Hannover Rueck SE

Investor Presentation • Aug 4, 2022

Conference Call on Half-year Report 2022

Hannover, 4 August 2022

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Strong premium growth of ~20%; 12.4% return on equity clearly above target Consistently high capital adequacy ratio

Strong operating cash flow driven by profitable premium growth AuM stable despite negative valuation effect due to rising interest rates

Figures in m. EUR

Shareholders' equity impacted by interest rate effects in OCI Stable capitalisation under Solvency II due to economic view

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Strong growth in a continued improving pricing environment Underwriting result affected mainly by war in Ukraine, underlying around target

Property & Casualty R/I in m. EUR	Q2/2021	Q2/2022	1H/2021	1H/2022
Gross written premium	4,574	5,773	10,267	12,922
Net premium earned	3,984	5,037	7,847	9,819
Net underwriting result incl. funds withheld	169	69	317	96
Combined ratio incl. interest on funds withheld	95.7%	98.6%	96.0%	99.0%
Net investment income from assets under own management	305	352	570	653
Other income and expenses	(8)	(119)	(109)	(162)
Operating profit/loss (EBIT)	466	302	778	586
Tax ratio	24.7%	18.6%	19.6%	24.8%
Group net income	331	222	592	399

YTD

• GWP f/x-adjusted +18.2%, diversified growth from traditional and Structured Reinsurance business
• NPE f/x-adjusted +17.8%
• Net large losses excl. Russia/Ukraine of EUR 534 m. (5.4 % of NPE) within budget of EUR 611 m. for 1H/2022; additional precautionary reserving for potential losses related to war in Ukraine of EUR 316 m.; PYD negatively affected by nat-cat losses (incl. EUR 130 m. for drought in Brazil); Covid-19 reserve release for Credit reinsurance of EUR 88 m.
• Increase in net investment income principally due to strong ordinary investment income
• Other income and expenses mainly driven by negative currency effects

Major nat-cat and man-made losses within budget; additional 3.2% of NPE in precautionary IBNR for war in Ukraine

Natural and man-made catastrophe losses1) in m. EUR

8 Conference Call on Half-year Report 2022

Major losses excluding Russia/Ukraine IBNR at EUR 534 m.

1 2 Property & Casualty reinsurance 3 4 5 6
Major losses excluding Russia/Ukraine IBNR at EUR 534 m.
Catastrophe losses1 ) in m. EUR	Date	Gross	Net
Storm "Ylenia/Zeynep", Europe	16 - 19 Feb	144.1	126.1
Rain and flood, Australia	21 Feb - 7 Mar	245.5	186.1
Earthquake, Japan	16 Mar	10.5	10.5
Floods, South Africa	8 - 15 Apr	83.0	82.1
Storm and hail, USA	10 - 15 Apr	10.1	3.8
Storm and tornadoes, USA	9 - 12 May	28.6	19.8
Derecho, Canada	21 May	13.8	13.8
Storm and hail, France	3 - 6 June	90.0	65.0
8 Natural catastrophes		625.6	507.2
1 Marine loss		16.7	14.6
1 Property loss		12.4	12.4
2 Man-made losses		29.1	27.0
10 Major losses		654.8	534.2
War Russia/Ukraine		316.2	316.2
Total		971.0	850.4

1) Natural catastrophes and other major losses in excess of EUR 10 m. gross Large loss budget 2022: EUR 1,400 m., thereof EUR 250 m. man-made and EUR 1,150 m. nat-cat

Combined ratios mainly impacted by Russia/Ukraine IBNR and large nat-cat events

Q2/2022: Combined ratio vs. target combined ratios

1) All lines of Property & Casualty reinsurance except those stated separately; EMEA incl. CIS

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Very strong underlying profitability

Strong earnings in Financial Solutions and Longevity - Covid-19 claims decreasing

Life & Health R/I in m. EUR	Q2/2021	Q2/2022	1H/2021	1H/2022
Gross written premium	2,082	2,236	4,198	4,420
Net premium earned	1,839	2,020	3,669	3,947
Net underwriting result incl. funds withheld	(71)	(7)	(193)	(135)
Net investment income from assets under own management	78	7 2	123	200
Other income and expenses	80	155	249	269
Operating profit/loss (EBIT)	87	221	179	334
EBIT margin	4.7%	10.9%	4.9%	8.5%
Tax ratio	44.3%	18.4%	40.7%	15.4%
Group net income	48	179	105	280

