Conference Call on Half-yearly Report 2020

Hannover, 5 August 2020

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Outlook 2020	17
6	Appendix	23

Double-digit premium growth driven by increased demand for reinsurance Group net income impacted by additional reserves for Covid-19 loss estimates

| 1 Group overview | 2 | 3 | 4 | 5 | 6 |

Very strong operating cash flow driven by profitable premium growth AuM +2.4%, increasing valuation reserves overcompensates negative f/x effects

| 1 Group overview | 2 | 3 | 4 | 5 | 6 |

Shareholders' equity up by +1.5% despite dividend payment in Q2/2020 Driven by positive earnings contribution and increase in asset valuation

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Outlook 2020	17
6	Appendix	23

Double-digit growth in an improving market environment Underwriting result impacted by additional reserves for Covid-19 loss estimates

Property & Casualty R/I in m. EUR	Q2/2019	Q2/2020	1H/2019	1H/2020
Gross written premium	3,453	4,188	7,847	9,174
Net premium earned	3,034	3,531	5,964	6,869
Net underwriting result incl. funds withheld	71	(168)	196	(161)
Combined ratio incl. interest on funds withheld	97.7%	104.8%	96.7%	102.3%
Net investment income from assets under own management	252	147	476	433
Other income and expenses	(1)	6	(15)	18
Operating profit/loss (EBIT)	322	(15)	657	290
Tax ratio	31.1%	306.4%	29.7%	14.8%
Group net income	212	37	431	245
Earnings per share (in EUR)	1.76	0.31	3.58	2.03

YTD

GWP f/x-adjusted +16.3%
NPE f/x-adjusted +15.0%
Major losses of EUR 737 m. (10.7% of NPE) exceeded budget of EUR 414 m. for 1H/2020 due to additional reserves for Covid-19 loss estimates (EUR 600 m., largely from business interruption, credit and event cancellation); combined ratio adjusted for above-budget losses at 97.6% for 1H/2020
Lower ordinary investment income and moderate impairments for private equity partly mitigated by higher realised gains
Other income and expenses increased mainly due to positive currency effects
EBIT margin of 4.2% below target of 10%
Lower tax ratio due to reduced proportion of earnings in high tax restrictions

Major losses including Covid-19 reserving exceed 1H/2020 budget of EUR 414 m. by EUR 323 m.

1) Up to 2011 claims over EUR 5 m. gross, from 2012 onwards claims over EUR 10 m. gross

Moderate major-loss expenditure apart from Covid-19-related losses

Moderate major-loss expenditure apart from Covid-19-related losses
Catastrophe losses1 ) in m. EUR	Date	Gross	Net
Bushfire, Australia	1 - 31 Jan	26.8	26.3
Earthquake, Puerto Rico	6 - 7 Jan	12.8	10.1
Hail / Storm, Australia	19 - 20 Jan	25.7	18.1
Storm / Flood, Australia	4 - 13 Feb	31.3	20.1
Storm "Sabine", Europe	9 - 11 Feb	24.5	18.6
Tornados, USA	2 - 5 Mar	45.2	31.1
6 Natural catastrophes		166.3	124.3
1 Property loss		12.7	12.6
1 Man-made loss		12.7	12.6
7 Major losses		179.1	136.9
Covid-19-related losses		608.5	600.1
Total		787.6	737.0

1) Natural catastrophes and other major losses in excess of EUR 10 m. gross Annual large loss budget 2020: EUR 975 m. thereof EUR 200 m. man-made and EUR 775 m. NatCat

Combined ratio above target due to additional reserves for Covid-19-related loss estimates

1H/2020: Combined Ratio vs. Target Combined Ratio

1) All lines of Property & Casualty reinsurance except those stated separately

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Outlook 2020	17
6	Appendix	23

Good underlying result impacted by Covid-19 losses

US mortality result otherwise in line with expectations, strong contribution from FinSol

