hannover-rueck-2024-12-31-en

Investor Relations

Annual Report 2025

Key Figures



in EUR million	2023	2024	2025	+/- previous year
Results
Reinsurance revenue (gross)	24,456.5	26,379.3	26,786.0	+1.5%
Reinsurance service result (net)	1,658.3	3,018.5	3,496.1	+15.8%
Reinsurance finance result (net) ¹	-880.2	-1,115.0	-1,363.3	+22.3%
Investment income	1,588.2	2,005.1	1,672.9	-16.6%
Operating profit / loss (EBIT)	1,971.2	3,317.6	3,507.7	+5.7%
Group net income	1,824.8	2,328.7	2,641.5	+13.4%
Balance sheet
Policyholders' surplus	14,249.4	15,921.3	16,666.5	+4.7%
Equity attributable to shareholders of Hannover Rück SE	10,126.8	11,794.5	12,928.7	+9.6%
Non-controlling interests	892.7	893.8	1,001.7	+12.1%
Hybrid capital	3,229.9	3,233.1	2,736.0	-15.4%
Contractual service margin (net)	7,699.1	8,162.4	7,907.7	-3.1%
Risk adjustment for non-financial risk	3,728.6	4,004.1	3,740.6	-6.6%
Investments	60,128.9	65,888.2	66,339.2	+0.7%
Total assets ²	65,665.1	72,127.3	71,327.1	-1.1%
Share
Earnings per share (basic and diluted) in EUR	15.13	19.31	21.90	+13.4%
Book value per share in EUR	83.97	97.80	107.21	+9.6%
Dividend per share in EUR	7.20	9.00	12.50 ³	+38.9%
Ordinary dividend per share in EUR	6.00	7.00	—
Special dividend per share in EUR	1.20	2.00	—
Dividend payment in EUR million	868.3	1,085.4	1,507.5 ³	+38.9%
Share price at the end of the period in EUR	216.30	241.40	266.20	+10.3%
Market capitalisation at the end of the period	26,085.2	29,112.1	32,103.0	+10.3%
Ratios
Combined ratio (property and casualty reinsurance) ⁴	94.0%	86.6%	84.0%
EBIT margin ⁵	9.3%	14.4%	15.1%
Return on investment	2.8%	3.2%	2.5%
Return on equity	19.0%	21.2%	21.4%
Solvency ratio (Solvency II)	269%	261%	256%

¹ Excluding exchange rate effects

² Adjusted, cf. section 3.1 of the notes to the Annual Report 2024

³ Proposed dividend, dividend policy modified in 2025

⁴ Reinsurance service expenses (net) / reinsurance revenue (net)

⁵ EBIT/reinsurance revenue (net)

Hannover Re

Investor Relations

Annual Report 2025

Contents

Letter from the Chairman of the Executive Board

Executive Board of Hannover Rück SE

Hannover Re share

Report on economic position

Foundations of the Group

Outlook

Opportunity and risk report

Enterprise management

Sustainability statement

Consolidated balance sheet

Consolidated statement of income

Consolidated statement of comprehensive

income

Consolidated statement of changes in

shareholders’ equity

Consolidated cash flow statement

Notes to the consolidated financial statements

Responsibility statement

Independent Auditor’s Report

Report of the Supervisory Board of Hannover

Rück SE

Supervisory Board of Hannover Rück SE

Further information

Contact information and further links

Financial calendar 2026/2027

Hannover Re

Investor Relations

Annual Report 2025

About us

Hannover Re is one of the world's leading reinsurers. We transact all lines of

property & casualty and life & health reinsurance and are present worldwide

with around 4,000 staff. Property and casualty reinsurance in Germany is

written by the subsidiary E+S Rück. Established in 1966, Hannover Re is

recognised as a reliable partner for innovative risk solutions, exceptional

customer intimacy and financial soundness. The rating agencies most

relevant to the insurance industry have awarded both Hannover Re and

E+S Rück very good financial strength ratings: Standard & Poor’s AA- “Very

Strong” and A.M. Best A+ “Superior”.

F or our investors

Letter from the Chairman of the Executive

Board

Executive Board of Hannover Rück SE

Hannover Re share

Hannover Re

Investor Relations

Annual Report 2025

Dear Shareholders,

Ladies and Gentlemen,

Clemens Jungsthöfel

Chairman of the Executive Board

Partnership-oriented, pragmatic, reliable – “somewhat different”: that’s

what Hannover Re stands for. Since taking on the role of Chief Executive

Officer, I have gained new perspectives on our company’s values and felt

the appreciation of our clients and business partners. These experiences

have confirmed to me that qualities such as these are crucial in times of

increasing complexity. They are also reflected in our results.

In 2019 we generated Group net income of EUR 1.28 billion. Today, we

have more than doubled this profit. With Group net income of

EUR 2.6 billion, we achieved the full-year earnings guidance that we had

revised higher in November.

Natural disasters resulted in fewer insured losses in 2025 than in the

previous year. Yet the California wildfires and Hurricane Melissa showed

the devastating scale of damage that individual events can cause. More

extreme weather phenomena, increased losses and geopolitical

uncertainties are shaping the environment in which we operate. Despite

these challenges, we further boosted our profitability.

After years of significantly improved rates, property and casualty

reinsurance now finds itself moving back into a softening market. The high-

quality reinsurance protection offered by Hannover Re nevertheless

remains in demand. In a world of declining margins, reliable partnerships

are of pivotal importance. Life and health reinsurance continues to be a

cornerstone of our diversification. On the investment side, we have taken

targeted steps to strengthen our resilience by reducing unrealised losses in

our fixed-income portfolio to improve future earnings.

These actions, combined with our lean operating model and the

strengthening of our reserves, leave us optimally placed to navigate an

increasingly challenging market environment. This is how we create space

for further profitable growth in partnership with our clients – wherever

conditions are commensurate with the risks.

Dear shareholders, with a solvency ratio of 256 percent, robust

shareholders’ equity and a return on equity of 21.4%, Hannover Re remains

an attractive investment. Our new dividend policy underscores this. The

payout ratio for the dividend will be around 55 percent of IFRS Group net

income going forward. By way of comparison, the payout ratio for the total

dividend in 2024 was 46 percent. What is more, we have set ourselves the

goal of distributing a dividend per share at least on the level of the previous

year and increasing it over the long term. The Executive Board of Hannover

Re will therefore propose to the Annual General Meeting a dividend of

EUR 12.50 per share for the 2025 financial year.

Our success would not be possible without our greatest strength: the

people behind Hannover Re. My special thanks therefore go to our

employees for their exceptional dedication. I would like to thank you, our

valued shareholders, for your trust.

Together, we shall continue to evolve Hannover Re. With our usual focus,

robust resilience and the ambition to build further on proven strengths – to

ensure that Hannover Re remains successful in the future.

Yours sincerely

Clemens Jungsthöfel

Hannover Re

Investor Relations

Annual Report 2025

Executive Board of Hannover Rück SE

As of 31 December 2025

Thorsten Steinmann

Property & Casualty Reinsurance

Worldwide responsibility for Agricultural Risks

Regional responsibility for Continental Europe, Latin America

and North Africa

Brona Magee

Life & Health Reinsurance

Worldwide responsibility for Longevity Solutions

Regional responsibility for North America, Bermuda, United

Kingdom and Ireland.

Sharon Ooi

Property & Casualty Reinsurance

Worldwide responsibility for Facultative Reinsurance

Regional responsibility for Asia-Pacific and Sub-Saharan

Africa

Dr. Christian Hermelingmeier

Asset Management, Finance & Accounting, Reinsurance

Valuation & Steering, Tax, Coordination of International

Operations, Investor & Rating Agency Relations

Clemens Jungsthöfel

Chief Executive Officer

Corporate Communications, Audit, Operations & Strategy,

Information Technology, Risk Management, Actuarial

Function, Human Resources, Legal Services, Compliance

Silke Sehm

Property & Casualty Reinsurance

Worldwide responsibility for Catastrophe XL (Cat XL),

Structured Reinsurance, Insurance-Linked Securities,

Retrocessions, Cyber & Digital

Claude Chèvre

Life & Health Reinsurance

Worldwide responsibility for Life & Health services

Regional responsibility for Africa, Asia, Australia, Latin

America, Middle East, Continental Europe

Sven Althoff

Coordination of Property & Casualty Reinsurance business

group

Worldwide responsibility for Aviation and Marine, Credit,

Surety and Political Risks, Quotations

Regional responsibility for North America, United Kingdom,

London Market

From left to right

Hannover Re

Investor Relations

Annual Report 2025

Hannover Re share

– Share price up 10.3% in a volatile environment

– Dividend proposal: EUR 12.50 per share

Equity markets in a volatile

environment

The 2025 stock market year built on the positive trend of prior years.

International equity markets benefited from easing inflation as the year

progressed as well as the incremental trimming of key interest rates in the

United States and Europe. Robust corporate earnings gave markets added

tailwind and boosted confidence in a sustained economic recovery.

However, geopolitical tensions around the world as well as trade policy

measures, in particular increased trade tariffs, led to appreciable volatility at

times.

