Hannover Rueck SE · XETR:HNR1

Hannover Rueck — Hannover Re — Corporate Update (February 2004)

70 slides from Hannover Rueck's corporate update, Feb 11, 2004

  1. Slide 1: Conference Call on 2004 Property/Casualty Renewals

    Conference Call on 2004 Property/Casualty Renewals February 11, 2004 ® hannover re

  2. Slide 2: Important notice

    Important notice: • Unless otherwise stated, this entire presentation is based on underwriting-year (U/W) figures. This basis is only remotely comparable with calendar-year (C/Y) figures, which are the basis of quarterly and annual accounts. • Except for the US and specialty sections which are repor

  3. Slide 3: Our market views have been confirmed

    OUR MARKET VIEWS have been confirmed Æ February 2003 (Renewals conference call) P/C worldwide US treaty business • Hard market will last another - Property – 18 months for property - Casualty – 18 - 36 months for casualty Germany Specialty Æ June 2003 (Rome) - Aviation • Declining rates in property

  4. Slide 4: External market flash: Diverging opinions

    EXTERNAL MARKET FLASH: Diverging opinions Æ Brokers • Market conditions will not change much in 2004 due to continued pricing P/C worldwide discipline US treaty business • Major catastrophe only possibility for a significant change - Property Æ Analysts - Casualty • Market remains reasonably discipl

  5. Slide 5: Profit-driven growth: Managing the cycle

    PROFIT-DRIVEN GROWTH: Managing the cycle in % Index 4,5 4.5 300 P/C worldwide 4.5 4.0 4,0 250 US treaty business - Property 3,5 3.5 200 - Casualty Germany 3,0 3.0 150 Specialty - Aviation 2,5 2.5 100 - Marine/Offsh. Energy - Credit & Surety 2.0 2,0 50 Rest of world 1990 91 92 93 94 95 96 97 98 99 20

  6. Slide 6: Cycle thermometer worldwide: Still more treaties with improved terms

    CYCLE THERMOMETER* WORLDWIDE: Still more treaties with improved terms Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business - Property 0% 0% - Casualty -50% -50% Germany -100% -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation

  7. Slide 7: January renewals account for almost 2/3 of total

    JANUARY RENEWALS* account for almost 2/3 of total 100% 7% P/C worldwide US treaty business 30% 75% - Property - Casualty Germany 50% 100% 93% Specialty - Aviation 63% - Marine/Offsh. Energy 25% - Credit & Surety Rest of world 0% Conclusions Total portfolio 2003 Facultative 2003 Total treaty 2003 Ren

  8. Slide 8: Portfolio development mirrors the worldwide P/C market

    PORTFOLIO DEVELOPMENT* mirrors the worldwide P/C market 120% Development of: • Rates: +3% • Hannover Re share: +1% 100% • Underlying portfolio: +1% P/C worldwide Total (on 76%): +5% 22% 24% US treaty business 80% 4% - Property - Casualty 60% Germany 100% 102% Specialty 40% 76% - Aviation 20% - Marin

  9. Slide 9: Portfolio mix: Further reduction of proportional treaties

    PORTFOLIO MIX*: Further reduction of proportional treaties 100% 19% 17% P/C worldwide 26% 23% 28% 80% US treaty business - Property 60% - Casualty Germany 83% 40% 77% 81% 72% 74% Specialty - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world Non-propo

  10. Slide 10: Business mix: Further expansion of US casualty

    BUSINESS MIX*: Further expansion of US casualty UY 2004 (UY 2003) P/C worldwide Credit & Marine Casualty Surety US treaty business 6.3% (7.6%) 15.4% 11.0% (13.9%) - Property Specialty (10.4%) USA Property - Casualty 7.0% (6.8%) Germany Aviation 11.4% Specialty (12.2%) - Aviation - Marine/Offsh. Ener

  11. Slide 11: US Treaty Renewals

    2004 US Treaty Renewals ® hannover re

  12. Slide 12: US treaties cycle thermometer: Still very favorable conditions

    US TREATIES CYCLE THERMOMETER*: Still very favorable conditions Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty -100% -100% Germany 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80