Life & Health R/I in m. EUR	Q2/2019	Q2/2020	1H/2019	1H/2020
Gross written premium	1,868	1,983	3,847	3,972
Net premium earned	1,711	1,756	3,392	3,509
Net underwriting result incl. funds withheld	(89)	(118)	(138)	(169)
Net investment income from assets under own management	191	123	295	222
Other income and expenses	68	85	130	161
Operating profit/loss (EBIT)	170	90	286	214
EBIT margin	9.9%	5.1%	8.4%	6.1%
Tax ratio	(0.1%)	12.2%	9.2%	11.2%
Group net income	169	78	258	188
Earnings per share (in EUR)	1.40	0.65	2.14	1.56

YTD

GWP f/x-adjusted +3.6%, mainly from Australia
NPE f/x-adjusted growth +3.8%
Technical result impacted by Covid-19 losses of EUR 63 m.
Favourable ordinary investment income and change in fair value of financial instruments. Net investment income decreased due to one-off effect in Q2/2019 (EUR 99.5 m.)
Other income and expenses mainly the result of strong contribution from deposit accounted treaties of EUR 173 m. (1H/2019: EUR 133 m.)

Life and health business group 1H/2020 new and pipeline business1)

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	14
5	Outlook 2020	17
6	Appendix	23

Ordinary income decreasing in line with expectations Supporting realisations mainly from fixed-income sales

in m. EUR	Q2/2019	Q2/2020	1H/2019	1H/2020	RoI
Ordinary investment income1)	376	281	702	614	2.5%
Realised gains/losses	105	38	127	140	0.6%
Impairments/appreciations & depreciations	(24)	(57)	(41)	(85)	-0.4%
Change in fair value of financial instruments (through P&L)	16	39	44	50	0.2%
Investment expenses	(30)	(31)	(60)	(63)	-0.3%
NII from assets under own management	444	270	772	657	2.7%
NII from funds withheld	23	51	94	136
Total net investment income	467	321	866	793

Unrealised gains/losses of investments	31 Dec 19	30 Jun 20
On-balance sheet	1,789	2,441
thereof Fixed income AFS	1,356	2,024
Off-balance sheet	524	537
thereof Fixed income HTM, L&R	233	223
Total	2,314	2,977

1) Incl. results from associated companies

YTD
Decreasing ordinary income mainly due to inflation linkers within fixedincome securities as well as lower returns from private equity and opportunistic real estate funds; rather stable results from direct real estates; result in line with new Covid-19 expectations
Realised gains mainly driven by some reallocations within fixedincome portfolio and regular portfolio adjustments as well as the disposal of a real estate investment
Higher impairments driven by increased portion for private equity and opportunistic real estate funds' valuations as well as for alternative fixed-income funds; additional impairment on two issuers of fixedincome securities mainly recognised on emerging markets government bonds; stable depreciation on direct real estate investments
Rise in valuation reserves due to significantly decreasing risk-minimal yield curves overcompensating widening of credit spreads on corporates and lower valuations in the alternative spectrum

Ordinary return with lower contribution from alternative assets Credit profile slightly more defensive; modest re-entry into listed equities in Q1

1)

Investment category	2016	2017	2018	2019	Q2/2020
Fixed-income securities	87%	87%	87%	87%	87%
- Governments	28%	30%	35%	35%	35%
- Semi-governments	18%	17%	16%	15%	15%
- Corporates	33%	32%	29%	31%	30%
Investment grade	28%	27%	25%	26%	25%
Non-investment grade	4%	5%	4%	4%	5%
- Pfandbriefe, Covered bonds, ABS	9%	8%	7%	7%	2) 6%
Equities	4%	2%	2%	3%	3%
- Listed equity	2%	<1%	<1%	<1%	1%
- Private equity	2%	2%	2%	2%	2%
Real Assets	5%	5%	6%	5%	5%
Others	1%	1%	1%	2%	2%
Short-term investments & cash	4%	4%	4%	3%	3%

Total market values in bn. EUR	42.3	40.5	42.7	48.2	49.3

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 1,390.0 m. (EUR 1,429.9 m.) as at 30 June 2020