Performance of benchmark indices



in index points	Opening price 2025	Closing price 2025	Change
DAX	19,909.14	24,490.41	+23.0%
S&P 500	5,903.26	6,845.50	+16.0%
MSCI World	3,707.84	4,430.38	+19.5%
STOXX Europe 600 Insurance	410.07	534.91	+30.4%

This development was also reflected on the German bellwether index: the

DAX initially maintained the positive momentum of the previous year, only

to slump sharply in April on the announcement of new US tariffs on

European goods. By year-end the index had stabilised, closing out with a

significant gain of 23.0%.

The insurance industry also fared extremely well in the 2025 financial year.

The sector index STOXX Europe 600 Insurance, comprised of the largest

European insurers, closed up 30.4% on the year. Robust balance sheets

and strong business results, coupled with sustained healthy demand for

insurance solutions, were the major drivers behind this performance. The

insurance sector thus ranked among the strongest segments on European

financial markets in 2025.

Highs and lows of the Hannover Re share 2025

in EUR

Relative performance of the Hannover Re share

(including reinvested dividends)

Hannover Re

Investor Relations

Annual Report 2025

Hannover Re share in 2025: Positive

performance despite price pressure in

property and casualty reinsurance

The Hannover Re share similarly delivered a positive performance overall in

2025. Steady increases in revenue and profits, an earnings forecast that

was revised upwards and the potential for growth in profitability were key

influencing factors.

The Hannover Re share entered the year at EUR 247.20, continuing to rise

sharply in the months through to May. It reached its highest point of the year

on 5 May 2025 at EUR 290.60. Throughout the remainder of the year,

discussions intensified around the growing pressure on prices in the

reinsurance industry. This triggered price declines among reinsurance

stocks in the months that followed – also impacting Hannover Re.

After a relatively benign hurricane season, the share stabilised in the

autumn months. The favourable responses to a modified dividend policy

and the outlook for 2026 were still tempered by cautious investor sentiment

as regards the future price trend in property and casualty reinsurance. The

share ended the year up 10.3% at a closing price of EUR 266.20.

By the end of the 2025 financial year, 21 analysts had handed down

opinions on Hannover Re; eleven recommended the Hannover Re share as

“buy” or “overweight”, nine were a “hold”. “Underweight” or “sell”

recommendations were issued by one analyst.

Annual General Meeting approves

dividend increase

The virtual Annual General Meeting of Hannover Rück SE took place on

7 May 2025. In his first address to the General Meeting as Chief Executive

Officer, Clemens Jungsthöfel took stock of the development of Hannover

Re’s business. With an eye to the current strategy cycle 2024–2026,

Hannover Re considers itself well on course to achieve the targets that it

has set.

The key themes of his speech were Hannover Re’s profitable growth, robust

balance sheet and future-readiness. Through innovations, new products

and targeted partnerships, the company seeks to grow while also closing

protection gaps. Clemens Jungsthöfel highlighted the importance of

reinsurance in the face of global crises and climate change.

The Annual General Meeting approved the proposal made by the Executive

Board and Supervisory Board to pay a 25% higher total dividend for the

2024 financial year. The payout is comprised of an ordinary dividend of

EUR 7.00 (previous year: EUR 6.00) per share and a special dividend of

EUR 2.00 (EUR 1.20) per share. This corresponded to a distribution of EUR

1.1 billion by Hannover Re to its shareholders.

Realignment of the dividend policy

In the autumn of 2025, the Executive Board of Hannover Re adopted a

modified dividend policy for future profit sharing.

The payout ratio for the regular dividend is raised to around 55% of IFRS

Group net income (payout ratio of the total dividend for 2024: 46%). The

goal is to distribute a dividend per share at least on the level of the previous

year and to increase it over the long term. The special dividend, a tool which

had been routinely used in the past, becomes part of the regular dividend.

The realignment of the dividend policy in the form of an increased payout

ratio is motivated by Hannover Re’s very good capitalisation, which enables

further attractive and profitable growth despite a higher payout. The

Executive Board and Supervisory Board will propose to the General

Meeting on 6 May 2026 that a dividend of EUR 12.50 per share should be

distributed. This corresponds to an increase of 38.9% compared to the

previous year.

Communication with the capital market

The Executive Board and representatives of the Investor Relations team

once again kept up a close and continuous dialogue with (institutional)

investors and rating agencies in the 2025 financial year.

Hannover Re’s presence at international conferences and roadshows was

on a par with the previous year, with activities spanning more than 35 days.

The focus remained on the financial centres of Europe and North America,

while contacts with investors in the Asia-Pacific region were also stepped

up.

At Hannover Re’s Investors’ Day held in Frankfurt on 9 October 2025,

numerous analysts and investors made the most of the opportunity to

obtain extensive insights into the development of the company’s business.

The presentations centred around growth opportunities in the property &

casualty and life & health reinsurance segments as well as on the

investment side. The core takeaway: Hannover Re will continue to improve

its results.

Further growth in the number of

shareholders

Hannover Re’s share register showed 100,809 shareholders at the end of

the year, another increase in the number of shareholders year-on-year

(78,550). The largest shareholders at year-end were Talanx AG with 50.2%,

as well as BlackRock, Inc. with a reported 3.16%, Deutsche Asset

Management Investment GmbH with a reported 3.0% and FMR LLC with a

reported 3.0% of the voting rights. Within the free float, institutional

investors accounted for 37.7% (38.6%) of the total shares outstanding,

while private investors held 12.0% (11.2%).

Basic information



Securities identification number / ISIN		840221 / DE 000 840 221 5
Ticker symbols		HRN1 (Bloomberg), HRNGn (Reuters), HVRRY (ADR)
Exchange listings
Germany		Xetra, Frankfurt, Munich, Stuttgart, Hamburg, Berlin, Düsseldorf, Hannover (official trading: Xetra, Frankfurt and Hannover)
United States		American Depositary Receipts (Level 1 ADR program; 6 ADRs = 1 share)
Market segment		Prime Standard
Index membership		DAX
First listed		30 November 1994
Number of issued shares (as at 31 December 2025)		120,597,134
Share capital		EUR 120,597,134.00
Class of shares		No-par-value registered shares

Hannover Re

Business model and strategy

Investor Relations

Annual Report 2025

Key figures



in EUR	2016 ¹	2017 ¹	2018 ¹	2019 ¹	2020 ¹	2021 ¹	2022 ²	2023	2024	2025
Number of shares in million	120.6	120.6	120.6	120.6	120.6	120.6	120.6	120.6	120.6	120.6
Annual low ³	84.12	95.95	104.70	116.40	107.50	128.00	131.35	162.65	212.10	241.20
Annual high ³	106.20	115.65	125.30	175.20	192.40	167.95	187.60	228.90	263.50	290.60
Year-opening price ³	105.65	102.80	104.90	117.70	172.30	130.30	167.15	185.50	216.30	247.20
Year-ending price ³	102.80	104.90	117.70	172.30	130.30	167.15	185.50	216.30	241.40	266.20
Market capitalisation at year-end in EUR million	12,397.4	12,650.6	14,194.3	20,778.9	15,713.8	20,157.8	22,370.8	26,085.2	29,112.1	32,103.0
Equity attributable to shareholders of Hannover Rück SE in EUR million	8,997.2	8,528.5	8,776.8	10,528.0	10,995.0	11,885.0	9,059.7	10,126.8	11,794.5	12,928.7
Book value per share	74.61	70.72	72.78	87.30	91.17	98.55	75.12	83.97	97.80	107.21
Earnings per share (basic and diluted)	9.71	7.95	8.79	10.65	7.32	10.21	6.47	15.13	19.31	21.90
Dividend per share	5.00	5.00	5.25	5.50	4.50	5.75	6.00	7.20	9.00	12.50 ⁴
Base dividend per share	3.50	3.50	3.75	4.00	4.50	4.50	5.00	6.00	7.00	—
Special dividend per share	1.50	1.50	1.50	1.50	—	1.25	1.00	1.20	2.00	—
Cash flow per share	19.33	14.05	18.45	20.81	26.79	40.97	41.02	47.99	47.11	47.16
Return on equity (after tax) ⁵ in %	13.7	10.9	12.2	13.3	8.2	10.8	8.2	19.0	21.2	21.4
Dividend yield ⁶ in %	4.9	4.8	4.5	3.2	3.5	3.1	3.2	3.3	3.7	4.7
Price-to-book (P/B) ratio ⁶	1.4	1.5	1.6	2.0	1.4	1.7	2.5	2.6	2.5	2.5
Price/earnings (P/E) ratio ⁶	10.6	13.2	13.4	16.2	17.8	16.4	28.7	14.3	12.5	12.2
Price-to-cash flow (P/CF) ratio ⁶	5.3	7.5	6.4	8.3	4.9	4.1	4.5	4.5	5.1	5.6

¹ IAS 39, IFRS 4

² Restated pursuant to IAS 8

³ Xetra daily closing from Bloomberg

⁴ Proposed dividend, dividend policy modified in 2025

⁵ Earnings per share / average of book value per share at start and end of year

⁶ In relation to year-end closing price

Hannover Re

Investor Relations

Annual Report 2025

Foundations of the Group

Consolidated

management report

Management system

Report on economic position

Macroeconomic climate and industry-specific

environment

Overall assessment of the business position

Business development

Results of operations

Property & Casualty reinsurance

Life & Health reinsurance

Investments

Financial position and net assets

Information on Hannover Rück SE

Outlook

Forecast

Financial ambition over the strategy cycle 2024–

2026

Opportunity and risk report

Risk report

Opportunity report

Overall assessment by the Executive Board

Enterprise management

Declaration on Corporate Governance

Sustainability statement

Hannover Re

Investor Relations

Annual Report 2025

Foundations of the

Group

Business model and strategy

– Worldwide reinsurance, transacting all lines of property &

casualty and life & health reinsurance with the goal of

achieving the broadest and most balanced possible

diversification both regionally and in relation to the underlying

risks

– Competitive advantages due to our low cost of capital and

administrative expenses

– Financial strength secured through sophisticated risk

management

– Commitment to responsible and transparent corporate

governance geared to long-term success

The Hannover Re Group is one of the world's leading reinsurers. Hannover

Rück SE is a European Company, Societas Europaea (SE), based in

Hannover, Germany.