  13. Slide 13: US treaty portfolio development: Solid growth

    US TREATY PORTFOLIO DEVELOPMENT*: Solid growth 120% Development of: • Rates: +3% P/C worldwide 100% • Hannover Re share: +4% • Underlying portfolio: +2% US treaty business Total (on 65%): +9% 38% 35% - Property 80% - Casualty 6% 60% Germany 109% 100% Specialty 40% - Aviation 65% - Marine/Offsh. Ener

  14. Slide 14: Portfolio mix: Continued increase of non-proportional business

    PORTFOLIO MIX*: Continued increase of non-proportional business 100% P/C worldwide 9% 8% 7% 5% 13% US treaty business 80% - Property - Casualty 60% Germany 93% 95% 91% 92% 87% 40% Specialty - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world Non-prop

  15. Slide 15: Property renewal highlights: Satisfactory level of primary rates

    PROPERTY RENEWAL HIGHLIGHTS: Still satisfactory level of primary rates P/C worldwide US treaty business - Property Æ Primary insurance rates: - Casualty • Industrial/heavy commercial accounts: Expected to decline 10 - 20% Germany • Smaller commercial accounts: To remain flat Specialty - Aviation • O

  16. Slide 16: Property renewal highlights: Reinsurance remains attractive

    PROPERTY RENEWAL HIGHLIGHTS: Reinsurance remains attractive Æ Reinsurance P/C worldwide • Proportional US treaty business – Ongoing conversion from pro-rata to XL programs - Property – Reinsurance terms on profitable pro-rata treaties have begun to deteriorate - Casualty – New pro-rata programs diff

  17. Slide 17: US property cycle thermometer: Five years of consecutive rate increases

    US PROPERTY CYCLE THERMOMETER*: Five years of consecutive rate increases Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property - Casualty -50% -50% Germany -100% -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviati

  18. Slide 18: US property portfolio development: Still attractive

    US PROPERTY PORTFOLIO DEVELOPMENT*: Still attractive Development of: 120% • Rates: +6% • Hannover Re share: +7% • Underlying portfolio: 0% 100% Total (on 74%): +13% P/C worldwide 20% 26% US treaty business 80% 10% - Property - Casualty 60% Germany 100% 104% Specialty 40% 74% - Aviation 20% - Marine/

  19. Slide 19: Portfolio mix: Nearly all treaties on non-proportional basis

    PORTFOLIO MIX*: Nearly all treaties on non-proportional basis 100% 3% 7% 6% 5% 5% P/C worldwide US treaty business 80% - Property 60% - Casualty 93% 94% 95% 95% 97% Germany 40% Specialty - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world Non-proport

  20. Slide 20: Casualty renewal highlights: Primary rates

    CASUALTY RENEWAL HIGHLIGHTS: Still increasing attractiveness of primary rates . . . P/C worldwide US treaty business - Property Æ Primary insurance - Casualty • Rates and terms of casualty insurance market continue to improve Germany • Rate reductions not yet noticed anywhere Specialty - Aviation •

  21. Slide 21: Casualty renewal highlights: Reinsurance

    CASUALTY RENEWAL HIGHLIGHTS: . . . as well as in reinsurance P/C worldwide US treaty business Æ Reinsurance - Property • Proportional - Casualty – Only limited number of pro-rata placements Germany – Due to the very attractive rating levels, increased demand from reinsurers Specialty – Insurers keep

  22. Slide 22: Casualty renewal highlights: Reinsurer security is key

    CASUALTY RENEWAL HIGHLIGHTS: Reinsurer security is key P/C worldwide • Casualty clash and workers' comp. XLs US treaty business – More competition from Bermuda - Property – Workers' comp./catastrophe XL rates coming down, but level of pricing still very attractive - Casualty – Casualty clash layers

  23. Slide 23: US casualty cycle thermometer: Improvement in terms still at high level

    US CASUALTY CYCLE THERMOMETER*: Improvement in terms still at high level Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty -100% Germany -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviati

  24. Slide 24: US casualty portfolio development: One of the best years

    US CASUALTY PORTFOLIO DEVELOPMENT*: One of the best years 120% Development of: • Rates: +1% 100% P/C worldwide • Hannover Re share: +2% • Underlying portfolio: +5% 46% US treaty business Total (on 61%): +8% 80% 39% - Property - Casualty 5% 60% 112% Germany 100% Specialty 40% 61% - Aviation 20% - Mar

  25. Slide 25: Portfolio mix: Almost no proportional treaties

    PORTFOLIO MIX*: Almost no proportional treaties 100% 3% 3% 9% 5% 14% P/C worldwide 80% US treaty business - Property 60% - Casualty 95% 97% 97% 91% Germany 86% 40% Specialty - Aviation 20% - Marine/Offsh. Energy 0% - Credit & Surety 2000 2001 2002 2003 2004 (E) Rest of world Non-proportional Proport

  26. Slide 26: North America summary: Continued healthy growth in casualty

    NORTH AMERICA SUMMARY: Continued healthy growth in casualty UY 2002 Variance UY 2003 Variance UY 2004 in m. US$ P/C worldwide Property per risk 90 +24% 112 +10% 123 US treaty business Property catastrophe XL1) 60 +12% 67 -4% 64 - Property Property proportional 150 +23% 185 -16% 155 - Casualty Other

  27. Slide 27: German Renewals

    2004 German Renewals ® hannover re

  28. Slide 28: Renewal highlights: Overall pleasing developments

    RENEWAL HIGHLIGHTS: Overall pleasing developments P/C worldwide Æ Market position strengthened: US treaty business • New shareholder of E+S Re adds core business - Property • Increased shares on existing programs - Casualty • New cedents Germany Æ Strong rates in non-proportional business Specialty

  29. Slide 29: German treaties cycle thermometer: Still favorable conditions

    GERMAN TREATIES CYCLE THERMOMETER*: Still favorable conditions Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty -100% -100% Germany 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80%

  30. Slide 30: German portfolio development: Increased market share

    GERMAN PORTFOLIO DEVELOPMENT*: Increased market share Development of: • Rates: +1% • Hannover Re share: +7% 120% • Underlying portfolio: +2% P/C worldwide Total (on 92%): +10% 9% 100% US treaty business 8% 9% - Property 80% - Casualty 60% Germany 110% 100% Specialty 92% 40% - Aviation - Marine/Offsh

  31. Slide 31: Portfolio mix: Germany is still a proportional market

    PORTFOLIO MIX*: Germany is still a proportional market P/C worldwide 100% US treaty business 28% 24% 26% 34% 33% 80% - Property - Casualty 60% Germany Specialty 40% 76% 72% 74% 66% 67% - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world Non-proportio

  32. Slide 32: Aviation Renewals

    2004 Aviation Renewals ® hannover re

  33. Slide 33: Renewal highlights: Rates at adequate levels

    RENEWAL HIGHLIGHTS: Rates at adequate levels P/C worldwide US treaty business Æ Proportional - Property - Casualty • Reduced portfolio due to decreased original rates, Germany but still satisfactory level Specialty - Aviation Æ Non-proportional - Marine/Offsh. Energy • Further rate decreases but sti

  34. Slide 34: Aviation cycle thermometer: First in, first out

    AVIATION CYCLE THERMOMETER*: First in, first out Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty Germany -100% -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80% - Marine/Offs

  35. Slide 35: Profitability of the airline business further strengthened

    PROFITABILITY OF THE AIRLINE BUSINESS further strengthened in m. USD 6,000 400% P/C worldwide 4,800 320% US treaty business - Property - Casualty 3,600 240% Germany Specialty 2,400 160% - Aviation - Marine/Offsh. Energy 1,200 80% - Credit & Surety Rest of world ,0 0% Conclusions 1998 1999 2000 2001

