Hannover Rueck SE

Quarterly Report • May 9, 2022

Quarterly Statement as at 31 March 2022

Key figures

in EUR million	2022		2021
	1.1.– 31.3.	+/– previous year	1.1.– 31.3. ¹	31.12.
Results
Gross written premium	9,333.4	+19.5%	7,809.3
Net premium earned	6,710.2	+17.9%	5,692.7
Net underwriting result ²	(102.0)		25.4
Net investment income	483.9	+9.7%	441.1
Operating profit (EBIT)	396.4	-1.8%	403.8
Group net income	263.6	-13.8%	305.9
Balance sheet
Policyholders' surplus	14,464.9	-8.1%		15,733.6
Equity attributable to shareholders of Hannover Rück SE	10,694.6	-10.0%		11,885.0
Non-controlling interests	792.1	-9.1%		871.2
Hybrid capital	2,978.2	+0.0%		2,977.4
Investments (excl. funds withheld by ceding companies)	56,245.2	+0.1%		56,213.2
Total assets	86,307.1	+4.1%		82,902.3
Share
Earnings per share (basic and diluted) in EUR	2.19	-13.8%	2.54
Book value per share in EUR	88.68	-10.0%	91.57	98.55
Share price at the end of the period in EUR	154.35	-7.7%	155.80	167.15
Market capitalisation at the end of the period	18,614.2	-7.7%	18,789.0	20,157.8
Ratios
Combined ratio (property and casualty reinsurance) ²	99.5%		96.2%
Large losses as percentage of net premium earned (property and casualty reinsurance) ³	7.0%		5.0%
Retention	92.0%		91.5%
Return on investment (excl. funds withheld by ceding companies)	3.1%		2.5%
EBIT margin ⁴	5.9%		7.1%
Return on equity (after tax)	9.3%		11.1%

¹ Restated pursuant to IAS 8

² Including interest on funds withheld and contract deposits

³ Hannover Re Group's net share for natural catastrophes and other major losses in excess of EUR 10 million gross as a percentage of net premium earned

⁴ Operating result (EBIT)/net premium earned

Contents

Quarterly Statement Business development	2 2
Results of operations, financial position and net assets	3
Property and casualty reinsurance	3
Life and health reinsurance	4
Investments	5
Outlook	7
Consolidated balance sheet as at 31 March 2022	8
Consolidated statement of income as at 31 March 2022	10
Consolidated statement of comprehensive income as at 31 March 2022	11
Group segment report as at 31 March 2022	12
Consolidated cash flow statement as at 31 March 2022	16
Other information	17
Contact information	18

The present document is a quarterly statement pursuant to Section 51a of the Exchange Rules for the Frankfurter Wertpapierbörse. For further information please see the section "Other information" on page 17 of this document.

Quarterly statement as at 31 March 2022

Business development

• Gross premium for the Group grows by 13.9% adjusted for exchange rate effects
• Major loss expenditure in property and casualty reinsurance higher than pro rata budgeted amount
• Additional provision for possible losses from the war in Ukraine in the low triple-digit million euro range
• Pandemic-related strains in life and health reinsurance in line with expectations
• Investment income rises by 9.7%; return on investment beats target at a gratifying 3.1%
• Group net income reaches EUR 263.6 million
• Return on equity remains above minimum target at 9.3%

The first quarter of 2022 for Hannover Re was notable for considerable expenditure on large losses in property and casualty reinsurance and further strains connected with the Covid-19 pandemic in life and health reinsurance. The global economy and political landscape were also clearly impacted in the first quarter by Russia's war on Ukraine. Energy prices consequently surged sharply higher, in turn adding further fuel to rising inflation rates. As an additional factor, the protracted Covid-19 pandemic continued to weigh on society, politics and the economy.

The gross written premium booked by the Hannover Re Group rose by 19.5% to EUR 9.3 billion as at the end of March (previous year: EUR 7.8 billion). Growth would have reached 13.9% at constant exchange rates. The retention increased to 92.0% (91.5%). Net premium earned grew by 17.9% to EUR 6.7 billion (EUR 5.7 billion). The increase would have been 12.4% adjusted for exchange rate effects.

