Annual Report 2003 - Hannover Re
Annual Report 2003 - Hannover Re
Annual Report 2003 - Hannover Re
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The <strong>Hannover</strong> <strong>Re</strong> share<br />
The opinions of our analysts<br />
We see <strong>Hannover</strong> <strong>Re</strong> as the highest quality<br />
reinsurer in our universe. It is the only company<br />
that we feel espouses disciplined cycle management<br />
and has a track record to prove it. (...) <strong>Hannover</strong><br />
<strong>Re</strong> is the only reinsurer in our universe to<br />
have not destroyed value with its underwriting<br />
activities over the past ten years.<br />
Brian Shea<br />
Merrill Lynch, London<br />
March 2004<br />
Flexible cycle management has enabled<br />
<strong>Hannover</strong> <strong>Re</strong> to exploit the hard market in nonlife<br />
reinsurance more aggressively than its competitors<br />
(...). Long-tail business was expanded<br />
disproportionately strongly, and the company<br />
practises a conservative reserving policy. It is thus<br />
likely that the fruits of the business written during<br />
the present market phase will be harvested progressively<br />
for some years to come.<br />
Thorsten Wenzel<br />
DZ Bank, Frankfurt<br />
January 2004<br />
Analyst ratings of the <strong>Hannover</strong> <strong>Re</strong> share<br />
5<br />
4 4.00<br />
3<br />
2<br />
1<br />
3.63<br />
4.31<br />
4.03<br />
0<br />
1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter<br />
<strong>Hannover</strong> <strong>Re</strong> has shown itself to be the<br />
most adept reinsurer at calling the cycle in our<br />
European universe, shrinking its book in soft<br />
markets while expanding aggressively during<br />
hard markets. The current hard market has been<br />
no different, with the group again making its<br />
way up the table and becoming part of the<br />
reinsurance "big league". The group has managed<br />
to retain an IFS rating in the AA- range,<br />
superior to most of its peers, which is a tribute<br />
to the way that the group manages its stringent<br />
capital base.<br />
Paul O’Sullivan<br />
ABN Amro, London<br />
January 2004<br />
<strong>Hannover</strong> <strong>Re</strong> is taking advantage of the<br />
current hard reinsurance market to strengthen<br />
underwriting discipline (the so-called "morefrom-less"<br />
programme) while at the same time<br />
taking a cautious approach to reserving, and<br />
this is now filtering through to the company's<br />
earnings via the improved combined ratio (...).<br />
Management also appears to be delivering on<br />
its promise to reduce the company's reinsurance<br />
recoverables asset by 30% by the end of 2005<br />
(...) This, combined with the company's strong<br />
earnings performance means that <strong>Hannover</strong><br />
<strong>Re</strong> is moving swiftly along the roadmap agreed<br />
with S&P to remove the negative outlook on its<br />
AA- rating.<br />
Gerald Farr, Michael Huttner<br />
J. P. Morgan, London<br />
November <strong>2003</strong><br />
Sell Underweight Hold<br />
Overweight<br />
Buy<br />
Rating<br />
Amount<br />
1 st Quarter<br />
2 nd Quarter<br />
3 rd Quarter<br />
4 th Quarter<br />
Buy 63 9 12 22 20<br />
Overweight 10 3 7 – –<br />
Hold 24 7 6 4 7<br />
Underweight 4 1 3 – –<br />
Sell 11 – 4 3 4<br />
Total 112 20 32 29 31<br />
12
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