Hannover Rueck SE · XETR:HNR1
Hannover Rueck — Hannover Re — Corporate Update (February 2006)
66 slides from Hannover Rueck's corporate update, Feb 7, 2006
Slide 1: Conference Call on 1 January 2006 Property/Casualty Treaty Renewals
Conference Call on 1 January 2006 Property/Casualty Treaty Renewals ® Hannover, 7 February 2006 hannover re
Slide 2: Important Note
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix IMPORTANT NOTE Æ Unless otherwise stated, this entire presentation is based on underwriting-year (U/Y) figures. This basis is only remotely comparable with calendar-year (C/Y) figures, which are the basis of quarterly and annual accounts. Æ
Slide 3: Satisfactory renewals, plus more to come in 2006
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix SATISFACTORY RENEWALS, PLUS MORE TO COME IN 2006 Æ Rates maintained at very adequate levels, some important segments even increased • More rate increases to come in the further course of 4/1, 6/1, 7/1, 10/1 renewals Æ HR pricing models comp
Slide 4: Renewal Highlights
Renewal Highlights ® hannover re
Slide 5: Further hardening on top of peak rates in 2006
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business* FURTHER HARDENING ON TOP OF PEAK RATES IN 2006 Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 4
Slide 6: Large programs show even stronger hardening
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of XL business* LARGE PROGRAMS SHOW EVEN STRONGER HARDENING 100% 50% 0% -50% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Treaty-count weighted cycle thermometer Premium weighted cycle thermometer ® * P/C treaty reinsuranc
Slide 7: Trend sustainably reversed, also for rest of 2006
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of XL business TREND SUSTAINABLY REVERSED, ALSO FOR REST OF 2006 100% 80% 60% 40% 20% 0% 3 2 4 5 * 02 03 04 05 06 6* 2 4 3 5 06 00 00 00 00 00 00 00 00 00 20 20 20 20 20 20 l2 l2 l2 l2 r2 r2 r2 r2 r2 n n n n n Ju Ju Ju Ju l Ap
Slide 8: Non-proportional business remains dominant
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business* NON-PROPORTIONAL BUSINESS REMAINS DOMINANT 100% 19% 17% 15% 15% 23% 80% 45% 44% 50% 47% 55% 60% 81% 83% 85% 85% 40% 77% 53% 55% 56% 45% 50% 20% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by Non-proportional b
Slide 9: Stable premium ahead of plan
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business STABLE PREMIUM AHEAD OF PLAN - Change of Hannover Re shares: -2pp EUR 3,978 m. - Oth. changes (price & volume): +3pp EUR 3,950 m. 100% EUR 3,917 m. 99% 98% 8% 6% 1% 67% 66% 66% 59% 1 Jan renewal Later 33% 33% 32% re
Slide 10: XL book with above-average premium increases
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business XL BOOK WITH ABOVE-AVERAGE PREMIUM INCREASES EUR 2.215 m. - Change of Hannover Re shares: -4pp EUR 2,253 m. EUR 2,288 m. - Oth. changes (price & volume): +7pp 102% 100% 103% 3% 10% 10% 59% 61% 61% 49% 1 Jan renewal
Slide 11: Pro-rata book with stable price development
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business PRO-RATA BOOK WITH STABLE PRICE DEVELOPMENT - Change of Hannover Re shares: -1pp EUR 1,763 m. - Oth. changes (price & volume): +/-0pp EUR 1,698 m. 100% 96% EUR 1,629 m. 6% -1% 92% 4% 75% 71% 69% 1 Jan 71% renewal La
Slide 12: Pricing reflects modeled rates and additional loadings
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Overall book of business PRICING REFLECTS MODELED RATES AND ADD'L LOADINGS Pricing Net modeled loss costs (= technical rate from the model) + Hurricane frequency and severity loading (cycle loading)* Technical + Non-modeled risk loading (fl
Slide 13: KRW causes overall rate increase
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Property Catastrophe XL USA "KRW" CAUSES OVERALL RATE INCREASE 100% 100% 80% 50% 60% 0% 40% -50% 20% -100% 0% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 Improvement Unchanged Deterioration ® hannover re 10
Slide 14: From already high level even higher
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Property Catastrophe XL USA FROM ALREADY HIGH LEVEL EVEN HIGHER in % 10.5 8.5 8.5 7.8 7.9 5.8 5.8 5.7 1999 2000 2001 2002 2003 2004 2005 2006 (E) US Property Cat. RoL development ® hannover re 11
