Disclosure pursuant to Sections 134 b and c Stock Corporation Act (AktG)

As an institutional investor within the meaning of Section 134a (1) AktG, we are required pursuant to Section 134c (1) AktG to disclose the extent to which the main elements of our investment strategy are consistent with the profile and maturities of our liabilities and how they contribute to the medium-term performance of our assets. Where an asset manager is acting on our behalf, we are additionally required to disclose pursuant to Section 134c (2) AktG how the asset manager coordinates its investment strategy and its investment decisions with the profile and maturities of our liabilities.

Our investment strategy is designed to comply with the prudent person principle. This principle is the point of departure for the four investment principles of security, quality, profitability and liquidity. We invest in such a way that risk concentrations are avoided wherever possible. To this end, we use various risk criteria and early-warning indicators in order to avoid inappropriate concentrations of risk with respect to individual counterparties or sectors.

Policies and internal processes ensure that we act in accordance with these investment principles in the context of our investing activities.

When it comes to the management of our investments, asset/liability management (ALM) is a fundamental pillar of our value-based management system and is at the heart of our investment strategy.

ALM means that we take into account important criteria on the technical liabilities side when it comes to the composition of our investment portfolio. By adjusting the maturity profile of our fixed-income securities to the expected payment patterns of our liabilities, we reduce the economic exposure to the interest rate risk. For this purpose, we cover on the investment side major capital market sensitivities associated with the liabilities side such as maturity patterns and currency structures as well as inflation sensitivities by acquiring wherever possible investments that react to capital market fluctuations to a similar extent with an opposite effect. This reduces our vulnerability to capital market volatility and stabilises our economic capital resources.

In this approach, any deviations from the structure of our liabilities are made consciously and giving due consideration to risk tolerance and achievable risk premiums. Consequently, we do not measure risks entered into from our investments in absolute terms, but rather in relation to changes in the values of the liabilities. By adopting this approach, fluctuations in exchange rates, interest rates and inflation rates have the same effect on assets and liabilities. The purpose of our economic ALM is to ensure that the currencies and maturities of the liabilities are matched as closely as possible for each of the Group's affiliated companies. In this context, we also take into account local accounting and supervisory requirements.

Derivative financial instruments are used to structure our economic ALM as effectively as possible. These products are used in conformity with a defined risk budget in order to hedge our investments against fluctuations on interest rate, equity and currency markets.

The central building block for implementation of the investment strategy consists of benchmark portfolios based on reference indices that are designed in such a way as to sustainably

• optimise the risk/return ratio from the perspective of shareholders,
• reflect the structure of the liabilities,
• be well diversified and
• cause no unnecessary costs (transaction costs, administrative costs).

The investment strategy also allows for requirements such as the ability to meet financial obligations, balance sheet volatility, rating, solvency etc.

The investments of our Group are managed by Ampega Asset Management GmbH, Cologne (Ampega), a legally independent subsidiary of our parent company Talanx AG, under a service agreement for the entities of the Hannover Re Group. The tasks performed encompass asset management services and special Group finance functions. For the management of, inter alia, special securities funds in which we and other affiliated companies of our Group are invested, Ampega uses its wholly owned subsidiary, Ampega Investment GmbH, a regulated asset management company pursuant to Section 134a (1) No. 2 AktG under the supervision of the Federal Financial Supervisory Authority (BaFin).

In the role of the investor, we are responsible for the strategic management of Ampega with respect to the investments of the Hannover Re Group, including performance measurement. Ampega carries out its tasks within the scope of its mandate to execute our investment strategy as described above, which includes inter alia the specifications of the Strategic Asset Allocation (SAA) and Tactical Asset Allocation (TAA), special risk management requirements, specificities of supervisory rules and ancillary accounting constraints. We have reserved appropriate rights to issue instructions in the service agreement.

Within the scope of the asset management model described above, we have delegated the shareholder and creditor rights accruing from the share portfolios to Ampega, which can and does exercise them in the event of an absence of any potential specific guidelines from the Hannover Re Group. The employees of Ampega are subject to our Group's Code of Conduct.

The asset manager's goal achievement and performance are measured in terms of overperformance relative to the TAA.

Ampega's performance is determined on the basis of numerous quantitative and qualitative criteria. Achievement of the necessary profit contribution is an important element in this regard. Transaction costs, for example, are also considered when calculating the overperformance. Ampega is compensated at standard market rates for the services rendered.

Verbal and written exchanges which take place between our mandate managers and Ampega play a large part in the proper supervision of the mandate specifications. In addition, regular Investment Committee meetings are held with Ampega at which reporting is provided on the implementation of the specifications. This ensures close cooperation between all areas involved in ALM. Above and beyond this, Group-wide reporting by Ampega to us ensures that we are able to monitor all investment activities at all times.

Individual portfolio overheads are not explicitly tracked on a consistent basis. They are, however, reflected in the measurement of performance and goal achievement, which is monitored regularly on the basis of the key performance indicators set out in the service agreement. If strategic decisions necessitate more sizeable transactions, every effort is made to keep costs as low as possible. As a general rule, Ampega is obliged to apply the principle of best execution in executing transactions. For more extensive detailed information, please refer to Ampega's website and the Best Execution Policy published on this site: https://www.ampega.de/fonds/hinweise/index.html

The service agreement between our company and Ampega is concluded for an indefinite period and may be terminated at one half-year's notice to the end of a calendar year.

As a shareholder participating in general meetings, Ampega has drawn up an Engagement Policy. For detailed information on the requirements pursuant to Section 134b (1) to (4) AktG we would refer to Ampega's website and the policy published on this site: https://www.ampega.de/fonds/hinweise/index.html

Valid: 18.12.2020