YTD

• GWP f/x-adjusted +0.3%, growth in Mortality and Longevity
• NPE f/x-adjusted growth +2.3%
• Technical result: Covid-19-related losses of EUR 194 m., thereof US: EUR 109 m. (1H/2021: EUR 263 m.)
• Ordinary investment income increased primarily due to higher contribution from fixed income
• Fair value of financial instruments includes positive valuation effect of EUR 88 m. from extreme mortality cover and negative impact from valuation of reinsurance-related derivatives (EUR -92 m.)
• Other income and expenses mainly driven by strong contribution from deposit accounted treaties of EUR 219 m. (Q2/2021: EUR 184 m.) and one-off recapturing fee income of EUR 40 m.

Positive second quarter and good outlook for the remainder of the year Q2/2022 new and pipeline business1)

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Stable and solid return on investment of 3.0% Strong and increased ordinary investment return

in m. EUR	Q2/2021	Q2/2022	1H/2021	1H/2022	RoI
Ordinary investment income1)	375	480	698	903	3.2%
Realised gains/losses	52	11	142	52	0.2%
Impairments/appreciations & depreciations	(17)	(37)	(38)	(52)	-0.2%
Change in fair value of financial instruments (through P&L)	7	6	(43)	28	0.1%
Investment expenses	(33)	(35)	(65)	(78)	-0.3%
NII from assets under own management	383	424	694	853	3.0%
NII from funds withheld	42	72	172	127
Total net investment income	425	496	866	980

Unrealised gains/losses on investments		31 Dec 21 30 Jun 22
On-balance sheet	2,310	(2,756)
thereof Fixed income AFS	1,299	(3,806)
Off-balance sheet	629	524
thereof Fixed income HTM, L&R	148	(886)
Total	2,939	(2,233)

1) Incl. results from associated companies

YTD

• Increasing ordinary income from inflation-linked bonds, higher reinvestment yield, higher return from real estate investments as well as higher asset volume
• Realised gains primarily from liquidation of portfolio of listed equity partially offset by reallocations due to strategic and regular portfolio adjustments
• Stable depreciation on direct real estate investments; rise in impairments mainly due to Russian and Ukrainian fixed income securities
• Change in fair value of financial instruments through P&L impacted by valuation of reinsurance-related derivatives (UK and extreme mortality cover), positive contribution from f/x hedges
• Decrease in valuation reserves due to higher government yield curves and credit spreads on corporates

Ordinary income with increased return from government bonds Stable asset allocation, defensive credit-risk taking since beginning of year

1)

Investment category	2018	2019	2020	2021	1H/2022
Fixed-income securities	87%	87%	85%	86%	84%
- Governments	35%	35%	34%	34%	36%
- Semi-governments	16%	15%	15%	14%	13%
- Corporates	29%	31%	30%	32%	29%
Investment grade	25%	26%	25%	28%	25%
Non-investment grade	4%	4%	4%	4%	4%
- Pfandbriefe, Covered bonds, ABS	7%	7%	6%	6%	2) 7%
Equities	2%	3%	3%	4%	4%
- Listed equity	>0%	>0%	1%	1%	>0%
- Private equity	2%	2%	3%	3%	4%
Real Assets	6%	5%	5%	5%	6%
Others	1%	2%	3%	2%	2%
Short-term investments & cash	4%	3%	3%	3%	4%
Total market values in bn. EUR	42.7	48.2	49.8	56.2	56.6

Asset allocation Ordinary income split

1) Economic view based on market values without outstanding commitments for Private Equity and Alternative Real Estate as well as fixed-income investments of EUR 1,597.0 m. (EUR 1,588.2 m.) as at 30 June 2022

2) Of which Pfandbriefe and Covered Bonds = 61.0%

3) Before real estate-specific costs. Economic view based on market values as at 30 June 2022

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Target Matrix: 1H/2022

Business group	Key figures	Strategic targets	1H/2022
Group	Return on equity1 )	900 bps above risk-free	12.4%
	Solvency ratio2 )	≥ 200%	235%
Property & Casualty reinsurance	Gross premium growth3 )	≥ 5%	+18.2%
	EBIT growth4 )	≥ 5%	-24.7%
	Combined ratio	≤ 96%	99.0%
	xRoCA5 )	≥ 2%	n.a. yet
Life & Health reinsurance	Gross premium growth3 )	≥ 3%	+0.3%
	EBIT growth4 )	≥ 5%	+86.4%
	Value of New Business (VNB)6 )	≥ EUR 250 m.	n.a. yet
	xRoCA5 )	≥ 2%	n.a. yet

