Conference Call on Q1/2020 financial results

Hannover, 6 May 2020

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	13
5	Outlook 2020	17
6	Appendix	23

Group net income increased by 2.5% despite impact from Coronavirus RoE well above target

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

Very strong operating cash flow AuM growth slowed by decrease in valuation reserves and currency translation effects

Q1 Q2 Q3 Q4

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

Shareholders' equity slightly down by -0.6% Net income offset by decrease in asset valuation

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	13
5	Outlook 2020	17
6	Appendix	23

Double-digit growth driven by increased demand for reinsurance Underwriting result impacted by reserving for anticipated Coronavirus-related losses

Property & Casualty R/I in m. EUR	Q1/2019	Q1/2020	Δ	YTD
Gross written premium	4,394	4,986	+13.5%	• GWP f/x-adjusted +12.2%
Net premium earned	2,930	3,338	+13.9%	• NPE f/x-adjusted +12.9%
Net underwriting result incl. funds withheld	125	7	-94.3%	• Major losses of EUR 284 m. (8.5% of NPE) exceeded budget of EUR 188 m. for Q1/2020 due to reserving for anticipated
Combined ratio incl. interest on funds withheld	95.7%	99.8%	-	Coronavirus-related losses (EUR 220 m.) • Unchanged conservative reserving approach
Net investment income from assets under own management	223	286	+28.0%	• Net investment income supported by favourable ordinary income and
Other income and expenses	(14)	11	-	increased realised gains
				• Other income and expenses increased mainly due to positive currency
Operating profit/loss (EBIT)	334	305	-8.9%	effects
Tax ratio	28.3%	29.4%	-	• EBIT margin of 9.1% below target of 10%
Group net income	219	207	-5.4%
Earnings per share (in EUR)	1.82	1.72	-5.3%

Major losses including Coronavirus-related losses exceed the budget for Q1/2020 by EUR 96 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 Coronavirus-related losses

Moderate major-loss expenditure apart from Coronavirus-related losses

Catastrophe losses1 ) in m. EUR	Date	Gross	Net
Bushfire, Australia	1 - 31 Jan	23.0	22.4
Hail / Storm, Australia	19 - 20 Jan	26.8	15.1
Storm / Flood, Australia	4 - 13 Feb	17.8	8.5
Storm "Sabine", Europe	9 - 11 Feb	25.2	17.6
4 Natural catastrophes		92.8	63.6
0 Man-made losses		0.0	0.0
4 Major losses		92.8	63.6
Coronavirus-related losses			220.0
Total			283.6

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

Combined ratio above target due to expected Coronavirus-related losses

Q1/2020: 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	13
5	Outlook 2020	17
6	Appendix	23

Net income increased by 24.5% No material impact from Coronavirus pandemic in Q1

Life & Health R/I in m. EUR	Q1/2019	Q1/2020	Δ
Gross written premium	1,979	1,989	+0.5%
Net premium earned	1,681	1,753	+4.3%
Net underwriting result incl. funds withheld	(50)	(52)	+4.8%
Net investment income from assets under own management	104	99	-4.5%
Other income and expenses	62	77	+24.1%
Operating profit/loss (EBIT)	116	124	+6.8%
EBIT margin	6.9%	7.1%	-
Tax ratio	22.8%	10.5%	-
Group net income	89	110	+24.5%
Earnings per share (in EUR)	0.73	0.91	+24.5%

YTD
GWP f/x-adjusted +0.4%, mainly from Australia and France offsets decreased premium volume from US mortality business due to last years' recaptures
NPE f/x-adjusted growth +4.2%
US mortality in line with expectations
Favourable NII supported by ordinary investment income and realised gains
Other income and expenses is mainly the result of strong contribution from deposit accounted treaties of EUR 85 m. (Q1/2019: EUR 61 m. )
EBIT growth of 6.8% outperforms 5% target
Low tax ratio due to good results from low-tax subsidiaries

1	Group overview	2
2	Property & Casualty reinsurance	6
3	Life & Health reinsurance	11
4	Investments	13
5	Outlook 2020	17
6	Appendix	23

