Appendix
somewhat diyerent Appendix hannover re’
Slide 19: Our strategic business groups at a glance
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Our strategic business groups at a glance Q1-3/2014 vs. Q1-3/2013 Property & Casualty Life & Health Total reinsurance reinsurance in m. EUR Q1-3/2013 Q1-3/2014 Q1-3/2013 Q1-3/2014 Q1-3/2013 Q1-3/2014 Gross wri
Slide 20: Our strategic business groups at a glance
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Our strategic business groups at a glance Q3 stand-alone Property & Casualty Life & Health Total reinsurance reinsurance in m. EUR Q3/2013 Q3/2014 Q3/2013 Q3/2014 Q3/2013 Q3/2014 Gross written premium 1,859 1,
Slide 21: Asset allocation stable
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Asset allocation stable Rise in AuM due to USD and yield development as well as postive cash flows Tactical asset allocation 1) Investment category 2010 2011 2012 2013 30 Sep 14 Fixed-income securities 84% 89%
Slide 22: Stress tests on assets under own management
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Stress tests on assets under own management. . . . . .unchanged focus on interest and spread developments Change in Changes in Portfolio Scenario market value OCI before tax in m. EUR in m. EUR -10% -68 -68 Eq
Slide 23: Fixed-income book well balanced
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Fixed-income book well balanced Geographical allocation mainly according to our business diversification Pfandbriefe, Short-term Semi- Governments Corporates Covered bonds, investments, Total governments ABS c
Slide 24: Currency allocation matches liability profile of balance sheet
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Currency allocation matches liability profile of balance sheet Active asset liability management ensures durational match Currency split of investments Modified duration of fixed Others CAD 5.7% income mainl
Slide 25: Market sensitivity of inflation hedges
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 Appendix Appendix Market sensitivity of inflation hedges Average hedged inflation level of 2.05 % EUR and 2.50 % USD p.a. • P&L effect YTD EUR -4.8 m. (thereof -6.4 m EUR; +1,6 m. EUR of USD) • OCI effect YTD EUR -7.2 m. (the
Slide 26: Disclaimer
Group Property & Casualty R/I Life & Health R/I Investments Outlook 2014 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 analy