  36. Slide 36: Average rate-on-line: More than four times the 1999 level

    AVERAGE RATE-ON-LINE (ROL): More than four times the 1999 level in % 14 13.1 P/C worldwide 12.5 US treaty business - Property 10 - Casualty 9.5 Germany 7.1 7.0 6.5 Specialty 5.6 - Aviation 6 4.6 - Marine/Offsh. Energy 4.1 3.7 3.1 - Credit & Surety 2.5 2.3 Rest of world 2 Conclusions ) 92 93 94 95 96

  37. Slide 37: Aviation portfolio development: All parameters slightly negative

    AVIATION PORTFOLIO DEVELOPMENT*: All parameters (slightly) negative Development of: 120% • Rates: -2% • Hannover Re share: -1% • Underlying portfolio: -1% P/C worldwide 100% Total (on 82%): -4% 18% US treaty business 18% 80% 3% - Property - Casualty 60% Germany 100% 97% Specialty 40% 82% - Aviation

  38. Slide 38: Portfolio mix nearly unchanged

    PORTFOLIO MIX* nearly unchanged 100% 21% 19% 18% 22% P/C worldwide 23% 80% US treaty business - Property 60% - Casualty Germany 40% 79% 81% 82% 78% 77% Specialty - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world Non-proportional Proportional Conclu

  39. Slide 39: Marine & Offshore-Energy Renewals

    2004 Marine & Offshore-Energy Renewals ® hannover re

  40. Slide 40: Renewal highlights: Favorable outlook in cargo, hull, liability

    RENEWAL HIGHLIGHTS: Favorable outlook in . . . Æ Cargo P/C worldwide • Stable rate environment US treaty business • No shortage of capacity - Property • Good profit margins - Casualty Æ Hull Germany • Continued rate increases Specialty • No shortage of capacity - Aviation • Profitable when written s

  41. Slide 41: Renewal highlights: Mixed developments in offshore energy and war

    RENEWAL HIGHLIGHTS: Mixed developments in . . . P/C worldwide Æ Offshore-Energy US treaty business • Rate reductions - Property • No shortage of capacity - Casualty Germany • Still profitable Specialty Æ War - Aviation • Rate reductions but still multiples of pre-9/11 - Marine/Offsh. Energy • No sho

  42. Slide 42: Marine cycle thermometer: On the edge

    MARINE CYCLE THERMOMETER*: On the edge Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty Germany -100% -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80% - Marine/Offsh. Energy

  43. Slide 43: Marine portfolio development: In line with market expectations

    MARINE PORTFOLIO DEVELOPMENT*: In line with market expectations 120% Development of: 100% P/C worldwide • Rates: -5% • Hannover Re share: 0% US treaty business • Underlying portfolio: 0% 80% 40% Total (on 60%): -5% - Property 33% - Casualty 60% 3% Germany 100% 90% Specialty 40% - Aviation 60% 20% -

  44. Slide 44: Portfolio mix: Almost exclusively non-proportional business

    PORTFOLIO MIX*: Almost exclusively non-proportional business 100% 3% 7% 6% 5% 10% P/C worldwide US treaty business 80% - Property - Casualty 60% Germany 93% 94% 95% 97% 90% Specialty 40% - Aviation - Marine/Offsh. Energy 20% - Credit & Surety Rest of world 0% Conclusions 2000 2001 2002 2003 2004 (E)

  45. Slide 45: Aviation/Marine summary: Cycle management at work

    AVIATION/MARINE SUMMARY: Cycle management at work UY 2002 Variance UY 2003 Variance UY 2004 in m. US$ P/C worldwide Aviation US treaty business Proportional 237 -35% 155 -19% 125 - Property XL 177 -7% 165 -6% 155 - Casualty Facultative 201 -10% 180 -6% 170 Germany Total Aviation 615 -19% 500 -10% 45

  46. Slide 46: Credit & Surety Renewals

    2004 Credit & Surety Renewals ® hannover re

  47. Slide 47: Renewal highlights: Hard market conditions in progress

    RENEWAL HIGHLIGHTS: Hard market conditions in progress Æ Still a very hard market P/C worldwide Æ HR among top 3 players worldwide in traditional credit & US treaty business surety market (no activity in financial guarantee/derivative - Property business) - Casualty Germany Æ Top players detemine te

