Agenda
Favourable result in a year dominated by the Covid-19 pandemic Dividend proposal of EUR 4.50 per share
GWP | F/x-adj. +12.0% |
12.0%
22,598
24,765
+9.6%
2019
2020
8.2%
Return on Equity
P&C Reinsurance EBIT: 831 m.
• Strong and diversified premium growth
(f/x-adj. +15.8%)
• Combined ratio at 101.6%, reflecting exceedance of large loss budget by 4.4% of NPE due to reserving for Covid-19 loss estimates (EUR 950 m.)
Figures in m. EUR, unless otherwise stated
NPE
F/x-adj. +10.6%
19,730 | 21,356 |
+8.2%
EBIT
Group net income
1,853
1,284
1,214
-34.5%
2019
-31.2%
2020
2019
91.17 EUR
Book value per share +4.4%
L&H Reinsurance
EBIT: 385 m.
• Premium growth in line with expectations (f/x-adj. +4.7%)
• Strong EBIT in light of Covid-19 losses of
EUR 261 m., supported by higher result from at-equity participation and strong result from Financial Solutions business
2020
2019
235%
Solvency II ratio 31.12.2020
Investments NII: 1,688 m.
• RoI from AuM: 3.0%, exceeds target of ~2.7%
• Moderate decrease in ordinary investment income mainly due to lower contribution from inflation-linked bonds and private equity, partly mitigated by higher realised gains
• AuM up by 3.3% to EUR 49.2 bn.
883
2020
2020 dividend reflects continuing strong performance Overall payout ratio in line with prior years
Dividend per share
in EUR
63%
Total payout ratio dividend per shareEPS
Ordinary dividend per shareSpecial dividend per share
1) Dividend proposal; subject to consent of AGM
Payout ratio ordinary dividend per share
RoE of 8.2% is highly satisfactory against the backdrop of the Covid-19 impact
Return on Equity: yearly
2016
2017
2018
2019
2020
ActualMinimum target1)Average shareholders' equity
1) After tax; target: 900 bps above 5-year rolling average of 10-year German government bond rate ("risk free")
Return on Equity: average
5-year Ø 2016 - 2020
10-year Ø 2011 - 2020
15-year Ø 2006 - 2020
Hannover Re is one of the most profitable reinsurers
No. 1 position on 5-year average RoE - significantly above peer average
2016 | 2017 | 2018 | 2019 | 2020 | 2016 - 2020 | ||||||
Company | RoE | Rank | RoE | Rank | RoE | Rank | RoE | Rank | RoE | Rank | avg. RoERank |
Hannover Re | 13.7% | 1 | 10.9% | 2 | 12.2% | 1 | 13.3% | 1 | 8.2% | 2 | 11.7% 1 |
Peer 6, US, Life & Health | 10.6% | 4 | 21.9% | 1 | 7.9% | 3 | 8.7% | 6 | 3.2% | 7 | 10.5% 2 |
Peer 5, Bermuda, Property & Casualty | 12.7% | 2 | 5.7% | 5 | 1.3% | 9 | 11.9% | 3 | 5.5% | 4 | 7.4% 3 |
Peer 10, Korea, Composite | 7.8% | 8 | 6.2% | 4 | 4.7% | 6 | 8.1% | 7 | 6.1% | 3 | 6.6% 4 |
Peer 7, Bermuda, Property & Casualty | 10.0% | 5 | -5.3% | 10 | 4.2% | 7 | 12.9% | 2 | 10.8% | 1 | 6.5% 5 |
Peer 1, Germany, Composite | 8.3% | 7 | 1.3% | 7 | 8.5% | 2 | 9.6% | 5 | 4.0% | 5 | 6.3% 6 |
Peer 8, France, Composite | 9.3% | 6 | 4.4% | 6 | 5.4% | 4 | 6.9% | 9 | 3.7% | 6 | 6.0% 7 |
Peer 4, US, Property & Casualty | 5.9% | 10 | 1.1% | 8 | 0.5% | 10 | 10.4% | 4 | 1.2% | 8 | 3.8% 8 |
Peer 2, Switzerland, Composite | 10.6% | 3 | 1.0% | 9 | 1.4% | 8 | 2.5% | 10 | -3.1% | 9 | 2.5% 9 |
Peer 9, China, Composite | 7.2% | 9 | 7.2% | 3 | 4.9% | 5 | 7.3% | 8 | not yet reported | - | - - |
Average | 9.6% | 5.4% | 5.1% | 9.2% | 4.4% | 6.8% |
List shows the Top 10 of the Global Reinsurance Index (GloRe)
Data based on company data, own calculation
6 Press Conference
Agenda
Double-digit growth in an improving market environment Underwriting result impacted by reserving for Covid-19 loss estimates