The strategy cycle at Hannover Re spans three years. The Group strategy

2024–2026 “Staying Focused. Thinking Ahead.” is focused on industry-

leading performance in terms of profitability and earnings growth, reliable

economic value creation as well as an attractive and increasing dividend.

Hannover Re’s capital strength is another strategic criterion. Along with

these financial targets, the ambition set out in the Group strategy also

includes strategic targets in relation to employee engagement and

environmental stewardship. The Group strategy is specified and supported

by corresponding business group strategies.

Our business model is aligned with our Group strategy. It is focused on

reinsurance, which we transact worldwide in the Property & Casualty and

Life & Health reinsurance business groups. In this way, we strive for the

broadest possible diversification and hence an efficient risk balance. This is

achieved by accepting reinsurance risks with mostly little or no correlation

across all lines and regions of property & casualty and life & health

reinsurance. In conjunction with efficient capital management, this is the

key to our comparatively low cost of capital.

Guided by a clearly defined risk appetite, the Executive Board steers the

company with the support of risk management to capitalise on business

opportunities while securing our long-term financial strength.

Primary insurers and their customers alike benefit from a robust and

resilient insurance market. The extensive spreading of original risks across

different risk carriers is a major aspect of the value chain in the insurance

industry. In this way, not only do primary insurers obtain protection for their

risks from reinsurers, but reinsurers are also able to partially pass on risks to

so-called retrocessionaires. The resulting diversification has positive effects

on primary insurers’ stability, capacity and power of innovation and hence

also on policyholders.

Our business operations are committed to being the preferred business

partner for our clients. It is for this reason that our clients and their concerns

are at the core of our activities.

By conducting our reinsurance business with lower administrative

expenses than our peers, we generate competitive advantages to the

benefit of our clients and shareholders. This enables us to deliver above-

average profitability and at the same time offer our customers reinsurance

protection on competitive terms.

Our subsidiary E+S Rückversicherung AG (E+S Rück), as the “Reinsurer

for Germany”, offers a range of products and services tailored to the

specific features of the German market. Of special importance here are the

mutual insurers with whom we maintain a strategic partnership that is

underscored through their participation in E+S Rück.

Business groups of the Hannover Re Group

In the Property & Casualty reinsurance business group we consider

ourselves to be a reliable, flexible and innovative market player that ranks

among the best in any given market. Cost leadership, effective cycle

management and superlative risk management are the key elements of our

competitive positioning. Particularly in the current market environment, we

actively manage our portfolio to ensure long-term profitability on the

underwriting side.

In the Life & Health reinsurance business group we are recognised – as

customer surveys confirm – as one of the top players for traditional covers

and a leading provider of structured solutions. We achieve this, among

other things, by anticipating the future needs of our customers through the

early identification of trends.

With a view to assuring Hannover Re's lasting stability, our strategy is

grounded on a solid foundation: sustainability and integrated corporate

governance. Sustainability reflects our aspiration to economic, social and

environmental accountability. Through integrated corporate governance we

foster the trust placed in Hannover Re, especially by regulators and

investors but also by our clients and staff.

Hannover Re

Investor Relations

Annual Report 2025

Management system

Value-based management

Our integrated system of enterprise management constitutes the basis for

attainment of our strategic objectives. It is geared to achieving our earnings

and growth targets on a sustained basis and ensuring long-term stability. In

addition to traditional key performance indicators geared to the IFRS

balance sheet and income statement, our system of strategic targets also

includes economic targets derived from our internal capital model approved

by the regulator and from the economic equity pursuant to Solvency II

reporting. The targets are regularly analysed and adjusted in the context of

the strategy review conducted at periodic intervals. Given that reinsurance

business is subject to cyclical fluctuations, our primary focus is on medium-

and long-term attainment of the strategic targets across the cycle.

We seek to deliver industry-leading performance in terms of profitability and

earnings growth, reliable economic value creation as well as an attractive

and increasing dividend. Furthermore, we aspire to a high level of employee

engagement and environmental stewardship. In concrete numbers,

Hannover Re is looking to generate a return on equity of more than 14% and

EBIT growth of more than 5% per year on average over the three-year

strategy cycle. An increase in the contractual service margin (net) of more

than 2% per year on average is targeted across the cycle. In addition, the

capital adequacy ratio under Solvency II shall be greater than 200%.

Target attainment



Key metrics	Targets for 2025	Target attainment
Return on Equity	> 14 %	21.4%
EBIT growth	> 5 %	5.7%
CSM growth	> 2 %	-3.1%
Solvency II ratio ^{1, 2}	> 200 %	256.4%
Dividend	> previous year	achieved

¹ This information has not been audited by the independent auditor.

² According to our internal capital model and Solvency II requirements

Value-based management and capital allocation

Value-based management, which constitutes a core element of our

management system, is focused on maximising the value of the company.

The basis of value-based management is the risk-appropriate allocation of

capital to the individual business activities. This enables us to evaluate the

acceptance of underwriting risks and investment risks both in light of

individual risk/return aspects and against the backdrop of our overall risk

appetite. Based on our internal capital model, the allocation of capital is

optimised to generate a sustainable return. Starting out from the Group’s

overall risk situation, capital is first allocated to the functional areas of

underwriting and investments. We then further divide the capital within the

underwriting sector, first between the business groups of Property &

Casualty reinsurance and Life & Health reinsurance and then between the

various reinsurance products according to risk categories/treaty types and

lines. In this way, we ensure consistent adherence to our profit targets –

allowing for risk, cost and return considerations – in the evaluation and

pricing of our various reinsurance products and we generate long-term

value creation.

IVC – the strategic management ratio

In order to manage the portfolios and individual treaties we apply

underwriting-year-oriented measurement principles based on expected

cash flows that appropriately accommodate the specific characteristics of

property & casualty and life & health reinsurance. The attainment of targets

in a particular financial year is also of interest – especially from the

standpoint of shareholders. Based on our economic measurement and our

internal capital model, the foundation of our enterprise management, we

strive to generate a profit in excess of the cost of capital. This return – which

is the decisive ratio for the management of our business activities – is

referred to as Intrinsic Value Creation (IVC).

The IVC ratio makes it possible to compare the value contributions of the

Group as a whole, its two business groups and the individual operational

units. This enables us to reliably identify value creators and value

destroyers.

In this way, we can

– optimise the allocation of capital and resources,

– identify opportunities and risks,

– measure strategy contributions with an eye to our demanding profit and

growth targets, and

– secure profitable growth.

The IVC (Intrinsic Value Creation) is calculated according to the following

formula: adjusted economic profit – (capital allocated × weighted cost of

capital) = IVC.

The adjusted economic profit is comprised of two factors, each of which is

considered after tax: the reported IFRS Group net income and the change

in the unrealised gains and losses recognised in the contractual service

margin, after adjustment for reserving components. The latter makes

allowance in the calculated values for economic effects not recognised in

profit or loss under IFRS. In addition, interest on hybrid capital already

recognised in the IFRS Group net income and the non-controlling interest in

profit or loss are included back in the calculation.

The allocated capital consists of the economic equity pursuant to

Solvency II including non-controlling interests and the hybrid capital. Capital

is allocated to the profit centres as described above according to the risk

content of the business in question. A systematic distinction is made here

between the assumption of underwriting risks, on the one hand, and

investment risks, on the other.

In calculating the cost of capital, our assumption – based on a Capital Asset

Pricing Model (CAPM) approach – is that the investor’s opportunity costs

are 625 basis points above the risk-free interest rate, meaning that

economic value is created above this threshold. Our strategic return on

equity target of more than 14% thus already contains a substantial target

value creation. We allocate equity sparingly and use equity substitutes to

optimise our average cost of capital, which amounted to (unaudited by the

independent auditor) 5.7% in 2025 (previous year: 5.2%).

Since comparison of absolute amounts is not always meaningful, we have

introduced the xRoCA (excess return on capital allocated) in addition to the

IVC. This risk-adjusted return describes the IVC in relation to the allocated

capital and shows us the relative excess return generated above and

beyond the weighted cost of capital.

The close interlinking of our internal capital model with the capital allocation

and value-based management helps us to fulfil the requirements of the

Solvency II use test.