1) After tax; risk-free: 5-year average return of 10-year German government bonds 2) According to our internal capital model and Solvency II requirements

3) Average annual growth at constant f/x rates 4) Average annual growth

5) Excess return (one-year economic profit in excess of the cost of capital) on allocated economic capital 6) Based on Solvency II principles; pre-tax reporting

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Continued high demand for Hannover Re security Risk-adjusted price increase of 4%; thereof non-proportional 5.5%

2,595 250 274 3,119 Inforce book up for renewal New/ cancelled/ restructured Price & volume changes on renewed Inforce book after renewals +20.2% 2 Apr - 1 Jul 2022 P&C renewals in m. EUR Change in shares: -0.7% Change in price: +4.0% Change in volume: +7.2%

Americas1)

• Primary pricing trends continue to improve taking inflation into account
• Property remains attractive due to underlying price increases and improved terms for lossaffected programs, resulting in higher margin expectations
• Standard Casualty and Regional business remained stable with further rate improvements, plus some additional shares at attractive reinsurance terms and conditions
• Overall, significant premium growth on the back of a hardening market Australia1)
• Considerable hardening of property market with rates increasing and capacity withdrawing
• Casualty rates up 5-6% despite good results, riding off the back of the property renewals
• Substantial premium increase due to new business and price hardening

Asia1)

• Property growth observed in most emerging markets impacted by inflation of insured values Credit & Surety
• Stable reinsurance limits and wordings
• Inflation, appreciation of the USD vs EUR and some organic growth pushing premium up

Underwriting year figures at unchanged f/x rates (31 December 2021) 1) Excluding specialty business

Group net income guidance for 2022 confirmed

Hannover Re Group

•	Gross written premium1)	> 7.5%
•	2) Return on investment	> 2.5%
•	Group net income 2)	EUR 1.4 - 1.5 bn.
•	Ordinary dividend	≥ prior year

• Special dividend if capitalisation exceeds capital requirements for future growth and profit targets are achieved

1) At unchanged f/x rates

2) Subject to no major distortions in capital markets and/or major losses in 2022 not exceeding the large loss budget of EUR 1.4 bn. and no unexpected material Covid-19 impact in L&H

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Target Matrix	17
6	Outlook 2022	19
	Appendix	22

Our business groups at a glance 1H/2022 vs. 1H/2021

	Property & Casualty R/I		Life & Health R/I		Total
in m. EUR	1H/2021	1H/2022	1H/2021	1H/2022	1H/2021	1H/2022
Gross written premium	10,267	12,922	4,198	4,420	14,465	17,342
Change in GWP		+25.9%		+5.3%		+19.9%
Net premium earned	7,847	9,819	3,669	3,947	11,515	13,767
Net underwriting result	302	55	(350)	(221)	(48)	(166)
Net underwriting result incl. funds withheld	317	96	(193)	(135)	124	(40)
Net investment income	584	694	281	286	866	980
From assets under own management	570	653	123	200	694	853
From funds withheld	15	41	157	86	172	127
Other income and expenses	(109)	(162)	249	269	138	106
Operating profit/loss (EBIT)	778	586	179	334	956	919
Financing costs	(1)	(1)	(1)	(1)	(40)	(42)
Net income before taxes	777	585	178	333	916	877
Taxes	(153)	(145)	(73)	(51)	(212)	(184)
Net income	624	440	106	282	704	692
Non-controlling interest	32	42	1	2	33	44
Group net income	592	399	105	280	671	649
Retention	91.3%	91.7%	88.2%	88.8%	90.4%	90.9%
Combined ratio (incl. interest on funds withheld)	96.0%	99.0%	-	-	-	-
EBIT margin (EBIT / Net premium earned)	9.9%	6.0%	4.9%	8.5%	8.3%	6.7%
Tax ratio	19.6%	24.8%	40.7%	15.4%	23.2%	21.0%
Earnings per share (in EUR)	4.91	3.30	0.87	2.32	5.56	5.38

