Hannover Re is well positioned to further extend its position as one of the leading, most profitable globally operating reinsurers on a sustainable basis. We have a clear purpose statement and a sound set of values which in their uniqueness express what has made us somewhat different in the past – and the strengths we want to carry over to the future.

We have very strong financial strength ratings

The rating agencies most relevant to the insurance industry have awarded Hannover Re very strong insurer financial strength ratings (Standard & Poor's AA- "Very Strong" and A.M. Best A+ "Superior"). This ensures access to attractive new business.

Our status as a large globally diversified reinsurer has advantages

We have the capability to offset price pressure in individual lines of business. Our diversification between P&C and L&H reinsurance is highly valued by rating agencies. Our expertise across all lines enables us to cater to the growing demand for sophisticated multi-line solutions.

We avoid unnecessary costs

Our low expense ratio and competitive cost of capital enable us to earn a higher margin than our competitors at the same price. We are under no pressure to grow and we are prepared to reduce our market shares in areas where risks are not adequately priced.

We are well positioned for further profitable growth in Life & Health

Hannover Re operates worldwide in life and health reinsurance and is one of the most important market players on all continents. The Life & Health business group generated 38% of total premium income in 2018 and is an important contributor to the performance of the Hannover Re Group through diversification effects and the positive development of new business.

We intend to expand our presence through a strong focus on

  • High growth markets
  • Changing regulatory environments worldwide
  • Digital distribution channels and automated underwriting

We have a competitive edge in Property & Casualty

Hannover Re is well positioned in property and casualty reinsurance thanks to its extensive expert know-how and high loss reserves. We continue to adhere to our active cycle management and rigorous underwriting approach. We expect future growth opportunities from developments such as:

  • Increasing insurance density in emerging markets
  • Implementation of risk-based models for calculating solvency requirements not only within but also outside the European Union which is stimulating demand for reinsurance solutions offering solvency relief
  • Global trends supporting above-average growth in specific lines such as cyber risks, agricultural risks and multi-line solutions.

We shall generate a solid return on investment despite the continued low interest rate environment

Hannover Re will maintain the conservative orientation of its investment policy with a focus on risk diversification despite the low interest rate environment. Our investment portfolio will continue to grow, not least on the basis of a sustained, very positive operating cash flow.

We have a rigorous and highly advanced approach to steering our business so as to ensure economic value creation and attractive returns on equity

Our economic capital model covers risks from all business operations. Performance is measured using our strategic management indicator Intrinsic Value Creation (IVC). With the aid of the IVC ratio it is possible to compare the value contributions of the Group as a whole, its two business groups and the individual operational units.