Property & Casualty R/I in m. EURQ4/2019 Q4/2020 | 2019 2020 | ||
Gross written premium Net premium earned 3,128 3,515 | 3,396 | 14,781 | 16,744 |
3,693 | 12,798 | 14,205 | |
Net underwriting result incl. funds withheld Combined ratio incl. interest on funds withheld 110 96.9% | (78) | 235 | (224) |
102.1% | 98.2% | 101.6% | |
Net investment income from assets under own management 254 Other income and expenses 3 | 273 | 1,022 | 940 |
48 | 29 | 115 | |
Operating profit/loss (EBIT) 367 Tax ratio 29.9% Group net income 232 | 243 | 1,286 | 831 |
11.1% | 25.4% | 21.1% | |
202 | 872 | 620 | |
Earnings per share (in EUR) 1.92 | 1.68 | 7.23 | 5.14 |
YTD
• GWP f/x-adjusted +15.8%
• NPE f/x-adjusted +13.5%
• Major losses of EUR 1,595 m. (11.2% of NPE) exceeded budget of EUR 975 m. for 2020 due to reserving for Covid-19 loss estimates (EUR 950 m.); combined ratio adjusted for above-budget losses at 97.2%
• Confidence level of reserves stable to slightly increased on the back of favourable reserve run-off and continued conservative initial reserving
• Realised gains mitigated lower ordinary investment income and moderate impairments for private equity
• Other income and expenses increased mainly due to positive currency effects
• Lower tax ratio due to higher share of earnings in lower-tax subsidiaries
Major losses including Covid-19 reserving exceed 2020 budget of EUR 975 m. by EUR 620 m.
Natural and man-made catastrophe losses1)
in m. EUR
2,127
2010
2011Gross
2012Net
2013 2014Large loss budget (net)
2015
2020 | ||||
9% | 14% | 10% | 7% | 13% 11% |
825 | 825 | 875 | 975 |
2017
2016
2018
2019
Natural and man-made catastrophe losses in % of Property & Casualty premium
14% 12%
25% 16%
9%
7%
9%
8%
7%
6%
8%
7%
8%
17% 12%
8%
Large loss budget (net) in m. EUR
500
530
560
625
670
690
825
1) Up to 2011 claims over EUR 5 m. gross, from 2012 onwards claims over EUR 10 m. gross
Overall moderate major loss expenditure apart from Covid-19-related losses (1)
Catastrophe losses1) in m. EUR | Date | Gross | Net |
Bushfire, Australia | 1 - 31 Jan | 27.9 | 26.1 |
Earthquake, Puerto Rico | 6 - 7 Jan | 18.6 | 15.0 |
Hail, Australia | 15 - 21 Jan | 13.2 | 8.1 |
Hail / Storm, Australia | 19 - 20 Jan | 18.8 | 13.8 |
Storm / Flood, Australia | 4 - 13 Feb | 22.4 | 14.5 |
Storm "Sabine", Europe | 9 - 11 Feb | 22.5 | 16.5 |
Tornados, USA | 2 - 5 Mar | 56.7 | 42.9 |
Hail / Storm, Australia | 19 - 20 Apr | 20.1 | 14.2 |
Floods, China | 22 May - 22 Jul | 30.1 | 28.7 |
Hail / Storm, Canada | 13 - 14 Jun | 38.1 | 22.4 |
Floods, Japan | 3 - 6 Jul | 13.2 | 11.3 |
Hail / Storm, USA | 4 - 12 Aug | 166.0 | 111.0 |
California wildfire, USA | 16 Aug - 4 Oct | 29.5 | 23.0 |
Washington / Oregon wildfire, USA | 17 Aug - 27 Sep | 14.8 | 9.7 |
Hurricane "Laura", USA | 23 - 29 Aug | 153.2 | 87.5 |
Hail, Australia | 28 Oct - 1 Nov | 52.7 | 25.9 |
Hurricane "Eta", Nicaragua | 3 - 4 Nov | 13.8 | 13.8 |
17 Natural catastrophes | 711.7 | 484.2 |
1) Natural catastrophes and other major losses in excess of EUR 10 m. gross
Large loss budget 2020: EUR 975 m. thereof EUR 200 m. man-made and EUR 775 m. NatCat
10 Press Conference
Overall moderate major loss expenditure apart from Covid-19-related losses (2)
Catastrophe losses1) in m. EUR | Gross | Net |
17 Natural catastrophes | 711.7 | 484.2 |
4 Property claims | 163.3 | 160.6 |
4 Man-made losses | 163.3 | 160.6 |
21 Major losses | 875.0 | 644.8 |
Covid-19-related losses | 1,252.5 | 950.1 |
Total | 2,127.4 | 1,594.9 |