2) Of which Pfandbriefe and Covered Bonds = 67.0%

3) Before real estate-specific costs. Economic view based on market values as at 30 June 2020

Group overview	2
Property & Casualty reinsurance	6
Life & Health reinsurance	11
Investments	14
Outlook 2020	17
Appendix	23

Target Matrix Guidance for 2020 withdrawn due to impact from Covid-19 pandemic

Business group	Key figures	Initial targets for 2020	1H/2020
Group	Return on investment1)	≥ 2.7%	2.8%
	Return on equity2)	≥ 9.1%	7.6%
	Earnings per share growth (y-o-y)	≥ 5%	-39.3%
	Economic value creation3)	≥ 6.1%	n.a.
	Solvency ratio4)	≥ 200%	⁓225%
Property & Casualty R/I	Gross premium growth5)	3 - 5%	16.3%
	Combined ratio6)	≤ 97%	102.3%
	EBIT margin7)	≥ 10%	4.2%
	xRoCA8)	≥ 2%	n.a.
Life & Health R/I	Gross premium growth9)	3 - 5%	3.6%
	Value of New Business (VNB)10)	≥ EUR 220 m.	n.a.
	EBIT growth11)	≥ 5%	-25.1%
	xRoCA8)	≥ 2%	n.a.

1) Excl. effects from ModCo derivatives; target per 1.1.2020, valid until April 21 2020 2) After tax; target: 900 bps above 5-year average return of 10-year German government bonds 3) Growth in economic equity + paid dividend; target: 600 bps above 5-year average return of 10-year German government bonds 4) According to our internal capital model and Solvency II requirements as of 30 June 2020, preliminary 5) On average throughout the R/I cycle at constant f/x rates 6) Incl. large loss budget of EUR 975 m. 7) EBIT/net premium earned 8) Excess return on allocated economic capital 9) Organic growth only; target: annual average growth over a 3-year period, at constant f/x rates 10) Based on Solvency II principles; pre-tax reporting

11) Annual average growth over a 3-year period

Improving market conditions leading to increase in P&C premium Risk-adjusted price increase in non-proportional business of 9.9%

Americas1)

Continued increase in premium in North America
Premium growth due to strong primary rate trends as well as increasingly attractive reinsurance pricing
Increased shares on profitable accounts led to further premium growth
Improved terms and conditions
Property: continued upward trends on rates and tightening of conditions, i.e. pandemic exclusions on exposed treaties
Casualty: substantially hardening R/I market with some shortage of capacity for some LoBs
Latin America: significant improvement in terms & conditions, especially primary rate levels; decrease in premium due to portfolio optimisation

Australia

Strong increase in premium due to new business and increased shares
Withdrawal of capacity led to improved terms and increased shares at improved pricing

Credit, surety and political risks

• Stable premium at improved pricing

Agricultural Risks: improved market conditions for both primary & R/I led to premium increase

Underwriting year figures at unchanged f/x rates (31 December 2019) 1) Excluding specialty business mentioned separately

Potential negative impacts arising mainly from P&C reinsurance

Expected losses for Covid-19: approx. EUR 600m (⁓80% IBNR), mainly attributable to coverages for business interruption, credit reinsurance and event cancellations
Knock-on effects: D&O, E&O, US casualty
Losses based on scenario analyses: development of pandemic, duration/severity of economic downturn, effectiveness of government stimulus
Manageable losses: Given our well diversified portfolio and strong reserving position
Claims: Moderate impact on mortality and morbidity (63MEUR as of 1H/2020). However, uncertainties remain due to the dynamic development of the pandemic
Excess mortality: Considerably lower in the reinsured book compared to the total population
Longevity: Potential positive effects from the UK
Ordinary investment income: Decrease mainly from alternative investments and inflation-linked bonds
Defaults: Only two direct defaults so far in our fixed-income portfolio. Defaults in our credit portfolio are expected to lead to impairments
Listed equities: Marginal investment carries unrealised gains due to entry point during crisis
IFRS / Economic capital: Likely to decline due to an expected decrease in OCI because the negative effect from spread widening may be higher than the benefits from reduced risk-free yields
Solvency II ratio: Expected to remain above 200% threshold in 2020
Dividends: No changes to our general policy expected

