Hannover Rueck Se · XETR:HNR1
Hannover Rueck — Hannover Re — Renewals Conference Call (February 2018)
35 slides from Hannover Rueck's conference presentation, Feb 7, 2018
Slide 1: 1 Jan 2018 Property & Casualty Treaty Renewals
1 Jan 2018 Property & Casualty Treaty Renewals and guidance update 2017 and 2018 Renewals Conference Call Hannover, 7 February 2018
Slide 2: Important note
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Important note 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) figure
Slide 3: Reinsurance markets
somewhat diyerent Reinsurance markets hannover re”
Slide 4: Shift into an improved market environment after NatCat losses
Reinsurance markets Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Shift into an improved market environment after NatCat losses Reinsurance market still characterised by strong competition Reinsurance capacity remained on a high level as s
Slide 5: Our results
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Slide 6: Very satisfactory renewal season
Reinsurance markets Our Our results results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Very satisfactory renewal season Overall, increased premium at improved conditions Based on our sound underwriting expertise and superior rating, showing continued to be excellent a
Slide 7: Underwriting years
Reinsurance markets Our Our results results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Time lag between underwriting year and financial year 2018 financial year reflects pricing quality in underwriting years 2016 - 2018 Premium distribution Financial years 2015 2016 201
Slide 8: Our portfolio
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Slide 9: 65% of treaty reinsurance to be renewed 1 January 2018
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix 65% of treaty reinsurance (R/I) to be renewed 1 January 2018 Equates to 46% of the total P&C reinsurance premium Estimated premium income U/Y in m. EUR 10,148 10.000 Structured rein
Slide 10: 65% of treaty reinsurance to be renewed 1 January 2018
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix 65% of treaty reinsurance to be renewed 1 January 2018 Renewals split throughout the year Traditional treaty reinsurance (excl. Structured R/I & ILS and Facultative R/I) in m. EUR V
Slide 11: Volume largely increased due to new business
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Volume largely increased due to new business Continued good showing and signed-line allocations Change in Hannover Re shares: +0.5% Total treaty reinsurance Change in price +1.4% in
Slide 12: Treaty premium increased significantly ...
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Treaty premium increased significantly ... ... supported by positive price changes and active cycle management Total P&C reinsurance Premium1) Premium1) Premium Price Division Busin
Slide 13: Positive price development
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Positive price development Proportional Non-proportional Premium1) Premium Price Premium1) Premium Price Division Business centre 3) 1/1/2018 changes changes 1/1/2018 changes change
Slide 14: Price level increased but did not reach 2015 level
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Price level increased but did not reach 2015 level XL price changes at 1 January renewals 110% +0.5% 105% -3.8% +5.9% -2.8% 100.0% 100% 97.6% -4.8% +4.0% 95% -1.6% 90% 1/1/2011 1/1/
Slide 15: First year of improvement since 2013
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix First year of improvement since 2013 Number of proportional treaties1) Number of non-proportional treaties2) 100% 100% 50% 50% 0% 0% -50% -50% -100% -100% 100% 100% 80% 80% 60% 60%
Slide 16: Premium volume growth in an improving environment overall
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Premium volume growth in an improving environment overall We expanded our positioning in the US as per our long-term strategy North America in m. EUR Rates and terms & conditions
Slide 17: Proportional and non-proportional business improved
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Proportional and non-proportional business improved North America Number of proportional treaties1) Number of non-proportional treaties2) 100% 100% 50% 50% 0% 0% -50% -50% -100% -10
Slide 18: Overall pleasing development in a heterogeneous market
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Overall pleasing development in a heterogeneous market Softening coming to an end Continental Europe in m. EUR Germany: stable renewal leading to unchanged in share: -0.2% premi
Slide 19: A satisfactory renewal outcome
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix A satisfactory renewal outcome Hannover Re remains one of the market leaders in non-proportional reinsurance Marine in m. EUR Marine reinsurance market is responding to larger i
Slide 20: Stabilised aviation reinsurance terms
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Stabilised aviation reinsurance terms Maintained our market share Aviation in m. EUR Original insurance market showed a slowdown in in share: -1.5% market softening in 1H/2017 2
Slide 21: Stable market environment in credit & surety & political risks
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Stable market environment in credit & surety & political risks Credit, surety and pol. risks in m. EUR Solid premium growth in share: -3.3% in price: +1.1% • Credit: in volu
Slide 22: Pleasing premium growth as market reacts
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Pleasing premium growth as market reacts Rate increases in most lines of business UK, London market & direct in m. EUR UK treaty reinsurance renewals showed a clear in share: +2
Slide 23: Strong growth in premium throughout all markets
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Strong growth in premium throughout all markets Worldwide treaty R/I in m. EUR Australia: agreement of more partnership deals in share: +3.9% China in price: +1.6% in volu
Slide 24: Moderately increased allocated capital ...
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Moderately increased allocated capital ... ... in order to facilitate new business opportunities Cat XL in m. EUR Overall improvement in risk reward especially in the in share:
Slide 25: Special report: structured reinsurance
Reinsurance markets Our results Our portfolio Structured Structured reinsurance reinsurance Outlook 2018 Guidance 2017 Appendix Special report: structured reinsurance Growing demand on a worldwide basis Structured reinsurance in m. EUR Growth emanating from North America and Europe 2.800 2,660 G
Slide 26: 1/1 renewal growth of 21.8% equals 12.9% on total P&C book ...
Reinsurance markets Our results Our Our portfolio portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix 1/1 renewal growth of 21.8% equals 12.9% on total P&C book ... ... based on stable premiums for later renewals Estimated premium income U/Y in m. EUR % of total P&C premium: [100.0%
Slide 27: Outlook
Outlook Financial-year figures
Slide 28: Overall profitability above margin requirements
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook Outlook 2018 2018 Guidance 2017 Appendix Overall profitability above margin requirements Property & Casualty reinsurance: financial year 2018 Lines of business Volume1) Profitability2) Target North America3) + markets Conti
Slide 29: Guidance for 2018
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook Outlook 2018 2018 Guidance 2017 Appendix Guidance for 2018 Hannover Re Group Gross written premium1) single-digit growth Return on investment2) 3) 2.7% Group net income2) more than EUR 1 bn. Dividend payout ratio4)
Slide 30: Guidance update 2017
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Slide 31: Updated guidance for 2017
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance Guidance 2017 2017 Appendix Updated guidance for 2017 Based on current status of book-closing activities Hannover Re Group Previous guidance Updated guidance Gross written premium more than 5%1) EUR 17.8 bn. (
Slide 32: Disclaimer
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 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
Slide 33: Appendix
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Slide 34: New treaties led to increased premium in proportional business
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Appendix New treaties led to increased premium in proportional business Change in Hannover Re shares: +0.4% Treaty R/I - proportional Change in price: +0.3% in m. EUR 6.000 Change in volume: +3.2
Slide 35: Positive development in non-proportional business
Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018 Guidance 2017 Appendix Appendix Positive development in non-proportional business Change in Hannover Re shares: +0.7% Treaty R/I - non-proportional Change in price: +4.0% in m. EUR Change in volume: +3.9% % on renewed:
Hannover Re — Renewals Conference Call (February 2018) on 6ix