1) Natural catastrophes and other major losses in excess of EUR 10 m. gross
Large loss budget 2020: EUR 975 m. thereof EUR 200 m. man-made and EUR 775 m. NatCat
11 Press Conference
Agenda
Favourable underlying result impacted by Covid-19 losses Strong contribution from Financial Solutions
Life & Health R/I in m. EUR
Gross written premium
Net premium earned
Q4/2019
Q4/2020
2019
2020
Net underwriting result incl. funds withheld
Net investment income from assets under own management
Other income and expenses
Operating profit/loss (EBIT)
EBIT margin
Tax ratio
Group net income
Earnings per share (in EUR)
YTD
• GWP f/x-adjusted +4.7%
• NPE f/x-adjusted growth +5.3%
• Technical result impacted by Covid-19 losses of EUR 261 m., US mortality otherwise in line with expectations
• Net investment income on previous year's level, increased result from at-equity participation and higher realised gains from fixed income compensate for one-off effect in previous year (EUR 99.5 m.)
• Other income and expenses mainly the result of strong contribution from deposit accounted treaties of EUR 337 m. (2019: EUR 287 m.)
• Low tax ratio due to high share of earnings in lower-tax subsidiaries and tax-reduced investment gains
Strong new business production in 2020, VNB significantly exceeds target Q4/2020 new and pipeline business1)
New business
Pipeline business
Financial Solutions
LongevityMortality
Morbidity
Financial Solutions
LongevityMortality
Morbidity
• | Solvency relief (USA, China) - Financial Solutions | • | Solvency relief (Germany, USA) - Financial Solutions |
• | Business financing (Germany) - Financial Solutions | • | Business financing (New Zealand) - Financial Solutions |
• | Risk relief (UK) - Longevity | • | Risk relief (UK, Switzerland) - Longevity |
• | Risk relief (Canada) - Mortality | • | Risk relief (Africa, USA, Canada) - Mortality |
• | Risk relief (Canada) - Morbidity | ||
893 |
1) Focus on most important deals and opportunities
2) Value of new business (in m. EUR) based on MCEV principles and post-tax reporting (in 2015 cost of capital already increased from 4.5% to 6% in line with Solvency II)
3) Value of new business (in m. EUR) based on Solvency II principles and pre-tax reporting
Agenda
RoI exceeds target despite challenging market conditions
Lower ordinary income compensated by realised gains from portfolio adjustments
in m. EUR
Ordinary investment income1)
Realised gains/losses
Impairments/appreciations & depreciations
Change in fair value of financial instruments (through P&L)
Investment expenses
NII from assets under own mgmt.
NII from funds withheld
Total net investment income
Unrealised gains/losses of investments | 31 Dec 19 | 31 Dec 20 |
On-balance sheet | 1,789 | 3,019 |
thereof Fixed income AFS | 1,356 | 2,347 |
Off-balance sheet | 524 | 557 |
thereof Fixed income HTM, L&R | 233 | 217 |
Total | 2,314 | 3,576 |
1) Incl. results from associated companies
Q4/2019
Q4/2020
2019
2020
RoI
YTD
2.7%
-0.3% 0.1%
0.7%
• Lower ordinary income in line with expectations mainly due to inflation-linked bonds within fixed-income securities as well as lower returns from private equity and real estate funds; stable results from direct real estates; higher result from at-equity participation in Life & Health
-0.3%
• Realised gains mainly driven by some reallocations within fixed-income portfolio and regular portfolio adjustments as well as disposals of real estate investments; prior year benefitted from L&H one-off effect (EUR 99.5 m.)