In our Property & Casualty reinsurance business group the treaty renewals as at 1 January 2022 passed off satisfactorily on the whole. Rate increases here were sustained for the fifth year in succession. Along with considerable losses from natural catastrophes, especially in Europe and North America, pricing movements were driven primarily by the low interest rate environment and the further sharp rise in inflation. Expenditures for large losses were higher than our budgeted expectation for the first quarter. We also established an additional general provision in the low triple-digit million euro range in the first quarter for possible losses from the war in Ukraine. The segment result declined by 32.4%.

In Life & Health reinsurance, further loss expenditures were recorded as expected in the first quarter in connection with the elevated mortality resulting from the pandemic, although these progressively diminished over the course of the quarter. The additional strains incurred from the pandemic in the first quarter totalled EUR 122.6 million. All in all, the first three months of the year passed off satisfactorily – thanks in part to pleasing demand for coverage of longevity risks. The segment result improved by 77.6%.

Our portfolio of investments remained on the level at year-end 2021 with a volume of EUR 56.2 billion. Investment income grew by 9.7%. The annualised return on investment was 3.1%.

Other income and expenses increased by 2.2% to EUR 69.4 million (EUR 67.9 million).

The operating profit (EBIT) generated by Hannover Re on the Group level reached EUR 396.4 million (EUR 403.8 million) despite the aforementioned losses. Group net income contracted by 13.8% to EUR 263.6 million (EUR 305.9 million). Earnings per share thus came in at EUR 2.19 (EUR 2.54).

The shareholders' equity of Hannover Re as at 31 March 2022 contracted by 10.0% to EUR 10.7 billion (31 December 2021: EUR 11.9 billion). The annualised return on equity amounted to 9.3% (31 December 2021: 11.1%) and hence beat the minimum target of 900 basis points above the risk-free interest rate. The book value per share stood at EUR 88.68 (31 December 2021: EUR 98.55). The capital adequacy ratio at the end of March was 242.4%, a level still comfortably in excess of our internal limit of 180% and our threshold of 200%.

Results of operations, financial position and net assets

Property and casualty reinsurance

• Gross premium up by 19.5% adjusted for exchange rate effects
• Major loss expenditure of EUR 335.8 million higher than budgeted for the first quarter
• Additional provision for possible losses from the war in Ukraine in the low triple-digit million euro range
• Combined ratio increases to 99.5%
• Segment result declines by 32.4% compared to previous year

Against the backdrop of considerable catastrophe losses as well as protracted low interest rates and rising inflation in the previous year, the main renewal season in traditional property and casualty reinsurance as at 1 January 2022 passed off satisfactorily overall for Hannover Re.

The pricing momentum of the past year was sustained in the 1 January renewals and we again generated growth in our renewed portfolio at improved prices and conditions. Some 62% of Hannover Re's traditional property and casualty reinsurance portfolio (excluding facultative reinsurance, ILS activities and structured reinsurance) was up for renewal on 1 January 2022. The inflation- and risk-adjusted price increase amounted to 4.1%, with the most significant gains booked in European markets.

Gross written premium in property and casualty reinsurance surged by 25.6% in the first quarter to EUR 7.1 billion (previous year: EUR 5.7 billion). Growth would have reached 19.5% at constant exchange rates. Net premium earned rose by 23.8% to EUR 4.8 billion (EUR 3.9 billion); at constant exchange rates, growth of 18.0% would have been recorded.

The first three months of the year were notable for natural catastrophe events such as winter storms in Europe and floods in Australia. Total expenditure on large losses reached EUR 335.8 million (EUR 193.2 million) and thus exceeded our major loss budget of EUR 284 million set aside for the first quarter.

The largest individual losses were the floods in Australia caused by heavy rainfall with net expenditure of EUR 185.6 million, the windstorm events Ylenia/Zeynep in Europe at a cost of EUR 124.2 million and the sinking of the cargo ship "Felicity Ace" following a fire in an amount of EUR 13.9 million.

In addition, the war in Ukraine will have implications for the insurance industry, even though no loss advices have been received to date. Hannover Re established an additional general provision in the low triple-digit million euro range in the first quarter for possible losses from the war in Ukraine. The combined ratio in property and casualty reinsurance consequently deteriorated to 99.5% (96.2%) and was thus higher than our expectation of no more than 96%.

The underwriting result for property and casualty reinsurance including interest on funds withheld and contract deposits deteriorated sharply to EUR 26.2 million (EUR 147.3 million). The investment income booked from assets under own management, on the other hand, improved by 13.6% to EUR 301.0 million (EUR 265.0 million).