  48. Slide 48: Credit & surety cycle thermometer: Still favorable terms

    CREDIT & SURETY CYCLE THERMOMETER*: Still favorable terms Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty Germany -100% -100% 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80% - Ma

  49. Slide 49: Credit & surety portfolio development: Solid growth

    CREDIT & SURETY PORTFOLIO DEVELOPMENT*: Solid growth Development of: • Rates: +1% • Hannover Re share: +1% 120% • Underlying portfolio: +6% P/C worldwide Total (on 94%): +8% 5% 100% 8% US treaty business 6% - Property 80% - Casualty Germany 60% 107% 100% Specialty 94% 40% - Aviation - Marine/Offsh.

  50. Slide 50: Portfolio mix: Traditionally high level of proportional business

    PORTFOLIO MIX*: Traditionally high level of proportional business 100% P/C worldwide US treaty business 80% 49% 48% 46% - Property 55% 51% - Casualty 60% Germany 40% Specialty 51% 52% 54% - Aviation 45% 49% 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world No

  51. Slide 51: Rest of the World Renewals

    2004 Rest of the World Renewals ® hannover re

  52. Slide 52: Renewal highlights in Europe and Australia

    RENEWAL HIGHLIGHTS in Europe and Australia Æ European region (outside Germany) P/C worldwide • Property catastrophe rates trending down US treaty business but still at comfortable level - Property • Hannover Re's property catastrophe portfolio remains stable - Casualty • Rate increase of up to 10% f

  53. Slide 53: Renewal highlights in emerging markets

    RENEWAL HIGHLIGHTS in emerging markets P/C worldwide US treaty business - Property - Casualty Æ Stable or decreased rates across all lines Germany Æ Emphasis on non-proportional business ("More from Less") Specialty - Aviation - Marine/Offsh. Energy - Credit & Surety Rest of world Conclusions Outloo

  54. Slide 54: RoW cycle thermometer: Improved terms in developed markets

    ROW CYCLE THERMOMETER*: Improved terms in developed markets . . . Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty -100% -100% Germany 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80%

  55. Slide 55: RoW cycle thermometer: As well as in emerging markets

    ROW CYCLE THERMOMETER*: . . . as well as in emerging markets Proportional Non-proportional 100% 100% P/C worldwide 50% 50% US treaty business 0% 0% - Property -50% -50% - Casualty -100% -100% Germany 95 96 97 98 99 00 01 02 03 04 95 96 97 98 99 00 01 02 03 04 Specialty 100% 100% - Aviation 80% 80% -

  56. Slide 56: RoW developed markets portfolio development: More from Less

    ROW-DEVELOPED MARKETS PORTFOLIO DEVELOPMENT*: "More from Less" 120% Development of: • Rates: +2% P/C worldwide • Hannover Re share: +2% 100% • Underlying portfolio: +1% US treaty business Total (on 70%): +5% - Property 30% 22% 80% - Casualty 4% Germany 60% 100% 96% Specialty 40% - Aviation 70% - Mar

  57. Slide 57: RoW emerging markets portfolio development: On par

    ROW-EMERGING MARKETS PORTFOLIO DEVELOPMENT*: On par Development of: 120% • Rates: 0% • Hannover Re share: +2% P/C worldwide 100% • Underlying portfolio: +5% US treaty business Total (on 70%): +7% 30% 24% - Property 80% - Casualty 5% 60% Germany 100% 99% Specialty 40% - Aviation 70% - Marine/Offsh. E

  58. Slide 58: RoW portfolio mix: Developed markets trend to non-proportional

    ROW PORTFOLIO MIX*: In developed markets clear trend to non-prop. 100% 14% 11% P/C worldwide 23% 19% 26% US treaty business 80% - Property - Casualty 60% Germany 89% 86% 40% 77% 81% Specialty 74% - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% Rest of world 2000 2001 2002 2003 2004 (E) Co

