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
We cultivate a strong underwriting discipline
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 and non-traditional solutions. We have no pressure to grow and are prepared to reduce market share in areas where risks are not adequately priced.
We avoid unnecessary costs and manage our capital highly effectively
Our low expense ratio and competitive cost of capital enable us to earn a higher margin than our competitors at the same price. We exploit the opportunities of digitalisation and automation and we minimise our cost of capital through retrocessions and capital market instruments such as hybrid capital.
We are a strong, innovative partner
Based on our partnership-based business approach, we develop customised solutions, address new risks and coverage gaps and seize the global challenges and business opportunities presented by climate change, digitalisation and demographic developments. We put our expertise and leading position in many markets and lines of business holistically at the service of our clients.
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.