Hannover Rück : PDF (0.98 MB)

Analysts' Conference Call on 2021 Annual Results

Hannover, 10 March 2022

Agenda

1	Group overview	2
2	Property & Casualty reinsurance	9
3	Life & Health reinsurance	14
4	Investments	17
5	Solvency II reporting	20
6	Target Matrix 2021	22
7	Outlook 2022	24
8	Appendix	28

2 Analysts' Conference Call on 2021 Annual Results

| 1 Group overview | 2 | 3 | 4 | 5 | 6 | 7 | 8 |

Strong results despite large losses and Covid-19 impact in L&H

Total dividend proposal increased to EUR 5.75

GWP	F/x-adj. +12.8%
24,770	27,762
	+12.1%
2020	2021

NPE	F/x-adj. +13.7%
21,361	24,144
	+13.0%
2020	2021

EBIT

	1,735
1,214
	+42.9%
2020	2021

Group net income

	1,231
883
	+39.4%
2020	2021

10.8%

Return on Equity

above target of 9.0%

P&C Reinsurance EBIT: 1,512 m.

• Strong and diversified premium growth (f/x-adj. +16.3%)
• C/R at 97.7% above target due to large losses of EUR 1,250 m. exceeding the full-year budget by EUR 150 m. (0.9% of NPE)
• Prudent reserving at year-end, also in light of inflation
• Covid-19net loss estimate unchanged since year-end

2020 at EUR 950 m.

Figures in m. EUR, unless otherwise stated; 2020 restated pursuant to IAS 8

98.55 EUR

Book value per share

+8.1%

L&H Reinsurance EBIT: 223 m.

• Favourable premium growth (f/x-adj. +5.5%)
• EBIT impacted by Covid-19 mortality claims of EUR 582 m.
• Positive one-off effects from restructuring within US mortality portfolio in Q1 (EUR 132 m.) and from Longevity in Q3 and Q4 (EUR 122 m.)

243%

Solvency II ratio

31.12.2021

Investments

NII: 1,675 m.

• AuM up by 14.7% to EUR 56.2 bn., mainly driven by very strong operating cash flow
• RoI from AuM: 3.2%, above target of 2.4%
• Net investment income +14.4%, driven by very strong ordinary investment income, supported by contribution from inflation-linked bonds and alternative investments

3 Analysts' Conference Call on 2021 Annual Results

| 1 Group overview | 2 | 3 | 4 | 5 | 6 | 7 | 8 |

Special dividend proposed in light of strong capitalisation and performance

Total payout ratio in line with previous years

Dividend per share														in EUR
							63%
									60%	61%
52%	50%	51%					52%		56%
43%												44%
		40%

					44%	43%
37%		37%		36%			38%		5.75
	34%		5.25	5.50
			5.00	5.00
						1.25
			4.75		1.50	4.50
		4.25	1.50	1.50	1.50
		1.50		4.50	4.50
		1.25
3.00	3.00					4.00
			3.75
		3.50	3.50
0.40			3.25
3.00	3.00
2.60
2012	2013	2014	2015	2016	2017	2018	2019	2020	20211)
Ordinary dividend per share	Payout ratio ordinary dividend per share
Special dividend per share	Total payout ratio dividend per share
1) Dividend proposal; subject to consent of AGM

4 Analysts' Conference Call on 2021 Annual Results

| 1 Group overview | 2 | 3 | 4 | 5 | 6 | 7 | 8 |

Very strong operating cash flow supports growth of assets and ordinary investment income

Operating cash flow				Assets under own management		Ordinary investment income
				4,940						56,213						1,556
				747				47,629	49,002		1,289	1,322	1,381
													1,240
							42,197
						40,058
			3,018	1,513
		2,509	429
	2,225	39
1,694	515	941	919	994
225
561	692		736
	821
519	390			1,686
		935
	627	709
389
2017	2018	2019	2020	2021		2017	2018	2019	2020	2021	2017	2018	2019	2020	2021
Q1	Q2	Q3	Q4

Figures in m. EUR; 2020 restated pursuant to IAS 8

5 Analysts' Conference Call on 2021 Annual Results