Hannover Re : Conference call on quarterly statement as at 31 march 2024

Conference Call on Q1/2024 financial results

Hannover, 14 May 2024

Agenda

1	Group overview	2
2	Property & Casualty reinsurance	5
3	Life & Health reinsurance	8
4	Investments	11
5	Reserving update	13
6	Outlook 2024	15
7	Appendix	18

2 Conference Call on Q1/2024 financial results

| 1 Group ov erv iew | 2 | 3 | 4 | 5 | 6 | 7 |

Favourable Q1/2024 performance fully supports 2024 guidance

Group

P&C reinsurance

Reinsurance revenue

6,570	6,673
	f/x-adj.
	+3.0%
	+1.6%
Q1/2023	Q1/2024
Target 2024: > 5% growth1)

Group net income

Reinsurance revenue (gross)

Combined ratio

	558	4.7 bn.	92.3%	88.0%
	+3.1% (f/x-adj. +5.0%)
484
		New business CSM & LC (net)
	+15.2%	1.4 bn.		-4.3%p
	+0.1%, f/x and interest-rate adjusted +4%
Q1/2023	Q1/2024		Q1/2023	Q1/2024
Target 2024: ≥ 2.1 bn.2)	L&H reinsurance	Target 2024: < 89%

RoERoIAuM

21.3%	3.3%	61.4 bn.
Financial ambition:	Target 2024:	+2.1%
> 14%	≥ 2.8%
Shareholders' equity	CSM (net)	Solvency ratio
10.9 bn.	8.9 bn.	267%
+7.1%	+15.2%	Financial ambition:
		> 200%

All figures in m. EUR unless otherwise stated

1. At unchanged f/x rates
2. Subject to no major distortions in capital markets and/or major losses not exceeding the large loss budget of EUR 1.825 bn . in 2024

Reinsurance revenue (gross)

Reinsurance service result

1.9 bn.	253
-2.1%(f/x-adj.-1.7%)	211
New business CSM & LC (net)
89 m.		-16.8%
+15.1% (-27.2% incl. extensions	Q1/2023	Q1/2024
on existing contracts of 87 m.)
	Target 2024: > 850 m.

3 Conference Call on Q1/2024 financial results

| 1 Group ov erv iew | 2 | 3 | 4 | 5 | 6 | 7 |

Shareholders' equity increased by 7.1%

Increased stock of CSM and RA strengthens earnings outlook

Change in shareholders' equity

Contractual Service Margin (CSM) and Risk Adjustment (RA)

								Total	12,780
							11,428	+11.8%
			224		153	10,850			L&H
		558				2,938
	10,127
			-212
						2,885	RA
								P&C
								+4.9%	974
							844
									6,064	L&H
							5,950	CSM
								+15.2%
									2,804	P&C
							1,749
	Shareholders'	Net	Change in	Change in	Currency	Shareholders'	31.12.2023		31.03.2024
	equity	income	OCI	OCI	translation	equity
	31.12.2023		Reinsurance	Investments	and other	31.03.2024
			Liabilities
Figuresin EUR m. unless otherwise stated
4	Conference Call on Q1/2024 financial results

Agenda

1	Group overview	2
2	Property & Casualty reinsurance	5
3	Life & Health reinsurance	8
4	Investments	11
5	Reserving update	13
6	Outlook 2024	15
7	Appendix	18

5 Conference Call on Q1/2024 financial results

| 1 | 2 Property & Casualty reinsurance | 3 | 4 | 5 | 6 | 7 |

Strong profitability of P&C portfolio

Continued growth in a favourable market environment

Property & Casualty R/I

Reinsurance revenue (gross)

Reinsurance revenue (net)

Reinsurance service result

Reinsurance finance result

Investment result

Other result

Operating profit/loss (EBIT)

Combined ratio (net)

New business CSM (net)

New business LC (net)

All figures in m. EUR unless otherwise stated LC = Loss component

Q1/2023 Q1/2024

4,600 4,743

4,101 4,240

315 509

-129-228

298 421

-17-73

466 629

92.3% 88.0%

1,455 1,453

-26-23

∆-%

+3.1%

+3.4%

+61.6%

+76.5%

+41.4%

-

+34.8%

Reinsurance revenue (RR)

• Reinsurance revenue (gross) growth +3.1% (f/x-adjusted +5.0%) mainly driven by Structured Reinsurance/ILS, EMEA and Americas

Reinsurance service result (RSR)

• Large losses of 52 m. below budget of 378 m., however reserved to budget; Baltimore Bridge loss well covered by booked large-loss budget, but too early for initial loss estimate
• Overall positive run-off result of 171 m. from several lines of business, despite negative prior-year development of large losses (Italy hail 102 m.)
• C/R well within target range including ~7% discounting effect

Reinsurance finance result​

• Increase reflects movement of interest rates

Investment result

• Strong ordinary income supported by higher fixed-income yields, including 49 m. contribution from inflation-linked bonds

Other result

• Decrease mainly driven by currency result -7 m. (+47 m.)