Our business groups at a glance Q2/2022 vs. Q2/2021

	Property & Casualty R/I		Life & Health R/I			Total
in m. EUR	Q2/2021	Q2/2022	Q2/2021	Q2/2022	Q2/2021	Q2/2022
Gross written premium	4,574	5,773	2,082	2,236	6,655	8,009
Change in GWP		+26.2%		+7.4%		+20.3%
Net premium earned	3,984	5,037	1,839	2,020	5,823	7,057
Net underwriting result	158	33	(102)	(43)	57	-10
Net underwriting result incl. funds withheld	169	69	(71)	(7)	99	62
Net investment income	316	388	109	108	425	496
From assets under own management	305	352	78	72	383	424
From funds withheld	11	36	30	36	42	72
Other income and expenses	(8)	(119)	80	155	70	36
Operating profit/loss (EBIT)	466	302	87	221	552	523
Financing costs	(1)	(1)	(0)	(0)	(21)	(21)
Net income before taxes	465	302	87	220	531	501
Taxes	(115)	(56)	(38)	(41)	(146)	(92)
Net income	351	246	48	180	385	410
Non-controlling interest	20	24	0	1	20	25
Group net income	331	222	48	179	365	385
Retention	89.8%	89.9%	87.8%	89.0%	89.2%	89.7%
Combined ratio (incl. interest on funds withheld)	95.7%	98.6%	-	-	-	-
EBIT margin (EBIT / Net premium earned)	11.7%	6.0%	4.7%	10.9%	9.5%	7.4%
Tax ratio	24.7%	18.6%	44.3%	18.4%	27.6%	18.3%
Earnings per share (in EUR)	2.74	1.84	0.40	1.48	3.02	3.19

Stress tests on assets under own management

After listed equity liquidation, main focus on credit exposures

Portfolio	Scenario	Change in market value in m. EUR	Change in OCI before tax in m. EUR
	-10%	-211	-211
Equity (listed and private equity)	-20%	-423	-423
	+50 bps	-1,280	-1,245
Fixed-income securities	+100 bps	-2,496	-2,427
Credit spreads	+50%	-1,047	-1,042

High-quality fixed-income book well balanced

High-quality fixed-income book well balanced Geographical allocation mainly in accordance with our broad business diversification
	Governments	Semi governments	Corporates	Pfandbriefe, Covered bonds, ABS	Short-term investments, cash	Total
AAA	75%	53%	1 %	61%	-	45%
A A	10%	23%	10%	13%	-	13%
A	10%	8 %	35%	12%	-	18%
BBB	4 %	1 %	44%	11%	-	17%
<BBB	2 %	14%	11%	2 %	-	7 %
Total	100%	100%	100%	100%	-	100%
Germany	14%	27%	3 %	19%	26%	13%
UK	7 %	2 %	6 %	6 %	6 %	6 %
France	3 %	1 %	7 %	8 %	0 %	4 %
GIIPS	0 %	1 %	4 %	3 %	0 %	2 %
Rest of Europe	3 %	17%	14%	25%	5 %	10%
USA	52%	13%	33%	19%	15%	36%
Australia	6 %	6 %	6 %	9 %	12%	6 %
Asia	12%	16%	12%	1 %	21%	12%
Rest of World	4 %	18%	15%	10%	15%	10%
Total	100%	100%	100%	100%	100%	100%
Total b/s values in m. EUR	20,091	7,609	15,609	3,700	2,045	49,053

IFRS figures as at 30 June 2022

Currency allocation matches balance sheet liability profile as much as possible Duration-neutral strategy continued

Currency split of investments

• Modified duration of fixed-income mainly congruent with liability- and capital-driven targets
• GBP's higher modified duration predominantly due to life business

Modified duration
1H/2022	5.2
2021	5.8
2020	5.8
2019	5.7
2018	4.8

Individual events with limited impact on Solvency ratio Solvency ratio robust under stressed conditions

Sensitivities and stress tests

As at 31 December 2021

1) A return period of 250 years is equivalent to an occurrence probability of 0.4%; based on the aggregate annual loss.

2) Distributed denial-of-service-attack on main DNS provider

3) Average stress level of +50 bps. Stress level differs by corporate bond issuer rating Excl. government bonds and incl. impact of changes in dynamic volatility adjustment.

IR calendar

Disclaimer

This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities.

While Hannover Re has endeavoured to include in this presentation information it believes to be reliable, complete and up-todate, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.

Some of the statements in this presentation may be forward-looking statements or statements of future expectations based on currently available information. Such statements naturally are subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements.

This presentation serves information purposes only and does not constitute or form part of an offer or solicitation to acquire, subscribe to or dispose of, any of the securities of Hannover Re.

© Hannover Rück SE. All rights reserved. Hannover Re is the registered service mark of Hannover Rück SE.