Hannover Rückversicherung : Quarterly Statement as at 31 March 2020 Group report

Quarterly Statement as at 31 March 2020

Key figures

in EUR million	2020		2019
		1.1. - 31.3.	+ / - previous		1.1. - 31.3.	31.12.
					year
Results
Gross written premium		6,975.3			+9.4%		6,373.3
Net premium earned		5,090.9			+10.4%		4,610.8
Net underwriting result 1		(44.8)			-159.7%		75.1
Net investment income		471.7			+18.2%		398.9
Operating profit (EBIT)		426.6			-5.2%		450.0
Group net income		300.9			+2.5%		293.7
Balance sheet
Policyholders' surplus		13,458.9			-1.0%					13,588.9
Equity attributable to shareholders­ of Hannover Rück SE		10,464.6			-0.6%					10,528.0
Non-controlling interests		759.4			-8.1%					826.5
Hybrid capital		2,235.0			+0.0%					2,234.4
Investments (excl. funds withheld by ceding companies)		47,888.2			+ 0.5%					47,629.4
Total assets		72,694.7			+1.9%					71,356.4
Share
Earnings per share (basic and diluted) in EUR		2.49			+2.5%		2.43
Book value per share in EUR		86.77			-0.6%		81.69			87.30
Share price at the end of the period in EUR		131.00			-24.0%		128.00			172.30
Market capitalisation at the end of the period		15,798.2			-24.0%		15,436.4			20,778.9
Ratios
Combined ratio (property and casualty reinsurance) 1		99.8%					95.7%
Large losses as percentage of net premium earned
(property and casualty reinsurance) 2		8.5%				2.0%
Retention		91.1%					90.4%
Return on investment (excl. funds withheld by ceding companies)		3.2%					3.0%
EBIT margin 3		8.4%					9.8%
Return on equity (after tax)		11.5%					12.6%

1. Including funds withheld
2. Hannover Re Group's net share for natural catastrophes and other major losses in excess of EUR 10 million gross as a percentage of net premium earned
3. Operating result (EBIT) / net premium earned

Contents

Quarterly Statement	2
Business development	2
Results of operations, financial position and net assets	3
Property and casualty reinsurance	3
Life and health reinsurance	4
Investments	5
Outlook	8
Consolidated balance sheet as at 31 March 2020	10
Consolidated statement of income as at 31 March 2020	12
Consolidated statement of comprehensive income as at 31 March 2020	13
Consolidated segment report as at 31 March 2020	14
Consolidated cash flow statement as at 31 March 2020	18
Other information	19
Contact information	20

The present document is a quarterly statement pursuant to Section 51a of the Exchange Rules for the Frankfurter Wertpapierbörse. For further information please see the section "Other information" on page 19 of this document.

Quarterly Statement as at 31 March 2020

Business development

• Business operations not significantly impacted by coronavirus pandemic
• Return on equity at 11.5% beats minimum target of 9.1%
• Return on investment reaches 3.2%
• Group net income rises by 2.5% in the first quarter to EUR 300.9 million

The first three months of the 2020 financial year passed off very much as planned for Hannover Re. However, against the backdrop of the worldwide spread of the novel coronavirus (Sars-CoV-2) - the pace of which accelerated sharply in the final weeks of the quarter -, it is to be expected that our company will also be impacted more substantially as the year pro- gresses. We discuss our expectations in this regard in the "Outlook" section of this report.

Gross written premium on the Group level rose by 9.4% to EUR 7.0 billion (previous year: EUR 6.4 billion) as at 31 March 2020. Growth would have reached 8.5% at constant exchange rates. The retention was slightly higher than in the previous year's period at 91.1% (90.4%). Net premium earned rose by 10.4% to EUR 5.1 billion (EUR 4.6 billion). The increase would have been 9.7% adjusted for exchange rate effects.

In our Property &  Casualty reinsurance business group we can look back on a solid renewal season as at 1 January 2020 that largely lived up to our expectations. We reserved an amount of roughly EUR 220 million in the first quarter for the claims complex associated with the coronavirus crisis.

In Life & Health reinsurance the early months of the year passed off favourably, among other things thanks to pleasing demand from Asia for covers in the financial solutions segment.

Our investment performance was similarly gratifying, with an annualised average return (including effects from ModCo) of 3.2% driven by some extraordinary effects.

The operating profit (EBIT) generated by Hannover Re on the Group level contracted by 5.2% to EUR 426.6 million (EUR 450.0 million). Taxes fell by 17.6% to EUR 94.2 million (EUR 114.2 million). Group net income improved by 2.5% in the first three months of the year to reach EUR 300.9 million (EUR 293.7 million). Earnings per share thus came in at EUR 2.49 (EUR 2.43).

The shareholders' equity of Hannover Re as at 31 March 2020 remained stable at EUR 10.5 billion (31 December 2019: EUR 10.5 billion). The annualised return on equity amounted to 11.5% (31 December 2019: 13.3%) and continues to exceed our minimum target of 900 basis points above the risk- free interest rate. We have currently set this at 9.1% based on the five-year average return on 10-year German government bonds. The book value per share stood at EUR 86.77 (31 De- cember 2019: EUR 87.30).

