Hannover Re’s investment policy strives for the generation of stable and risk-commensurate returns while at the same time safeguarding liquidity and solvency. In so doing, the company ensures high diversification of risks and limits currency exposures and maturity risks through matching currencies and maturities. The modified duration of the bond portfolio is therefore guided largely by the insurance-side liabilities. In addition, Hannover Re incorporates environmental, social and governance criteria (ESG criteria) into its investment policy. This is guided in particular by the ten principles of the United Nations Global Compact. It reflects values relating to human rights, working conditions, the environment and anti-corruption. Similarly, the group avoids exposures to issuers engaged in the development and proliferation of controversial weapons. Since 2018, in the fossil fuels sector the exclusion criterion applies to issuers who generate 25% or more of their turnover from coal mining, coal-based energy generation or oil sands extraction. Investments are reviewed half-yearly with an eye to compliance with these ESG criteria. Exclusion from the investment universe takes places in the event of failure to comply with the criteria. Furthermore, investments in correspondingly identified securities are also prospectively avoided. As it develops and continuously reviews its investment strategy, the company works together with a service provider that specialises in sustainability.