Despite the considerable loss expenditures, an operating profit (EBIT) of EUR 283.7 million (EUR 312.1 million) was nevertheless generated. The EBIT margin reached 5.9% (8.1%). The net income generated by the Property & Casualty reinsurance business group amounted to EUR 176.6 million (EUR 261.1 million).

Key figures for property and casualty reinsurance

in EUR million	2022	2021
	1.1.– 31.3.	+/– previous year	1.1.– 31.3. ¹
Gross written premium	7,148.8	+25.6%	5,692.9
Net premium earned	4,782.5	+23.8%	3,863.1
Net underwriting result ²	26.2	-82.2%	147.3
Net investment income	305.7	+13.8%	268.5
Operating result (EBIT)	283.7	-9.1%	312.1
Group net income	176.6	-32.4%	261.1
Earnings per share in EUR	1.46	-32.4%	2.17
EBIT margin ³	5.9%		8.1%
Combined ratio ²	99.5%		96.2%
Retention	93.1%		92.6%

¹ Restated pursuant to IAS 8

² Including interest on funds withheld and contract deposits

³ Operating result (EBIT)/net premium earned

Life and health reinsurance

• Gross premium down by 1.2% adjusted for exchange rate effects
• Sustained strong demand worldwide for coverage of longevity risks
• Losses of EUR 122.6 million from the Covid-19 pandemic in the first quarter within the bounds of expectations
• Segment result clearly above the previous year at EUR 100.9 million

The impacts of the pandemic continued to be the dominant theme in life and health reinsurance, particularly in the area of mortality covers. As expected, further strains of altogether EUR 122.6 million were incurred in connection with the pandemic, although these progressively diminished over the course of the quarter. The bulk of these losses derived from mortality covers, primarily in the United States but also in South Africa and Latin America.

Russia's war on Ukraine did not have any direct implications for our Life & Health reinsurance business group because we do not write significant business in either country.

In our financial solutions business we continued to grow our portfolio, especially in China. The first quarter was also notable for sustained growth in demand around the world for solutions designed to protect against longevity risks. The writing of our first longevity reinsurance treaty in Australia was a pleasing development. Demand was also particularly strong again in the United Kingdom, which remains our largest market, as well as in the United States and Canada. The climate for life and health reinsurance was satisfactory on the whole in the first quarter.

Gross premium income in the Life & Health reinsurance business group climbed by 3.2% to EUR 2.2 billion (previous year: EUR 2.1 billion), corresponding to a decline of 1.2% at constant exchange rates. Net premium earned grew by 5.4% to EUR 1.9 billion (EUR 1.8 billion); the increase would have been 0.8% adjusted for exchange rate effects.

Investment income from assets under own management came in substantially higher at EUR 127.8 million (EUR 45.0 million). The operating result (EBIT) grew by 22.9% to EUR 113.0 million (EUR 92.0 million). Net income for the Life & Health reinsurance business group increased by by 77.6% to EUR 100.9 million (EUR 56.8 million).

Key figures for life and health reinsurance

in EUR million		2022
	1.1.– 31.3.	+/– previous year	1.1.– 31.3. ¹
Gross written premium	2,184.6	+3.2%	2,116.4
Net premium earned	1,927.7	+5.4%	1,829.6
Investment income	178.0	+3.5%	172.0
Operating result (EBIT)	113.0	+22.9%	92.0
Net income after tax	100.9	+77.6%	56.8
Earnings per share in EUR	0.84	+77.6%	0.47
Retention	88.6%		88.6%
EBIT margin ²	5.9%		5.0%

¹ Restated pursuant to IAS 8

² Operating result (EBIT)/net premium earned

Investments

• Sharp interest rate rises in main currency areas influence fixed-income securities
• Portfolio of assets under own management remains stable at EUR 56.2 billion
• Investment income increases by 9.7% to EUR 483.9 million
• Return on investment comes in at a gratifying 3.1% and outperforms minimum target of 2.3%

Our investments delivered a comparatively pleasing performance in the first three months of the year even though the ongoing pandemic and numerous geopolitical and economic challenges – most notably the war in Ukraine – impacted the globalised world on a scale that could not have been foreseen. Against this backdrop, our investments benefited from the fact that we had already tended to adopt a more conservative posture from the end of last year onwards with an eye to anticipated central bank moves and inflationary developments.

