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Quarterly statement

as at 30 September 2021

Key figures

in EUR million				2021							2020
		1.1.-		1.7.-		+/-		1.1.-		+/-		1.7.-		1.1.-	31.12. ¹
		30.6.	30.9.		previous	30.9.		previous	30.9.	30.9.
						year				year
Results
Gross written premium		14,464.6		7,155.0		+16.4%		21,619.6		+12.0%		6,148.8		19,294.9
Net premium earned		11,515.3		6,118.6		+13.4%		17,633.9		+11.8%		5,393.6		15,771.7
Net underwriting result ²		124.3		(187.0)				(62.8)				(108.9)		(439.2)
Net investment income		865.8		491.1		+25.3%		1,356.9		+14.5%		391.9		1,185.0
Operating profit (EBIT)		956.1		324.5		-18.7%		1,280.6		+41.8%		399.3		902.9
Group net income		670.6		185.4		-30.2%		855.9		+28.2%		265.5		667.8
Balance sheet
Policyholders' surplus		14,859.2						15,238.2		+8.3%						14,071.0
Equity attributable to shareholders of
Hannover Rück SE		11,050.6						11,409.0		+3.8%					10,995.0
Non-controlling interests		831.7						851.7		+0.9%						844.4
Hybrid capital		2,976.9						2,977.5		+33.4%						2,231.6
Investments (excl. Funds withheld by
ceding companies)		52,847.7						55,029.9		+12.3%					49,001.6
Total assets		78,099.2						81,788.2		+14.5%						71,437.5
Share
Earnings per share (basic and diluted)
in EUR		5.56		1.54		-30.2%		7.10		+28.2%	2.20	5.54
Book value per share in EUR		91.63						94.60		+3.8%				89.74		91.17
Share price at the end of the period in
EUR	141.10						151.35		+16.2%			132.20	130.30
Market capitalisation at the end of the
period	17,016.3						18,252.4		+16.2%			15,942.9	15,713.8
Ratios
Combined ratio (property and casualty
reinsurance) ²	96.0%		101.5%				97.9%			99.6%	101.4%
Large losses as percentage of net pre-
mium earned (property and casualty
reinsurance) ³		4.2%		17.6%				8.9%			11.3%	10.9%
Retention		90.4%		88.4%				89.8%				88.6%		90.1%
Return on investment (excl. funds
withheld by ceding companies)		2.7%		3.3%				2.9%			3.0%	2.8%
EBIT margin ⁴		8.3%		5.3%				7.3%				7.4%		5.7%
Return on equity (after tax)		12.2%		6.6%				10.2%				9.9%		8.3%

¹ Restated pursuant to IAS 8

² Including interest on funds withheld and contract deposits

• 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 ⁴ Operating result (EBIT)/net premium earned

Contents

Quarterly Statement	2
Business development	2
Results of operations, financial positions and net assets	3
Property and casualty reinsurance	3
Life and health reinsurance	4
Investments	5
Outlook	8
Outlook for 2021	8
Consolidated balance sheet as at 30 September 2021	10
Consolidated statement of income as at 30 September 2021	12
Consolidated statement of comprehensive income as at 30 September 2021	13
Group segment report as at 30 September 2021	14
Consolidated cash flow statement as at 30 September 2021	18
Other information	19
Contact information	20

The present document is a quarterly statement pursuant to Section 51a of the Exchange Rules or the Frankfurter Wertpapierbörse.

For further information please see the section "Other information" on page 19 of this document.

Quarterly statement as at 30 September 2021

Business development

• Gross premium for the Group up by 14.4% adjusted for exchange rate effects
• Property and casualty reinsurance records further vigorous growth at improved prices and condi- tions and major loss expenditure above expectations
• Life and health reinsurance reports pandemic-related losses of EUR 403.5 million as at the end of September
• Return on investment reaches 2.9% and is ahead of full-year target
• Group net income of EUR 855.9 million still in line with expectations
• Return on equity reaches 10.2% and thus remains above minimum target

Hannover Re can look back on a nine-month result that further underscored the resilience of its business model as a globally diversified and robustly capitalised reinsurer in a volatile mar- ket.

After major loss expenditure in property and casualty reinsurance had remained comfortably below expectations in the first half of the year, it came in significantly over budget in the third quarter. Furthermore, additional pandemic-related strains were incurred in life and health reinsurance in the third quarter. The result was also adversely affected by exchange rate losses.

These pressures were opposed by some positive effects. While the underlying property & casualty and life & health reinsurance business showed a stable development in line with expectations, the investments delivered a substantially better profit contribution than anticipated. As an additional factor, positive special effects were recorded in life and health reinsurance.

Gross written premium for the Group increased by 12.0% as at

30 September 2021 to EUR 21.6 billion (previous year: EUR: 19.3 billion). Growth would have reached 14,4 % at constant exchange rates. The retention is roughly on a par with the previous year at 89.8% (90.1%). Net premium earned increased by 11.8% to EUR 17.6 billion (EUR 15.8 billion), equivalent to growth of 13.9 % adjusted for exchange rate effects.

Investment income improved by 14.5% year-on-year to EUR 1,356.9 million (EUR 1,185.0 million). The annualised return on investment thus reached 2.9% and was above the original full-year target of around 2.4%

.

Other income and expenses declined by 37.4% to EUR 201.0 million (EUR 321.2 million). This was driven primarily by exchange rate losses of EUR 89 million, after gains of EUR 88 million in the previous year's period.

The operating profit (EBIT) for the Hannover Re Group improved by 41.8% to EUR 1,280.6 million (EUR 902.9 million). Group net income in the first nine months of the year grew by 28.2% to EUR 855.9 million (EUR 667.8 million). Earnings per share came in at EUR 7.10 (EUR 5.54).

Hannover Re's shareholders' equity increased to EUR 11.4 billion as at 30 September 2021 (31 December 2020: EUR 11.0 billion). The annualised return on equity amounted to 10.2% (31 December 2020: 8.3%), clearly beating the minimum target of 900 basis points above the risk-free interest rate. The book value per share thus totalled EUR 94.60 (31 Decem- ber 2020: EUR 91.17).

The capital adequacy ratio at the end of September stood at 239% and was thus comfortably above our internal limit of 180% and our threshold of 200%.

In October Hannover Re also announced that it was joining the United Nations-convenedNet-Zero Insurance Alliance. By committing to achieve net zero targets, Hannover Re is taking a major step towards advancing the transition to a climate-friendly economy. Among other things, we have undertaken to achieve net zero emissions in our own business operations by 2030 and in reinsurance business and investments by 2050.

2	Hannover Re | Quarterly Statement as at 30 September 2021

Results of operations, financial position and net assets

Property and casualty reinsurance

• Gross premium up by 17.7% adjusted for exchange rate effects
• Major loss expenditure climbs to EUR 1,070.2 million after catastrophic flooding in Europe and Hurricane Ida
• No further net strains from the Covid-19 pandemic
• Sustained trend towards higher rates and improved conditions in treaty renewals
• Operating profit improves on previous year by 80.3%

The third quarter in property and casualty reinsurance was impacted by large losses that clearly exceeded expectations. As a result, the total major loss budget of EUR 1.1 billion that we had calculated for the full year was already virtually exhausted by the end of September.

On the other hand, no further net strains have been incurred for Covid-19-related losses over the course of the year.

In response to the present challenges, a sustained improvement in prices and conditions can be observed across a broad front in both primary insurance and reinsurance. In this context we continue to make the profitability of the underwriting results our highest priority, also bearing in mind the protracted low interest rate environment and the sharp uptick in inflation in some areas.

The treaty renewals in property and casualty reinsurance as at 1 June and 1 July passed off correspondingly favourably for Han- nover Re. It is at this time of the year that parts of the North American portfolio, some natural catastrophe risks and certain reinsurance risks in credit and surety business are renegotiated. The main renewal season also took place for business in Aus- tralia and New Zealand. On the whole, further price increases were obtained here; these were more significant for programmes or regions that had suffered losses.

Gross written premium in the Property&Casualty reinsurance business group increased by 14.4% to EUR 15.3 billion (previ- ous year: EUR 13.3 billion). At constant exchange rates growth would have reached 17,7 %. Net premium earned improved by 14.9% to EUR 12.1 billion (EUR 10.5 billion); growth would have amounted to 17.8% adjusted for exchange rate effects.

Particularly significant drivers of the major loss expenditure in the third quarter were the flood damage in Europe and hurricane losses in the United States, although losses caused by civil unrest in South Africa and by other natural perils were also a factor here. Our net burden of large losses as at 30 September came to altogether EUR 1,070.2 million (EUR 1,149.3 million). This was considerably higher than the figure of EUR 849 million that we had budgeted for the first nine months. The largest individual losses for net account were Hurricane Ida at EUR 305.7 million, storm damage associated with the low-pressure system Bernd costing EUR 214.2 million, civil unrest in South Africa in an amount of EUR 93.8 million and flooding in China totalling EUR 34.5 million. We designate events for which we anticipate gross loss payments of more than EUR 10 million as major losses.

The underwriting result for total property and casualty reinsurance including interest on funds withheld and contract deposits stood at EUR 252.6 million (EUR -145.8 million). The combined ratio amounted to 97.9% (101.4%). While large losses took a significant toll on the result, the underlying business developed as planned and the growth booked in an attractive pricing environment continued to surpass our expectations.

The income from assets under own management booked for property and casualty reinsurance grew by 43.4 % to EUR 956.9 million (EUR 667.1 million).

The operating profit (EBIT) for the Property&Casualty reinsurance business group improved by 80.3% to EUR 1,061.2 million (EUR 588.5 million). The net income generated in property and casualty reinsurance surged by 76.8% to EUR 739.2 million (EUR 418.2 million)

Hannover Re | Quarterly Statement as at 30 September 2021

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