Slide 15: Rates strongly up, driven by loss-affected programs
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Property Catastrophe XL USA RATES STRONGLY UP, DRIVEN BY LOSS-AFFECTED PROGRAMS - Change of Hannover Re shares: -12pp EUR 197 m. - Oth. changes (price & volume): +21pp EUR 184 m. 115% EUR 172 m. 107% 100% 2% 4% 9% 68% 1 Jan 68% renewal 61%
Slide 16: More premium for less exposure
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Property Catastrophe XL USA MORE PREMIUM FOR LESS EXPOSURE ,0 +37% ,0 ,0 ,0 +7% ,0 ,0 ,0 -22% ,0 RoL HR exposure (Limits) Premium ® hannover re 13
Slide 17: Rate improvements reminiscent of aviation after 9/11
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine Offshore XL RATE IMPROVEMENTS REMINISCENT OF AVIATION AFTER 9/11 100% 100% 80% 50% 60% 0% 40% -50% 20% -100% 0% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 Improvement Unchanged Deterioration ® hannover re 14
Slide 18: Even stronger bias towards XL in 2006
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine Offshore EVEN STRONGER BIAS TOWARDS XL IN 2006 100% 2% 7% 8% 4% 10% 35% 38% 34% 80% 41% 49% 60% 96% 98% 93% 90% 92% 40% 65% 62% 66% 59% 51% 20% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by Non-proportional by no. volume of tre
Slide 19: Rate jump generates more than doubled premium
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine Offshore RATE JUMP GENERATES MORE THAN DOUBLED PREMIUM EUR 91 m. 238% 238% 238% EUR 80 m. 208% - Change of Hannover Re shares: +7pp - Oth. changes (price & volume): +27pp 84% 169% 238% EUR 38 m. 238% 169% 100% 238% 238% 34% 10% 1 Jan
Slide 20: Rate bonanza after unprecedented losses
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine Offshore RATE BONANZA AFTER UNPRECEDENTED LOSSES ,3 +197% ,2 ,2 +108% ,1 ,1 ,0 -30% -,1 RoL HR exposure (Limits) Premium ® hannover re 17
Slide 21: Renewals produce very balanced split of business
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Summary of 1 January 2006 renewals RENEWALS PRODUCE VERY BALANCED SPLIT OF BUSINESS Premium, premium growth rates and portfolio split at a glance in m. EUR Marine offshore 108% 801) Marine 23% 253 Prop. cat. US 7% 1842) Casualty RoW Credit
Slide 22: Catastrophe Risk Management
Catastrophe Risk Management ® hannover re
Slide 23: Risk-management strategy: capital protection
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RISK-MANAGEMENT STRATEGY: CAPITAL PROTECTION Æ Our risk management is meant to Approaches to • protect our capital risk management • stabilise and optimise results • allow us to profit fully from hard markets (e.g. after a major loss in the
Slide 24: Levels of protection safeguard capital base
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix 4 LEVELS OF PROTECTION SAFEGUARD CAPITAL BASE* None available for 2006 4. Pre- Mid-term target: up to EUR 250 m. Up to ~ EUR 500 m.+ fundings additional protection for 1:250y event Other business ~ EUR 300 m. groups' EBIT 3. Traditional XL
Slide 25: P/C & other business groups' EBIT = our core defense
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Four levels of capital protection 1. P/C & OTHER BUSINESS GROUPS' EBIT = OUR CORE DEFENSE P/C cat. business is assumed based on a margin requirement to cover the gross cost of capital and all expenses: Retrocessions reduce volatility of cat
Slide 26: K5 Q/S securitisation: our 1st line of risk transfer
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Four levels of capital protection 2. K5 Q/S SECURITISATION: OUR 1ST LINE OF RISK TRANSFER Æ ~ USD 370 m. committed outside capital Estimated K5 premium split for 2006 Canada Japan Property cat. Æ Q/S R/I, fully collateralized, full indemnit
Slide 27: K5 Q/S securitisation: Hannover Re's advantages
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Four levels of capital protection 2. K5 Q/S SECURITISATION: HANNOVER RE'S ADVANTAGES Æ More efficient than equity (risk-adjusted) Æ K5 is "smart capital" • Reduced earnings volatility due to 100 almost risk-free fee income received for U/W
Slide 28: The classic: our cat. XL protections