Hannover Re

Investor Relations

Annual Report 2025

Operational management system

A number of IFRS-based financial KPIs are also embedded in our strategic

system of targets and coordinated with our metrics for value creation

derived from the internal capital model. We use these KPIs for the

implementation of strategy within the year in our operational management,

in part because they are available promptly and also because they already

provide initial pointers as to whether we are likely to achieve our higher-

order strategic objectives. For 2025, these were the growth in reinsurance

revenue and the EBIT for both business groups and the return on

investment for the Group as a whole.

Management by Objectives

Key performance indicators from our management system are integrated

into the individual agreements on objectives with managers. When it comes

to the definition of objectives, the participants take into account not only

standardised financial indicators but also non-financial variables derived

from the strategic parameters. Further information on the individual

objectives and associated remuneration elements of the members of the

Executive Board is provided in the separately published remuneration

report.

Report on economic

position

Macroeconomic climate and

industry-specific environment

– Slightly slower growth in the world economy year-on-year

– S&P Global Ratings reaffirms stable outlook for global

reinsurance sector

– Insured losses from natural catastrophes again over

USD 100 billion

Macroeconomic climate

The global economy proved to be more robust than anticipated in 2025,

even though the underlying weaknesses persisted. Positive factors

identified by the Organisation for Economic Co-operation and Development

(OECD) included supportive macroeconomic policy, improved financing

conditions, rising investments and optimism around the impacts of artificial

intelligence. This helped to support demand and cushion the negative

effects of political uncertainty and increasing trade barriers.

After getting off to a strong start before higher US tariffs came into effect,

growth in global trade slowed over the remainder of the year. Despite

successes in the fight against inflation, price increases in some countries

had still not returned to target levels, while softer demand for labour became

evident on the job market. According to OECD estimates, the pace of

growth in the global economy has likely slowed slightly to 3.2% (previous

year: 3.3%).

In the United States, vigorous investment in information technology and

software fired up growth, offsetting weaker private consumption. The scale

of these investments is all the more remarkable given that they had already

reached a high level in the US, roughly twenty times that of investment

spending in the United Kingdom or Canada. Other technology-related

investments also surged sharply higher. Real investment in data centre

construction in the first half of 2025 increased by 21% on an annualised

basis, accounting for more than 5% of total investment in non-residential

construction. The recent strength of investment in data centres in the US

can probably be attributed in part to the greater use of AI technologies.

In contrast, corporate investments in the euro area were sluggish overall,

even though declining inflation rates, rising real income and more

accommodative fiscal policies supported the economy. The OECD

assessed GDP growth as surprisingly robust in many emerging economies.

Economic development by regions



in %	GPD 2024	GPD 2025
USA	2.8	2.0
Europe
Eurozone	0.8	1.3
Germany	-0.5	0.3
France	1.1	0.8
UK	1.1	1.4
Asia
China	5.0	5.0
Japan	-0.2	1.3
Australia	1.1	1.8
World	3.3	3.2

Source: OECD Economic Outlook, Volume 2025, Issue 2

Capital markets

The investment landscape was once again highly volatile in the 2025

reporting period. Markets were overshadowed by protracted uncertainty,

triggered by global trade disputes, geopolitical tensions and monetary

policy realignment on the part of some central banks.

This was also reflected once again in volatile interest rate markets. At the

same time, though, the inverted yield curves of the past – especially in the

EUR and GBP areas – normalised again. US Treasuries saw sometimes

significant rate declines across all maturities. This development reflects, on

the one hand, the easing of monetary policy in response to lower current

inflation rates, and, on the hand, the markets’ structural risk assessment

with an eye to future inflation and supportive economic framework

conditions.

Hannover Re

Investor Relations

Annual Report 2025

The European Central Bank and the Bank of England forged ahead with

their more accommodative interest rate policy, making multiple additional

rate cuts over the course of the year, while the US central bank pressed the

pause button on its previous cycle of interest rate reductions in the first six

months of the year, only to make three more modest cuts in the second half

of the year. Overall, the policy pursued by central banks in the main

currency areas continued to thread the needle between, on the one hand,

controlling the potential for inflation that still exists, while, on the other hand,

delivering appreciable macroeconomic stimuli and stabilising economic

momentum, which in some areas remains fragile.

At the beginning of the second quarter, tariff announcements by the US

administration prompted considerable jitters on credit markets, as reflected

in sharply increased risk premiums. By the end of the period under review,

however, these were largely back around their long-term lows and were

thus on the level prior to the tariff proclamations.

The robust state of the economy, especially in the United States, falling

inflation and interest rate cuts led to new record highs on almost all major

equity indices. Gold, too, soared to new record levels, while

cryptocurrencies again experienced wild swings. While we do not invest

directly in either of these asset classes, they serve among other things as

indicators for the risk appetite and inflation expectations of market players.

The euro fluctuated rather sharply in value against the US dollar over the

course of the year, closing the year under review on a significantly higher

level. The euro similarly moved higher against the British pound and

Chinese renminbi. The gains made by the euro here, as against the

Australian and Canadian dollar, were nowhere near as considerable as

against the US dollar.

Industry-specific environment

The trend towards more buyer-friendly market conditions gathered added

pace in the mid-year treaty renewals. Along with traditional reinsurance,

increased capacity also became available from the insurance-linked

securities (ILS) markets, which appreciably stepped up the competitive

intensity. The rating agency S&P Global Ratings nevertheless retained its

stable outlook for the global reinsurance sector for the third time in a row. It

cited as justification the robust capital resources and expectations of strong

earnings, while noting that the pressure from US liability insurance

continues to present headwinds. In addition, S&P Global Ratings expects

reinsurers to maintain their discipline and treaty conditions to hold stable

despite the price pressure in the industry. Notwithstanding the losses

caused by the California wildfires in January 2025, the reinsurance sector

will likely have earned its cost of capital in 2025. According to the rating

agency’s basic scenario, the global reinsurance sector’s undiscounted

combined ratio for 2025 will be in the range of 94 to 96%, after 92% in the

previous year. Reinsurance capital is projected to have reached a record

level of USD 838 billion at the end of 2025. Traditional capital is expected to

have increased by around 8% to USD 710 billion, with alternative capital

growing by roughly 12% to USD 128 billion.

Insured losses from natural catastrophes are forecast to have surpassed

the USD 100 billion level for the sixth time in succession in 2025. At an

estimated USD 107 billion, however, they likely remained 3% below the ten-

year average. The bulk of the losses were attributable to the United States,

with the California wildfires at the beginning of 2025 and severe convective

storms responsible for particularly heavy expenditures. Despite an active

hurricane season, the associated loss expenditures remained moderate.

While Europe experienced heavy hailstorms in May and June, the insured

losses were limited in scale. All in all, severe convective storms continued

to be a key factor in the worldwide losses caused by natural catastrophes.

Southeast Asia suffered severe flooding and flash floods in November,

especially in Vietnam, Thailand and Indonesia. A complex weather

phenomenon, in which several cyclone systems and an intensified

monsoon collided, resulted in a destructive combination of rain, landslides

and flash floods with widespread devastation.

Regulatory developments

Numerous regulatory developments occurred on the international,

European and national level in 2025 . Growing protectionism presented

additional barriers to market access in many parts of the world. These

developments pose challenges for the cross-border business of global

reinsurance.

Substantial legislative progress was made in 2025 as part of the Solvency II

review. The amended Solvency II Directive was published in the Official

Journal of the European Union on 8 January 2025. The Member States are

required to transpose the new regulations into national law within two years,

with the rules becoming applicable from 30 January 2027. Supplementary

to this, the European Commission published a draft delegated regulation in

July 2025 that was open for public consultation until September. The final

draft was presented in October and specified the Level 2 amendments, in

particular with regard to the valuation of liabilities, capital requirements,

reporting and disclosure obligations as well as group supervision.

Parallel to the Solvency II review, the Insurance Recovery and Resolution

Directive (IRRD) also moved forward significantly. The directive was

similarly published in the Official Journal of the European Union on 8

January 2025 and entered into force on 28 January. Transposition into

national must be completed by no later than 29 January 2027, with

application also envisaged effective 30 January 2027. In accordance with

the IRRD, recovery and resolution plans will be drawn up at the request of

the supervisory or resolution authority in 2027 at the earliest. In the course

of the year, EIOPA held several rounds of consultations on technical

standards focusing on the design of recovery and resolution plans, the

assessment of resolvability, the definition of critical functions and the

setting up of Resolution Colleges.

On the global level, the Insurance Capital Standard (ICS) entered into force

in January 2025. The International Association of Insurance Supervisors

(IAIS) additionally published further Level 2 texts and calibration

documents. Furthermore, the high-level principles for the assessment of

national implementation, which are intended to serve as a basis for self-

assessment, were adopted in July. The steps mark the transition from pure

standard setting to operational implementation and pave the way for the

planned global implementation assessments from 2027 onwards. Given

that Solvency II is to be considered a direct implementation of the ICS in the

EU, it is unlikely that further supervisory implications are to be anticipated

for the Hannover Re Group.

In February 2025, the European Commission published the Sustainability

Omnibus Package containing several proposals to simplify the EU

framework for sustainability reporting. The European Parliament and the

Council adopted a directive in April 2025 postponing the application

deadlines for the Corporate Sustainability Reporting Directive (CSRD) and

the Corporate Sustainability Due Diligence Directive (CSDDD) for certain

undertakings, although this does not affect Hannover Re’s reporting

obligations. In December 2025, a trilogue agreement was reached on

further content amendments to both directives, among other things

significantly reducing their scope of application. The new application

thresholds of the CSDDD apply exclusively to companies with more than

Hannover Re

Investor Relations

Annual Report 2025

5,000 employees and more than EUR 1.5 billion in turnover. Hannover Re

has fewer than 5,000 employees at the current point in time.

With a view to further easing the burden on companies associated with

CSRD reporting, the European Commission also issued a mandate to

simplify the European Sustainability Reporting Standards (ESRS).

Following extensive consultation activities, the European Financial

Reporting Advisory Group (EFRAG) presented a reform proposal that is

currently under review by the Commission. The revised ESRS are expected

to be finalised by the middle of 2026. In September 2025, the federal

government presented a draft bill for implementation of the CSRD.

Originally planned for 2025, adoption was delayed to take into account

adjustments from the Omnibus Package. The legislative procedure is

expected to be finalised in 2026.

As part of the Omnibus Package, the European Commission also adopted a

Delegated Regulation in July 2025 containing amendments to taxonomy

reporting; among other things, it introduced a materiality threshold for

financial materiality of 10% of the relevant KPI denominator. Furthermore,

companies were temporarily granted the option to defer taxonomy reporting

until 31 December 2027. Hannover Re is not exercising this option in the

current reporting year.

The federal government also introduced draft legislation in September 2025

amending the German Supply Chain Due Diligence Act (LkSG) to ease the

reporting requirements for companies affected by the LkSG. The draft bill,

which has still to be passed into law, envisages the retroactive removal of

reporting obligations under the LkSG and limits fines to severe human rights

violations. In view of the planned relief measures, the Federal Office for

Economic Affairs and Export Control (BAFA) was instructed to suspend

reviews of reports and to impose fines only in the case of serious violations.

The EU AI Act, which has been in force since August 2024, has already

been in a phased implementation process since February 2025. The

remaining regulations governing the handling of high-risk systems were

originally intended to take effect from August 2026, but will now probably be

linked to the Digital Omnibus, thereby further delaying their implementation.

The Digital Omnibus is the European Commission’s 2025 simplification

package intended to consolidate overlapping digital regulations in the areas

of data, AI, cybersecurity and reporting obligations. The accompanying

trilogue negotiations are expected to extend through 2026, with significant

implications therefore not expected before 2027. Hannover Re welcomes

the Digital Omnibus in principle. The most notable positive feature is the

future single entry point for reporting ICT incidents. Some aspects,

however, are coming under criticism in the insurance sector, including for

example the potential legal uncertainty – especially due to the “pending”

postponement of high-risk AI obligations without a fixed deadline as well as

the continuing duplication of regulation between the AI Act, GDPR,

Solvency II and DORA.

The Financial Data Access Regulation (FiDA) underwent crucial

developments in 2025: following submission of the proposal by the

European Commission in 2023, the trilogue negotiations between the

Commission, Parliament and Council began in April 2025. In May 2025 the

Commission published a “non-paper” proposing simplification of the FiDA

that envisages, among other things, a ten-year time limit for data, the

exclusion of large corporations (including Big Tech and reinsurers) as well

as phased implementation. Gatekeepers for third-country companies,

specifically Big Tech firms, are also under discussion. It is our expectation

that reinsurers will only be defined as “data users” and not as “data owners”

under the FiDA and will therefore potentially have fewer compliance

obligations to fulfil. This assessment is shared by the German Insurance

Association (GDV). The FiDA is expected to enter into force in 2028 at the

earliest.

When the Digital Operational Resilience Act (DORA) came into effect on 17

January 2025, the requirements around the digital resilience of financial

undertakings underwent a fundamental overhaul. For insurance

companies, this means the complete replacement of the previous VAIT

requirements (“Supervisory Requirements for IT in Insurance

Undertakings”). The DORA regulation defines consistent Europe-wide

standards for information and communication systems. In addition, the

amendment of § 35 (1) Insurance Supervision Act (VAG) requires

independent auditors for the first time to evaluate compliance with these

standards as part of their audit of financial statements. The German

Institute of Public Auditors (IDW) published the audit standard IDW EPS

528 (08.2025) to support these new audit requirements.

Overall assessment of the

business position

The development of Hannover Re’s business was extremely satisfactory in

the 2025 financial year despite a continued challenging macroeconomic

and geopolitical landscape. Both business groups, namely Property &

Casualty reinsurance and Life & Health reinsurance, delivered good results.

Expenditures for large losses remained within our budgeted expectation in

property and casualty reinsurance. The combined ratio improved

significantly and beat the target that we had set. The good results in life and

health reinsurance were facilitated above all by sustained strong demand

for financial solutions and longevity covers. Our investment result came in

below the level of the previous year, primarily due to the strategic reduction

of unrealised losses. Overall, therefore, we achieved the Group net income

guidance that we had revised higher in November.

At the time of preparing the management report, it remains the case that

both the business position of the Group and its financial strength can be

assessed as very good. Within the framework of our Group strategy, we

determine our necessary equity resources according to the requirements of

our internal capital model, solvency regulations, the expectations of rating

agencies for our target rating and the expectations of our clients and

shareholders.

Hannover Re

Investor Relations

Annual Report 2025

Business development

– Reinsurance revenue (gross) on the Group level up by 4.7%

to EUR 26.8 billion adjusted for exchange rate effects

– Property and casualty reinsurance: Reinsurance revenue

increases to EUR 18.8 billion

– Large losses in property and casualty reinsurance within

budgeted expectation

– Life and health reinsurance: Result grows in line with

expectations

– Contractual service margin (net) decreases by -3.1% to

EUR 7.9 billion

– Return on investment of 2.5% below target of around 2.9%

due to active realisation of unrealised losses

– Group net income increases by 13.4% to EUR 2.6 billion

– Return on equity reaches 21.4%

As one of the leading reinsurers in the world, Hannover Re has a far-

reaching international network and extensive underwriting expertise. On

this basis, we are able to offer our customers traditional, tailor-made and

innovative reinsurance solutions and we work with them to open up new

business opportunities.

The 2025 financial year passed off extremely satisfactorily for Hannover Re.

In view of the challenges noted around the world, high-quality reinsurance

protection remains in demand. Against this backdrop, our business

continued to deliver selective and profitable growth.

Reinsurance revenue (gross) for the Group increased by 1.5% in the 2025

financial year to EUR 26.8 billion (previous year: EUR 26.4 billion). At

constant exchange rates, growth would have reached 4.7%.

The reinsurance service result (net), reflecting the profitability of

underwriting activity after deduction of business ceded (primarily

retrocessions and insurance-linked securities), rose by a substantial 15.8%

to EUR 3,496.1 million (EUR 3,018.5 million). The reinsurance finance

result (net) adjusted for exchange rate effects, which is structurally

negative, changed by 22.3% to EUR -1,363.3 million (EUR -1,115.0 million).

The currency result improved significantly to EUR 243.2 million

(EUR -108.0 million), driven primarily by the appreciation of the euro against

the US dollar. Other income and expenses amounted to EUR -541.2 million

(EUR -482.9 million). The operating profit (EBIT) rose by 5.7% to EUR

3,507.7 million (EUR 3,317.6 million).

Expenditure for taxes decreased to EUR 645.3 million (EUR 816.5 million).

This was lower than anticipated due to, among other things, a one-time tax

effect associated with the reform of corporate taxation in Germany as well

as different regional profit contributions.

Group net income increased to EUR 2.6 billion (EUR 2.3 billion). We thus

achieved our earnings guidance, which we had raised to around

EUR 2.6 billion. Earnings per share stood at EUR 21.90 (EUR 19.31).

The shareholders' equity attributable to shareholders of Hannover Rück SE

amounted to EUR 12,928.7 million (EUR 11,794.5 million) as at 31

December 2025. The increase in shareholders' equity derived principally

from the Group profit generated less the dividend distributed to

shareholders of Hannover Re for the 2024 financial year. The return on

equity stood at 21.4% (21.2%) and thus exceeded our financial ambition of

more than 14% defined for our strategy cycle 2024–2026. The book value

per share reached EUR 107.21 (EUR 97.80).

The contractual service margin (net) decreased by -3.1% to

EUR 7,907.7 million (EUR 8,162.4 million). The risk adjustment for non-

financial risk changed by -6.6% to EUR 3,740.6 million

(EUR 4,004.1 million).

The total policyholders' surplus, consisting of shareholders' equity, non-

controlling interests and hybrid capital, amounted to EUR 16.7 billion

(EUR 15.9 billion) as at 31 December 2025.

Reinsurance revenue (gross) in our Property & Casualty reinsurance

business group rose by 3.8% adjusted for exchange rate effects.

Payments for large losses amounting to EUR 1.7 billion remained below our

budgeted expectation for the financial year of EUR 2.1 billion. The

combined ratio in property and casualty reinsurance improved year-on-year

to 84.0% (86.6%). It thus came in below the revised target of less than 87%,

despite further provision for risks in aviation business and continued

adherence to our conservative reserving policy.

Thanks to its comparatively low administrative expenses and cost of capital

as well as its above-average financial strength, Hannover Re has been and

remains able to assert itself successfully in the market. Based on our

positioning as one of the largest and most robustly capitalised reinsurers in

the world, we enjoy sustained very good access to profitable business. The

operating profit (EBIT) booked in property and casualty reinsurance

improved by 10.4% to EUR 2,635.3 million (EUR 2,387.3 million).

Reinsurance revenue (gross) booked in the Life & Health reinsurance

business group grew by 6.8% adjusted for exchange-rate effects. The

reinsurance service result (net) reached EUR 903.0 million

(EUR 882.9 million), comfortably surpassing the target of more than

EUR 875 million. The operating result (EBIT) in life and health reinsurance

contracted to EUR 886.1 million (EUR 933.9 million), primarily owing to

lower contributions from the investment income and currency result.

Our portfolio of investments amounted to EUR 66.3 billion at the end of the

year (EUR 65.9 billion). The investment result deteriorated compared to the

previous year by -16.6% to stand at EUR 1,672.9 million

(EUR 2,005.1 million). This was attributable in particular to the strategic

realisation of unrealised losses in our fixed-income portfolio. The resulting

return on our investments stood at 2.5% and thus fell short of our revised

full-year target of around 2.9%.While we were unable to achieve some of

the guidance shown in the following table, for the most part we even

outperformed it.

Business development and guidance in the year under review



	Guidance 2025	Revised²	Actual 2025
Growth in reinsurance revenue (gross) in P&C reinsurance ¹	more than 7.0%	—	3.8%
Combined ratio in P&C reinsurance	< 88%	< 87%	84.0%
Reinsurance service result (net) in Life & Health reinsurance	> EUR 875 million	—	EUR 903 million
Return on investment	at least 3.2%	around 2.9%	2.5%
Group net income	around EUR 2.4 billion	around EUR 2.6 billion	EUR 2.6 billion

¹ At constant exchange rates

² The guidance was revised in November 2025.

Hannover Re

Investor Relations

Annual Report 2025

Results of operations

Property & Casualty reinsurance

– Reinsurance revenue (gross) grows by 3.8% adjusted for

exchange rate effects

– New business CSM (net) amounts to EUR 3.1 billion

– Broadly stable conditions and risk-adequate prices in the

various rounds of treaty renewals during 2025

– Large losses below budgeted expectation

– Combined ratio improves to 84.0%

– Operating profit rises sharply by 10.4% to

EUR 2,635.3 million

The business experience in property and casualty reinsurance was

extremely satisfactory in 2025.

The treaty renewals held throughout the year resulted in broadly stable

conditions and continued risk-adequate prices. In view of the ongoing good

state of the market, Hannover Re made the most of growth opportunities to

further profitably expand its portfolio.

Treaty renewals in 2025



in %	As at 1.1.	As at 1.4.	As at 1.6./1.7.
Change in premium income	+7.6	+10.4	-2.1
Risk-adjusted prices	-2.1	-2.4	-2.9

The outcome of the treaty renewals held throughout 2025 together with our

quality-focused underwriting approach are reflected in the positive

development of the new business CSM (net), which was boosted by a

substantial 12.1% to EUR 3,063.1 million (previous year:

EUR 2,732.6 million) in the 2025 financial year.

Reinsurance revenue (gross) in property and casualty reinsurance grew by

a modest 0.6% to EUR 18,770.5 million (EUR 18,664.7 million). Growth

would have reached 3.8% at constant exchange rates.

Net expenditures from large losses in the 2025 financial year came to

EUR 1,725.1 million (EUR 1,629.2 million) and thus came in under our

budgeted full-year expectation of EUR 2.1 billion. Although fewer events

were recorded overall, individual natural catastrophes led to above-average

loss amounts.

The largest payments (net) for individual losses were for the California

wildfires at the start of 2025 in an amount of EUR 595.4 million, Hurricane

Melissa in October at EUR 328.5 million, the earthquake in Myanmar at a

cost of EUR 118.1 million and severe hailstorms that impacted Australia in

November to the tune of EUR 102.3 million. Furthermore, Hannover Re

made provision for additional risks in the financial year. Most notably, we

further increased our loss reserves for risks in the aviation sector.

The reinsurance service result (net) climbed to EUR 2,593.0 million

(EUR 2,135.6 million). The included new business LC (net) reached

EUR 32.7 million (EUR 42.0 million). The combined ratio improved from

86.6% to 84.0%, principally due to the improved profitability of the business

and underutilisation of the large loss budget. The reinsurance finance result

(net) adjusted for exchange rate effects amounted to EUR -1,173.3 million

(EUR -944.7 million).

The net investment result for the Property & Casualty reinsurance business

group contracted sharply to EUR 1,301.0 million (EUR 1,607.3 million). This

development was influenced primarily by the active realisation of unrealised

losses in the investments so as to enhance the portfolio’s future profitability.

The operating profit (EBIT) increased to EUR 2,635.3 million

(EUR 2,387.3 million) on the back of the substantially improved reinsurance

service result, among other factors.

On the following pages we report in detail on developments in our Property

& Casualty reinsurance business group. This is split into a number of

reporting categories, sorted according to regional markets and worldwide

markets.

Key figures for Property & Casualty reinsurance



in EUR million	2024	2025	+/- previous year
Reinsurance revenue (gross)	18,664.7	18,770.5	+0.6%
Reinsurance service result (net)	2,135.6	2,593.0	+21.4%
Reinsurance finance result (net) ¹	-944.7	-1,173.3	+24.2%
Investment income	1,607.3	1,301.0	-19.1%
Operating result (EBIT)	2,387.3	2,635.3	+10.4%
EBIT margin ²	15.0%	16.3%
Combined ratio ³	86.6%	84.0%
New business CSM (net)	2,732.6	3,063.1	+12.1%

¹ Excluding exchange rate effects

² EBIT / reinsurance revenue (net)

³ Reinsurance service expenses (net) / reinsurance revenue (net)

Property & Casualty reinsurance: Revenue development in individual markets

and lines in 2025



in EUR million	Reinsurance revenue (gross) 2024 ¹	Reinsurance revenue (gross) 2025	+/- previous year
Regional markets
Americas	4,881.3	5,066.4	+3.8%
Europe, Middle East and Africa	3,998.2	4,318.0	+8.0%
Asia-Pacific	1,946.6	1,667.7	-14.3%
Worldwide markets
Speciality lines	3,447.8	3,478.9	+0.9%
Structured Reinsurance and Insurance-Linked Securities	4,390.9	4,239.5	-3.4%

¹ Adjusted

Hannover Re

Investor Relations

Annual Report 2025

Property & Casualty reinsurance: Large loss trend ¹

¹ Natural catastrophes and other large losses in excess of EUR 10 million gross

Regional markets

Americas

North America is the largest insurance market in the world. Our business

here is written mostly through brokers. Economic developments in the year

under review continued to be overshadowed by uncertainties, and the

hoped-for economic recovery consequently fell short of expectations. This

also influenced the insurance industry as purchasing power and investment

activity signalled general hesitancy. The reinsurance revenue (gross)

increased to EUR 5,066.4 million.

The devastating wildfires in California at the start of the year resulted in

higher claims expenditure, while this year’s hurricane season passed off far

less eventfully than predicted. Only Hurricane Melissa resulted in heavy

insured losses in the Caribbean. Additionally, various tornado and hail

events in the Midwest and Canada as well as a number of fire losses caused

minor and more sizeable losses on multiple occasions.

The primary insurance market remained stable on the whole in the year

under review. The trend towards further modest rate increases was

sustained in view of the claims burden and inflation seen in prior years. The

rate adjustments for liability lines were again more significant than those for

property business.

On the reinsurance side, by contrast, rates came under appreciable

pressure in the property insurance segment, especially in property

catastrophe business. The markets in the United States and Canada are,

however, heavily focused on technical underwriting, with the result that risk-

adjusted rate increases could still be obtained under loss-affected

programmes. Conversely, risk-adjusted rate reductions were granted in

areas where reinsurance programmes performed very well. All in all,

sufficient capacity was available in all markets segments.

The pace of growth in primary insurance and reinsurance business slowed

in Latin America. The global economic situation led to minimal economic

growth in Mexico, where factors such as high inflation and geopolitical

tensions – among others – put the brakes on demand for Mexican exports

and investments. At the same time, tax reforms in countries including

Mexico and Brazil created additional uncertainty among our clients. This

uncertainty derives above all from the fact that the reforms not only cause

higher costs in the short term, but could also fundamentally change

insurers’ business models and market structures over the long term. On a

positive note, the region was spared sizeable catastrophe losses in 2025,

leading to improved market results. Some countries, however, recorded

substantial fire losses, which were carried primarily by reinsurers.

Europe, Middle East and Africa

In contrast to previous years, European markets were scarcely affected

overall by extreme weather events and natural catastrophe losses in the

year under review. The reinsurance revenue (gross) in the EMEA region

increased to EUR 4,318.0 million.

Responsibility within the Hannover Re Group for property and casualty

reinsurance in Germany is assigned to our subsidiary E+S

Rückversicherung AG.

The claims experience in Germany was notable in the year under review for

the absence of major natural disasters as well as below-average

expenditure from fire losses in industrial and commercial lines. The

combined ratio in property business market-wide consequently improved

significantly overall

The tariff measures implemented by primary insurers in conjunction with the

exceptionally low losses from natural perils events led to appreciably

improved results in German motor insurance. Unlike the previous year, a

combined ratio comfortably under 100% was achieved here, thereby

assuring profitability in the year under review. The trend towards rising costs

for repairs and spare parts was nevertheless sustained and remains a

challenge for the industry.

Italy enjoyed a serene claims year. The compulsory insurance for small and

mid-sized enterprises introduced in 2025, which encompasses coverage

for earthquakes and other natural perils, delivered slight to moderate

additional growth.

Spain, too, was spared sizeable natural catastrophe events in 2025 for the

first time in years. The local motor market showed a marked recovery and

moved back into the black. Adjustments made to the Baremo system, the

legally binding method used to calculate compensation for personal injuries

in road traffic accidents, created added complexity for the calculation of

large claims in liability business.

In France and the Benelux countries, the year passed off largely benignly

in terms of natural catastrophes. The most notable human-caused losses

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Annual Report 2025

were in industrial fire business, once again underscoring the importance of

risk-appropriate insurance protection.

In Central and Eastern Europe, the prices obtained in the year under review

were commensurate with the risks. The region was not impacted by large

loss events, with the most sizeable loss being the fire at a refinery in

Hungary in the fourth quarter.

In Northern Europe, too, the year under review brought lower natural

catastrophe activity than in the previous year and a smaller number of large

losses, accompanied by isolated negative run-offs from earlier catastrophe

losses.

In the United Kingdom and the London Market, further minimal rate

increases were seen over the course of the year, although they were slightly

below the level of inflation. The liability market proved to be more stable

overall than property insurance business. Geopolitical developments,

especially in Ukraine and the Middle East, continued to influence market

conditions for our reinsurance book of terrorism and political risks, a

specialty segment of the London Market.

In the Middle East, we transact both traditional reinsurance for the Middle

East and North Africa region and business in accordance with Islamic law,

known as retakaful. We offer Sharia-compliant reinsurance capacities

worldwide through our subsidiary Hannover ReTakaful. Our focus here is on

the Middle East, North Africa and Southeast Asia.

The reinsurance market in the Middle East was notable for stable conditions

and modestly positive developments overall on core markets in the financial

year just ended. The year passed off largely without any major natural

catastrophe events, delivering satisfactory results for both the reinsurance

and retakaful segments.

In South Africa, the low claims burden led to strong underwriting results

across the entire industry. Both in traditional reinsurance and in specialty

lines, we generated additional growth while maintaining pricing discipline

and attractive margins.

Asia-Pacific

The Asia-Pacific region as a whole remained intensely competitive. The

reinsurance revenue (gross) decreased to EUR 1,667.7 million.

Sustained economic growth in Southeast Asia opened up further new

business opportunities in the financial year, driven by robust domestic

demand. Following marked improvements in prior years, conditions came

under slight pressure in the course of the year due to adequate capacities

and growth ambitions in the catastrophe market. The year was notable for

above-average claims activity, both in natural catastrophe business and in

terms of human-caused losses. While the severe earthquake in Myanmar at

the beginning of the year caused considerable economic losses, local

insured losses remained low. However, aftershocks, particularly in the Thai

capital Bangkok, resulted in substantial insured losses. In the second half of

the year, persistent monsoon rains and Cyclone Senyar caused widespread

flooding in Thailand, Malaysia and Indonesia. At the end of the year, Sri

Lanka was impacted by Cyclone Ditwah, which proved to be the region’s

deadliest natural disaster since 2004 and led to extensive flooding and

landslides.

Against a backdrop of considerable natural catastrophe activity – including

flooding in northeastern China – and human-caused losses, results in China

were satisfactory overall in 2025, Primary insurers generated positive

underwriting results on the back of the deregulation of motor business by

the National Financial Regulatory Administration (NFRA) as well as healthy

investment income. In addition, more companies issued subordinated

bonds in the low interest rate environment. This further fuelled tendencies

towards softening prices and conditions in this region. Thanks to our long-

standing client relationships, we were nevertheless able to stand our ground

in the market and maintain our market share.

The Indian market remained competitive. No sizeable natural disasters and

hence only minimal large losses were recorded.

The markets in Australia and New Zealand were similarly notable for brisk

competition in 2025 as well as losses caused by natural catastrophes,

including Cyclone Alfred in February and flooding in May. The fourth quarter

brought severe convective storms, resulting in some losses under core

programmes. Based on our long-standing customer relationships and our

positioning as a strategic partner, we maintained and in some instances

even expanded our market shares in all major reinsurance programmes,

whether through existing or new business opportunities.

Worldwide markets

Speciality Lines

In speciality lines, encompassing facultative reinsurance, credit, surety and

political risks, cyber and digital business, aviation and marine reinsurance

as well as agricultural risks, the reinsurance revenue (gross) increased to

EUR 3,478.9 million.

In contrast to obligatory reinsurance, we write primarily individual risks in

facultative reinsurance. The general framework conditions for both types of

reinsurance in the various markets are extensively correlated. After the

significant rate increases recorded around the world in recent years,

reinsurance conditions saw increasing rate erosion in the financial year.

Pressure on prices was most marked in regions or lines where the most

appreciable improvements in conditions had been achieved over the past

few years. Nevertheless, we are also seeing that further improvements can

be obtained in lines prone to the heaviest losses. The supply of facultative

reinsurance solutions was on a consistently high level in the year under

review. By writing new business that meets our minimum margin

requirements at very good reinsurance conditions, we succeeded in

offsetting the reduction in premium caused by rate erosion and thereby

generating a stable premium volume overall. The business result in

facultative reinsurance was impacted only marginally by natural

catastrophes.

Loss ratios in credit and surety insurance as well as in the political risks

segment moved only moderately higher despite rising insolvency numbers.

Prices in primary insurance and reinsurance consequently remained

broadly stable, with demand unchanged.

In our striving to create the greatest possible consistency for our clients and

business partners and offer them optimal capacity, we combine our global

business in cyber and digital lines with a focus on tailored solutions. The

market is still characterised by an oversupply of capacity and declining

prices. We are addressing the current challenges in cyber insurance, such

as increasing losses and systemic risks, with alternative structures and

individual solutions.

Conditions in aviation reinsurance were broadly stable. This was especially

true of proportional business, whereas modest rate reductions in the single

digits could be observed for non-proportional covers. This trend ran

contrary to a sizeable number of claims in the major airline segment, the

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Annual Report 2025

implications of which are not yet fully reflected in the insurance market. This

also applies to the judgement handed down in 2025 on aircraft leasing

losses in Russia connected with sanctions imposed due to the war in

Ukraine. The general aviation and war risks segments saw further slight rate

reductions, while product liability business remained stable.

Developments in marine business were once again shaped by increasing

geopolitical tensions and conflicts in 2025. At the same time, conventional

shipping accidents also occurred in the first half of the year, including off the

coast of India. Despite the general global landscape and associated

uncertainties, both the primary and reinsurance markets remained

competitive – as reflected in rate reductions. Offshore energy business

similarly came under pricing pressure, while at the same time recording

below-average loss expenditure in the reporting period.

The premium volume in business with agricultural risks declined in the year

under review owing to falling grain prices. In terms of loss expenditures,

2025 was a benign year in which we achieved stable prices and conditions

overall, Generally speaking, demand for insurance and reinsurance

solutions is steadily increasing in the face of a growing need for

commodities and foodstuffs as well as an accumulation of extreme weather

events. We support our customers and partners here with a range of

traditional and innovative reinsurance solutions.

Structured Reinsurance and Insurance-Linked Securities

In the Structured Reinsurance and Insurance-Linked Securities reporting

category we combine our business involving tailor-made property and

casualty reinsurance solutions and insurance-linked securities (ILS). The

reinsurance revenue (gross) contracted to EUR 4,239.5 million.

In structured reinsurance we rank as one of the world’s largest providers of

innovative and bespoke reinsurance solutions. These deliver solvency relief

and thus have a positive effect on our clients’ capital and rating, or they

protect them against the strain of frequency losses. Furthermore, structured

concepts offer an alternative in cases where traditional reinsurance capacity

cannot be accessed to the full extent. Along with the traditional clientele of

primary insurers, structured reinsurance is increasingly in demand among

large corporate groups and their in-house insurance captives.

In 2025, we further expanded our customer base globally and increased the

number of treaties and associated premium volume on attractive terms.

Given the favourable conditions still prevailing on property and casualty

reinsurance markets around the world, we continue to be able to offer our

clients alternative coverage concepts at good conditions.

Hannover Re leverages the entire spectrum of opportunities offered by the

insurance-linked securities (ILS) market. On the one hand, we ourselves

take out reinsurance with ILS investors, while at the same time we transfer

our clients’ risks to the capital market. This is done in the form of

catastrophe bonds or through collateralised reinsurance, under which our

business partners are primarily specialised ILS funds. We also invest in

catastrophe bonds.