Our fixed-income portfolio was heavily influenced by the monetary policy pursued by central banks as well as increased government debt levels, which prompted steep interest rate rises overall across virtually all maturity segments in our main currency areas. These were reflected in a very marked decrease in hidden reserves on our fixed-income securities, but at the same time had positive implications for new investments and reinvestment activities.

Bonds issued by developing countries and lower-quality issuers experienced very considerable spread volatility in some instances with the outbreak of war in Ukraine. This volatility subsided again over the course of March, with the result that the increases recorded over the entire first quarter tended to be limited. The picture was similar on equity markets, which also posted very steep price drops at times but had erased most of the losses by the end of the quarter.

Our portfolio of assets under own management amounted to EUR 56.2 billion as at 31 March, a level on a par with the end of the previous year (31 December 2021: EUR 56.2 billion). With credit spreads virtually unchanged, higher interest rates led to appreciable declines in the fair values of our fixed-income securities. These were, however, offset by a strong inflow of cash from the technical account and positive currency effects, primarily from the US dollar and Australian dollar. The unrealised losses at the end of March amounted to EUR 1.0 billion , primarily due to rising interest rates. This contrasted with unrealised gains of EUR 1.4 billion as at 31 December 2021.

We kept our asset allocation broadly stable overall in the first quarter. In the real estate sector we acted on market opportunities to strengthen our portfolio in South America and southern Europe. The modified duration of our fixed-income portfolio – at 5.6 (5.8) – was reduced slightly in comparison with the end of the previous year.

Ordinary investment income excluding interest on funds withheld and contract deposits amounted to EUR 396.6 million, a gratifying and marked increase compared to the previous year's period (EUR 310.2 million). Positive profit contributions from inflation-linked bonds again played a part here. In addition, we substantially boosted the income generated from our real estate holdings. Earnings from fixed-income securities were also significantly higher than in the previous year's period. Interest on funds withheld and contract deposits retreated to EUR 54.8 million (EUR 130.5 million), principally due to a special effect recorded in the comparable quarter.

The net balance of gains realised on disposals totalled EUR 41.8 million (EUR 90.2 million) and can be attributed primarily to sales as part of regrouping moves in credit and equity portfolios as well as regular portfolio maintenance. Impairments of altogether EUR 14.6 million (EUR 21.1 million) were taken. Of this amount, write-downs of EUR 10.3 million (EUR 8.9 million) were attributable to depreciation recognised on directly held real estate.

The unrealised gains in our assets recognised at fair value through profit or loss amounted to EUR 21.6 million (unrealised losses of EUR 49.7 million). They were crucially influenced by the performance of two derivatives relating to the technical account.

The net investment income of EUR 483.9 million (EUR 441.1 million) thus reached a pleasing level in excess of the comparable period. Income from assets under own management accounted for EUR 429.0 million (EUR 310.6 million), producing an annualised average return (including ModCo effects) of 3.1%.

Net investment income

in EUR million	2022	2021
	1.1.– 31.3.	+/– previous year	1.1.– 31.3. ¹
Ordinary investment income ²	396.6	+27.8%	310.2
Result from participations in associated companies	27.0	+120.9%	12.2
Realised gains/losses	41.8	-53.7%	90.2
Depreciation, amortisation, impairments ³	14.6	-30.8%	21.1
Change in fair value of financial instruments ⁴	21.6		(49.7)
Investment expenses	43.3	+38.2%	31.3
Net investment income from assets under own management	429.0	+38.1%	310.6
Net investment income from funds withheld	54.8	-58.0%	130.5
Total investment income	483.9	+9.7%	441.1

¹ Restated pursuant to IAS 8

² Excluding interest on funds withheld and contract deposits

³ Including depreciation/impairments on real estate

⁴ Portfolio at fair value through profit or loss and trading

Outlook

• Group gross premium expected to show growth of at least 5% at constant exchange rates
• Return on investment of at least 2.3% targeted for the full year
• Group net income guidance of EUR 1.4 billion to EUR 1.5 billion for 2022 confirmed

While it is still too soon to definitively assess the impacts of the war in Ukraine on worldwide insurance and reinsurance markets, we are retaining our full-year targets unchanged in view of Hannover Re's considerable resilience and robust profitability.

In life and health reinsurance we anticipate further pandemicrelated expenditures, although these should drop off sharply over the course of the year.

We are looking to grow the gross premium for the Group by at least 5% for the full year at constant exchange rates. On the Group level our expected net income for the 2022 financial year remains unchanged at EUR 1.4 billion to EUR 1.5 billion. This assumes that major loss expenditure does not materially exceed the budgeted level of EUR 1.4 billion, the Covid-19 pandemic does not have a significant unexpected impact on the result in life and health reinsurance and no unforeseen distortions occur on capital markets. The return on investment should reach at least 2.3%.

We renew business in the Asia-Pacific region and in North America as well as in some specialty lines as at 1 April. The negotiations produced appreciable growth at improved prices. The premium volume grew by altogether 17.4%. The inflationand risk-adjusted price increase for the renewed business amounted to 3.7%.

Hannover Re continues to aim for an ordinary dividend that is higher than in the previous year or at least remains stable. This will be supplemented by a special dividend provided the capitalisation exceeds the capital required for future growth and the profit target is achieved.

Consolidated balance sheet as at 31 March 2022

Fixed-income securities - held to maturity 47,531 48,632 Fixed-income securities - loans and receivables 2,425,531 2,443,629 Fixed-income securities - available for sale 45,030,012 45,473,677 Fixed-income securities - at fair value through profit or loss 96,430 81,308 Equity securities - available for sale 281,408 314,453 Other financial assets - at fair value through profit or loss 287,381 248,233 Investment property 2,020,185 1,818,754 Real estate funds 831,909 805,912 Investments in associated companies 265,253 238,110 Other invested assets 3,112,516 2,941,633 Short-term investments 477,205 443,793 Cash and cash equivalents 1,369,870 1,355,114 Total investments and cash under own management 56,245,231 56,213,248 Funds withheld 11,148,362 10,803,071 Contract deposits 627,356 503,412 Total investments 68,020,949 67,519,731 Reinsurance recoverables on unpaid claims 2,935,934 2,674,107 Reinsurance recoverables on benefit reserve 189,537 192,039 Prepaid reinsurance premium 278,161 204,597 Reinsurance recoverables on other technical reserves 1,953 2,703 Deferred acquisition costs 3,977,705 3,350,633 Accounts receivable 9,078,319 7,207,750 Goodwill 84,336 83,933 Deferred tax assets 869,112 676,344 Other assets 851,916 972,167 Accrued interest and rent 19,197 18,248 Total assets 86,307,119 82,902,252	in EUR thousand	31.3.2022	31.12.2021

Liabilities
in EUR thousand	31.3.2022	31.12.2021
Loss and loss adjustment expense reserve	42,918,452	40,777,703
Benefit reserve	7,505,243	7,541,881
Unearned premium reserve	8,271,094	6,195,961
Other technical provisions	926,328	841,591
Funds withheld	740,243	632,195
Contract deposits	3,641,430	3,586,740
Reinsurance payable	2,564,379	2,380,681
Provisions for pensions	185,026	208,750
Taxes	125,900	92,023
Deferred tax liabilities	2,479,743	2,836,374
Other liabilities	1,029,460	681,867
Financing liabilities	4,433,154	4,370,255
Total liabilities	74,820,452	70,146,021
Shareholders' equity
Common shares	120,597	120,597
Nominal value: 120,597 Conditional capital: 24,119
Additional paid-in capital	724,562	724,562
Common shares and additional paid-in capital	845,159	845,159
Cumulative other comprehensive income
Unrealised gains and losses on investments	78,814	1,768,312
Cumulative foreign currency translation adjustment	589,096	366,231
Changes from hedging instruments	(10,033)	(8,618)
Other changes in cumulative other comprehensive income	(57,816)	(71,851)
Total other comprehensive income	600,061	2,054,074
Retained earnings	9,249,374	8,985,770
Equity attributable to shareholders of Hannover Rück SE	10,694,594	11,885,003
Non-controlling interests	792,073	871,228
Total shareholders' equity	11,486,667	12,756,231
Total liabilities	86,307,119	82,902,252

