Annual Report 2003 - Hannover Re

Strategy and self-image
Strategic principles
4. Investments
• Priority attached to investments aimed at
achieving an optimally diversified portfolio
5. Growth
• Organic growth before acquisitions
• Acquisitions only when they offer more
than volume growth
6. Invested assets
• Generation of an optimal profit contribution
in the light of risk/return considerations
• Ongoing dynamic financial analysis for the
purposes of optimal asset/liability management
7. Organisation and infrastructure
• An effective and efficient organisation
oriented towards our business processes
• Investment priority for information management
as an increasingly significant competitive
factor
• Accounting systems that satisfy internal
and external reporting requirements and
support our business processes
8. Human resources policy
• Attractive jobs for ambitious, performanceminded
employees who identify with our
corporate objectives
• Constant improvement of qualifications and
motivation
• Fostering of entrepreneurial thinking by
delegating tasks, authorities and responsibility
wherever possible
Strategic fields of action
10. Performance Excellence
• Constant improvements in leadership, the
definition and communication of business
policy, the quality of employees and in the
management of resources and processes
• Attainment of optimal performance levels
as regards both satisfaction among staff
and clients and the business results
After-tax return on equity
in %
20
15
10
5
0
14.8
18.5
1995 1 1996 1 1997 1 1998 2 1999 2 2000 2 2001 2 2002 2 2003 3
Minimum
14.3
16.4
15.8
13.9
Actual
13.5
16
1)
HGB-Basis
2)
Based on US GAAP
Target: 750 basis points in excess of the average five-year yield on 10-year government bonds
3)
Commercial treatment: on the need to apply the "as-if-pooling" method under US GAAP cf. p. 19 et seq.
13.0
17.1
13.5
26.0
12.6
0.7
12.3
15.7
12.2
17.1
9. Risk management
• Ongoing monitoring of all risks that could
jeopardise the continued existence of the
Group or individual parts thereof
15