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Four levels of capital protection 3. THE "CLASSIC": OUR CAT. XL PROTECTIONS Æ Marine whole account retro program placed on 1 January 2006 • Similar limit as last year without K5, average RoL: ~ 25% Æ Various aviation protections at similar
Slide 29: Non-traditional R/I for super cats: prefundings
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Four levels of capital protection 4. NON-TRADITIONAL R/I FOR "SUPER CATS": PREFUNDINGS Æ Structured reinsurance bought by Hannover Re • Economically superior to buying high-layer XL protection or exposing capital, as prices way above techni
Slide 30: Katrina revisited: we underestimated our largest gross exposure
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix "Katrina" revisited WE UNDERESTIMATED OUR LARGEST GROSS EXPOSURE US & Caribbean windstorm, 2005 in m. € 1,020 873 734 1:250y PML US East Coast and Katrina actual (35y)* 1:100y PML US East Coast and Caribbean storm (pre Katrina) (excluding m
Slide 31: As-if 2006 Katrina gross loss versus new protections
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix "Katrina" revisited AS-IF 2006 KATRINA GROSS LOSS VERSUS NEW PROTECTIONS Æ Higher deductibles, exclusions, etc. post-KRW lead to lower 2006 "Katrina" loss on an as-if basis Prefundings target up to 250 (2006: none) in m. € 1,317 ~ 300 Other
Slide 32: Outlook of HR cat. risk management going forward
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix OUTLOOK OF HR CAT. RISK MANAGEMENT GOING FORWARD Æ HR whole account retro program: To renew on 1 May 2006 Æ "Fee income" from K5 to reduce cat. volatility Æ Flat premium, but significantly lower exposure in 2006 Æ HR financial strength rema
Slide 33: Outlook on 2006
alent Outlook on 2006 hannover re’
Slide 34: Summary: peak of hard market extended/enhanced
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix SUMMARY: PEAK OF HARD MARKET EXTENDED/ENHANCED Æ After 6 consecutive years (2000 - 2005) of rate increases US property cat. XL rates pushed to all-time high Æ We anticipate more cat. XL rate increases once the vendor models have been recali
Slide 35: Guidance for 2006
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix GUIDANCE FOR 2006 Gross written premium (calendar year) Æ Hannover Re Group + 0 - 5% • Property/Casualty R/I flat • Life/Health R/I + 12 - 15% • Financial Reinsurance double digit increase • Specialty Insurance approx. - 10% Æ Group RoE at
Slide 36: Appendix
alent Appendix hannover re’
Slide 37: US Property renewal highlights: primary insurance rates since KRW
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Property renewal highlights PRIMARY INSURANCE RATES SINCE KRW Æ Nationwide industrial/heavy commercial/energy accounts: + 25% Æ Smaller commercial accounts/commercial middle markets: + 10% Æ Coastal property rates: + 50% ® hannover re I
Slide 38: US Property renewal highlights: reinsurance
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Property renewal highlights REINSURANCE Æ Proportional • Reinsurance terms have mostly improved; no deteriorations • Occurrence limits have been substantially reduced Æ Per Risk • Loss-affected programs have seen substantially increased
Slide 39: US Property: softening trend reversed
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Property SOFTENING TREND REVERSED Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01 02 0
Slide 40: US Property: XL continues to dominate our book
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Property XL CONTINUES TO DOMINATE OUR BOOK 100% 4% 5% 3% 5% 5% 80% 38% 35% 48% 57% 57% 60% 95% 95% 96% 96% 97% 40% 62% 65% 52% 20% 43% 43% 0% 2002 2003 2004 2005 2006 (E) Non-proportionalbybyno. Non-proportional volume of treaties Propor
Slide 41: US Property: stable premium, lower shares
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Property STABLE PREMIUM, LOWER SHARES EUR 565 m. - Change of Hannover Re shares: -6pp - Oth. changes (price & volume): +4pp EUR 548 m. 100% EUR 525 m. 97% 7% 93% -2% 6% 37% 34% 1 Jan 30% 34% renewal 63% 63% 59% Later renewals Inforce boo
Slide 42: US casualty renewal highlights: primary insurance
