Hannover Rueck SE · XETR:HNR1
Hannover Rueck — Hannover Re — Investor Presentation (November 2018)
86 slides from Hannover Rueck's investor presentation, November 2018
Slide 1: Hannover Re: the somewhat different reinsurer
Hannover Re: the somewhat different reinsurer November 2018
Slide 2: Content
Content 01 – 25 | Hannover Re Group 26 – 38 | Property & Casualty reinsurance 39 – 47 | Life & Health reinsurance 48 – 54 | Investment management 55 – 64 | Capital management 65 – 79 | Interim results Q1-3/2018 I–V | 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. Q1-3/2018 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 Hannover Re Legal
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. Q1-3/2018 Appendix From in-house reinsurer to global player >140 subsidiaries, branches/representative offices worldwide 2017: India Branch started operations, acquisition of Lloyd’s syndicate
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. Q1-3/2018 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, 8 German br
Slide 6: 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. Q1-3/2018 Appendix We are among the top reinsurers in the world Premium ranking 2017 in m. USD Rank Group Country GWP NPW 1 Munich Re DE 37,821 36,378 2 Swiss Re CH 34,775 32,316 3 Berkshire H
Slide 7: 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. Q1-3/2018 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 insurance p
Slide 8: Growing Property and Casualty reinsurance market
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Growing Property and Casualty reinsurance market Hannover Re outperforms the market Market size and concentration 2017 in bn. EUR 4-year CAGR Market +2.3% 154 155 Other +2.1
Slide 9: 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. Q1-3/2018 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 Market +4.9% 79
Slide 10: Reinsurance market conditions will improve ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Reinsurance market conditions will improve ... ... when the RoE becomes sufficiently low 237% 233% Development of return on equity and Guy Carpenter Global Property Cat RoL
Slide 11: Reinsurance is and will be an attractive product
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 base Increas
Slide 12: 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. Q1-3/2018 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 45% 44% 11,4
Slide 13: Well balanced international portfolio growth
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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) Latin America
Slide 14: Strong earnings track record since 2009
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 1,394 1,364 1,
Slide 15: Increased payout ratio allows stable dividends
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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%] [35%] [3
Slide 16: RoE target outperformed again ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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% 8,763 7,810 5,
Slide 17: 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. Q1-3/2018 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 Hannover Re 15.0
Slide 18: Accelerated value creation since 2009
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 15.88 13.5
Slide 19: 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. Q1-3/2018 Appendix Shareholders' equity has grown significantly in the past 5 years 2017: increased capital management action and stronger EUR Policyholders' surplus in m. EUR Change in shareh
Slide 20: A superior and highly profitable reinsurer ...
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 of the lead
Slide 21: Our strategy: value creation through reinsurance
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Our strategy: value creation through reinsurance Our overriding target: profit and value creation Premium growth on a long-term basis above market average Minimum return
Slide 22: 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. Q1-3/2018 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 2) ≥ 9.5%
Slide 23: Sustainability at Hannover Re
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Sustainability at Hannover Re Strategic approach: We are committed to sustainability, integrity and compliance Commitment to a responsible and transparent corporate govera
Slide 24: Sustainability at Hannover Re
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Sustainability at Hannover Re Broad range of activities to support our strategic goals Sustainability Report since 2011 Development of sustainable insurance solutions (i
Slide 25: Present on all continents
Hannover Re Hannover ReGroup Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Present on all continents Europe Madrid Dublin London Paris Hannover Milan Stockholm The Americas Asia Manama Toronto Seoul Charlotte Chicago Tokyo Denver New York Orlando T
Slide 26: 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. Q1-3/2018 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% +31% 120%
Slide 27: 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. Q1-3/2018 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 capitalisation at
Slide 28: We are a preferred business partner
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix We are a prefered business partner Property & Casualty reinsurance Central underwriting with local talent is key to our success • Secures consistent underwriting decis
Slide 29: 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. Q1-3/2018 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 to our Our
Slide 30: Our Property & Casualty reinsurance business divisions
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Our Property & Casualty reinsurance business divisions Target GWP split 2017 EUR 10,711 m. North America* markets Continental Europe* Specialty Marine Target lines marke
Slide 31: 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. Q1-3/2018 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% Proportional
Slide 32: Property & Casualty reinsurance: selective growth
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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% 9,338 9,205
Slide 33: 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. Q1-3/2018 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% 16.6% 16.8% CA
Slide 34: 2017: Combined Ratio slightly above MtCR
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix 2017: Combined Ratio slightly above MtCR Positive development of reserves led to exceptional aviation result EBIT Combined Ratio vs. MtCR margin Target North America* 11
Slide 35: 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. Q1-3/2018 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 earned + P&C
Slide 36: 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. Q1-3/2018 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% Continental E
Slide 37: Stable redundancy despite challenging environment
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Stable redundancy despite challenging environment Reserve study review by WillisTowers Watson confirms reserving level P&C premium Year end1) Redundancy2) Increase redun
Slide 38: 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. Q1-3/2018 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 swaps max.