2	Hannover Re | Quarterly Statement as at 31 March 2020

Results of operations, financial position and net assets

Property and casualty reinsurance

• Gross premium for the business group increases by 12.2% adjusted for exchange rate effects
• Around EUR 220 million reserved in the first quarter for coronavirus claims
• Combined ratio deteriorates to 99.8%
• Segment result down 5.4% on the previous year

As the year got underway the intensely competitive state of the worldwide market for property and casualty reinsurance remained unchanged. In the second half of the first quarter the increasingly rapid global spread of the novel coronavirus began to redefine daily life and reshape processes at countless institutions and companies.

The main renewal season in traditional property and casualty reinsurance business as at 1 January 2020 passed off unaffected by the impending coronavirus pandemic. It delivered a solid outcome in line with our expectations. All in all, we booked pleasing growth in our renewed portfolio at slightly improved prices and conditions overall. Rates for catastrophe covers, in particular, and here above all in Japan, Latin Amer- ica and the Caribbean, nevertheless remain on a low level and further improvement is needed.

In concrete terms, we increased our premium volume on an underwriting-year basis in traditional property and casualty reinsurance as at 1 January by 14.0% - adjusted for exchange rate effects - to EUR 8.0 billion (previous year: EUR 7.0 bil- lion). Some 67% of Hannover Re's traditional property and casualty reinsurance portfolio (excluding facultative reinsur- ance, ILS activities and structured reinsurance) was up for renewal on 1 January. The price increase amounted to 2.9% (0.9%). Particularly attractive opportunities to grow the portfolio opened up in North America, the London Market and in the area of agricultural risks.

Gross written premium in property and casualty reinsurance climbed by 13.5% in the first three months to EUR 5.0 billion (EUR 4.4 billion). Growth would have reached 12.2% at constant exchange rates. Net premium earned rose by 13.9% to EUR 3.3 billion (EUR 2.9 billion); at constant exchange rates, growth of 12.9% would have been recorded.

Allowing for the roughly EUR 220 million set aside for the claims complex associated with the coronavirus pandemic, the burden of large losses totalled EUR 283.6 million (EUR 59.0 million). The largest other individual losses for our account included, among others, the bushfires in Australia at EUR 22.4 million, storm Sabine (also known as Ciara) in Eu- rope at EUR 17.6 million and a hailstorm in Australia costing EUR 15.1 million. The combined ratio in property and casualty reinsurance consequently deteriorated to 99.8% (95.7%). It is thus higher than our anticipated maximum level of 97%. The underwriting result for total property and casualty reinsurance including interest on funds withheld and contract deposits fell by 94.3% to EUR 7.2 million (EUR 124.8 million).

The investment income booked for property and casualty reinsurance from assets under own management increased by 28.0% to EUR 286.1 million (EUR 223.4 million).

Hannover Re | Quarterly Statement as at 31 March 2020

3

The operating profit (EBIT) in property and casualty reinsurance contracted by 8.9% to EUR 304.7 million (EUR 334.4 million). The EBIT margin therefore stood at 9.1% (11.4%) and fell short of our minimum 10% target. The net income

Key figures for property and casualty reinsurance

in EUR million

Gross written premium

Net premium earned

Underwriting result 1

Net investment income

Operating result (EBIT)

Group net income

Earnings per share in EUR

EBIT margin 2

Combined ratio 1

Retention

1. Including funds withheld
2. Operating result (EBIT) / net premium earned

generated by the Property & Casualty reinsurance business group decreased by 5.4% to EUR 207.3 million (EUR 219.0 million).

2020		2019
1.1. - 31.3.	+ / - previous year		1.1. - 31.3.
4,986.1			+13.5%	4,394.5
3,338.0			+13.9%		2,930.2
7.2			-94.3%		124.8
296.4			+25.8%		235.6
304.7			-8.9%		334.4
207.3			-5.4%		219.0
1.72			-5.4%		1.82
9.1%					11.4%
99.8%					95.7%
91.7%					91.9%

Life and health reinsurance

• No appreciable effects so far from the coronavirus pandemic in the first quarter
• Gross premium for the business group stable on the level of the previous year
• Strong demand worldwide for covers in the area of financial solutions
• Segment result up by 24.5% on the previous year

While global life and health reinsurance markets continue to be fiercely competitive, world events were increasingly overshadowed as the first quarter progressed by the rapidly spreading coronavirus pandemic. As far as life and health reinsurance is concerned, the primary questions are how acutely the further - sometimes substantial - cuts in interest rates made by numerous central banks will be felt by life insurers and what impacts the pandemic will have on insurance covers for mortality and health risks. At this point in time we have not yet incurred any appreciable strains for Hannover Re's underwriting business in the first quarter.

In financial solutions business we continue to see strong demand worldwide at good conditions. Particularly in Asia, this already manifested itself in the first quarter in concrete deals that far surpassed our expectations. Solutions designed to cover longevity risks are enjoying especially brisk demand in the United Kingdom and Canada. Further attractive business opportunities are opening up in the Nordic countries. All in all, then, the landscape in life and health reinsurance in the

first quarter was thoroughly positive compared to the previous year.

Gross premium income in our Life & Health reinsurance business group as at 31 March 2020 was stable year-on-year at EUR 2.0 billion (previous year: EUR 2.0 billion). Growth of 0.4% would have been booked at constant exchange rates. Net premium earned grew by 4.3% to EUR 1.8 billion (EUR 1.7 billion). The increase would have been 4.2% adjusted for exchange rate effects.

Investment income from assets under own management retreated by 4.5% to EUR 99.4 million (EUR 104.1 million). The operating result (EBIT) improved by 6.8% to EUR 124.2 million (EUR 116.3 million). Net income for life and health reinsurance rose by 24.5% to EUR 110.2 million (EUR 88.5 mil- lion).

4	Hannover Re | Quarterly Statement as at 31 March 2020

Key figures for life and health reinsurance

in EUR million	2020		2019
			1.1. - 31.3.	+ / - previous year		1.1. - 31.3.
Gross written premium		1,989.2			+0.5%	1,978.8
Net premium earned		1,752.8			+4.3%		1,680.6
Investment income		174.7			+7.5%		162.5
Operating result (EBIT)		124.2			+6.8%		116.3
Net income after tax		110.2			+24.5%		88.5
Earnings per share in EUR		0.91			+24.5%		0.73
Retention		89.4%					87.0%
EBIT margin 1		7.1%					6.9%
1	Operating result (EBIT) / net premium earned

Investments

• Massive reactions on investment markets to the coronavirus pandemic
• Ordinary investment income stable on previous year's level
• Investment income up by 18.2% to EUR 471.7 million
• Return on investment reaches 3.2%

The experiences of the past ten years in what had already long been a challenging capital market environment were clearly eclipsed by developments in the period under review. After initial euphoria in January, the final weeks of the quarter saw violent market reactions to the rapid spread and possible economic consequences of the coronavirus pandemic. These were accompanied by marked volatility across all asset classes and markets. Moreover, minimal-risk interest returns fell sharply before remaining highly volatile on a low level. Credit spreads increased substantially, with stock markets pulled successively lower and higher between waves of panic and shimmers of hope at a speed not seen in decades.

Further anxiety was prompted by the discourse emerging from oil-producing countries, which - combined with the slump in demand - brought the price of oil crashing down. Other industrial raw materials similarly came under significant pressure. Overall, the widening in spreads and extensive illiquidity of the markets will likely present appreciable challenges in the months ahead.

Marked declines in interest rates were again observed on the key fixed-income markets for our company, starting out from what was already a very low level at the end of the previous year. This was evident for both euro and sterling bonds, but above all in the area of the US dollar. Risk premiums on corporate bonds moved in the opposite direction and even more sharply.

Our portfolio of assets under own management increased slightly to EUR 47.9 billion (previous year: EUR 47.6 billion). The considerably wider credit spreads were partially offset by the decline in interest rates, as a result of which the net unre- alised gains in our fixed-income portfolio as at 31 March

2020 decreased to EUR 952.7 million (31 December 2019: EUR 1,589.1 million).

In the context of steps taken in the first quarter to adjust the allocation of our assets to individual classes of securities, we had begun even before the market distortions resulting from the coronavirus pandemic to scale back somewhat the proportion of bond holdings attributable to our US SME portfolio and invest in US municipal bonds. Following the price corrections on stock markets, we also built up a modest equity allocation of roughly half a percent. The modified duration of our portfolio of fixed-income securities was left unchanged from the end of the previous year at 5.7 (5.7).

Ordinary investment income excluding interest on funds withheld and contract deposits amounted to EUR 326.3 million as at 31 March 2020, a level on a par with the previous year's period (EUR 323.2 million). While income from fixed-income securities showed pleasing gains and investments in the real estate sector delivered stable earnings, the performance of private equity was softer than in the comparable period. Interest on funds withheld and contract deposits climbed sharply to EUR 85.6 million (EUR 70.6 million).

Hannover Re | Quarterly Statement as at 31 March 2020

5

Impairments of altogether EUR 28.6 million (EUR 17.4 mil- lion) were taken. Of this amount, write-downs of EUR 10.1 million (EUR 0.0 million) were attributable to fixed-income securities and EUR 5.6 million (EUR 6.7 million) to alternative investments, together with impairments of EUR 3.0 million (EUR 1.1 million) on real estate funds. The depreciation recognised on directly held real estate was stable at EUR 9.2 million (EUR 9.4 million). The write-downs were not opposed by any write-ups (EUR 0.0 million). The net balance of gains realised on disposals totalled EUR 101.9 million (EUR 22.3 million) and can be attributed primarily to regrouping moves as part of the aforementioned regular portfolio maintenance as well as the successful sale of a real estate investment.

We recognise a derivative for the credit risk associated with special life reinsurance treaties (ModCo) under which securities deposits are held by cedants for our account; the perfor-

mance of this derivative in the period under review gave rise to unrealised losses of EUR 26.6 million recognised in investment income. This contrasted with a gain of EUR 5.3 million in the corresponding period of the previous year. In economic terms we assume a neutral development for this item over time, and hence the volatility that can occur in specific quarters provides no insight into the actual business development. Altogether, the unrealised gains in our assets recognised at fair value through profit or loss amounted to EUR 11.6 million (EUR 27.4 million).

The net investment income of EUR 471.7 million (EUR 398.9 million) showed a very pleasing improvement on the comparable period. Income from assets under own management accounted for EUR 386.1 million (EUR 328.3 million), producing an annualised average return (including ModCo ef- fects) of 3.2%.

6	Hannover Re | Quarterly Statement as at 31 March 2020

Net investment income

in EUR million									2020								2019
											1.1. - 31.3.		+ / - previous year				1.1. - 31.3.
Ordinary investment income 1								326.3			+0.9%				323.2
Result from participations in associated companies						6.4			+108.7%				3.1
Realised gains / losses									101.9										22.3
Appreciation 2									28.6			+64.2%				17.4
Change in fair value of financial instruments 3						11.6			-57.5%				27.4
Investment expenses									31.6			+4.2%				30.3
Net investment income from assets under own management				386.1			+17.6%				328.3
Net investment income from funds withheld						85.6			+21.2%				70.6
Total investment income									471.7			+18.2%				398.9
1	Excluding expenses on funds withheld and contract deposits
2	Including depreciation / impairments on real estate
3	Portfolio at fair value through profit or loss and trading
Rating structure of our fixed-income securities 1
Rating classes	Government bonds		Securities issued		Corporate bonds	Covered bonds / asset-
								by semi-governmental											backed securities
								entities 2
				in %		in EUR		in %	in EUR		in %		in EUR			in %		in EUR
						million					million						million					million
AAA	74.6	13,002.3	53.3			3,794.3	1.1	135.9				61.8	1,820.1
AA				12.0	2,088.6	25.5			1,811.9	11.7	1,510.7				21.2	625.4
A				7.8	1,367.4	7.6			537.8	30.3	3,904.4				10.5	308.8
BBB	3.8	655.0	1.3			92.2	45.5	5,847.0				5.5	160.8
< BBB	1.8	306.8	12.3			875.4	11.4	1,469.5				1.0	30.1
Total	100.0	17,420.2	100.0			7,111.6	100.0	12,867.5				100.0	2,945.2

1. Securities held through investment funds are recognised pro rata with their corresponding individual ratings.
2. Includinggovernment-guaranteed corporate bonds

Hannover Re | Quarterly Statement as at 31 March 2020

7

Outlook

• Group net income guidance of around EUR 1.2 billion withdrawn
• Impacts of the coronavirus pandemic on Hannover Re still difficult to estimate
• Increased strains expected, particularly on the investment side and in property and casualty reinsurance

As the first quarter unfolded, the impacts of the rapid spread of coronavirus infections around the world increasingly began to be felt on global reinsurance markets as well. Against this backdrop, and in view of the elevated uncertainty affecting the claims development and the capital market environment due to the coronavirus crisis, we withdrew our earnings guidance for the current year on 21 April. As things stand right now, any forecast is subject to too many uncertainties. This applies both to all key performance indicators for the Group as a whole and to targets set for the individual business groups. Increased strains are expected over the remaining course of the year, especially on the investment side and in property and casualty reinsurance.

At the present time, it is not possible to quantify the concrete effects of the coronavirus pandemic on reinsurance markets and investments. The various scenarios naturally give rise to a very wide range of possible impacts on the result. We are constantly updating the appropriate scenario calculations and will provide guidance again as soon as the underlying probabilities are sufficiently reliable.

It should, however, further be borne in mind that in some areas we also expect to see stronger demand for reinsurance. In property and casualty reinsurance this is particularly true of structured reinsurance solutions, while in life and health reinsurance it applies to business in the financial solutions seg- ment. In our continued role as a robustly capitalised partner, we anticipate that our support will be sought after and that we will have an opportunity to contribute to the recovery of the insurance industry and the economy as a whole.

The impacts on Hannover Re's business operations can, how- ever, be described in greater specifics. For the most part, operations are running normally. The vast majority of our more than 3,000 employees around the world are working on a mobile basis. In this way, we are able to protect our workforce and support the measures taken by governments to reduce the number of infections and slow the spread of the coronavi- rus pandemic.

Our risk management is focused on preserving Hannover Re's robust financial strength. Using stress tests for extreme scenarios such as pandemics or capital market distortions, we continuously review the resilience of our financial strength. As a reinsurer, our capitalisation is geared to handling such extreme events.

Moreover, the starting position for our capital resources is a very comfortable one: at the end of 2019 our capital adequacy ratio amounted to 251%, clearly in excess of our limit of 180% and our threshold of 200%. According to preliminary estimates, our solvency ratio at the end of the first quarter - and hence allowing for the considerable volatility in interest rates and credit spreads - remained significantly above the aforementioned limit and threshold values.

Building on the 1 January renewals, the treaty renewals as at 1 April 2020 - the date when we traditionally renegotiate our business in Japan as well as on a lesser scale in Australia, New Zealand, Asian markets and North America - similarly passed off favourably for Hannover Re. The total premium volume booked from this round of treaty renewals rose by 25.1%. The price increase for the renewed business amounted to 4.4%.

Our net major loss budget for 2020 is set at EUR 975 million (previous year: EUR 875 million). This adjustment is primarily a reflection of the growth in the underlying business.

We remain committed to our dividend policy. This envisages a payout ratio for the ordinary dividend in the range of 35% to 45% of IFRS Group net income. If the comfortable level of capitalisation remains unchanged and Group net income is in the range of expectations, the ordinary dividend will be supplemented by payment of a special dividend.

With regard to further developments associated with the coronavirus pandemic, we are monitoring the situation on all levels of our Group very closely.

8	Hannover Re | Quarterly Statement as at 31 March 2020

Hannover Re | Quarterly Statement as at 31 March 2020

9

Consolidated balance sheet as at 31 March 2020

Assets
in EUR thousand	31.3.2020	31.12.2019
Fixed-income securities - held to maturity	221,740	223,049
Fixed-income securities - loans and receivables	2,198,719	2,194,064
Fixed-income securities - available for sale	37,327,351	38,068,459
Fixed-income securities - at fair value through profit or loss	596,641	578,779
Equity securities - available for sale	303,558	29,215
Other financial assets - at fair value through profit or loss	343,164	235,019
Investment property	1,682,643	1,749,517
Real estate funds	573,457	534,739
Investments in associated companies	247,050	245,478
Other invested assets	2,305,557	2,211,905
Short-term investments	708,424	468,350
Cash and cash equivalents	1,379,944	1,090,852
Total investments and cash under own management	47,888,248	47,629,426
Funds withheld	11,237,463	10,948,469
Contract deposits	330,006	325,302
Total investments	59,455,717	58,903,197
Reinsurance recoverables on unpaid claims	1,872,716	2,050,114
Reinsurance recoverables on benefit reserve	846,625	852,598
Prepaid reinsurance premium	194,670	116,176
Reinsurance recoverables on other technical reserves	7,280	9,355
Deferred acquisition costs	3,040,297	2,931,722
Accounts receivable	5,735,719	5,269,792
Goodwill		85,286	88,303
Deferred tax assets		643,054		442,469
Other assets	689,834	640,956
Accrued interest and rent	17,046	15,414
Assets held for sale	106,409	36,308
Total assets	72,694,653	71,356,404

10	Hannover Re | Quarterly Statement as at 31 March 2020

Liabilities
in EUR thousand	31.3.2020	31.12.2019
Loss and loss adjustment expense reserve		33,392,024	32,996,231
Benefit reserve		8,797,693		9,028,000
Unearned premium reserve	5,670,701	4,391,848
Other technical provisions	677,350	673,221
Funds withheld	1,163,424	1,157,815
Contract deposits	3,555,775	3,581,057
Reinsurance payable	1,388,767	1,505,680
Provisions for pensions	178,205	201,952
Taxes	160,763	191,706
Deferred tax liabilities	2,247,059	2,189,372
Other liabilities	772,635	623,075
Long-term debt and notes payable	3,463,274	3,461,968
Liabilities related to assets held for sale	3,057		-
Total liabilities		61,470,727	60,001,925
Shareholders' equity
Common shares		120,597	120,597
Nominal value: 120,597
Conditional capital: 60,299
Additional paid-in capital	724,562	724,562
Common shares and additional paid-in capital		845,159	845,159
Cumulative other comprehensive income
Unrealised gains and losses on investments	908,444	1,287,907
Cumulative foreign currency translation adjustment	389,100	385,153
Changes from hedging instruments	(4,846)	(1,276)
Other changes in cumulative other comprehensive income	(51,368)	(66,077)
Total other comprehensive income	1,241,330	1,605,707
Retained earnings	8,378,069	8,077,123
Equity attributable to shareholders of Hannover Rück SE	10,464,558	10,527,989
Non-controlling interests	759,368	826,490
Total shareholders' equity	11,223,926	11,354,479
Total liabilities and shareholders' equity		72,694,653	71,356,404

Hannover Re | Quarterly Statement as at 31 March 2020

11

Consolidated statement of income as at 31 March 2020

in EUR thousand	1.1. - 31.3.2020		1.1. - 31.3.2019 1
	Gross written premium		6,975,289	6,373,297
	Ceded written premium		623,686		611,883
	Change in gross unearned premium	(1,338,110)	(1,218,962)
	Change in ceded unearned premium	77,366	68,325
Net premium earned	5,090,859	4,610,777
	Ordinary investment income	326,260	323,222
	Profit / loss from investments in associated companies	6,426	3,079
	Realised gains and losses on investments	101,864	22,280
	Change in fair value of financial instruments	11,644	27,391
	Total depreciation, impairments and appreciation of investments	28,569	17,398
	Other investment expenses	31,554	30,293
	Net income from investments under own management	386,071	328,281
	Income / expense on funds withheld and ­contract deposits	85,587	70,623
	Net investment income		471,658	398,904
	Other technical income		-		150
Total revenues	5,562,517	5,009,831
	Claims and claims expenses	3,924,954	3,356,305
	Change in benefit reserves	(84,789)	(16,740)
	Commission and brokerage, change in deferred acquisition costs	1,265,512	1,153,517
	Other acquisition costs	1,103	1,392
	Administrative expenses	114,494	111,945
	Total technical expenses	5,221,274	4,606,419
	Other income	289,333	176,317
	Other expenses	203,931	129,684
	Other income and expenses	85,402	46,633
Operating profit / loss (EBIT)	426,645	450,045
	Financing costs	23,461	20,948
Net income before taxes	403,184	429,097
	Taxes	94,152	114,237
Net income		309,032	314,860
	thereof
	Non-controlling interest in profit and loss	8,155	21,207
	Group net income		300,877	293,653
Earnings per share (in EUR)
	Basic earnings per share	2.49	2.43
	Diluted earnings per share		2.49	2.43
1	Restated pursuant to IAS 8

12	Hannover Re | Quarterly Statement as at 31 March 2020

Consolidated statement of comprehensive income as at 31 March 2020

in EUR thousand	1.1. - 31.3.2020		1.1. - 31.3.2019
Net income		309,032	314,860
Not reclassifiable to the consolidated statement of income
Actuarial gains and losses
Gains (losses) recognised directly in equity	23,950	(9,485)
Tax income (expense)	(7,790)	3,089
		16,160	(6,396)
Changes from the measurement of associated companies
Gains (losses) recognised directly in equity	98	(50)
		98	(50)
Income and expense recognised directly in equity that cannot be reclassified
Gains (losses) recognised directly in equity	24,048	(9,535)
Tax income (expense)	(7,790)	3,089
		16,258	(6,446)
Reclassifiable to the consolidated statement of income
Unrealised gains and losses on investments
Gains (losses) recognised directly in equity	(542,933)	789,166
Transferred to the consolidated statement of income	(67,308)	12,097
Tax income (expense)	200,683	(182,481)
		(409,558)	618,782
Currency translation
Gains (losses) recognised directly in equity		(7,961)	197,423
Transferred to the consolidated statement of income		-		4,645
Tax income (expense)	13,255	(17,076)
		5,294	184,992
Changes from the measurement of associated companies
Gains (losses) recognised directly in equity	(3,751)	1,547
		(3,751)	1,547
Changes from hedging instruments
Gains (losses) recognised directly in equity	(7,312)	1,917
Tax income (expense)	3,667	(840)
		(3,645)	1,077
Reclassifiable income and expense recognised directly in equity
Gains (losses) recognised directly in equity	(561,957)	990,053
Transferred to the consolidated statement of income	(67,308)	16,742
Tax income (expense)	217,605	(200,397)
		(411,660)	806,398
Total income and expense recognised directly in equity
Gains (losses) recognised directly in equity	(537,909)	980,518
Transferred to the consolidated statement of income	(67,308)	16,742
Tax income (expense)	209,815	(197,308)
		(395,402)	799,952
Total recognised income and expense		(86,370)	1,114,812
thereof
Attributable to non-controlling interests	(22,870)	42,396
Attributable to shareholders of Hannover Rück SE		(63,500)	1,072,416

Hannover Re | Quarterly Statement as at 31 March 2020

13

Group segment report as at 31 March 2020

Segmentation of assets	Property and casualty reinsurance
in EUR thousand	31.3.2020	31.12.2019
Assets
Fixed-income securities - held to maturity	170,764	171,542
Fixed-income securities - loans and receivables	2,144,081	2,139,810
Fixed-income securities - available for sale	27,973,270	28,806,079
Equity securities - available for sale	303,558	29,215
Financial assets at fair value through profit or loss	109,046	88,400
Other invested assets	4,356,109	4,287,654
Short-term investments	475,868	296,052
Cash and cash equivalents	970,080	780,340
Total investments and cash under own management	36,502,776	36,599,092
Funds withheld	2,780,147	2,393,222
Contract deposits	2,567	2,186
Total investments	39,285,490	38,994,500
Reinsurance recoverables on unpaid claims	1,702,010	1,868,390
Reinsurance recoverables on benefit reserve	-		-
Prepaid reinsurance premium	194,613	114,764
Reinsurance recoverables on other reserves	550	4,489
Deferred acquisition costs	1,312,277	1,061,931
Accounts receivable	3,831,067	3,610,380
Other assets in the segment	2,466,049	1,998,897
Assets held for sale	106,409	36,308
Total assets	48,898,465	47,689,659
Segmentation of liabilities
in EUR thousand
Liabilities
Loss and loss adjustment expense reserve	28,724,197	28,364,351
Benefit reserve	-		-
Unearned premium reserve	5,337,155	4,068,957
Provisions for contingent commissions	358,088	353,359
Funds withheld	359,335	379,411
Contract deposits	72,725	73,023
Reinsurance payable	470,554	824,467
Long-term liabilities	450,313	446,282
Other liabilities in the segment	2,298,455	2,157,872
Liabilities related to assets held for sale	3,057		-
Total liabilities	38,073,879	36,667,722

14	Hannover Re | Quarterly Statement as at 31 March 2020

Life and health reinsurance	Consolidation				Total
31.3.2020				31.3.2020				31.3.2020
31.12.2019				31.12.2019	31.12.2019
50,976	51,507		-	-	221,740	223,049
39,365	39,205		15,273			15,049	2,198,719	2,194,064
9,333,641	9,247,666		20,440			14,714	37,327,351	38,068,459
-		-	-	-	303,558	29,215
830,759	725,398		-	-	939,805	813,798
426,823	426,191		25,775			27,794	4,808,707	4,741,639
232,214	172,298		342			-	708,424	468,350
407,663	307,237		2,201			3,275	1,379,944	1,090,852
11,321,441	10,969,502		64,031			60,832	47,888,248	47,629,426
8,457,316	8,555,247		-	-	11,237,463	10,948,469
327,439	323,116		-	-	330,006	325,302
20,106,196	19,847,865		64,031			60,832	59,455,717	58,903,197
170,706	181,724		-	-	1,872,716	2,050,114
846,625	852,598		-	-	846,625	852,598
234	1,412		(177)			-	194,670	116,176
6,730	4,866		-	-	7,280	9,355
1,728,020	1,869,791		-	-	3,040,297	2,931,722
1,904,995	1,659,675		(343)			(263)	5,735,719	5,269,792
530,877	452,806		(1,561,706)			(1,264,561)	1,435,220	1,187,142
-		-	-	-	106,409	36,308
25,294,383	24,870,737		(1,498,195)			(1,203,992)	72,694,653	71,356,404

4,667,827	4,631,880		-		-	33,392,024	32,996,231
8,797,693	9,028,000		-		-	8,797,693	9,028,000
333,546	322,891		-		-	5,670,701	4,391,848
319,262	319,862		-		-	677,350	673,221
804,089	778,404		-		-	1,163,424	1,157,815
3,483,050	3,508,034		-		-	3,555,775	3,581,057
918,449	681,213		(236)		-	1,388,767	1,505,680
34,232	37,731		2,978,729	2,977,955	3,463,274	3,461,968
2,578,155	2,314,045		(1,517,948)	(1,265,812)	3,358,662	3,206,105
-		-	-		-	3,057		-
21,936,303	21,622,060		1,460,545	1,712,143	61,470,727	60,001,925

Hannover Re | Quarterly Statement as at 31 March 2020

15

Segment statement of income	Property and casualty reinsurance
in EUR thousand	1.1. - 31.3.2020		1.1. - 31.3.2019
Gross written premium		4,986,069	4,394,464
Net premium earned		3,338,019		2,930,210
Net investment income		296,425	235,596
thereof
Change in fair value of financial instruments	(2,193)	(1,194)
Total depreciation, impairments and appreciation of investments	27,050	17,259
Income / expense on funds withheld and contract deposits	10,355	12,153
Claims and claims expenses		2,341,524	1,940,671
Change in benefit reserve		-		-
Commission and brokerage, change in deferred acquisition costs and other technical
income / expenses	945,733	826,466
Administrative expenses	53,946	50,399
Other income and expenses	11,477	(13,863)
Operating profit / loss (EBIT)	304,718	334,407
Financing costs	543	542
Net income before taxes	304,175	333,865
Taxes	89,317	94,625
Net income		214,858	239,240
thereof
Non-controlling interest in profit or loss	7,577	20,205
Group net income		207,281	219,035

16	Hannover Re | Quarterly Statement as at 31 March 2020

Life and health reinsurance		Consolidation		Total
1.1. - 31.3.2020	1.1. - 31.3.2019		1.1. - 31.3.2020	1.1. - 31.3.2019		1.1. - 31.3.2020	1.1. -  31.3.2019
1,989,220		1,978,833		-	-	6,975,289			6,373,297
1,752,781		1,680,567	59		-	5,090,859			4,610,777
174,656		162,529	577		779	471,658			398,904
13,837		28,585		-	-	11,644			27,391
1,519		139		-	-	28,569			17,398
75,232		58,470		-	-	85,587			70,623
1,583,430		1,415,634		-	-	3,924,954			3,356,305
(84,789)		(16,740)		-	-	(84,789)			(16,740)
320,882		328,293		-	-	1,266,615			1,154,759
60,414		61,420	134		126	114,494			111,945
76,720		61,838	(2,795)		(1,342)	85,402			46,633
124,220		116,327	(2,293)		(689)	426,645			450,045
378		391	22,540		20,015	23,461			20,948
123,842		115,936	(24,833)		(20,704)	403,184			429,097
13,039		26,431	(8,204)		(6,819)	94,152			114,237
110,803		89,505	(16,629)		(13,885)	309,032			314,860
578		1,002		-	-	8,155			21,207
110,225		88,503	(16,629)		(13,885)	300,877			293,653

Hannover Re | Quarterly Statement as at 31 March 2020

17

Consolidated cash flow statement as at 31 March 2020

in EUR thousand	1.1. - 31.3.2020		1.1. - 31.3.2019
I.	Cash flow from operating activities
	Net income		309,032	314,860
	Appreciation / depreciation		31,843		15,490
	Net realised gains and losses on investments	(101,864)	(22,280)
	Change in fair value of financial instruments (through profit or loss)		(11,644)	(27,391)
	Realised gains and losses on deconsolidation		-		(6,298)
	Amortisation of investments	2,940	3,421
	Changes in funds withheld	(369,606)	(126,373)
	Net changes in contract deposits	(73,665)	(163,633)
	Changes in prepaid reinsurance premium (net)	1,260,744	1,150,637
	Changes in tax assets / provisions for taxes	(507)	58,390
	Changes in benefit reserve (net)	(61,328)	(298,215)
	Changes in claims reserves (net)	805,250	407,559
	Changes in deferred acquisition costs	(229,746)	(243,600)
	Changes in other technical provisions	20,811	16,976
	Changes in clearing balances	(552,145)	(436,211)
	Changes in other assets and liabilities (net)	(95,190)	65,388
	Cash flow from operating activities	934,925	708,720
II.	Cash flow from investing activities	(563,518)	(585,008)
III. Cash flow from financing activities	(47,883)	(50,898)
IV. Exchange rate differences on cash	(25,211)	27,053
	Cash and cash equivalents at the beginning of the period		1,090,852	1,151,509
	thereof cash and cash equivalents of the disposal group: 78,594
	Change in cash and cash equivalents (I. + II. + III. + IV.)	298,313	99,867
	Cash and cash equivalents at the end of the period	1,389,165	1,251,376
	thereof cash and cash equivalents of the disposal group	9,221		-
	Cash and cash equivalents at the end of the period excluding the disposal group		1,379,944	1,251,376
	Supplementary information on the cash flow statement 1
	Income taxes paid (on balance)	(63,172)	(59,715)
	Dividend receipts 2	27,439	45,491
	Interest received	388,693	388,647
	Interest paid		(51,613)	(75,733)

1. The income taxes paid, dividend receipts as well as interest received and paid are included entirely in the cash flow from operating activities.
2. Includingdividend-like profit participations from investment funds

18	Hannover Re | Quarterly Statement as at 31 March 2020

Other information

The present document is a quarterly statement pursuant to Section 51a of the Exchange Rules for the Frankfurter Wert- papierbörse (BörsO FWB). It was drawn up according to International Financial Reporting Standards (IFRS) as applicable in the EU, but does not constitute an interim financial report as defined by IAS 34 "Interim Financial Reporting" or a financial statement as defined by IAS 1 "Presentation of Financial Statements". Estimates are subject to a greater degree of uncertainty in view of the coronavirus pandemic, and increased use was therefore made of scenario calculations.

The accounting policies are essentially the same as those applied in the consolidated annual financial statement as at 31 December 2019. In the 2020 financial year, a number of

amendments to existing standards and interpretations were issued with no significant implications for the consolidated financial statement:

• Amendments to IFRS 9, IAS 39 and IFRS 17: Interest Rate Benchmark Reform
• Amendments to IAS 1 and IAS 8: Definition of Material
• Amendments to References to the Conceptual Frame- work in IFRS Standards

Hannover Re is exercising the temporary exemption from applying IFRS 9 "Financial Instruments" that is available to companies whose activities are predominantly connected with insurance.

Hannover Re | Quarterly Statement as at 31 March 2020

19

Contact information

Corporate Communications

Karl Steinle

Tel. + 49 511 5604-1500 Fax + 49 511 [e-mail]

Media Relations

Oliver Süß

Tel. + 49 511 5604-1502 Fax + 49 511 [e-mail]

Investor Relations

Julia Hartmann

Tel. + 49 511 5604-1529

Fax + 49 511 [e-mail]

Published by Hannover Rück SEKarl-Wiechert-Allee50 30625 Hannover, Germany Tel. [phone]

Fax [phone]

20	Hannover Re | Quarterly Statement as at 31 March 2020

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