Reporting categories Volume1 ) Profitability depends on further development of Covid-19-related losses P&C financial year 2020

Regional	EMEA2 )
markets	Americas2 )
	APAC2 )
	Structured Reinsurance and ILS
Worldwide	Credit, Surety and Political Risks
markets	Facultative Reinsurance
	Aviation and Marine
	Agricultural Risks

Moderate impact on volume expected from Covid-19 pandemic L&H financial year 2020

Reporting categories	Volume
Financial solutions
Longevity
Mortality
Morbidity

6	Appendix	23
5	Outlook 2020	17
4	Investments	14
3	Life & Health reinsurance	11
2	Property & Casualty reinsurance	6
1	Group overview	2

Group net income impacted by additional reserves for Covid-19 loss estimates

Group figures in m. EUR	Q2/2019	Q2/2020	Δ	1H/2019	1H/2020	Δ
Gross written premium	5,321	6,171	+16.0%	11,694	13,146	+12.4%
Net premium earned	4,745	5,287	+11.4%	9,356	10,378	+10.9%
Net underwriting result	(41)	(336)	-	(36)	(467)	-
- Incl. funds withheld	(18)	(286)	-	58	(330)	-73.2%
Net investment income	467	321	-31.1%	866	793	-8.4%
- From assets under own mgmt.	444	271	-39.0%	772	657	-14.9%
- From funds withheld	23	51	+118.3%	94	136	+45.2%
Other income and expenses	66	92	+14.5%	113	177	+78.8%
Operating profit/loss (EBIT)	492	77	-84.4%	942	504	-46.6%
Financing costs	(21)	(24)	+10.4%	(42)	(47)	+11.2%
Net income before taxes	471	53	-88.7%	900	456	-49.3%
Taxes	(92)	43	-146.4%	(206)	(51)	-75.1%
Net income	379	96	-74.7%	693	405	-41.6%
- Non-controlling interests	10	(6)	-157.1%	31	3	-91.6%
Group net income	369	101	-72.5%	663	402	-39.3%
Retention	90.9%	90.4%		90.6%	90.8%
EBIT margin (EBIT/Net premium earned)	10.4%	1.5%		10.1%	4.9%
Tax ratio	19.6%	-80.2%		22.9%	11.3%
Earnings per share (in EUR)	3.06	0.84		5.49	3.34

Our strategic business groups at a glance 1H/2020 vs. 1H/2019

	Property & Casualty R/I		Life & Health R/I		Total
in m. EUR	1H/2019	1H/2020	1H/2019	1H/2020	1H/2019	1H/2020
Gross written premium	7,847	9,174	3,847	3,972	11,694	13,146
Change in GWP	-	16.9%	-	3.3%	-	12.4%
Net premium earned	5,964	6,869	3,392	3,509	9,356	10,378
Net underwriting result	173	(186)	(209)	(280)	(36)	(467)
Net underwriting result incl. funds withheld	196	(161)	(138)	(169)	58	(330)
Net investment income	498	459	365	333	866	793
From assets under own management	476	433	295	222	772	657
From funds withheld	23	26	71	111	94	136
Other income and expenses	(15)	18	130	161	113	177
Operating profit/loss (EBIT)	657	290	286	214	942	504
Financing costs	(1)	(1)	(1)	(1)	(42)	(47)
Net income before taxes	656	289	285	213	900	456
Taxes	(195)	(43)	(26)	(24)	(206)	(51)
Net income	461	246	259	189	693	405
Non-controlling interest	30	2	1	1	31	3
Group net income	431	245	258	188	663	402
Retention	91.5%	91.4%	88.9%	89.4%	90.6%	90.8%
Combined ratio (incl. interest on funds withheld)	96.7%	102.3%	-	-	-	-
EBIT margin (EBIT / Net premium earned)	11.0%	4.2%	8.4%	6.1%	10.1%	4.9%
Tax ratio	29.7%	14.8%	9.2%	11.2%	22.9%	11.3%
Earnings per share (in EUR)	3.58	2.03	2.14	1.56	5.49	3.34

Our strategic business groups at a glance Q2/2020 vs. Q2/2019

	Property & Casualty R/I		Life & Health R/I		Total
in m. EUR	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020
Gross written premium	3,453	4,188	1,868	1,983	5,321	6,171
Change in GWP	-	+21.3%	-	+5.0%	-	+16.0%
Net premium earned	3,034	3,531	1,711	1,756	4,745	5,287
Net underwriting result	60	(183)	(101)	(153)	(41)	(336)
Net underwriting result incl. funds withheld	71	(168)	(89)	(118)	(18)	(286)
Net investment income	263	162	203	158	467	321
From assets under own management	252	147	191	123	444	271
From funds withheld	11	15	12	36	23	51
Other income and expenses	(1)	6	68	85	66	92
Operating profit/loss (EBIT)	322	(15)	170	90	492	77
Financing costs	(1)	(1)	0	0	(21)	(24)
Net income before taxes	322	(15)	169	90	471	53
Taxes	(100)	47	0	(11)	(92)	43
Net income	222	31	169	79	379	96
Non-controlling interest	10	(6)	0	0	10	(6)
Group net income	212	37	169	78	369	101
Retention	90.9%	90.9%	91.0%	89.4%	90.9%	90.4%
Combined ratio (incl. interest on funds withheld)	97.7%	104.8%	-	-	-	-
EBIT margin (EBIT / Net premium earned)	10.6%	-0.4%	9.9%	5.1%	10.4%	1.5%
Tax ratio	31.1%	306.4%	-0.1%	12.2 %	19.6%	-80.2%
Earnings per share (in EUR)	1.76	0.31	1.40	0.65	3.06	0.84

| 1 | 2 | 3 | 4 | 5 | 6 Appendix |

Stress tests on assets under own management; focus on credit exposures Current credit markets back from panic levels in an increased volatility mode

Portfolio	Scenario	Change in market value in m. EUR	Change in OCI before tax in m. EUR
	-10%	-154	-154
Equity (listed and private equity)	-20%	-309	-309
	+50 bps	-1,245	-1,184
Fixed-income securities	+100 bps	-2,414	-2,295
Credit spreads	+50%	-1,010	-1,000

High-quality fixed-income book well balanced

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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	74%	56%	1 %	59%	-	45%
A A	12%	25%	12%	20%	-	15%
A	8 %	7 %	30%	13%	-	16%
BBB	4 %	1 %	45%	7 %	-	17%
<bbb< td="">	2 %	11%	12%	1 %	-	7 %	2 %	11%	12%	1 %	-	7 %
Total	100%	100%	100%	100%	-	100%
Germany	19%	34%	4 %	19%	21%	17%
UK	7 %	2 %	7 %	10%	15%	7 %
France	1 %	1 %	8 %	6 %	0 %	4 %
GIIPS	0 %	1 %	4 %	5 %	0 %	2 %
Rest of Europe	3 %	14%	15%	23%	4 %	10%
USA	49%	12%	31%	14%	12%	33%
Australia	4 %	9 %	7 %	11%	11%	7 %
Asia	11%	13%	11%	2 %	24%	11%
Rest of World	5 %	14%	14%	11%	13%	10%
Total	100%	100%	100%	100%	100%	100%
Total b/s values in m. EUR	17,462	7,291	14,072	3,029	1,535	43,388

IFRS figures as at 30 June 2020

Currency allocation matches modelled liability profile Strict duration-neutral strategy continued

Currency split of investments

Modified duration of fixed-income mainly congruent with liabilities and currencies
GBP's higher modified duration predominantly due to life business; EUR driven by hybrid bond issuance

Modified duration
Q2/2020	5.8
2019	5.7
2018	4.8
2017	4.8
2016	5.0

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.

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