3.0%
• Impairments predominantly driven by private equities and real estate fund valuations; impairments of fixed-income securities mainly recognised on emerging markets government bonds; stable depreciation of direct real estate investments
• Sharp increase of valuation reserves due to significantly decreasing minimal-risk yield curves, overcompensating widening of credit spreads on corporates and lower valuations in alternative investments
Ordinary return supported by alternative assets
Defensive credit orientation throughout the year; modest re-entry into listed equities
Asset allocation1) | ||
Investment category 2016 2017 2018 2019 | 2020 | |
Fixed-income securities | 87% 87% 87% 87% | 85% |
- Governments | 28% 30% 35% 35% | 34% |
- Semi-governments | 18% 17% 16% 15% | 15% |
- Corporates | 33% 32% 29% 31% | 30% |
Investment grade | 28% 27% 25% 26% | 25% |
Non-investment grade | 4% 5% 4% 4% | 5% |
- Pfandbriefe, Covered bonds, ABS | 9% 8% 7% 7% | 6%2) |
Equities | 4% 2% 2% 3% | 3% |
- Listed equity | 2% <1% <1% <1% | 1% |
- Private equity | 2% 2% 2% 2% | 3% |
Real Assets | 5% 5% 6% 5% | 5% |
Others | 1% 1% 1% 2% | 3% |
Short-term investments & cash | 4% 4% 4% 3% | 3% |
Total market values in bn. EUR | 42.3 40.5 42.7 48.2 | 49.8 |
Ordinary income split
1) Economic view based on market values without outstanding commitments for Private Equity and Alternative Real Estate as well as fixed-income investments of EUR 1,275.6 m. (EUR 1,429.9 m.) as at 31 December 2020
2) Of which Pfandbriefe and Covered Bonds = 66.0%
3) Before real estate-specific costs. Economic view based on market values as at 31 December 2020
Agenda
| 1 | 2 | 3 | 4 | 5 Solvency II reporting as at 31 December 2020 | 6 | 7 | 8 |
Capital adequacy ratio remains well above targets Increase in SCR driven by strong business growth in 2020
Development of the Solvency II ratio
• Increase in eligible own funds despite Covid-19 losses due to positive earnings incl. new business value
246%
251%
235%
YE 2018
• SCR grows at slightly higher rate, mainly due to business growth but also due to lower interest rate level and higher market volatilities
• Solvency II ratio above threshold throughout 2020 proves effectiveness of volatility management2)
YE 2019
YE 2020
Eligible Own Funds
Solvency Capital Requirements (SCR)
1) Includes deduction for minority shareholdings of EUR 653 m.
2) Includes the use of the volatility adjustments
3) Minimum Target Ratio Limit 180%
Excess capital
Agenda
| 1 | 2 | 3 | 4 | 5 | 6 Target Matrix 2020 | 7 | 8 |
Favourable business growth serves as sound foundation for positive outlook Target Matrix 2020
Business group | Key figures | Targets for 2020 | Q1-4/2020 |
Group | Return on investment1) | ≥ 2.7% | 3.0% |
Return on equity2) | ≥ 9.0% | 8.2% | |
Earnings per share growth (y-o-y) | ≥ 5% | -31.2% | |
Economic value creation3) | ≥ 6.0% | 6.0% | |
Solvency ratio4) | ≥ 200% | 235.2% | |
Property & Casualty R/I | Gross premium growth5) | 3 - 5% | 15.8% |
Combined ratio6) | ≤ 97% | 101.6% | |
EBIT margin7) | ≥ 10% | 5.9% | |
xRoCA8) | ≥ 2% | 0.9% | |
Life & Health R/I | Gross premium growth9) | 3 - 5% | 4.7% |
Value of New Business (VNB)10) | ≥ EUR 220 m. | EUR 778 m. | |
EBIT growth11) | ≥ 5% | -32.5% | |
xRoCA8) | ≥ 2% | 17.6% |
1) Excl. effects from ModCo derivatives
2) After tax; target: 900 bps above 5-year average return of 10-year German government bonds
3) Growth in economic equity + paid dividend; target: 600 bps above 5-year average return of 10-year German government bonds 4) According to our internal capital model and Solvency II requirements
5) On average throughout the R/I cycle at constant f/x rates 7) EBIT/net premium earned
9) Organic growth only; target: annual average growth over a 3-year period, at constant f/x rates 11) Annual average growth over a 3-year period
6) Incl. large loss budget of EUR 975 m.