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US casualty renewal highlights PRIMARY INSURANCE Æ Rates, terms and conditions seeing some signs of competition Æ Overall rate reductions up to Q3/2005 5 - 10%, since then flat Æ D&O still rate reductions (-8%) but less severe than previous
Slide 43: US Casualty renewal highlights: reinsurance
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Casualty renewal highlights REINSURANCE Æ Proportional • Only limited number of pro-rata placements • Due to reduced attractiveness of primary business, reinsurers showing little appetite • Cedants keeping more and more net Æ Per Risk •
Slide 44: US Casualty: still very attractive, XL improving further
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Casualty STILL VERY ATTRACTIVE, XL IMPROVING FURTHER Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0%
Slide 45: US Casualty: XL still gaining weight
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Casualty XL STILL GAINING WEIGHT 100% 3% 3% 3% 3% 5% 19% 21% 20% 17% 25% 80% 60% 95% 97% 97% 97% 97% 40% 81% 79% 80% 83% 75% 20% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treaties Proportional by no. of treaties Non-prop
Slide 46: US Casualty: January only a snapshot, also watch later renewals
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix US Casualty 1 JANUARY ONLY A SNAPSHOT, ALSO WATCH LATER RENEWALS - Change of Hannover Re shares: -2pp - Oth. changes (price & volume): +2pp EUR 741 m. EUR 711 m. 100% EUR 689 m. 96% 7% 93% 3% 0% 42% 38% 1 Jan 35% 38% renewal 58% 58% 55% Lat
Slide 47: Germany: as expected
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Germany AS EXPECTED Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01 02 03 04 05 06 97 98
Slide 48: Germany: almost unchanged split
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Germany ALMOST UNCHANGED SPLIT 100% 28% 24% 27% 26% 26% 80% 60% 78% 76% 75% 83% 80% 40% 76% 72% 73% 74% 74% 20% 22% 24% 25% 17% 20% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treaties Proportional by no. of treaties Non-prop
Slide 49: Germany: somewhat below expectations
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Germany SOMEWHAT BELOW EXPECTATIONS - Change of Hannover Re shares: -2pp EUR 504 m. - Oth. changes (price & volume): -1pp 100% EUR 484 m. 96% 5% 4% -3% 100% 96% 95% 1 Jan renewal Inforce book Replaced / Renewed Price & volume Replaced / Inf
Slide 50: RoW developed markets: within expectations
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW developed markets WITHIN EXPECTATIONS Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01
Slide 51: RoW developed markets: stabilizing
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW developed markets STABILIZING 100% 14% 13% 11% 10% 19% 80% 42% 43% 48% 55% 64% 60% 86% 87% 89% 90% 40% 81% 58% 57% 52% 20% 45% 36% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treaties Proportional by no. of treaties Non-p
Slide 52: RoW developed markets: rate increase compensates for lower shares
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW developed markets RATE INCREASE COMPENSATES FOR LOWER SHARES - Change of Hannover Re shares: -3pp - Oth. changes (price & volume): +6pp EUR 1,025 m. EUR 1,025 m. EUR 1,005 m. 100% 100% 98% 10% 7% 3% 82% 82% 82% 72% 1 Jan renewal Later 1
Slide 53: RoW emerging markets: small improvements
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW emerging markets SMALL IMPROVEMENTS Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01 0
Slide 54: RoW emerging markets: stable split
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW emerging markets STABLE SPLIT 100% 27% 25% 25% 80% 41% 38% 55% 51% 50% 52% 62% 60% 40% 75% 75% 73% 59% 62% 45% 49% 50% 48% 20% 38% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treaties Proportional by no. of treaties Non-p
Slide 55: RoW emerging markets: rate increases generate some growth
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix RoW emerging markets RATE INCREASES GENERATE SOME GROWTH AHEAD OF PLAN - Change of Hannover Re shares: -2pp - Oth. changes (price & volume): +5pp EUR 235 m. EUR 224 m. EUR 231 m. 103% 105% 100% 7% 7% 3% 68% 68% 65% 58% 1 Jan renewal Later 3
Slide 56: Aviation worldwide: trend reversed?
