As a reinsurer, we enter into a broad variety of risks which, on the one hand, open up business opportunities but, on the other hand, can also have adverse implications for our company. Our goal is to make optimal use of opportunities while at the same time adequately controlling and managing the risks associated with our commercial activities. The risk strategy derived from the corporate strategy forms the basis for our approach to handling opportunities and risks.

Opportunity management

In order to foster the important success factors of our corporate culture in our fast growing company, Hannover Re initiated a bottom-up process to uncover the group-wide values and a purpose statement. The essential values „responsibility“, „drive“ und „we-spirit“ are consistent with our purpose: „Beyond risk sharing - we team up to create opportunities“.

According to this purpose, Hannover Re systematically analyses business ideas and opportunities with the aim of generating new business and promoting sustainable growth. It activates the innovation potential of its worldwide network of experts and invests consistently and with focus in promising areas of activity.

For the business fields of property and casualty reinsurance and life and health reinsurance, we specifically consider new business opportunities that promise access to innovative technologies. We specifically support InsurTechs in building their digital business models, which generates new premium potential for the Group.

With extensive contacts in the global insurance industry, Hannover Re is well placed to host an innovation platform allowing InsurTechs to market their solutions exclusively to our clients. Our clients in turn have direct access to a pool of services and solutions, as well as business cases demonstrating successful implementations around the world. Solutions and services can be pitched on www.equarium.com.

Risk management

Through our global orientation and our operations in all lines of reinsurance we achieve extensive risk equalisation. In particular, diversification between our Property & Casualty and Life & Health reinsurance business groups enables us to effectively deploy our capital.

We manage our total enterprise risk such that we can expect to generate positive Group net income with a probability of 90% and the likelihood of the complete loss of our economic equity and shareholders’ equity does not exceed 0.03% p. a. These indicators are monitored using our internal capital model.

The rating agency Standard & Poor's assessed Hannover Re's risk management as "very strong", the highest rating.

Risk landscape

The risk landscape of Hannover Re encompasses technical risks in property/casualty and life/health reinsurance, market risks, counterparty default risks, operational risks and other risks. The specific risk characteristics and the principal monitoring and management mechanisms are described in detail in the respective sections of the current Group Annual Report.