8) Excess return on allocated economic capital
10) Based on Solvency II principles; pre-tax reporting
Agenda
Profitability above margin requirements in Property & Casualty Financial year 2021
Regional markets
Worldwide markets
Reporting categories | Volume1) | Profitability2) |
EMEA3) | + + +/-++ +/- | |
Americas3) | ||
APAC3) | ||
Structured Reinsurance and ILS | ||
Credit, Surety and Political Risks | ||
Facultative Reinsurance | + + | |
Aviation and Marine | ||
Agricultural Risks | + |
1) In EUR, development in original currencies can be different
2) ++ = well above CoC; + = above CoC; +/- = CoC earned; - = below Cost of Capital (CoC)
3) All lines of business except those stated separately; EMEA incl. CIS
23 Press Conference
Profitability in Life & Health further impacted by Covid-19 Financial year 2021
Reporting categories
Financial solutions
Longevity
Mortality
Morbidity
Volume1) | Profitability2) |
3) ++ + - +/- |
1) In EUR, development in original currencies can be different
2) ++ = well above CoC; + = above CoC; +/- = CoC earned; - = below Cost of Capital (CoC)
3) Business volume including contracts not reflected in premium income
24 Press Conference
Guidance for 2021
Hannover Re Group
• Gross written premium1)
~ 5% growth
• Return on investment2) 3)
~ 2.4%
• Group net income2)EUR 1.15 - 1.25 bn.
• Ordinary dividend pay-out ratio4)
35% - 45%
• Special dividend
1) At unchanged f/x rates
additional pay-out if profit target is reached and capitalisation is comfortable
2) Subject to no major distortions in capital markets and/or major losses in 2021 not exceeding the large loss budget of EUR 1.1 bn. and no material Covid-19 impact in L&H
3) Excluding effects from ModCo derivatives
4) Relative to group net income according to IFRS
Agenda
Covid-19 impact is material but remains manageable 2020
Expected net P&C Covid-19 claims
in m. EUR
Expected net L&H Covid-19 claims
in m. EUR
Business interruption 208
Events 201
(mainly US)
Efficient capital deployment supported by significant diversification Increase in own funds and capital requirements in line with business growth
Solvency Capital Requirements
Property & Casualty
Life & Health
Market
Counterparty default
Operational
Required capital before tax
Deferred taxes
Required capital after taxEligible own funds
As at 31 December 2020
Solvency capital requirements based on the internal model
Capital allocation based on Tail Value-at-Risk taking account of the dependencies between risk categories
in m. EUR
High-quality capital base with 87% Tier 1
Unutilised Tier 2 provides additional flexibility
Reconciliation of IFRS Shareholders' equity vs. Solvency II own funds
in m. EUR
Excess of assets
Shareholders' equity incl. minorities (IFRS)
Adjustments for Adjustments for
As at 31 December 2020
assets under own management
technical provisionsdue to tax effects over liabilities and others
1) Foreseeable dividends and distributions incl. non-controlling interests
2) Net deferred tax assets
Adjustments
Foreseeabledividends
1)
Minority haircutHybrid capitalBasic own funds after deductions
Unutilised Tier 2 capacity
Tier 3
capital
Tier 2 capital
Tier 1
hybrid capital
Tier 1 unrestricted capital
2)
Our business groups at a glance 2020 vs. 2019
in m. EUR | 2019 | 2020 | Δ | |
Gross written premium | 14,781 | 16,744 | +13.3% | 8,021 |
Net premium earned | 12,798 | 14,205 | +11.0% | 7,150 |
Net underwriting result | 188 | (274) | - | (641) |
Net underwriting result incl. funds withheld | 235 | (224) | -195.0% | (470) |
