In order to be able to objectively measure the degree to which corporate governance (CG) is being fulfilled, Hannover Re uses the CG scorecard drawn up by the German Association for Financial Analysis and Asset Management (DVFA). It contains around 60 measures for implementing comprehensive corporate governance and is subdivided according to the criteria of Shareholders and the General Meeting, Management Board, Supervisory Board, Transparency & Governance as well as Reporting & Audit.

As at the reporting date of 03.09.2020, Hannover Re complies with 70.18% of the requirements according to the DVFA scorecard. As an overview of the scope of Hannover Re's activities, the most important measures implemented are listed below (in excerpts).

Shareholders and the General Meeting

  • Insofar as no significant amendments are made to the remuneration system, the remuneration system is presented to the General Meeting for approval at least every four years. If significant amendments are made to the remuneration system, the adjusted remuneration system is also presented to the General Meeting for approval

Management Board

  • The Supervisory Board has defined a cap for each member of the Executive Board based on the amount for the total of fixed remuneration, fringe benefits, service cost for the pension scheme as well as STI and LTI (“maximum remuneration”)
  • When designing the remuneration system for the Executive Board, the Supervisory Board considers the current market practice of relevant comparable companies. In addition, the customary nature of the remuneration is reviewed in comparison to other comparable companies (horizontal comparison) both in terms of the amount of remuneration and with regard to the remuneration structure otherwise applicable within the company (vertical comparison). Companies listed in the DAX and MDAX are used as a comparison group for the horizontal comparison of remuneration. The vertical comparison is based on the proportion of the remuneration of the Executive Board relative to the remuneration of the total workforce of Hannover Re. In this process, both the status quo and the chronological development of the remuneration ratios are taken into consideration. The remuneration ratios between the Executive Board and the total workforce are also compared with the remuneration ratios of selected comparison companies from the insurance and reinsurance industry
  • The members of the Executive Board do not hold any external mandates

Supervisory Board

  • There is a Nomination Committee. For further information, please see under the Standing Committee in the Report of the Supervisory Board contained in the Annual Report
  • With effect from 2021 the Supervisory Board receives solely fixed remuneration
  • An onboarding process for new Supervisory Board members is in place

Transparency and governance commitment

  • Deviations from recommendations of the "Government Commission on the German Corporate Governance Index" are documented in the Annual Report under the section Declaration of Conformity with the German Corporate Governance Code of Hannover Rück SE pursuant to Section 161 of the German Stock Corporation Act (AktG)