Annual Report 2010 - Hannover Re

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here, while the experience of our biometric risks of mortality and morbidity came in somewhat below expectations. With an operating profit (EBIT) of EUR 284 million we generated an EBIT margin of 6.1 percent; this is within the range of our target return. Net income after tax was highly satisfactory at around EUR 220 million. Our investment performance continues to be overshadowed by the low level of interest rates. While this curtailed the investment income, we were able to book gains on the sale of government bonds. During the second half of the year under review – in accordance with our strategic asset allocation – we stepped up investments in corporate bonds as part of our reinvestment activities. We increased the percentage share of this asset class overall, while always paying close attention to the quality of debtors and a broad spread of the risks. What is more, in the third quarter of 2010 we began to move back into listed equity with a limited budget. At the end of the year under review 2.1 percent of our investment portfolio was invested in this asset class – a proportion that we plan to increase moderately during the current year. Thanks not least to the continued highly positive cash flow from operating activities, our portfolio of assets under own management grew by almost EUR 3 billion to more than EUR 25 billion. This led to a pleasing increase of 8.6 percent in current investment income. All in all, then, we generated income of EUR 943 million from the assets under own management – a performance with which we are thoroughly satisfied. Including deposit interest and expenses, net investment income rose by 12 percent to EUR 1.3 billion. The efforts that we have made over the past two years to tap into new business opportunities in non-life reinsurance are bearing initial fruit. In cooperation with a partner in the United States, for example, we launched a new insurance product on the market designed to guarantee the energy savings promised by companies that make energyimproving upgrades to buildings. In this way we are able to play our part in reducing energy consumption and hence the emission of greenhouse gases. We are pleased to report that we have already written business in this area. Even though the trend towards softer markets in non-life reinsurance looks set to continue in the current financial year, we expect to achieve a very good result for 2011. In life and health reinsurance it is our expectation that the business written in past 6 Letter from the Chairman of the Executive Board Hannover Re Group annual report 2010
years will generate increasing income in 2011. What is more, we continue to assess the prospects for writing new business as good to very good, and we therefore take an optimistic view of the results trend in life and health reinsurance over the medium term as well. We expect to record further substantial growth in both non-life and life/health reinsurance in 2011. At constant exchange rates growth should be in the region of 5 percent overall. In view of the unchanged good quality of our portfolio, we anticipate net income in the order of EUR 650 million for the current year – always assuming that the burden of major losses remains within expectations and there are no fresh distortions on financial markets. For our investors On my own behalf and that of my colleagues on the Executive Board I would like to thank you, our valued shareholders, most sincerely for your confidence. Yours sincerely, Ulrich Wallin Chairman of the Executive Board Hannover Re Group annual report 2010 Letter from the Chairman of the Executive Board 7
Page 1 and 2: Annual Report 2010
Page 3 and 4: The Hannover Re Group America Europ
Page 5 and 6: Contents For our investors 2 - 15 L
Page 7 and 8: Our operational business was impact
Page 9: Our life and health reinsurance bus
Page 13 and 14: For our investors Seated from left
Page 15 and 16: The market capitalisation of the Ha
Page 17 and 18: Basic information Securities identi
Page 19 and 20: Strategic objectives 1. Profitable
Page 21 and 22: Macroeconomic climate The global ec
Page 23 and 24: Business development We are thoroug
Page 25 and 26: Non-life reinsurance Accounting for
Page 27 and 28: Along with the aforementioned natur
Page 29 and 30: The establishment of the Federal In
Page 31 and 32: The Die beste volatility Volatilit
Page 33 and 34: Credit and surety Breakdown of gros
Page 35 and 36: Thanks not least to a new branch of
Page 37 and 38: The insurance sector continues to b
Page 39 and 40: have enlarged our portfolio. In the
Page 41 and 42: anch in Shanghai concentrates on bu
Page 43 and 44: Ageing macht creates Märkte market
Page 45 and 46: Key figures for life and health rei
Page 47 and 48: new business. Against this backdrop
Page 49 and 50: The rating agency Standard & Poor
Page 51 and 52: Rating of fixed-income securities
Page 53 and 54: In 2009 Hannover Re launched anothe
Page 55 and 56: Solvency For our company II heißt
Page 57 and 58: Social commitment Hannover Re’s c
Page 59 and 60: Opportunity and risk report Overrid
Page 61 and 62:
Available capital and required risk
Page 63 and 64:
Internal risk management and contro
Page 65 and 66:
The table below lists the catastrop
Page 67 and 68:
Sensitivity analysis of the Market
Page 69 and 70:
events. Further significant risk ma
Page 71 and 72:
Gross written premium retained in %
Page 73 and 74:
Strategic risks derive from the ris
Page 75 and 76:
Performance Excellence Check The PE
Page 77 and 78:
Financial position Asset / liabilit
Page 79 and 80:
Financing and Group debt In additio
Page 81 and 82:
Financial strength ratings of subsi
Page 83 and 84:
Naturkatastrophen Natural catastrop
Page 85 and 86:
Corporate Governance The principles
Page 87 and 88:
for orderly performance of their ta
Page 89 and 90:
in question. With the aim of making
Page 91 and 92:
The Annual General Meeting of Hanno
Page 93 and 94:
Measurement bases/conditions of pay
Page 95 and 96:
Individual remuneration received by
Page 97 and 98:
motivation, customer satisfaction,
Page 99 and 100:
eversal. Nevertheless, we anticipat
Page 101 and 102:
of demand and the diversification o
Page 103 and 104:
Profit and growth targets for 2011
Page 105 and 106:
as at 31 December 2010 Liabilities
Page 107 and 108:
Consolidated statement of comprehen
Page 109 and 110:
Consolidated cash flow statement 20
Page 111 and 112:
Figures in EUR thousand 1.1.- 31. 1
Page 113 and 114:
as at 31 December 2010 Life/health
Page 115 and 116:
as at 31 December 2010 Life/health
Page 117 and 118:
1. Company information The parent c
Page 119 and 120:
Standards Applicable to financial y
Page 121 and 122:
Impairments: as at each balance she
Page 123 and 124:
asis of a five-year detailed plan a
Page 125 and 126:
come. Currency translation differen
Page 127 and 128:
The projections, which cover variou
Page 129 and 130:
The following list of shareholdings
Page 131 and 132:
Name and registered office of the c
Page 133 and 134:
Name and registered office of the c
Page 135 and 136:
Investments Within the scope of its
Page 137 and 138:
5. Notes on the individual items of
Page 139 and 140:
The stated maturities may in indivi
Page 141 and 142:
Amortised cost, unrealised gains an
Page 143 and 144:
Carrying amounts before impairment
Page 145 and 146:
Breakdown of investments by currenc
Page 147 and 148:
In addition, we held indirect real
Page 149 and 150:
Development of level 3 financial in
Page 151 and 152:
Development of deferred acquisition
Page 153 and 154:
This item principally consists of t
Page 155 and 156:
Technical provisions in EUR thousan
Page 157 and 158:
Net loss reserve and its run-off in
Page 159 and 160:
Liabilities in liability and motor
Page 161 and 162:
From 1997 onwards it has been possi
Page 163 and 164:
The recognised provision for pensio
Page 165 and 166:
in EUR thousand Other reclassificat
Page 167 and 168:
Debt and subordinated capital in EU
Page 169 and 170:
Furthermore, a long-term unsecured
Page 171 and 172:
6.2 Investment income Investment in
Page 173 and 174:
6.3 Reinsurance result Reinsurance
Page 175 and 176:
Tax-relevant bookings on the Group
Page 177 and 178:
The following table presents a reco
Page 179 and 180:
Maturity structure of derivative fi
Page 181 and 182:
Business assumed and ceded in Germa
Page 183 and 184:
last twenty trading days prior to t
Page 185 and 186:
On this basis the aggregate provisi
Page 187 and 188:
7.7 Contingent liabilities and comm
Page 189 and 190:
7.11 Events after the balance sheet
Page 191 and 192:
Responsibility statement To the bes
Page 193 and 194:
ated by a reinsurance subsidiary do
Page 195 and 196:
- in each case drawn up as at 31 De
Page 197 and 198:
Branch offices and subsidiaries of
Page 199 and 200:
Spain United Kingdom USA HR Hannove
Page 201 and 202:
Corporate Governance: serves to ens
Page 203 and 204:
Life and health (re-)insurance: col
Page 205 and 206:
Segmental reporting: presentation o
Page 207 and 208:
Financial calendar 2011/2012 9 Marc
Page 209 and 210:
Contact information Corporate Commu
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Annual Report 2010 - Hannover Re

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