Net investment income | 1,069 | 990 | -7.4% | 695 |
From assets under own management | 1,022 | 940 | -8.0% | 524 |
From funds withheld | 48 | 50 | +5.9% | 171 |
Other income and expenses | 29 | 115 | - | 331 |
Operating profit/loss (EBIT) | 1,286 | 831 | -35.3% | 385 |
Financing costs | (2) | (2) | -8.4% | (2) |
Net income before taxes | 1,283 | 829 | -35.4% | 383 |
Taxes | (326) | (175) | -46.3% | (58) |
Net income | 958 | 654 | -31.7% | 325 |
Non-controlling interest | 86 | 34 | -60.5% | 2 |
Group net income | 872 | 620 | -28.8% | 323 |
Retention | 90.3% | 90.3% | 89.8% | |
Combined ratio (incl. interest on funds withheld) | 98.2% | 101.6% | - | |
EBIT margin (EBIT / Net premium earned) | 10.0% | 5.9% | 5.4% | |
Tax ratio | 25.4% | 21.1% | 15.2% | |
Earnings per share (in EUR) | 7.23 | 5.14 | 2.68 |
Property & Casualty R/I
Life & Health R/I | Total | |||
2020 | Δ | 2019 | 2020 | Δ |
+2.6% | 22,598 | 24,765 | +9.6% | |
+3.2% | 19,730 | 21,356 | +8.2% | |
+58.9% | (216) | (915) | - | |
+92.0% | (10) | (694) | - | |
+1.6% | 1,757 | 1,688 | -3.9% | |
-0.3% | 1,551 | 1,466 | -5.4% | |
+7.9% | 206 | 222 | +7.4% | |
+14.4% | 312 | 441 | +41.3% | |
-32.5% | 1,853 | 1,214 | -34.5% | |
-5.3% | (87) | (90) | +3.6% | |
-32.6% | 1,766 | 1,124 | -36.4% | |
-37.8% | (393) | (205) | -47.8% | |
-31.5% | 1,373 | 919 | -33.1% | |
-45.9% | 89 | 36 | -60.0% | |
-31.4% | 1,284 | 883 | -31.2% | |
90.0% | 90.1% | |||
- | ||||
9.4% | 5.7% | |||
22.2% | 18.2% | |||
10.65 | 7.32 |
Our business groups at a glance Q4/2020 vs. Q4/2019
in m. EUR | Q4/2019 | Q4/2020 | Δ | |
Gross written premium | 3,128 | 3,396 | +8.6% | 2,074 |
Net premium earned | 3,515 | 3,693 | +5.1% | 1,891 |
Net underwriting result | 96 | (87) | -190.5% | (225) |
Net underwriting result incl. funds withheld | 110 | (78) | -170.7% | (177) |
Net investment income | 268 | 282 | +5.3% | 221 |
From assets under own management | 254 | 273 | +7.3% | 172 |
From funds withheld | 14 | 9 | -31.9% | 48 |
Other income and expenses | 3 | 48 | - | 74 |
Operating profit/loss (EBIT) | 367 | 243 | -33.8% | 69 |
Financing costs | (1) | (1) | -19.4% | (0) |
Net income before taxes | 366 | 242 | -33.8% | 69 |
Taxes | (110) | (27) | -75.5% | (41) |
Net income | 257 | 215 | -16.1% | 28 |
Non-controlling interest | 25 | 13 | -46.9% | 1 |
Group net income | 232 | 202 | -12.7% | 27 |
Retention | 88.5% | 90.1% | 90.7% | |
Combined ratio (incl. interest on funds withheld) | 96.9% | 102.1% | - | |
EBIT margin (EBIT / Net premium earned) | 10.4% | 6.6% | 3.7% | |
Tax ratio | 29.9% | 11.1% | 60.1% | |
Earnings per share (in EUR) | 1.92 | 1.68 | 0.22 |
Property & Casualty R/I
Life & Health R/I | Total | ||
Q4/2020 | Q4/2019 | Q4/2020 | Δ |
5,204 | 5,471 | +5.1% | |
5,338 | 5,584 | +4.6% | |
(35) | (312) | - | |
24 | (254) | - | |
425 | 503 | +18.3% | |
366 | 445 | +21.6% | |
59 | 58 | -1.7% | |
68 | 120 | +77.8% | |
458 | 311 | -32.0% | |
(23) | (19) | -20.5% | |
434 | 293 | -32.6% | |
(127) | (63) | -50.2% | |
307 | 229 | -25.4% | |
26 | 14 | -46.8% | |
281 | 215 | -23.4% | |
88.5% | 90.3% | ||
- | - | ||
8.6% | 5.6% | ||
29.2% | 21.6% | ||
2.33 | 1.78 |
Well-balanced international portfolio growth
Gross written premium
in m. EUR
AfricaAustraliaLatin AmericaAsiaOther European countriesGermanyUnited KingdomNorth America
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Property & Casualty reinsurance: diversified growth 5-year CAGR: +12.4%
GWP split by reporting categories
in m. EUR
Gross written premium split by regions