Slide 39: The risk is manageable
Hannover Re Group Property Property & Casualty CasualtyR/I R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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) (378.2) Winter s
Slide 40: 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. Q1-3/2018 Appendix Low expense ratio is an important competitive advantage Administrative expense ratio 6.0% 6.0% 5.8% 5.6% 5.4% 2.7% 2.9% 2.7% 2.8% 2.6% 2013 2014 2015 2016 2017 Hannover
Slide 41: We are somewhat different
Hannover Re Group Property & Casualty R/I Life Life & Health Health R/I R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix We are somewhat different Life & Health reinsurance We are committed to responsiveness and time to market • Rapid decision-making processes Responsive • In-depth knowledge
Slide 42: 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. Q1-3/2018 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 Financial solutio
Slide 43: 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. Q1-3/2018 Appendix Writing attractive traditional life & health business Whilst positioning ourselves for sustainable growth with a clear strategic focus Risk solutions Financial solutions Rein
Slide 44: 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. Q1-3/2018 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 networks Longev
Slide 45: 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. Q1-3/2018 Appendix Primary differences between L&H and P&C R/I business Simplified illustration Accounting considerations (premium) Single Recurring IBNR reserve impact Low High Involvement of
Slide 46: 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. Q1-3/2018 Appendix We have well defined reporting categories Financial solutions Profitability is less likely to be affected by the Transactions which include components to provide underlying b
Slide 47: 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. Q1-3/2018 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% 7,080 3% Amer
Slide 48: 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. Q1-3/2018 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 in m. EUR
Slide 49: 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. Q1-3/2018 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 Target ≥ EUR 22
Slide 50: Continued positive operating cash flow
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1-3/2018 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 own managem
Slide 51: Very pleasing net investment income
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1-3/2018 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 53,337 53,637
Slide 52: 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. Q1-3/2018 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. Asset all
Slide 53: Slight risk reduction reflected in governments and corporates
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1-3/2018 Appendix Slight risk reduction reflected in governments and corporates Despite higher US yields impressive AuM growth due to cash flows / FX movements Asset allocation 1) Investment
Slide 54: High quality fixed-income book well balanced
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1-3/2018 Appendix High quality fixed-income book well balanced Geographical allocation mainly in accordance with our broad business diversification Pfandbriefe, Short-term Semi- Governments C
Slide 55: 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. Q1-3/2018 Appendix Currency allocation matches liability profile of balance sheet Duration-neutral strategy continued Currency split of investments Modified duration of fixed- Others CAD 7.3
Slide 56: Stress tests on assets under own management
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment Investment mgmt. mgmt. Capital mgmt. Q1-3/2018 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 before tax Portf
Slide 57: 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. Q1-3/2018 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 expensive There
Slide 58: Financial strength ratings
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 Appendix Financial strength ratings Group S&P A.M. Best General Reinsurance Corp. AA+ A++ Hannover Re AA- A+ Munich Re AA- A+ Swiss Re AA- A+ SCOR AA- A+ Everest Re A+ A+ Transatlantic
Slide 59: An above-average rating has numerous benefits ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 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 Access to all l
Slide 60: 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. Q1-3/2018 Appendix Solvency II: Internal capital model approved by BaFin Solvency II Pillar I Pillar II Pillar III Quantitative requirements Qualitative requirements Disclosure requirements Cap
Slide 61: 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. Q1-3/2018 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 Solvency II 3
Slide 62: Increasing buffer above Solvency II capital targets
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 Appendix Increasing buffer above Solvency II capital targets Despite significant changes in economic environment Development of the capital adequacy ratio (regulatory view) 2016: Over
Slide 63: High-quality capital base
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 Appendix High-quality capital base Own funds largely dominated by Tier 1 capital supplemented by hybrid capital Reconciliation (IFRS Shareholders’ Equity/Solvency II Own Funds) in m. EU
Slide 64: Capital efficiency supported by high diversification
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 Appendix Capital efficiency supported by high diversification Details of Solvency II capital requirements Risk capital for the 99.5% VaR (according to internal economic capital model) i
