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Corporate Governance

Corporate Governance describes for the Executive Board and Supervisory Board of Hannover Re a changing institutional framework for the management and supervision of the company in all key areas of enterprise constitution. The goal is to bring about sustained growth in the value of the company as well as to strengthen and consolidate on a lasting basis the trust placed in the enterprise by our shareholders, business partners, clients, employees and the general public.

Against this backdrop, the Executive Board and Supervisory Board consistently address changes in the relevant legal framework conditions in a timely manner and the latest legal developments are promptly codified in internal corporate standards. In 2009 the company had to adapt to numerous new statutory regulations, inter alia the Act on the Modernisation of Accounting Law (BilMoG), the Act on the Adequacy of Management Board Remuneration (VorstAG) and the Act on Implementation of the Shareholder Rights Directive. The German Corporate Governance Code was amended and revised. The new regulations affect virtually all areas of corporate governance and implement additional duties that are also reflected in new organisational requirements and give rise to further reporting duties. A state-of-the-art Corporate Governance continues to be enshrined in Hannover Re's business practices as a matter of course.

Recommendations of the Code as amended 18 June 2009

While in the previous year Hannover Re diverged with respect to one item of the German Corporate Governance Code, it diverged with respect to one item of the Code as amended 18 June 2009. The item in question involves a recommendation that a severance cap should be included when new management contracts are drawn up or existing ones renewed. The reasons for our decision are explained in the Declaration of Conformity.