Favourable Return on Investment not impacted by current turmoil Realisations due to sale of selected corporates, semi-governments and real estate

in m. EUR	Q1/2019	Q1/2020	RoI
Ordinary investment income1)	326	333	2.8%
Realised gains/losses	22	102	0.9%
Impairments/appreciations & depreciations	(17)	(29)	-0.2%
Change in fair value of financial instruments (through P&L)	27	12	0.1%
Investment expenses	(30)	(32)	-0.3%
NII from assets under own management	328	386	3.2%
NII from funds withheld	71	86
Total net investment income	399	472

Unrealised gains/losses of investments		31 Dec 19 31 Mar 20
On-balance sheet	1,789	1,188
thereof Fixed income AFS	1,356	731
Off-balance sheet	524	575
thereof Fixed income HTM, L&R	233	221
Total	2,314	1,763

1) Incl. results from associated companies

YTD

Rise in ordinary income from fixed-income securities, stable results from real estate; weaker returns from private equity investments
Realised gains driven by slight de-risking changes in credit allocation and regular portfolio adjustments as well as the disposal of a German real estate investment
Stable depreciation on real estate investments; impairments mainly recognised on Ecuadorian government bonds and alternative investment funds
Decline in valuation reserves due to significant rise in credit spreads on corporates; partially offset by decreasing minimal-risk yield curves

Ordinary investment income with minor decrease from alternative asset classes Credit profile slightly more defensive; modest re-entry into listed equities

1)

Investment category	2016	2017	2018	2019	Q1/2020
Fixed-income securities	87%	87%	87%	87%	85%
- Governments	28%	30%	35%	35%	36%
- Semi-governments	18%	17%	16%	15%	15%
- Corporates	33%	32%	29%	31%	28%
Investment grade	28%	27%	25%	26%	24%
Non-investment grade	4%	5%	4%	4%	4%
- 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%	4%
Total market values in bn. EUR	42.3	40.5	42.7	48.2	48.5

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 1,383.7 m. (EUR 1,429.9 m.) as at 31 March 2020

2) Of which Pfandbriefe and Covered Bonds = 71.6%

3) Before real estate-specific costs. Economic view based on market values as at 31 March 2020

Corporate exposure very well diversified Energy sector represents 5%

Sector split1)

Energy exposure, rating split1)

1) Economic view based on market values as at 31 March 2020

Group overview	2
Property & Casualty reinsurance	6
Life & Health reinsurance	11
Investments	13
Outlook 2020	17
Appendix	23

Target Matrix Guidance for 2020 withdrawn due to uncertain impact from Coronavirus pandemic

Business group	Key figures	Initial targets for 2020	Q1/2020
Group	Return on investment1)	~ 2.7%	3.5%
	Return on equity2)	≥ 9.1%	11.5%
	Earnings per share growth (y-o-y)	≥ 5%	2.5%
	Economic value creation3)	≥ 6.1%	n.a.
	Solvency ratio4)	≥ 200%	220%-230%
Property & Casualty R/I	Gross premium growth5)	3 - 5%	12.2%
	Combined ratio6)	≤ 97%	99.8%
	EBIT margin7)	≥ 10%	9.1%
	xRoCA8)	≥ 2%	n.a.
Life & Health R/I	Gross premium growth9)	3 - 5%	0.4%
	Value of New Business (VNB)10)	≥ EUR 220 m.	n.a.
	EBIT growth11)	≥ 5%	6.8%
	xRoCA8)	≥ 2%	n.a.

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 31 March 2020, preliminary

5) On average throughout the R/I cycle at constant f/x rates 6) Incl. large loss budget of EUR 975 m.

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

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

7) EBIT/net premium earned 8) Excess return on allocated economic capital
-

Acceleration of positive 1/1 renewal trends leading to strong premium growth Risk-adjusted price increase in non-proportional business of 8.3%

860 66 150 1,076 Inforce book up for renewals New/ cancelled/ restructured Price & volume changes on renewed Inforce book after renewals Change in shares: +5.6% Change in price: +4.4% Change in volume: +7.4% +25.1% 2 Jan - 1 Apr 2020 in m. EUR

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

Americas1)

Strong increase in premium in North America (+44%)
- Property business growth mainly driven by increasing primary rates and improved non-prop. pricing
- Satisfying US Cat XL renewals due to volume growth with long-term relationships at slightly better profitability compared to previous year
Very satisfying outcome in the Caribbean and South America

