Hannover Re's quantitative strategic targets:

Business groupKey figures2019

1 Excl. effects from ModCo derivatives
2 After tax; target: 900 bps above 5-year average return of 10-year German government bonds
3 Growth in economic equity including dividends paid; target: 600 bps above 5-year average return of 10-year German government bonds
4 According to our internal capital model and Solvency II requirements as of 31 December 2018
5On average throughout the R/I cycle; at constant f/x rates
6 Incl. large loss budget of EUR 875 million
7 EBIT/net premium earned
8 Excess return on allocated economic capital
9 Organic growth only; annual average growth over a 3-year period, at constant f/x rates
10 Based on Solvency II principles and pre-tax reporting
11 Annual average growth over a 3-year period

Group Return on investment1 ≥ 2.8%
Return on equity2 ≥ 9.4%
Earnings per share growth (y-o-y) ≥ 5.0%
Economic value creation3 ≥ 6.4%
Solvency ratio4 ≥ 200%
Property & Casualty reinsurance Gross premium growth5 3-5%
Combined ratio6 ≤ 97%
EBIT margin7 ≥ 10%
xRoCA8 ≥ 2%
Life & Health reinsurance Gross premium growth9 3-5%
Value of New Business (VNB)10 ≥ EUR 220 m.
EBIT growth11 ≥ 5%
xRoCA8 ≥ 2%