In general terms, the continued inadequate supply of insurance protection offers a great opportunity for insurers and reinsurers alike. This is especially true of emerging markets in Asia and Latin America. Yet even in industrial nations that are already more advanced, the protection gap remains large in many areas. Our industry can help here with innovative products, thereby underscoring its social relevance.
Capital markets once again proved to be volatile and challenging in the 2019 financial year in the face of numerous geopolitical and economic issues. The ongoing tariff and trade disputes between the United States and China as well as the lack of clarity surrounding the United Kingdom’s exit from the European Union were a recurring source of uncertainty on capital markets throughout the year. Despite this, the major stock indices posted consistent gains in 2019 after pulling back at the end of the previous year.
Report on economic position 30 Macroeconomic climate and industry-specific environment 30
The growth of the world economy continued to lose momentum in 2019. The Kiel Institute for the World Economy (IfW) put the increase at 3.0%, a level 0.7 percentage points below that of the previous year. The decline can be attributed principally to slowing impetus in the advanced economies. In numerous emerging markets, on the other hand, economic activity returned to a more stable footing. The slowdown in growth continued to be driven by softness in industry and in world trade: the rise in industrial output virtually ground to a standstill in the course of 2019. Following on from the fourth quarter of 2018, global trade retreated for the first three quarters of 2019 in a row. Even the expansion recorded in the fourth quarter of 2019 fell far short of offsetting this contraction.
The development of the world economy remains subject to various uncertainties and risks, first and foremost of a geopolitical nature or in connection with trade policy. Varying economic trends, isolationist efforts and local flashpoints may be mentioned here as factors driving the mixed global picture. A close eye must also be kept on the policy pursued by central banks as they seek to strike a delicate balance between showing resolve and a readiness to act, on the one hand, without unsettling financial markets through overly bold actions, on the other.
After the considerable loss expenditures incurred in 2017 and 2018 in the Property&Casualty reinsurance business group, we recorded further significant major losses as well as belated claim notifications for prior-year losses in the financial year just ended. The strains from typhoons in Japan, hurricanes in the United States and the insolvency of UK travel operator Thomas Cook exceeded our large loss expectations for the full financial year. As a consequence of the sustained heavy losses, however, conditions for reinsurers improved in various markets. With prices for reinsurance protection still on a relatively low level, there is nevertheless still a need for further adjustments. What is more, the intense competition shaping the state of global reinsurance markets remains undiminished.
Gross written premium in the Property & Casualty reinsurance business group rose by 23.4% to EUR 14.8 billion (previous year: EUR 12.0 billion). At constant exchange rates the increase would have been 20.4%. The level of retained premium fell to 90.3% (90.7%). Net premium earned grew by 18.5% to EUR 12.8 billion (EUR 10.8 billion); adjusted for exchange rate effects, growth would have amounted to 15.8%.
On the reinsurance side the further exacerbation of the low interest rate environment and an accumulation of mid-sized losses across the entire region prompted a rethink on the market, which should increasingly make itself felt in the prices for reinsurance covers going forward. We continued to see brisk demand for tailored reinsurance solutions designed to deliver solvency relief.
C om b in ed m an ag em en t re p or t surplus capacities, as a consequence of which these markets remained intensely competitive – especially in the key motor and fire/industrial lines. The major earthquakes in Albania once again highlighted the fact that even in Europe sometimes considerable protection gaps still exist.
Our Asia initiative is focused primarily on the markets of China and Southeast Asia as well as India. In Asia’s two most populous countries we anticipate significantly stronger demand for insurance covers in the coming years. What is more, the continuing inadequate supply of insurance protection in Asia’s emerging markets offers both insurers and reinsurers alike a tremendous opportunity to reduce this protection gap through innovative products and thereby underscore the industry’s social relevance.
Hannover Re is well placed in the Middle East because we are able to offer business both on a traditional basis and in the form of retakaful business. In principle, we write retakaful business, i. e. reinsurance transacted in accordance with Islamic law, worldwide. Our focus on the Middle East, North Africa and Southeast Asia remains unchanged. In retakaful business the competition with traditional reinsurance continued to prove challenging. Bearing in mind the strained state of the market, we maintained our focus on a disciplined underwriting policy and robust customer relationships in this region.
Altogether, around 5% less alternative capital was available in 2019 than in the year before. The worldwide volume of newly issued catastrophe bonds similarly contracted somewhat year-on-year. The capacity of the entire ILS market was put at some USD 90 billion in the year under review. According to our estimates, roughly two-thirds of this amount derives from collateralised reinsurance, under which insurers and investors conclude private risk transfer agreements which are secured by collateral held in trust accounts. We support these transactions through so-called fronting arrangements.
In 2019 the volume of new exposures that we transferred to the capital market in the form of catastrophe bonds was in the region of USD 1.1 billion. The largest transaction in the year under review was a USD 450 million catastrophe bond for the North Carolina Insurance Underwriting Association to protect against windstorm risks in North Carolina.
Property & Casualty reinsurance: Gross premium in Structured Reinsurance and ILS by lines of business
Property & Casualty reinsurance: Gross premium in Facultative Reinsurance and Direct Business by lines of business
Mortality und Morbidity Solutions In the global (re)insurance industry it is standard practice for mortality and morbidity risks to form a common element of one and the same business relationship, and in some cases both risks are even covered under one reinsurance treaty. In our reporting we therefore consolidate the profit contributions of these two reporting categories, but nevertheless provide below a separate overview of significant developments in the financial year just ended.
• Net realised gains supported by release of hidden reserves in connection with a participating interest
Net unrealised gains on investments stood at EUR 1,287.9 million, an increase of EUR 941.4 million compared to the beginning of the year under review. This reflects the declines observed in the course of the reporting period both in risk premiums and in the risk-free interest rate.
Cash flow from operating activities The cash flow from operating activities, which also includes inflows from interest received and dividend receipts, amounted to EUR 2,509.2 million in the year under review as opposed to EUR 2,224.6 million in the previous year. The increase of altogether EUR 284.6 million was due to the positive development of operational business.
The appointment and recall of members of the Executive Board are determined by §§ 84 et seq. Stock Corporation Act. Amendment of the Articles of Association is governed by §§ 179 et seq. Stock Corporation Act in conjunction with § 18 (2) of the Articles of Association of Hannover Rück SE.
The annual financial statement of Hannover Rück SE – from which the balance sheet and profit and loss account in particular are reproduced here in condensed form – is submitted to the operator of the electronic Federal Gazette and can be accessed via the webpage of the Companies Register. This annual financial statement can also be accessed on the company ’s website (www.hannover-re.com) and may be requested from Hannover Rück SE, Karl-Wiechert-Allee 50, 30625 Hannover, Germany.
The profit on ordinary activities contracted to EUR 799.8 million (EUR 869.7 million). The year under review closed with a profit for the year of EUR 674.5 million (EUR 665.4 million).
It will be proposed to the Annual General Meeting on 6 May 2020 that a dividend of EUR 4.00 plus a special dividend of EUR 1.50 per share should be paid for the 2019 financial year. This corresponds to a total distribution of EUR 663.3 million. The dividend proposal does not form part of this consolidated financial statement.
• Enhance the commercial success of our clients through our risk solutions and services (attractive value proposition)
Sustainability also forms an integral part of our actions. Our goal is to harmonise our business operations with environmental and social requirements. To do this, we have refined our sustainability strategy as a complement to the guiding model of our Group strategy. This defines four action fields (Governance and Dialogue, Product Responsibility, Employees, Environment and Society) as well as concrete goals and measures, while also taking into account the main needs and interests of our stakeholders. Of particular relevance here are our customers, our investors and our employees.
In this context, the monitoring of data privacy requirements takes place in close coordination with Group Auditing. The findings of the separate reporting on data protection are integrated into the compliance report. No complaints were made about privacy breaches affecting personal data or the loss of such data during the period under review. There was therefore no requirement to fulfil the duty to notify data breaches pursuant to Articles 33 and 34 of the GDPR.
Revision of the Compliance Manual 2019: Revised and approved by the Executive Board
Internal study carried out into the risks posed by climate change
In addition, we invest in renewables both through funds and directly in the infrastructure sector as well as in sustainable forest and agriculture funds.
Ongoing: Since 2019 half-yearly positive screening and evaluation of the sustainability quality of the investment portfolio
Diversity and the advancement of women are topics that have come under increasing public scrutiny in recent years. Within the Hannover Re Group, too, it is evident that women are under -represented in the company’s higher hierarchical levels. In 2019 we therefore launched another implementation round of our in-house mentoring programme for women at the Hannover location. The specific focus of the internal mentoring programme on a purely female group of participants is part of our initiative to give targeted support to promising junior female managers by raising their profile in the organisation and fostering their abilities on an individual basis. The number of participants was expanded to nine mentoring tandems. Female employees (mentees) are paired with senior managers (mentors) for a period of twelve months to engage in a targeted, regular dialogue. In the course of the mentoring programme the mentees are encouraged to reflect on their professional development to date and to take steps to actively shape their future career. They also gain insights into new fields of work and are able to learn from their mentor’s experience.
With the appointment of Ms. Sehm as a full member of the Executive Board in March 2019, we achieved the target quota for women on the Executive Board set at 14% by the year 2022 in the context of our diversity concept. Our Supervisory Board was comprised of five female and four male members as at 31 December 2019.
The UK government changed the rate from -0.75% to -0.25% effective 5 August 2019. The decision on the rate change is appropriately reflected in the technical reserves. The future payment patterns for these claims nevertheless remain subject to uncertainty because a better run-off result is normally expected at the time of settlement.
The figures shown above refer to the Hannover Re Group. In addition, Hannover Rück SE is also subject to regulatory capital requirements, which in accordance with Solvency II reporting were clearly fulfilled as at 31 December 2019 with a solvency ratio of 259.0% (the indicator includes information that has not been audited by the independent auditor). The solvency ratio of Hannover Rück SE is normally higher than the solvency ratio of the Hannover Re Group because there are no restrictions with regard to the use of own funds attributable to non-controlling interests. The details provided here regarding the solvency ratio of the solo entity Hannover Rück SE constitute information that has not been audited by the independent auditor. The calculation of the solvency capital requirement for the Hannover Re Group and Hannover Rück SE includes the dynamic volatility adjustment that is subject to the BaFin approval process at the reporting date.
Within the scope of our control system the Group companies are responsible for Group-wide adherence to the accounting policies and the internal control guidelines. The managing directors and chief financial officers of the Group companies defined as material in our control system affirm to the Executive Board of Hannover Rück SE at each closing date the completeness, correctness and reliability of the financial data that they pass on to Group Accounting. Data for the preparation of the consolidated financial statement is delivered using a networked IT application. The relevant data for Group financial reporting is collected in a database and processed via automatic interfaces in a consolidation system. As part of the financial reporting process we perform preventive and detective checks on the reported figures in order to minimise the probability and reduce the impacts of a potentially incorrect disclosure. Depending upon the results of our checks, these figures can be corrected if necessary. Given that our Group financial reporting is heavily dependent on IT systems, these systems also need to be subject to controls. Authorisation concepts regulate system access and for each step content -based as well as system-side checks have been implemented, by means of which errors are analysed and promptly eliminated.
Available economic capital 15,034.9 13,340.0 1 This table contains information that has not been audited by the independent auditor.
The changes in the operational risk are attributable above all to an updated expert assessment regarding the impact of individual scenarios.
The actual risk experience for the portfolio in question proved to be better than expected in 2019. We are monitoring the further development of the underlying mortality on an ongoing basis.
defined performance criteria and indicators for operational implementation of the strategic principles and objectives; these are authoritative when it comes to determining fulfilment of the various targets. With the “Strategy Cockpit” the Executive Board and responsible managers have at their disposal a strategy tool that assists them with the planning, elaboration and management of strategic objectives and measures and safeguards their overall perspective on the company and its strategic risks. The process for the management of strategic risks continues to be assessed annually as part of the monitoring of business process risks. For more information on the topic of strategy please see the section “Combined non-financial information statement” on page 70 et seq.
Trends affecting these business groups are systematically identified and analysed with the support of external sources and partners and the needs of our clients are anticipated along the entire insurance-related value-added chain. Targeted consideration is given to new business opportunities that promise access to innovative technologies and enhance our appeal in the eyes of customers. With this in mind, Hannover Re cultivates business-related partnerships with accelerators, incubators, company builders, start-ups and research institutes in order to boost our competitiveness in the insurtech sector and the area of digital solutions. Various competence centres have been set up in the Hannover Re Group to evaluate the strategic and technical significance of innovative new
If a business idea is translated into reality and a new reinsurance product results, the normal procedure – provided the criteria defined for this purpose by Risk Management are applicable – is to work through the so-called new product process.
In addition to the Corporate Governance principles, Hannover Rück SE has adopted its own Code of Conduct (www.hannover -re.com/50943/code-of-conduct.pdf) that is applied Group-wide as a set of minimum standards. Complementing our corporate strategy and the Corporate Governance principles, it establishes rules governing integrity in the behaviour of all employees of Hannover Re and is intended to help members of staff cope with the ethical and legal challenges that they face as part of day-to-day work. The rules defined in the Code of Conduct reflect the high standards that guide our actions worldwide. It is our belief that integrity in dealings with our stakeholders constitutes the foundation of a successful enterprise. In both our strategic planning and our day-today business activities, we therefore aspire to consistently apply the highest ethical and legal standards; for our actions and the way in which every single one of us presents and conducts himself or herself are crucial in shaping the image of Hannover Re.
With an eye to Hannover Re’s international orientation, it is to be ensured that a sufficient number of members with long-standing international experience belong to the Supervisory Board. Based on their current or former service as a board member / chief executive officer or in a comparable role as managing director with internationally operating undertakings or organisations, all the shareholder representatives on the Supervisory Board have long-standing international experience. In the opinion of the Supervisory Board, due consideration is given to the international dimension of operations. The goal is to maintain the currently existing international profile.
When it comes to selecting candidates who are to be put forward to the Annual General Meeting for election to the Supervisory Board, care is taken to ensure that the individuals concerned have the necessary knowledge, skills and
Global lines Structured Reinsurance and ILS In view of the adoption or strengthening of risk-based models for calculating solvency requirements not only within but also outside the European Union, we expect further growth in demand for structured reinsurance. This continues to be driven by the increasing integration of reinsurance into primary insurers’ risk management as a way to counterbalance more exacting capital requirements. Moreover, the growing pressure on profit margins experienced by our clients around the world is generating a greater need for tailored-made reinsurance solutions designed to optimise their cost of capital. We expect the implementation of IFRS 17 to boost demand for solutions of this type.
Looking at individual regions, it is our expectation that in Australia the tightening of regulatory requirements intended to enhance the industry’s reputation will remain a key issue in the coming year. The concrete implications of the measures announced by the prudential regulator will become clearer in the course of the year. In Germany, the regulatory requirements imposed by the Federal Financial Supervisory Authority (BaFin) in combination with low interest rates, a decline in business with traditional life insurance policies and more exacting capital adequacy ratios are presenting the insurance industry with considerable sustained headwinds.
Changes in ownership interest with no change of control status – – – – – – 142 142 404 546
Effects from initial application of new standards – – – – – – 1,732 1,732 – 1,732
Total income and expense recognised directly in equity – – 941,398 183,784 1,884 (13,179) – 1,113,887 28,501 1,142,388
Pursuant to EU Regulation (EC) No. 1606 / 2002, the present consolidated financial statement and group management report of Hannover Re have been drawn up in accordance with the International Financial Reporting Standards (IFRS) that are to be applied within the European Union. In addition, we have made allowance for the regulations that are also applicable pursuant to § 315e Para. 1 German Commercial Code (HGB) and the supplementary provisions of the Articles of Association of Hannover Rück SE as amended on 30 May 2016.
• Amendments to IAS 28: Long-term Interests in Associates and Joint Ventures
October 2018 Definition of a Business (Amendments to IFRS 3) 1 January 2020 (still to be endorsed by the EU)
March 2018 Amendments to References to the Conceptual Framework in IFRS Standards
Intangible assets: in accordance with IFRS 3 “Business Combinations ” goodwill is not amortised; instead, impairments may be taken after an annual impairment test or as indicated. For the purposes of the impairment test, goodwill is to be allocated pursuant to IAS 36 “Impairment of Assets” to socalled “cash generating units” (CGUs). Each CGU to which goodwill is allocated should represent the lowest level on which goodwill is monitored for internal management purposes and may not be larger than a segment. Following allocation of the goodwill it is necessary to determine for each CGU the recoverable amount, defined as the higher of the value in use and the fair value less costs to sell. For impaired goodwill the recoverable amount is to be stated. The recoverable amount is to be compared with the book value of the CGU including goodwill. When the latter exceeds the recoverable amount, an impairment expense is to be recognised. For detailed information on the impairment method used and the goodwill recognised as at the balance sheet date, please see section 6.5 “Goodwill”.
Financing liabilities consist of liabilities from lease contracts and above all long-term debt and notes payable. In some instances these involve subordinated liabilities that can only be satisfied after the claims of other creditors in the event of liquidation or bankruptcy. Both long-term debt and notes payable are measured at amortised cost using the effective interest rate method. The transaction costs as well as premiums / discounts arising in connection with the issuance of bonds are amortised and recognised together with the nominal interest as financing costs.
Key exchange rates N 11 1 EUR corresponds to: Mean rate of exchange on the balance sheet date Average rate of exchange
Hannover Finance (Luxembourg) S.A. 1, Luxembourg / Luxembourg 100.00 EUR 27,339 909
Nashville West, LLC 1, 3, Wilmington / USA 95.15 USD 25,523 599 590ATL LLC 1, 3, Wilmington / USA 95.15 USD 79,243 1,805 975 Carroll Square, LLC 1, 3, Wilmington / USA 95.15 USD 45,275 (3,815)
Monument Insurance Group Limited 7, 13, Hamilton / Bermuda 20.00 GBP 161,669 61,357
Hannover Rück SE Canadian Branch, Toronto / Canada 305,894 247,225 40,272 19,432
Hannover Rück SE – India Branch, Mumbai / India 152,248 104,217 1,351 (5,203)
Change in fair value of financial instruments (1,349) 528 74,204 30,632 – – 72,855 31,160
Fixed-income securities – at fair value through profit or loss – – – 19,527 – 268,290 – 271,933 559,750
Net book value at 31 December of the previous year 110,545 121,075
Gross book value at 31 December of the previous year 1,844,408 1,712,667
Net book value at 31 December of the previous year 49,039 384,973 1,639,065 185,498
Net book value at 31 December of the year under review 132,339 433,899 1,647,992 24,548
Cumulative value adjustments at 31 December of the previous year 29,503 17,391
Net book value at 31 December of the year under review 88,303 85,588
With regard to the measurement of fixtures, fittings and equipment, the reader is referred to our explanatory notes on the other assets in section 3.2 “Summary of major accounting policies”.
Net book value at 31 December of the previous year 28,758,575 2,084,630 26,673,945 28,378,545 1,651,335 26,727,210
On balance, cumulative specific value adjustments of EUR 60.6 million (EUR 54.6 million) were recognised in these reinsurance recoverables as at the balance sheet date.
A benefit reserve is established for life, annuity, personal accident and health reinsurance contracts. Based on the duration of these contracts, long-term reserves are constituted for life and annuity policies and predominantly short-term reserves are set aside for health and personal accident business.
The contract deposits on the liabilities side decreased by EUR 30.6 million in the year under review from EUR 3,611.7 million to EUR 3,581.1 million. The contract deposits item on the liabilities side essentially encompasses balances deriving from non-traditional life insurance contracts that are to be carried as liabilities.
Position at 1 January of the financial year 223,604 210,855 39,989 33,675 41 135
The sundry liabilities include, among other things, trade accounts payable and clearing balances. In addition, they include distributions within the year of EUR 5.3 million (EUR 19.1 million) from interests in private equity funds that had still to be recognised in income as at the balance sheet date.
Partial retirement arrangements and early retirement obligations 1,371 – 1,371 – 500 38 – – (2) 1,831
Non-controlling interests in the shareholders’ equity of subsidiaries are reported separately within Group shareholders’ equity in accordance with IAS 1 “Presentation of Financial Statements”. They amounted to EUR 826.5 million (EUR 765.2 million) as at the balance sheet date.
Shareholders’ equity 2,117,159 2,005,406 thereof attributable to non-controlling interests 745,418 706,072
Net gains and losses on investments N 81 in EUR thousand
The assets-side unadjusted deferred taxes on loss carry-forwards and tax credits amounting to EUR 332.4 million (EUR 545.6 million) will probably be realised in an amount of EUR 15.2 million (EUR 18.1 million) within one year and in an amount of EUR 317.2 million (EUR 527.5 million) in the subsequent years.
The significant changes in some instances compared to the previous year can be attributed very largely to business with HDI Global Specialty SE (previously trading under the name International Insurance Company of Hannover SE), which was consolidated in the previous year. With economic effect from 1 January 2019 Hannover Rück SE sold 50.22% of the shares in the wholly-owned International Insurance Company of Hannover SE to HDI Global SE, a subsidiary of Talanx AG, for a purchase price of EUR 107.2 million.
As security for our technical liabilities, various financial institutions have furnished sureties for our company in the form of letters of credit. The total amount as at the balance sheet date was EUR 1,568.1 million (EUR 1,330.3 million).
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January to 31 December 2018. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.
Control 1 published by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany; IDW): Requirements to quality control for audit firms (IDW Qualitätssicherungsstandard 1: Anforderungen an die Qualitätssicherung in der Wirtschaftsprüferpraxis – IDW QS 1) – and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
The measures for ensuring profitability during the P&C underwriting process – which were also subsequently reported to the full Executive Board – were discussed in detail and the Committee was able to obtain a good understanding of the established, transparent system. Furthermore, the Committee examined in detail Hannover Re’s activities in the insurance-linked securities (ILS) market.
The Standing Committee considered, in the first place, the appointment of Ms. Silke Sehm as a member of the Executive Board, in which regard Ms. Sehm – who had already worked for Hannover Re for many years – also attended part of the meeting as a guest. As in the previous years, among other things, the adequacy of the system of remuneration for the members of the Executive Board was reviewed, the variable remuneration of the members of the Executive Board for the 2018 financial year was determined based on the findings pertaining to attainment of their respective targets and the remuneration for the Board members who were due for review was examined. More specific consideration was also given to the occupational pension commitments in the adequacy review. In all these matters the Committee drew up corresponding recommendations for the full Supervisory Board. The Committee deliberated at length on the medium- and long-time succession arrangements for the Executive Board. In addition, the individual objectives of the members of the Executive Board for 2020 were defined.
The Supervisory Board chose the auditor and the Chairman of the Supervisory Board awarded the audit mandate. The auditor’s independence declaration was received. Along with the audit concentrations of the German Financial Reporting Enforcement Panel (DPR), the additional audit concentrations defined by the European Securities and Markets Authority (ESMA) also formed part of the scope of the audit. The mandate for the review report by the independent auditors on the Half-yearly Financial Report as at 26 June 2019 was also awarded again. The special challenges associated with the international aspects of the audits were met without reservation. Since the audits did not give rise to any objections, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft issued unqualified audit certificates. It was also determined that the annual financial statement contains the information pursuant to § 289f German Commercial Code (HGB). The Finance and Audit Committee discussed the financial statements and the combined management report with the participation of the auditors and in light of the audit reports, and it informed the Supervisory Board of the outcome of its reviews. The audit reports were distributed to all the members of the Supervisory Board and explored in detail – with the participation of the auditors – at the Supervisory Board meeting held to consider the annual results. The auditors will also be present at the Annual General Meeting.
The resolution was adopted by the General Meeting as proposed. Dr. Immo Querner was therefore not re-elected to the Supervisory Board, from which he stepped down at the end of the General Meeting. We are grateful to him for his valuable contributions to the discussions and for his highly valued expertise.
Mr. Henchoz, who had already been appointed by the Supervisory Board in the previous year, commenced his duties as a member of the Executive Board on 1 April 2019 and as Chief Executive Officer with effect from the end of the Annual General Meeting on 8 May 2019. His predecessor, Mr. Ulrich Wallin, retired at this time. The Supervisory Board greatly appreciated working with Mr. Wallin. We believe that his vast expertise and experience, combined with his prudent leadership of the company, were essential ingredients in Hannover Re’s success in recent years.
Member of the Supervisory Board of the Association, Association of German Dioceses (VDD), Corporation under Public Law
Credit spread: Mark-up between a risky and a risk-free interest -bearing security with the same maturity, as a risk premium for the credit risk entered into by the investor.
Group net income: Group net income under IFRS corresponds to the profit for the year available to the shareholders of Hannover Re.
Protection cover: protection of segments of an insurer’s portfolio against major losses (per risk / per event), primarily on a non-proportional basis.
N 24 Amortised cost, unrealised gains and losses and accrued interest on loans and receivables as well as their fair value 2018 205