  59. Slide 59: RoW portfolio mix: Emerging markets still many proportional treaties

    ROW PORTFOLIO MIX*: In emerging markets still many prop. treaties 100% P/C worldwide 38% 35% 80% 41% US treaty business 46% 45% - Property 60% - Casualty Germany 40% Specialty 62% 65% 55% 59% 54% - Aviation 20% - Marine/Offsh. Energy - Credit & Surety 0% 2000 2001 2002 2003 2004 (E) Rest of world No

  60. Slide 60: P/C Renewals Conclusions

    2004 P/C Renewals Conclusions ® hannover re

  61. Slide 61: 2004 underwriting year: Likely to be one of the best in P/C

    2004 UNDERWRITING YEAR: Likely to be one of the best in P/C Æ Aviation only line with negative cycle thermometer; all other lines with 4 to 5 consecutive years of improvements in terms P/C worldwide Æ Capacity available up to 200% at right price, US treaty business underwriting discipline maintained

  62. Slide 62: Hannover Re P/C in 2004/2005: Casualty is still improving

    HANNOVER RE P/C IN 2004/2005: Casualty is still improving P/C worldwide Æ Property US treaty business • "More from Less": Consolidation - Property - Casualty Æ Casualty Germany • Still growing at adequate prices Specialty Æ Specialty - Aviation • Reduction - Marine/Offsh. Energy Æ Overall - Credit &

  63. Slide 63: Outlook for 2004 & 2005

    Outlook for 2004 & 2005 ® hannover re

  64. Slide 64: P/C outlook for 2004 and beyond

    P/C OUTLOOK for 2004 and beyond P/C worldwide US treaty business Æ 2004 will be better than 2003 - Property • Both on an underwriting and calendar-year basis - Casualty Germany Æ Will 2004 be the peak of the cycle? Specialty • Probably yes, as far as the market environment is concerned - Aviation -

  65. Slide 65: P/C time lag between u/w year and calendar year

    P/C TIME LAG between u/w year & calendar year HR US professional liability portfolio, where 50% of the u/w-year premium is earned in C/Y 1 40% " C/Y 2 P/C worldwide 10% " C/Y 3 US treaty business C a le nd a r ye a rs - Property 2001 2002 2003 2004 2005 2006 - Casualty 2000 Germany Specialty 2001 -

  66. Slide 66: P/C results: How will they develop?

    P/C RESULTS1): How will they develop? P/C worldwide Æ Barring extraordinary catastrophes and/or capital-market distortions US treaty business • Market C/Rs < 100% until 20062) - Property - Casualty • HR's cycle management will mean: Germany – Cycle smoothing (C/Rs in line with market average) Specia

  67. Slide 67: We have more than P/C

    WE HAVE MORE than P/C P/C worldwide Æ After "More from Less", from 2004 P/C will represent US treaty business • < 40% of gross premium - Property • ~ 40% of net premium of the total group - Casualty Germany • ~ 60% of EBIT and net income Specialty Æ EBIT of other business groups will grow faster (se

  68. Slide 68: Group outlook

    GROUP OUTLOOK P/C worldwide US treaty business Æ 2003 net income: € 350 m.1) (as per Q3 earnings release) - Property - Casualty Æ 2004 net income: € 390 – 430 m. (3.23 – 3.57 per share)2) Germany Specialty Æ 2005 net income: double-digit increase over 20042) - Aviation - Marine/Offsh. Energy - Credi

  69. Slide 69: Appendix

    y ALES aan 2 a = 18 ney, Appendix hannover re®

  70. Slide 70: HDI Re: Part of Hannover Re's capital increase as of 1 July 2003

    HDI RE: (Part of) Hannover Re's capital increase as of 1 July, 2003 Info ex Q3 conference call (November 2003): Æ Contribution in kind € 310.0 m. P/C worldwide • Of which stockholders' equity as of 1 July, 2003 € 193.6 m. US treaty business • Of which PVFP* € 116.4 m. - Property Æ Recognized in Q3 c

Hannover Re — Corporate Update (February 2004) on 6ix