Hannover Re

Opportunities and risks

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.

Risk and opportunity management

Managing risks and opportunities successfully is our core competence, as is expressed in our purpose statement: "Beyond risk sharing - we team up to create opportunities“.

According to this purpose, Hannover Re systematically monitors megatrends, new risks and developments in order to generate new business ideas and opportunities and to foster sustainable growth. It activates the innovation potential of its worldwide network of employees, experts, partners and clients and invests consistently and with focus in promising areas of activity.

For both our business fields of property and casualty reinsurance and life and health reinsurance, we specifically consider 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. In addition, automation, data analytics and index-based products harbour growth potential and narrow the protection gap, as enhanced cost efficiency makes coverage more attractive to and accessible for larger customer groups.

Risk report

In our Annual Report risk management is detailed in the risk report and in the respective appendix.

Annual report

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.

Our risk management system monitors changes in the risk landscape and enables us to react flexibly to internal and external factors.

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