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Infoletter 2/2005 dated 08.07.2005

Welcome to the latest infoletter of the Human Resources Management department of Hannover Re.  After a very successful trainee assessment centre this year in May, we would like to provide you an insight into being a trainee at Hannover Re and having a successful start at our company with our trainee programme for university graduates. Mr. Jens Schäfermeier, trainee at Hannover Re since about two years, reports on his experiences.

Another focus of this infoletter is the Interim Report about the 1st quarterly performance of Hannover Re.

We wish you a lot of pleasure reading our infoletter.

Trainee at Hannover Re – an experience report

„To work for a reinsurance company do not cross so many university graduates minds, while looking for their first job. The reason could be that this branch is familiar only to a few of them. Although it is offering not only several challenging tasks, but multifaceted career perspectives – as I found out since my access at Hannover Re a three-quarter year ago.

The trainee programme at Hannover Re is 18 month long and takes place in different regional or technical marketing divisions and departments. The stages, in which individual interests and abilities of the participants are considered as far as possible, take between six and twelve weeks. During his traineeship the trainee has the opportunity to, for example, check treaty offerings in the underwriting business, deal with brokers or redesign the internet presence of Hannover Re. The stages are supplemented by different projects, trainings and seminars.

 
Reliance is indispensable in the insurance business. Therefore great importance is attached to trainees learning in the course of their trainee programme how to do professional customer care. That includes primarily the permanent and direct contact to the customer or his broker, by personal conversations, telephone calls or e-mails. Beside communicative abilities it also requires a good portion of diplomatic skills. In the end one is really convincing, who has technical competence and who gives consideration to the needs of the clients without losing sight of one’s own interests.

If there is a new customer request on hand, you have to valuate the covered risks with suitable analysis tools at first. This demands not only detailed working and good numerical skills, but the ability to decipher complex problems. Even here communication plays a very important role. Because in dialogues with the customer and the colleagues you have to treat with open questions and clear discrepancies until the contract terms are negotiated and the contract text is drawn up. Thereby, negotiating skill and exact wording is important. It has to be thought of all eventualities and that everything is legally safeguarded. 

The icing on the cake of the trainee programme is a 3-month stay in a subsidiary or representative office abroad. The location depends on the specialisation of the trainees. Due to the worldwide net of subsidiaries of Hannover Re, stays in London or Kuala Lumpur are just as possible as in Australia or on the Bermudas. If the trainee programme is completed, the trainees take place in one of the market or service divisions.

Graduates who are applying for a trainee programme at Hannover Re should have completed studies of economics, mathematics or law. Graduates of interdisciplinary courses of studies are welcome as well, for example a business lawyer or a business mathematician. So I have studied at the FH Nordostniedersachsen in Lüneburg.

 

The course of study should have been completed not longer than a year ago up to the time you are applying or should be completed within a short time. Applicants should have first practical experiences. Among this counts for example internships or an apprenticeship in the insurance business or side jobs at financial service providers.  Because of the internationality of our company a good knowledge of foreign languages is essential. I’m talking about business fluent English and good knowledge of a further foreign language.

Supplemented by a few month of work experience abroad, gained through an internship or one or the other semester abroad, nothing should get in the way of an invitation for an interview. If you have convinced the human resources management, you will be invited to a one and a half day long assessment centre.

It’s worth to take all these wattles. Because after that, you are starting in a global acting company, that offers you challenging tasks in an exceptional work environment. An environment, that is characterised by short decision making processes, a prompt feedback on the part of the disciplinarians and the work in young and highly motivated teams.

I am sure: One, who loves professional challenges and working together with people from other culture areas, will feel good at Hannover Re.”

 

HannoverRe posts another highly gratifying quarterly performance 1/2005

Hannover Re made the most of the sustained highly advantageous market conditions in property and casualty reinsurance and continued to profitably expand its business. Despite an unusually high burden of catastrophe losses in the first quarter, an excellent combined ratio of 97.1% was achieved in property and casualty reinsurance. The operating profit (EBIT) for total business climbed by 16.2% in the first quarter relative to the same period of the previous year to reach 179.5 million euro. Quarterly net income grew by 11.1% to 107.7 million euro, equivalent to earnings of 89 cents (80 cents) a share. "With this result we have taken the first major step towards achieving our defined profit target for 2005", Wilhelm Zeller, Chairman of the Executive Board, emphasised.

Hannover Re's capital base also continued to improve: stockholders' equity increased by 4.0% compared to the position as at 31.12.2004 to reach 2.7 billion euro.

The Group's gross written premium expanded by 6.2% for the first time after sharp decreases in 2003 and 2004. Gross premiums for the first quarter of 2005 totalled 2.6 billion euro (2.5 billion euro). At constant euro exchange rates, especially against the US dollar, growth would have been even as much as 10.1%. The level of retained premiums climbed by another 4.8 percentage points to 84.3%, and net premiums rose even more strongly by 11.2% to 1.8 billion euro (1.6 billion euro). …

"We expect a favourable business development over the course of the 2005 reporting year", Mr. Zeller reiterated.

 
Rates and conditions remain good in property and casualty reinsurance, and Hannover Re is therefore looking to sustained premium growth. Provided major losses remain within the bounds of the multi-year average as the year progresses, the result generated by property and casualty reinsurance should again surpass the previous year.

In life and health reinsurance further double-digit premium growth in the original currency is expected, especially from Germany, the United Kingdom and Asian markets. All in all, Hannover Life Re anticipates significantly higher profitability.

In financial reinsurance Hannover Re continues to expect a double-digit percentage drop in premium volume. Net income for the year is nevertheless likely to be most attractive.

Premium income in program business will be lower than in the previous year. Clarendon's restructuring efforts should be rewarded with a positive result that will build on 2003 (42.2 million euro) and thus at least cover the cost of capital.

For 2005 Hannover Re anticipates another very positive underwriting cash flow and hence further growth in the asset portfolio. Given modestly rising interest rates, investment income should therefore also come in somewhat higher.

 

"In view of the development of our business groups discussed above, I am confident that we can significantly boost our profitability in the year under review", Mr. Zeller emphasised. Assuming that major loss expenditure remains in line with the multi-year average and provided there are no adverse movements on capital markets, Hannover Re anticipates net income in the order of 430 - 470 million euro, or roughly 3.60 - 3.90 euro a share.

The complete interim report you can read here:

http://www.hannover-re.com/media/.../pr050512/index.html

Summer season is holiday season

At Hannover Re as everywhere the summer season is noticeable. Many of our employees are going on their well-deserved vacation. A reason for us to wish you all a beautiful summer with lots of sunshine, and recreative days of vacation with your family or friends.

The next infoletter is released in autumn, than again with information of open positions at our company and at which job fairs you can meet us in autumn/winter 2005.