Our vision: Creating value through reinsurance

Our claim: “Somewhat different”

  • Global player, well positioned, operating with above-average profitability
  • Quick, flexible and independent
  • Lean structures, efficient organisation

Our business model

We transact reinsurance in the business groups of Property & Casualty and Life & Health. We achieve competitive advantages by conducting our business with comparatively low management expenses and a lower cost of capital. In addition, as one of the largest and most robustly funded reinsurance groups we enjoy preferential access to business. This enables us to provide our clients with competitive terms on our reinsurance offerings while at the same time delivering a profit that is above the average for the sector. In property and casualty as well as in life and health reinsurance we assume risks in all lines of business and, based on our global presence, in all geographical regions provided the business fulfils our margin requirements. The diversification thereby achieved is the key to our lower cost of capital.

1. We pursue ambitious economic growth targets

In the interest of our clients, shareholders, employees and business partners we attach crucial importance to ensuring sustainable growth. Paramount here is the increase in the earnings per share and the enterprise value (defined as our economic capital) including dividends.

We therefore consider growing our premium volume at a pace that in the long term exceeds that of the reinsurance market to be a key success factor. We intend to achieve this primarily through organic growth. Acquisitions are considered only if their integration into the Hannover Re Group adds value to Hannover Re and expedites the accomplishment of our strategic objectives.

2. We are a preferred business partner

Our economic success hinges on our status as a preferred business partner for our clients. This is dependent upon our ability to enhance our clients’ commercial success through our risk solutions and the services that we provide as a reinsurer. Our value proposition is the decisive factor in this context: We are highly responsive and reliable in delivering solutions, even those which are complex and individually tailored.

As evidence of our financial strength, we attach great importance to maintaining excellent ratings from the rating agencies most relevant to our industry that facilitate and safeguard our access to all desirable business worldwide. Currently, this means ensuring ratings of “AA–“ from Standard & Poor’s (with a “Very Strong” for Enterprise Risk Management) and “A+” from A.M. Best.

3. We aim for successful employees

The success of our company depends directly on the successful work of our employees. We therefore pay particularly close attention to the qualifications, experience and commitment of our staff and foster these attributes through our excellent personnel development and leadership practices.

Our strategic human resources planning enables us to harmonise the size and skills of our workforce with the current and future requirements of our global market presence as well as with the requirements of increasing digitalisation.

The basis of our common corporate culture is the greatest possible delegation of tasks, responsibilities and authority. In this way we ensure that our employees are able to act in a quick and flexible manner.

4. We strive for an optimal balance between stability and yield of our investments

The structure of our investment holdings is guided by the requirements of our technical liabilities and our capitalisation. It particularly reflects the maturities of our liabilities as well as the currency exposure, which we cover on a matching basis to the greatest possible extent. Furthermore, we secure the liquidity required for our business. With this in mind, we pursue an investment policy that emphasises the stability and predictability of the return that we intend to generate.

5. We manage risks actively

In order to accomplish our business objectives, we enter into a broad range of risks which – while offering opportunities for profit – can also have adverse implications for the company. Risk management therefore forms an integral component of our value-based enterprise management and hence of all underlying decision-making processes. The foundation of our quantitative risk management is our internal capital model which has been approved by the regulator. The solvency ratio limit of 180% is equivalent to an "AA" credit rating and defines our risk appetite across the entire portfolio as well as for individual lines of business.

6. We maintain an adequate level of capitalisation

Our required equity resources are determined by the requirements of our internal capital model, solvency regulations, the expectations of the rating agencies in relation to our target rating and the expectations of our clients and shareholders. In addition, we maintain a sufficient equity cushion to enable us to act on available business opportunities at all times. In periods when our shareholders’ equity is growing faster than our profits, we are prepared to use special dividends to balance the equity growth with our profit growth.

7. We conduct our business with lower costs than our competitors due to our high efficiency

We believe that our low expense ratio – relative to our competitors – gives us a sustained competitive advantage. We safeguard this advantage through an effective and efficient organisation geared to our business processes.

8. We support our business through efficient information technology and take advantage of digitalisation and automation

Information management has evolved into an important competitive factor. Our information and communication systems assure efficient support for our business processes. We encourage the acquisition of new technologies provided that the cost / benefit considerations are favourable. We rise to the challenges of digitalisation and automation and see them as a means to develop new business opportunities, optimise internal processes and shape the interaction with our clients as efficiently as possible.

9. We are committed to sustainability, integrity and compliance

Sustainability forms an integral element of our actions. We therefore take the environmental, social and ethical aspects of our activities into consideration, both in the pursuit of economic interests as part of day-to-day business and in the context of our strategy. Since we equate sustainability with foresight and future viability, we are also prepared if necessary to relinquish short-term profits to this end.

10. We strive for Performance Excellence and continuous improvement

In order to ensure the execution of our strategy across all areas of our organisation, we apply our holistic management system of Performance Excellence. In this way, we ensure that the actions of all our corporate units are geared to the accomplishment of our strategic objectives and that our goal-oriented performance is continuously improved.