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Aviation worldwide TREND REVERSED? Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01 02 03
Slide 57: Aviation XL worldwide: RoL very attractive
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Aviation XL worldwide ROL VERY ATTRACTIVE in % 13.1 12.5 9.5 8.0 7.5 7.1 7.0 6.5 5.6 4.6 4.1 3.7 3.1 2.5 2.3 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 (E) Hannover Re aviation RoL index ® hannover re 40 XXI
Slide 58: Aviation worldwide: no major changes
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Aviation worldwide NO MAJOR CHANGES 100% 19% 18% 17% 19% 19% 80% 66% 67% 67% 71% 72% 60% 40% 81% 82% 83% 81% 81% 20% 34% 33% 33% 29% 28% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by Non-proportional by no. volume of treaties Proporti
Slide 59: Aviation worldwide: slight premium reduction, but ahead of plan
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Aviation worldwide SLIGHT PREMIUM REDUCTION, BUT AHEAD OF PLAN - Change of Hannover Re shares: -2pp - Oth. changes (price & volume): -1pp EUR 394 m. EUR 382 m. 100% EUR 366 m. 97% 2% 93% -3% 2% 63% 61% 60% 60% 1 Jan renewal Later 37% 37% 33
Slide 60: Marine worldwide: hardest market ever
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine worldwide HARDEST MARKET EVER Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 98 99 00 01 02 0
Slide 61: Marine worldwide: non-proportional covers prevail
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine worldwide IN MARINE, NON-PROPORTIONAL COVERS PREVAIL 100% 4% 3% 6% 5% 5% 18% 28% 25% 27% 31% 80% 60% 94% 95% 95% 96% 97% 40% 82% 72% 75% 73% 69% 20% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treaties Proportional by
Slide 62: Marine worldwide: strong premium growth, driven by higher rates
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Marine worldwide STRONG PREMIUM GROWTH, DRIVEN BY HIGHER RATES EUR 270 m. 131% 131% EUR 253 m. 131% - Change of Hannover Re shares: +3pp 123% 131% - Oth. changes (price & volume): +14pp EUR 206 m. 100% 131% 30% 131% 24% 89% 131% 17% 89% 66%
Slide 63: Credit & Surety worldwide: very adequate rate levels
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Credit & Surety worldwide VERY ADEQUATE RATE LEVELS Proportional Non-proportional 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 97 98 99 00 01 02 03 04 05 06 97 98 99 00 01 02 03 04 05 06 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 97 9
Slide 64: Credit & Surety: opposing trends in number and volume of treaties
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Credit & Surety worldwide OPPOSING TRENDS IN NUMBER AND VOLUME OF TREATIES 100% 80% 43% 49% 48% 47% 49% 60% 79% 78% 87% 83% 89% 40% 52% 53% 57% 51% 51% 20% 17% 21% 22% 11% 13% 0% 2002 2003 2004 2005 2006 (E) Non-proportional by no. of treat
Slide 65: Credit & Surety: good renewals at adequate rate levels
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook Appendix Credit & Surety worldwide GOOD RENEWALS AT ADEQUATE RATE LEVELS - Change of Hannover Re shares: +1pp EUR 319 m. - Oth. changes (price & volume): +/-0pp EUR 316 m. EUR 316 m. 100% 99% 99% 10% 8% 1% 87% 86% 86% 77% 1 Jan renewal Later 13% 13%
Slide 66: Disclaimer
Overview Highlights 1.1.06 Cat. risk mgmt. Outlook 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 appr