Slide 65: 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. Q1-3/2018 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 model) in m
Slide 66: Individual risks with limited impact on own funds
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital Capital mgmt. mgmt. Q1-3/2018 Appendix Individual risks with limited impact on own funds Solvency ratio above targets for all sensitivities Sensitivities and stress tests Available capital Solvency II ratio 13,041 2
Slide 67: RoE well above target, despite impact from recaptures in L&H
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix RoE well above target, despite impact from recaptures in L&H Guidance for 2018 reconfirmed GWP in m. NPE in m. EBIT in m. Group net income in m. 13,484 14,992 11,541 12,774 1,157 +11.2% 806
Slide 68: Overall favourable earnings growth ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Overall favourable earnings growth ... ... outperforming strong growth in top line Group figures in m. EUR Q3/2017 Q3/2018 Δ Q1-3/2017 Q1-3/2018 Δ Gross written premium 4,486 5,007 +11.6% 13
Slide 69: Good profitability supported by U/W and investment result
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Good profitability supported by U/W and investment result Remarkable growth mainly from tailor-made Structured R/I Property & Casualty R/I in m. EUR Q3/2017 Q3/2018 Q1-3/2017 Q1-3/2018 YTD
Slide 70: Major losses well below budget for Q1-3/2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Major losses well below budget for Q1-3/2018 Significant remaining budget for Q4/2018 Natural and man-made catastrophe losses* in m. EUR 1,730 1,790 1,127 981 863 846 724 714 672 662 662 578
Slide 71: Overall benign large loss experience in Q1-3/2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Overall benign large loss experience in Q1-3/2018 Significantly increased loss activity in Q3/2018 in line with quarterly expectation Catastrophe losses* in m. EUR Date Gross Net Storm "Frie
Slide 72: Good underlying profitability ...
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Good underlying profitability ... ... partly mitigates negative effects from in-force management in US mortality Life & Health R/I in m. EUR Q3/2017 Q3/2018 Q1-3/2017 Q1-3/2018 YTD Gross wri
Slide 73: Higher Ordinary due to US/UK yields and altern. investments
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Higher Ordinary due to US/UK yields and altern. investments Yield curve movements and credit spreads drive down net unrealised gains in m. EUR Q3/2017 Q3/2018 Q1-3/2017 Q1-3/2018 RoI YTD Ord
Slide 74: Target Matrix 2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Target Matrix 2018 Strategic targets for Business group Key figures Q1-3/2018 2018 Group Return on investment 1) ≥ 2.7% 3.3% Return on equity 2) ≥ 9.5% 11.5% Earnings per share growth (y-o-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. Q1-3/2018 Appendix Our strategic business groups at a glance Q1-3/2018 vs. Q1-3/2017 Property & Casualty R/I Life & Health R/I Total in m. EUR Q1-3/2017 Q1-3/2018 Δ Q1-3/2016 Q1-3/2018 Δ Q1-3/2017 Q1-3/2018 Δ
Slide 76: Our strategic business groups at a glance
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Our strategic business groups at a glance Q3/2018 vs. Q3/2017 Property & Casualty R/I Life & Health R/I Total in m. EUR Q3/2017 Q3/2018 Δ Q3/2017 Q3/2018 Δ Q3/2017 Q3/2018 Δ Gross written pr
Slide 77: Unchanged guidance for 2018
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Unchanged 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 EUR 1 bn. Dividend pay
Slide 78: Overall profitability above margin requirements expected
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Overall profitability above margin requirements expected Good growth opportunities in various lines of business Lines of business Volume1) Profitability 2) Target North America3) +/- markets
Slide 79: Good underlying profitability in L&H business
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Good underlying profitability in L&H business Recapture charges of USD 350-400 m. in US mortality business expected in 2018 Reporting categories Volume1) Profitability2) Financial solutions
Slide 80: Guidance for 2019
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Guidance for 2019 Hannover Re Group Gross written premium1) growth within a single-digit percentage range Return on investment2) 3) 2.8% Group net income2) in the region of EUR 1.1 bn.
Slide 81: Creating value through reinsurance is our strategic driver
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Creating value through reinsurance is our strategic driver Three profit sources play their part in fuelling our future success P&C reinsurance L&H reinsurance Investments Market growth in
Slide 82: Financial calender and our Investor Relations contacts
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Appendix Financial calender and our Investor Relations contacts 8 November 2018 Karl Steinle General Manager Quarterly Statement as at 30 September 2018 Tel: +49 511 5604 - 1500 karl.steinle
Slide 83: Basic information on the Hannover Re share
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 - Thomson Reuters
Slide 84: List of abbreviations
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Appendix List of abbreviations A MCEV Market Consistent Embedded Value ABS Asset-Backed Securities MCR Minimum Capital Requirements ADR American Depositary Receipts mgmt. management AFS Avai
Slide 85: Details on reserve review by Willis Towers Watson
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 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 reserve, net of
Slide 86: Disclaimer
Hannover Re Group Property & Casualty R/I Life & Health R/I Investment mgmt. Capital mgmt. Q1-3/2018 Appendix Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice