Claude Chèvre Member of the Executive Board Hannover Rück SE, Hannover, Germany Chairman of the Board of Directors Hannover Life Reassurance Africa Limited, Johannesburg, South Africa Deputy Chairman of the Board of Directors Hannover Life Re of Australasia Ltd, Sydney, Australia Deputy Chairman of the Board of Directors Hannover ReTakaful B.S.C. (c), Manama, Bahrain Member of the Board of Directors Bristol Re Ltd., Hamilton, Bermuda (since 19 October 2020) Member of the Board of Directors Hannover Life Reassurance Bermuda Ltd., Hamilton, Bermuda Member of the Board of Directors Hannover Reinsurance Group Africa (Pty) Ltd., Johannesburg, South Africa Member of the Board of Directors Hannover Re Services Japan, Tokyo, Japan
The annual financial statement and the management report of Hannover Rück SE – combined with the Group management report – for the 2020 financial year are submitted to the operator of the electronic Federal Gazette and published in the electronic Federal Gazette.
I. Purchased franchises, trademarks, patents, licences and similar rights and assets 40,716 48,334
IV. Provision for bonuses and rebates 2. Less: reinsurance ceded 508 513
Alternative investments, which are allocated to fixed assets, are valued using various models. Individual and fund investments are valued at purchase cost. A write-down to lower fair value is made on individual investments if certain applicability criteria are met and the need to take a write-down is established using a standardised method. In addition, for CLO positions compliance with collateral tests of the respective higher tranche is verified. Fair value is used as an impairment criterion for high-yield bond funds listed as publicly offered funds. In the case of yield enhancement funds, actually incurred defaults as well as instruments at high risk of default in the respective funds are taken as an indication of impairment. Subsequent valuation of shares in private equity funds is based on net asset value (NAV).
holds 53.00% of the shares in: Svedea AB, Stockholm / Sweden SEK 109,359 40,578
For bond funds the permanence of the impairment is checked on the basis of the difference between the cost price and fair value. The permanence of the impairment for high-yield and emerging market funds is established on the basis of the difference between the cost price and fair value and depending on the ratings of the assets held within the funds. In the case of private equity, real estate investment and infrastructure funds, the permanence of the impairment is verified by referring to the difference between the cost price and fair value and making allowance for the investment structure (J-curve or core funds).
Shares, units or shares in investment funds, bearer debt securities and other securities are carried at market or stock exchange prices. These are obtained from publically available prices and bid prices as at the balance sheet date. In the case of special investments for which there are no publically available prices, valuation is model-based using risk premiums, default rates, prepayment speed and recovery rates or at net asset value (NAV). The current values of securities traded in illiquid markets as well as those of the sundry loans and loans to affiliated companies and participating interests are calculated on the basis of yield curves, taking into account the creditworthiness of the specific debtor and the currency of the loan.
The following copy of the auditor’s report also includes a “Report on the audit of the electronic renderings of the financial statements and the management report prepared for disclosure purposes in accordance with § 317 Abs. 3b HGB” (“Separate report on ESEF conformity”). The subject matter (ESEF documents to be audited) to which the separate report on ESEF conformity relates is not attached. The audited ESEF documents can be inspected in or retrieved from the Federal Gazette.
The claims provision in accordance with commercial law is measured based on actuarial methods which require a sufficiently long data history and stability of the observed data. The mathematical methods use assumptions concerning premiums, ultimate loss ratios and runoff patterns, which are based on an expert estimate derived from past experience. This also includes the expected impact of the ongoing coronavirus crisis on the recognition of the claims provision for the business as a whole. The executive directors calculate the amount of the claims provision in accordance with commercial law taking into account the results of the actuarial methods and other factors in relation to uncertainty. The actuarial provisions, and thus in particular the claims provisions must ensure that the company as an insurer is able at all times to satisfy its obligations (particularly prudence principle ) and that the continuity principle is complied with.
(c) The Company’s disclosures on the estimated gross premium are contained in the sections of the notes entitled “measurement of equity and liabilities” and “notes to the income statement”.
The executive directors are responsible for the other information. The other information comprises the following non- audited parts of the management report: • the statement on corporate governance pursuant to § 289f HGB and § 315d HGB included in section “Enterprise management” of the management report
• Evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.
In our opinion, the reproduction of the annual financial statements and the management report contained in the above-mentioned attached electronic file and prepared for publication purposes complies in all material respects with the requirements of § 328 Abs. 1 HGB for the electronic reporting format. We do not express any opinion on the information contained in this reproduction nor on any other information contained in the above-mentioned electronic file beyond this reasonable assurance conclusion and our audit opinion on the accompanying annual financial statements and the accompanying management report for the financial year from 1 January to 31 December 2020 contained in the “Report on the Audit of the Annual Financial Statements and on the Management Report” above.
Report of the Supervisory Board of Hannover Rück SE In our function as the Supervisory Board we considered at length during the 2020 financial year the position and development of the company and its major subsidiaries. The implications of the Covid-19 crisis were a point of emphasis this year. We advised the Executive Board on the direction of the company and monitored the management of business on the basis of written and verbal reports. The Supervisory Board of Hannover Rück SE held four regular meetings in order to adopt the necessary resolutions after appropriate discussion. In addition, the Supervisory Board adopted two resolutions in the reporting period by a written procedure. In conformity with the applicable safeguards to reduce the risk of infection with Covid-19 the meetings were held in a hybrid format, i.e. with partially physical and partially virtual attendance. With the exception of the meeting in May, in which Dr. Lipowsky and Dr. Schipporeit were unable to participate, all the Supervisory Board members took part in the Supervisory Board meetings held in 2020. The meetings of the committees were duly attended in all cases by all the members of the respective bodies. In addition, two representatives of the Federal Financial Supervisory Authority attended two meetings of the Supervisory Board on a virtual basis. The individual participation in the meetings is shown in the following table: Participation rate
ty transactions. The Rules of Procedure for our bodies were revised and updated, including explicit stipulation of certain already practised procedures that are now recommended in the Code. The evaluation of the quality of the auditing is now performed by the Finance and Audit Committee according to a systematically defined process. Some of the recommendations specified in relation to disclosure are now fulfilled in the context of the Declaration on Corporate Governance.
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) and the additional audit concentrations defined by the European Securities and Markets Authority (ESMA), activities relating to the implementation of IFRS 17 and credit risks on the assets side were also included in the scope of the audit as points of emphasis. The mandate for the review report by the independent auditors on the Half-yearly Financial Report and the solvency balance sheet 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