Consolidated statement of income as at 31 March 2022

in EUR thousand	1.1. - 31.3.2022	1.1. - 31.3.2021 ¹
Gross written premium	9,333,430	7,809,264
Ceded written premium	744,958	663,044
Change in gross unearned premium	(1,947,680)	(1,507,345)
Change in ceded unearned premium	69,382	53,832
Net premium earned	6,710,174	5,692,707
Ordinary investment income	396,569	310,238
Profit / loss from investments in associated companies	26,976	12,212
Realised gains and losses on investments	41,761	90,182
Change in fair value of financial instruments	21,574	(49,699)
Total depreciation, impairments and appreciation of investments	14,573	21,054
Other investment expenses	43,283	31,324
Net income from investments under own management	429,024	310,555
Income / expense on funds withheld and contract deposits	54,841	130,501
Net investment income	483,865	441,056
Other technical income	–	62
Total revenues	7,194,039	6,133,825
Claims and claims expenses	5,151,789	4,385,771
Change in benefit reserves	(82,401)	(52,287)
Commission and brokerage, change in deferred acquisition costs	1,657,615	1,337,180
Other acquisition costs	1,511	1,089
Administrative expenses	138,499	126,109
Total technical expenses	6,867,013	5,797,862
Other income	283,292	261,531
Other expenses	213,935	193,660
Other income and expenses	69,357	67,871
Operating profit / loss (EBIT)	396,383	403,834
Financing costs	21,112	18,720
Net income before taxes	375,271	385,114
Taxes	92,793	65,849
Net income	282,478	319,265
thereof
Non-controlling interest in profit and loss	18,874	13,372
Group net income	263,604	305,893
Earnings per share (in EUR)
Basic earnings per share	2.19	2.54
Diluted earnings per share	2.19	2.54

¹ Restated pursuant to IAS 8

Consolidated statement of comprehensive income as at 31 March 2022

in EUR thousand	1.1. - 31.3.2022	1.1. - 31.3.2021
Net income	282,478	319,265
Not reclassifiable to the consolidated statement of income
Actuarial gains and losses
Gains (losses) recognised directly in equity	22,972	14,563
Tax income (expense)	(7,502)	(4,759)
	15,470	9,804
Changes from the measurement of associated companies
Gains (losses) recognised directly in equity	–	134
	–	134
Income and expense recognised directly in equity that cannot be reclassified
Gains (losses) recognised directly in equity	22,972	14,697
Tax income (expense)	(7,502)	(4,759)
	15,470	9,938
Reclassifiable to the consolidated statement of income
Unrealised gains and losses on investments
Gains (losses) recognised directly in equity	(2,356,998)	(851,093)
Transferred to the consolidated statement of income	(38,066)	(82,191)
Tax income (expense)	631,660	233,449
	(1,763,404)	(699,835)
Currency translation
Gains (losses) recognised directly in equity	256,778	475,221
Tax income (expense)	(31,255)	(58,012)
	225,523	417,209
Changes from the measurement of associated companies
Gains (losses) recognised directly in equity	11	2,507
	11	2,507
Changes from hedging instruments
Gains (losses) recognised directly in equity	(1,860)	2,264
Tax income (expense)	447	(945)
	(1,413)	1,319
Reclassifiable income and expense recognised directly in equity
Gains (losses) recognised directly in equity	(2,102,069)	(371,101)
Transferred to the consolidated statement of income	(38,066)	(82,191)
Tax income (expense)	600,852	174,492
	(1,539,283)	(278,800)
Total income and expense recognised directly in equity
Gains (losses) recognised directly in equity	(2,079,097)	(356,404)
Transferred to the consolidated statement of income	(38,066)	(82,191)
Tax income (expense)	593,350	169,733
	(1,523,813)	(268,862)
Total recognised income and expense	(1,241,335)	50,403
thereof
Attributable to non-controlling interests	(50,926)	2,990
Attributable to shareholders of Hannover Rück SE	(1,190,409)	47,413