APAC1) - Japan

Cat XL
- Heavy loss burden in 2018 and 2019 led to overall strong rate increases in windstorm and flood, with loss-affected accounts achieving price increases in the range of +40% to +60%
- Maintained stable market share as terms and conditions are still not at an adequate level
Rest: improvement of our market position due to share and volume increases

Aviation & Marine

Aviation: positive 1/1 momentum was upheld, allowing us to increase our shares on a number of non-proportional accounts
Marine: benefited from improved signings, increased shares and wrote a limited number of offers; reduced our shares on some unfavourable renewals

Agricultural Risks renewals still underway; premium growth thanks to new accounts

Too soon to quantify potential negative impacts due to prevailing uncertainties Coronavirus is mainly expected to impact investment result and P&C reinsurance

• Expected losses for coverage of event cancellations and business interruption, knock-on effects for D&O, E&O, US casualty claims possible • We anticipate losses in Credit & Surety. Given our well diversified portfolio and strong reserving position, we believe the loss burden should remain manageable. • Some negative effects on premium volume 2020 • IFRS and economic capital will probably decline due to an expected decrease in OCI because the negative effect from spread widening is higher than the benefits from reduced risk-free yields. • Solvency 2 ratio is expected to remain above 200% threshold in 2020 • Intend to maintain our general dividend policy • Moderate impact on mortality and morbidity claims expected to date • Pandemic and mortality exposures are subject to regular stress testing in our internal capital model: an increase in mortality rates of 5%1) within the insured population for one year would mean an additional strain in the order of EUR 130 m. for the extreme 200-year pandemic event, we hold capital of EUR 1.04 bn. • Currently only one default (Ecuador) in our portfolio. • Marginal investment in listed equities carries unrealised gains due to entry point during crisis • Decrease in ordinary investment income mainly from alternative investments and inflation linked bonds • Defaults in our credit portfolio are expected to lead to impairments (Q2-Q4) P&C Investments L&H Capitalisation Impact from Coronavirus

1) Applying a 5% mortality increase assumption to the entire population results in a significant increase in deaths among the population, e.g. additional deaths 130k in US, 30k in UK and 50k in Germany.

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

Regional markets	EMEA (incl. CIS)3 )
	Americas3 )
	APAC3 )
	Structured Reinsurance and ILS
Worldwide markets	Credit, Surety and Political Risks
	Facultative Reinsurance
	Aviation and Marine
	Agricultural Risks

1) In EUR, development in original currencies can be different

2) ++ = well above CoC; + = above CoC; +/- = CoC earned; - = below Cost of Capital (CoC)

3) All lines of business except those stated separately

Currently moderate impact expected from Coronavirus pandemic L&H financial year 2020 Reporting categories Volume1 )

Financial solutions
Longevity
Mortality
Morbidity

1) In EUR, development in original currencies can be different

2) ++ = well above CoC; + = above CoC; +/- = CoC earned; - = below Cost of Capital (CoC)

6	Appendix	23
5	Outlook 2020	17
4	Investments	13
3	Life & Health reinsurance	11
2	Property & Casualty reinsurance	6
1	Group overview	2

US Casualty: Highly diversified portfolio with focus on SME / regional market

US casualty business UY2019

Our underwriting philosophy

We avoid to write large limits
We limit our exposure to large accounts
We stay away from
- Fortune 1,000 excess casualty business
- Pharmaceutical business
- Stand-alone commercial auto and trucking / transportation business
- Non-standard personal auto business
We actively identify our preferred clients and focus on core long-term relationships
We achieve a very high diversification by line of business and by type of client (national writers, regional writers / mutuals, specialty companies)
We always require our cedants to have a meaningful net retention

Reserving policy

Conservative reserving with high level of IBNR contributes well to Hannover Re's reserve redundancies
Total US casualty reserves: EUR 4.5 bn.

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

Solvency II capital generation 2019

Solvency II eligible own funds and SCR movement analysis

Figures in m. EUR. SCR – Solvency Capital Requirements according to Solvency II internal model

1) Model changes (pre-tax) include the first-time application of dynamic volatility adjustment (impact on SCR only) and, in terms of own funds, lower future expenses estimates for P&C business offset by an increase in L&H risk margin as a result of a recalibration of US mortality risk.