6 Conference Call on Q1/2024 financial results

| 1 | 2 Property & Casualty reinsurance | 3 | 4 | 5 | 6 | 7 |

Strong increase in CSM driven by successful January renewals

Reinsurance Service Result

Contractual Service Margin (net)

				4000
		171		509			1,453	28
										2,804
418			-23	3000					-30
							-418
	-57			2000	1,749	22
				1000
				0
CSM release	Experience variances	Run-off result	LC new business	Reinsurance service	CSM	Currency	New business	Interest	Change in	Regular	CSM
	and other			result	31.12.2023	effects		accretion	estimates	release	31.03.2024

• CSM release resulting from successful renewals in 2023 and 2024
• Experience variance mainly driven by low retrocession recovery; no positive impact from large losses below budget (full Q1 budget booked)
• Minor new business LC from 1/1 renewals

• New business CSM & LC (net) of 1,431 m. (f/x and interest-rate adjusted +4%), mainly driven by successful January renewals
• Diversified contribution to new business CSM, mainly driven by Americas and EMEA

• Run-offresult of 171 m. across almost all lines of business, despite unfavourable prior-year development of large losses

All figures in m. EUR unless otherwise stated

7 Conference Call on Q1/2024 financial results

Agenda

1	Group overview	2
2	Property & Casualty reinsurance	5
3	Life & Health reinsurance	8
4	Investments	11
5	Reserving update	13
6	Outlook 2024	15
7	Appendix	18

8 Conference Call on Q1/2024 financial results

| 1 | 2 | 3 Life & Health reinsurance | 4 | 5 | 6 | 7 |

L&H performance supports full-year expectation

Reinsurance service result reflects favourable underlying profitability

Life & Health R/I

Reinsurance revenue (gross)

Reinsurance revenue (net)

Reinsurance service result

Reinsurance finance result

Investment result

Other result

Operating profit/loss (EBIT)

New business CSM (net)

New business LC (net)

Q1/2023	Q1/2024
1,970	1,929
1,769	1,762
253	211
-38	-33
83	76
-45	-73
253	181
84	97
-7	-8

∆-%

-2.1%

-0.4%

-16.8%

-12.0%

-7.6%

+61.2%

-28.5%

Reinsurance revenue (RR)

• Reinsurance revenue (gross) change -2.1%(f/x-adjusted-1.7%)
• Growth in Financial Solutions offset by further reduction of exposure in Mortality and Morbidity business; Longevity stable

Reinsurance service result (RSR)

• RSR fully in line with guidance; normalisation of mortality result compared to extraordinary strong result in prior year
• Continued strong contribution from Financial Solutions and Longevity
• Morbidity impacted by reserve strengthening

Investment result

• Increase in ordinary income offset by negative impact from derivative valuation (f/x hedges)

Other result

• Decrease mainly driven by currency result -30 m. (-4 m.)

All figures in m. EUR unless otherwise stated

9 Conference Call on Q1/2024 financial results

| 1 | 2 | 3 Life & Health reinsurance | 4 | 5 | 6 | 7 |

CSM increase of 1.9% reflects steady growth of future earnings

Reinsurance Service Result

		62
	50			211
184
		-85
CSM release	RA change	Experience variance	LC new business	Reinsurance service
	current/past service	and other	and change in LC	result

• CSM and risk-adjustment releases in line with expectation
• Experience variance driven by several smaller effects
• Change in LC driven by reserve strengthening for Morbidity business; new business LC -8 m.

Contractual Service Margin (net)

5,950	71	97	93	39			6,064
					-3	-184
CSM	Currency	New	Extensions	Interest	Change in	Regular	CSM
31.12.2023	effects	business	on existing	accretion	estimates	release	31.03.2024
			contracts

• Diversified contribution to new business CSM from all reporting lines
• Extensions on existing contracts mainly from Financial Solutions and Mortality
• Overall successful new business generation of 190 m.

All figures in m. EUR unless otherwise stated

10 Conference Call on Q1/2024 financial results