Group segment report as at 31 March 2022

Segmentation of assets	Property and casualty reinsurance
in EUR thousand	31.3.2022	31.12.2021
Assets
Fixed-income securities - held to maturity	47,180	48,286
Fixed-income securities - loans and receivables	1,954,105	1,954,457
Fixed-income securities - available for sale	34,841,045	34,837,639
Equity securities - available for sale	281,408	314,453
Financial assets at fair value through profit or loss	109,173	87,403
Other invested assets	5,435,440	5,050,754
Short-term investments	332,707	379,437
Cash	991,927	907,873
Total investments and cash under own management	43,992,985	43,580,302
Funds withheld	3,551,401	3,247,068
Contract deposits	3,352	3,290
Total investments	47,547,738	46,830,660
Reinsurance recoverables on unpaid claims	2,768,986	2,527,916
Reinsurance recoverables on benefit reserve	–	–
Prepaid reinsurance premium	278,022	204,456
Reinsurance recoverables on other reserves	1,271	1,446
Deferred acquisition costs	1,964,293	1,474,442
Accounts receivable	7,284,557	5,637,585
Other assets in the segment	3,441,300	3,157,485
Total assets	63,286,167	59,833,990

Segmentation of liabilities

in EUR thousand
Liabilities
Loss and loss adjustment expense reserve	36,968,114	35,089,423
Benefit reserve	–	–
Unearned premium reserve	7,850,119	5,795,849
Provisions for contingent commissions	566,064	513,280
Funds withheld	504,071	383,106
Contract deposits	29,243	28,221
Reinsurance payable	1,677,509	1,630,320
Financing liabilities	654,367	590,751
Other liabilities in the segment	2,645,450	2,587,905
Total liabilities	50,894,937	46,618,855

Life and health reinsurance		Consolidation		Total
31.3.2022	31.12.2021	31.3.2022	31.12.2021	31.3.2022	31.12.2021
351	346	–	–	47,531	48,632
456,155	474,123	15,271	15,049	2,425,531	2,443,629
10,165,368	10,620,228	23,599	15,810	45,030,012	45,473,677
–	–	–	–	281,408	314,453
274,638	242,138	–	–	383,811	329,541
794,423	753,655	–	–	6,229,863	5,804,409
143,489	62,923	1,009	1,433	477,205	443,793
376,004	434,657	1,939	12,584	1,369,870	1,355,114
12,210,428	12,588,070	41,818	44,876	56,245,231	56,213,248
7,596,961	7,556,003	–	–	11,148,362	10,803,071
624,004	500,122	–	–	627,356	503,412
20,431,393	20,644,195	41,818	44,876	68,020,949	67,519,731
166,948	146,191	–	–	2,935,934	2,674,107
189,537	192,039	–	–	189,537	192,039
139	141	–	–	278,161	204,597
682	1,257	–	–	1,953	2,703
2,013,413	1,876,191	–	–	3,977,705	3,350,633
1,793,762	1,570,165	–	–	9,078,319	7,207,750
547,743	526,930	(2,164,483)	(1,933,723)	1,824,561	1,750,692
25,143,617	24,957,109	(2,122,665)	(1,888,847)	86,307,119	82,902,252

5,950,338	5,688,280	–	–	42,918,452	40,777,703
7,505,243	7,541,881	–	–	7,505,243	7,541,881
420,975	400,112	–	–	8,271,094	6,195,961
360,264	328,311	–	–	926,328	841,591
236,172	249,089	–	–	740,243	632,195
3,612,187	3,558,519	–	–	3,641,430	3,586,740
886,870	750,361	–	–	2,564,379	2,380,681
36,098	37,787	3,742,689	3,741,717	4,433,154	4,370,255
3,324,616	3,188,682	(2,149,937)	(1,957,573)	3,820,129	3,819,014
22,332,763	21,743,022	1,592,752	1,784,144	74,820,452	70,146,021

Segment statement of income		Property and casualty reinsurance
in EUR thousand	1.1. - 31.3.2022	1.1. - 31.3.2021 ¹
Gross written premium	7,148,815	5,692,888
Net premium earned	4,782,473	3,863,057
Net investment income	305,666	268,543
thereof
Change in fair value of financial instruments	4,558	1,720
Total depreciation, impairments and appreciation of investments	14,565	21,046
Income / expense on funds withheld and contract deposits	4,631	3,543
Claims and claims expenses	3,376,365	2,642,608
Change in benefit reserve	–	–
Commission and brokerage, change in deferred acquisition costs and other technical income / expenses	1,316,289	1,015,608
Administrative expenses	68,215	61,053
Other income and expenses	(43,566)	(100,264)
Operating profit / loss (EBIT)	283,704	312,067
Financing costs	561	522
Net income before taxes	283,143	311,545
Taxes	88,800	37,715
Net income	194,343	273,830
thereof
Non-controlling interest in profit or loss	17,757	12,694
Group net income	176,586	261,136