2) Operating earnings and assumption changes (pre-tax). The own funds increase includes the L&H new business value of EUR 663 m. The SCR increases due to strong business growth.

3) Changes due to movements in foreign exchange rates, lower interest rates, increased credit spreads and changes in other financial market indicators (pre-tax).

4) Incl. tax payments and changes in deferred taxes

5) Incl. dividend payments, minor changes in foreseeable dividends and the issuance of another subordinated bond.

Our strategic business groups at a glance Q1/2020 vs. Q1/2019

		Property & Casualty R/I Life & Health R/I		Total
in m. EUR	Q1/2019	Q1/2020	Q1/2019	Q1/2020	Q1/2019	Q1/2020
Gross written premium	4,394	4,986	1,979	1,989	6,373	6,975
Change in GWP	-	+13.5%	-	+0.5%	-	+9.4%
Net premium earned	2,930	3,338	1,681	1,753	4,611	5,091
Net underwriting result	113	(3)	(108)	(127)	5	(130)
Net underwriting result incl. funds withheld	125	7	(50)	(52)	75	(45)
Net investment income	236	296	163	175	399	472
From assets under own management	223	286	104	99	328	386
From funds withheld	12	10	58	75	71	86
Other income and expenses	(14)	11	62	77	47	85
Operating profit/loss (EBIT)	334	305	116	124	450	427
Financing costs	(1)	(1)	(0)	0	(21)	(23)
Net income before taxes	334	304	116	124	429	403
Taxes	(95)	(89)	(26)	(13)	(114)	(94)
Net income	239	215	90	111	315	309
Non-controlling interest	20	8	1	1	21	8
Group net income	219	207	89	110	294	301
Retention	91.9%	91.7%	87.0%	89.4%	90.4%	91.1%
Combined ratio (incl. interest on funds withheld)	95.7%	99.8%	-	-	-	-
EBIT margin (EBIT / Net premium earned)	11.4%	9.1%	6.9%	7.1%	9.8%	8.4%
Tax ratio	28.3%	29.4%	22.8%	10.5%	26.6%	23.4%
Earnings per share (in EUR)	1.82	1.72	0.73	0.91	2.43	2.49

Stress tests on assets under own management Unchanged focus on credit spreads

Portfolio	Scenario	Change in market value in m. EUR	Change in OCI before tax in m. EUR
	-10%	-151	-151
Equity (listed and private equity)	-20%	-303 -1.192 -2,313 +50% -1.404	-303
	+50 bps		-1,134
Fixed-income securities	+100 bps	-2,199
Credit spreads			-1,388

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 %	62%	-	46%
A A	12%	25%	12%	21%	-	15%
A	8 %	8 %	30%	10%	-	15%
BBB	4 %	1 %	45%	5 %	-	17%
<BBB	2 %	12%	11%	1 %	-	7 %
Total	100%	100%	100%	100%	-	100%
Germany	20%	34%	4 %	22%	21%	18%
UK	7 %	2 %	7 %	10%	11%	7 %
France	1 %	1 %	8 %	6 %	0 %	3 %
GIIPS	0 %	1 %	4 %	5 %	0 %	2 %
Rest of Europe	3 %	13%	15%	23%	2 %	9 %
USA	50%	12%	32%	13%	17%	34%
Australia	4 %	9 %	7 %	11%	7 %	6 %
Asia	11%	14%	8 %	2 %	32%	11%
Rest of World	4 %	14%	14%	9 %	11%	10%
Total	100%	100%	100%	100%	100%	100%
Total b/s values in m. EUR	17,420	7,112	12,868	2,945	2,088	42,433

IFRS figures as at 31 March 2020

Currency allocation matches liability profile of balance sheet Strict duration-neutral strategy continued

Currency split of investments

Modified duration of fixed-income mainly congruent with liabilities and currencies
Increase in modified duration compared to 2018 mainly due to lower interest rates and credit spreads as well as a new hybrid bond and changed liability modelling
GBP's higher modified duration predominantly due to life business; EUR driven by hybrid bond issuance

Modified duration
Q1/2020	5.7
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.