Agricultural Risks
Aviation and Marine
Facultative R/I
Credit, Surety and Political
Risks
Structured R/I and ILSAPAC1)Americas1)
16,744
EMEA1)
2016
2017
1) All lines of Property & Casualty reinsurance except those stated separately
2018
2019
2020
2019
2020
Life & Health reinsurance: portfolio structure largely unchanged 5-year CAGR: +0.7%
GWP split by reporting categories
in m. EUR
Gross written premium split by regions
MorbidityMortalityLongevityFinancial solutions
8,021
7,816
2016
2017
2018
2019
2020
2019
2020
Stress tests on assets under own management; focus on credit exposures Current credit markets almost back to pre-2020 mode
Portfolio Scenario | Change in market value in m. EUR | Change in OCI before tax in m. EUR |
-10% Equity (listed and private equity) -20% +50 bps Fixed-income securities +100 bpsCredit spreads +50%Real Assets -10% | -168 | -168 |
-336 | -336 | |
-1,247 | -1,183 | |
-2,421 | -2,295 | |
-674 | -658 | |
-251 | -120 |
As at 31 December 2020
35 Press Conference
High-quality fixed-income book well balanced
Geographical allocation mainly in accordance with our broad business diversification
Governments | Semi-governments | Corporates | Pfandbriefe, Covered bonds, ABS | Short-term investments, cash | Total | |
AAA | 73% | 60% | 1% | 60% | - | 45% |
AA | 10% | 24% | 12% | 18% | - | 14% |
A | 11% | 7% | 32% | 13% | - | 17% |
BBB | 4% | 1% | 44% | 7% | - | 17% |
<> | 2% | 9% | 11% | 1% | - | 6% |
Total | 100% | 100% | 100% | 100% | - | 100% |
Germany | 20% | 33% | 4% | 17% | 13% | 17% |
UK | 7% | 2% | 8% | 9% | 19% | 7% |
France | 1% | 1% | 7% | 6% | 1% | 3% |
GIIPS | 0% | 1% | 4% | 5% | 0% | 2% |
Rest of Europe | 4% | 16% | 15% | 26% | 3% | 11% |
USA | 45% | 13% | 30% | 13% | 16% | 32% |
Australia | 5% | 8% | 7% | 11% | 10% | 7% |
Asia | 12% | 10% | 10% | 1% | 27% | 11% |
Rest of World | 4% | 15% | 15% | 11% | 12% | 11% |
Total | 100% | 100% | 100% | 100% | 100% | 100% |
Total b/s values in m. EUR | 17,045 | 7,408 | 14,244 | 2,977 | 1,605 | 43,281 |
IFRS figures as at 31 December 2020
36 Press Conference
Currency allocation matches modelled liability profile Strict duration-neutral strategy continued
Currency split of investments
• Modified duration of fixed-income mainly congruent with liabilities and currencies
• GBP's higher modified duration predominantly due to life business; EUR driven by hybrid bond issuance
Modified duration | |
2020 | 5.8 |
2019 | 5.7 |
2018 | 4.8 |
2017 | 4.8 |
2016 | 5.0 |
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 appropriateness of investing in any of our securities.
While Hannover Re has endeavoured to include in this presentation information it believes to be reliable, complete and up-to-date, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.
Some of the statements in this presentation may be forward-looking statements or statements of future expectations based on currently available information. Such statements naturally are subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements.
This presentation serves information purposes only and does not constitute or form part of an offer or solicitation to acquire, subscribe to or dispose of, any of the securities of Hannover Re.
© Hannover Rück SE. All rights reserved.
Hannover Re is the registered service mark of Hannover Rück SE.
38 Press Conference
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Hannover Rück SE published this content on 09 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2021 09:09:03 UTC.