¹ Restated pursuant to IAS 8

Life and health reinsurance		Consolidation		Total
1.1. - 31.3.2022	1.1. - 31.3.2021 ¹	1.1. - 31.3.2022	1.1. - 31.3.2021	1.1. - 31.3.2022	1.1. - 31.3.2021 ¹
2,184,615	2,116,376	–	–	9,333,430	7,809,264
1,927,701	1,829,650	–	–	6,710,174	5,692,707
177,972	171,978	227	535	483,865	441,056
17,016	(51,419)	–	–	21,574	(49,699)
8	8	–	–	14,573	21,054
50,210	126,958	–	–	54,841	130,501
1,775,424	1,743,163	–	–	5,151,789	4,385,771
(82,401)	(52,287)	–	–	(82,401)	(52,287)
342,837	322,599	–	–	1,659,126	1,338,207
70,220	64,933	64	123	138,499	126,109
113,430	168,756	(507)	(621)	69,357	67,871
113,023	91,976	(344)	(209)	396,383	403,834
364	393	20,187	17,805	21,112	18,720
112,659	91,583	(20,531)	(18,014)	375,271	385,114
10,611	34,084	(6,618)	(5,950)	92,793	65,849
102,048	57,499	(13,913)	(12,064)	282,478	319,265
1,117	678	–	–	18,874	13,372
100,931	56,821	(13,913)	(12,064)	263,604	305,893

Consolidated cash flow statement as at 31 March 2022

in EUR thousand	1.1. - 31.3.2022	1.1. - 31.3.2021 ¹
I. Cash flow from operating activities
Net income	282,478	319,265
Appreciation / depreciation	22,548	36,684
Realised gains and losses on investments	(41,761)	(90,182)
Change in fair value of financial instruments (through profit or loss)	(21,574)	49,699
Amortisation	(37,039)	32,887
Changes in funds withheld	(153,738)	(217,412)
Net changes in contract deposits	(112,325)	146,125
Changes in prepaid reinsurance premium	1,878,160	1,453,513
Change in tax assets / provisions for taxes	24,894	115,470
Change in benefit reserve	(88,881)	(36,915)
Change in claims reserves	1,220,227	1,038,231
Change in deferred acquisition costs	(529,444)	(306,040)
Change in other technical provisions	68,674	42,118
Change in accounts receivable / payable	(1,651,921)	(1,011,773)
Change in other assets and liabilities	409,067	114,607
Cash flow from operating activities	1,269,365	1,686,277
II. Cash flow from investing activities	(1,319,499)	(2,288,056)
III. Cash flow from financing activities	23,834	689,173
IV. Exchange rate differences on cash	41,056	48,900
Cash and cash equivalents at the beginning of the period	1,355,114	1,278,071
Change in cash and cash equivalents (I. + II. + III. + IV.)	14,756	136,294
Cash and cash equivalents at the end of the period	1,369,870	1,414,365
Supplementary information on the cash flow statement ²
Income taxes paid (on balance)	(59,699)	56,209
Dividend receipts ³	40,297	60,828
Interest received	377,648	357,989
Interest paid	(42,194)	(92,920)

¹ Restated pursuant to IAS 8

² The income taxes paid, dividend receipts as well as interest received and paid are included entirely in the cash flow from operating activities.

³ Including dividend-like profit participations from investment funds

Other information

The present document is a quarterly statement pursuant to Section 51a of the Exchange Rules for the Frankfurter Wertpapierbörse (BörsO FWB). It was drawn up according to International Financial Reporting Standards (IFRS) as applicable in the EU, but does not constitute an interim financial report as defined by IAS 34 "Interim Financial Reporting" or a financial statement as defined by IAS 1 "Presentation of Financial Statements". Estimates are subject to a greater degree of uncertainty in view of the coronavirus pandemic.

The accounting policies are essentially the same as those applied in the consolidated financial statement as at 31 December 2021. In the 2022 financial year, the "Amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions, Contingent Liabilities and Contingent Assets" and "Annual Improvements 2018-2020" are to be applied for the first time. Hannover Re is exercising the temporary exemption from applying IFRS 9 "Financial Instruments" that is available to companies whose activities are predominantly connected with insurance.

Contact information

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