In 2025, the volume of new exposures that we transferred to the capital

market in the form of catastrophe bonds was unchanged at around USD 3.4

billion, spread across twelve transactions. Covers were placed to protect

against losses from natural catastrophes such as windstorm events and

earthquakes. In addition, Hannover Re worked with the North Carolina

Insurance Underwriting Association and GC Securities, the unit of

reinsurance broker Guy Carpenter specialising in capital markets and ILS

transactions, to place the first catastrophe bond on the capital market that

includes potential payments to homeowners for preventive resilience and

structural improvement measures.

The volume of collateralised reinsurance, which remains by far our largest

segment in the ILS sector, remained stable in the year under review on a

high level.

Complementing its existing range of ILS solutions, Hannover Re

established an insurance agent in Bermuda: Hannover Re Capital Partners

(HCP). HCP uses third-party investor capital to write additional non-

proportional natural catastrophe business. In this context, Hannover Re

draws on its many years of expertise and worldwide client network.

The important role played by the capital market in the purchasing of our own

retrocession protection was unchanged. Since as long ago as 1994, we

have placed a protection cover for Hannover Re known as the “K cession” –

a modelled quota share consisting of non-proportional reinsurance treaties

in the property, catastrophe, aviation and marine (including offshore) lines –

inter alia on the ILS market. In addition, we made use of the ILS market for

further protection covers, including in the areas of cyber and natural

catastrophe risks.

Life & Health reinsurance

– Reinsurance revenue (gross) up by 6.8% to

EUR 8,015.5 million adjusted for exchange rate effects

– New CSM generation (net) amounts to EUR 766.4 million

– Contractual service margin (net) declines by -3.7% to

EUR 6.3 billion

– Longevity covers and financial solutions still in particularly

high demand among customers

– Reinsurance service result (net) beats target at

EUR 903.0 million

– Operating result down by -5.1% to EUR 886.1 million

In life and health reinsurance we enjoyed sustained demand overall from

our clients in 2025. Our business was once again shaped by intense

competition on global life and health reinsurance markets in the year under

review.

The new CSM generation (net), comprised of new business (net) and

contract extensions (net), amounted to EUR 766.4 million (previous year:

EUR 624.1 million). The contractual service margin (net) decreased to

EUR 6,275.4 million (EUR 6,516.8 million) as at the end of the financial year

and thus fell short of the roughly 2% growth target. Adjusted for exchange

rate effects, growth would have reached 3.4%.

Reinsurance revenue for the Life & Health reinsurance business group

reached EUR 8.0 billion (EUR 7.7 billion); the increase in reinsurance

revenue would have been 6.8% at constant exchange rates.

The reinsurance service result (net) improved by 2.3% to EUR 903.0 million

(EUR 882.9 million), thereby beating the target of more than EUR 875

million. The included new business LC (net) amounted to EUR 12.7 million

(EUR 6.3 million).The reinsurance finance result (net) before exchange rate

effects, reflecting interest accretion on technical provisions discounted in

prior years, increased to EUR -190.0 million (EUR -170.3 million).

Investment income generated by the Life & Health reinsurance business

group fell by -6.5% to EUR 370.5 million (EUR 396.1 million). The key

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Annual Report 2025

drivers here were strong ordinary investment income and a reduced profit

from a participating interest measured at equity. In addition, unrealised

losses in the investments were actively realised to boost future profitability.

The operating result (EBIT) contracted by -5.1% to EUR 886.1 million

(EUR 933.9 million). The change can be attributed to, among other things,

declines in the currency result and the investment income.

Key figures for Life & Health reinsurance



in EUR million	2024	2025	+/- previous year
Reinsurance revenue (gross)	7,714.5	8,015.5	+3.9%
Reinsurance service result (net)	882.9	903.0	+2.3%
Reinsurance finance result (net) ¹	-170.3	-190.0	+11.5%
Investment income	396.1	370.5	-6.5%
Operating result (EBIT)	933.9	886.1	-5.1%
EBIT margin ²	13.1%	12.5%
New CSM generation (net)	624.1	766.4	+22.8%
New business CSM (net)	316.7	490.4	+54.9%
New CSM from extensions on existing contracts (net)	307.5	276.0	-10.2%

¹ Excluding exchange rate effects

² EBIT / reinsurance revenue (net)

We provide below a detailed overview of developments in the individual

reporting categories – Financial Solutions, Longevity Solutions and

Traditional Business.

Key figures broken down by segments



in EUR million	Reinsurance revenue (gross) 2024	Reinsurance revenue (gross) 2025	+/- previous year
Financial Solutions	1,059.1	1,198.1	+13.1%
Longevity Solutions	1,787.1	1,818.8	+1.8%
Traditional Business	4,868.5	4,998.6	+2.7%

Financial Solutions

In the Financial Solutions reporting category, we offer a broad range of

reinsurance solutions specially tailored to our customers' diverse needs.

These solutions help our clients to improve their financial stability, liquidity

and capital position.

In Europe, especially in France, demand for lapse solvency relief

transactions remained on a high level. These specialised reinsurance

covers enable clients to obtain targeted capital relief by protecting against

the risk of a sudden “mass lapse” event. The publication of a guidance

document by the European Insurance and Occupational Pensions Authority

(EIOPA) in July 2025 addressing the handling of these reinsurance

solutions as well as increased broker activity and the ongoing high interest

rate environment led to an extremely dynamic market landscape.

In Asia, we have established Hannover Re as a preferred partner in the

rapidly growing markets of Southeast Asia and in Japan. We were able to

write new business in China and Hong Kong, while business in the United

Kingdom also developed favourably. In the United States, business with

health financial solutions continued to grow. The sustained high level of new

business in the annuity sector drove expansion of our annuity financial

solutions portfolio.

Longevity Solutions

In the Longevity Solutions reporting category, we group together our

reinsurance business in which we cover longevity risks for our customers.

We develop tailored annuity products here that meet the individual needs of

policyholders in different life situations. They include deferred annuities,

unit-linked annuities, reinsurance solutions for reverse mortgages and

occupied life annuities, immediate LTC annuities and enhanced annuities,

which offer pensioners with pre-existing conditions a higher annuity

payment due to diminished life expectancy. In addition, we reinsure

traditional annuity policies and pension blocks.

In longevity business, we enjoyed continued growing interest in our

products around the world, enabling us to write new business globally in

2025. The United Kingdom, by far the most developed market for coverage

of longevity risks, remains intensely competitive. Business with smaller

pension funds or pension insurers performed particularly well here in the

year under review.

Traditional Business

Our Traditional Business includes mortality solutions, which account for the

bulk of the premium income generated in life and health reinsurance. Here,

we provide reinsurance protection for the risk that the actual mortality

diverges from what was originally expected. Morbidity solutions, which

protect against the risk of a deteriorating state of health due to disease,

injury or infirmity, also come under this reporting category. We offer a wide

range of possible combinations of covered risks, including for example strict

(any occupation) disability, occupational disability and long-term care

insurance.

In the United Kingdom, we successfully entered the market for group life

covers. The market landscape in the United States remained intensely

competitive in the year under review. Market conditions were also

influenced by unfavourable mortality trends. The book of business in Latin

America developed in line with expectations, while France also delivered a

good contribution with a positive business performance.

In the Asia-Pacific region, we further extended our leading position in the

core markets of Malaysia, Vietnam, India and Thailand, both by writing new

business and by growing existing market shares. In China, we also worked

with a client to successfully launch a new product module in the health

insurance segment.

Investments

– Further very strong ordinary investment income

– Higher interest rates and increased portfolio lead to rising

earnings from fixed-income securities

– Return on investment of 2.5% due to active realisation of

unrealised losses and hence below revised target of around

2.9%

Ordinary investment income was significantly above the previous year’s

level at EUR 2,544.1 million (previous year: EUR 2,353.2 million), driven

primarily by another increase in earnings from fixed-income securities. This

was evident not only from the pure coupon payments but also in the positive

amortisation amounts. In addition, we booked higher current earnings from

alternative investments. Income from measurement of our investments in

associated companies at equity declined to EUR -33.2 million (EUR 27.4

million). This primarily reflects the measurement of one of our participating

interests.

The net losses realised on disposals amounted to EUR -564.2 million

(EUR -90.4 million), reflecting the active realisation of unrealised losses

from our portfolio of older fixed-income securities with lower returns. In the

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Annual Report 2025

context of reinvesting activities, we increased both the current interest

return on our fixed-income portfolio and our flexibility in liquidity

management. We were able to generate offsetting realisation gains on other

fixed-income instruments and the sale of real estate properties.

We increased the provisions established for expected credit losses (ECL) in

accordance with IFRS 9 by a net amount of EUR 1.8 million through profit or

loss in the reporting period (charge of EUR 2.9 million). Depreciation

recognised on directly held real estate totalled EUR 62.0 million

(EUR 60.5 million). In addition, we recognised impairments here on

selected properties in a total amount of EUR 26.1 million (EUR 37.5

million).

The net changes in the fair value of our assets recognised at fair value

through profit or loss amounted to EUR 22.4 million (EUR 2.7 million).

Particularly significant here were positive changes in the fair values of

investments in equity and infrastructure funds as well as derivatives relating

to the technical account. This was offset by changes in the fair values of

alternative investment funds, primarily from the area of private equity and

real estate, as well as interest rate differences on our currency hedges.

The net investment income of EUR 1,672.9 million (EUR 2,005.1 million)

was clearly lower than in the previous year. Our investments thus delivered

an average return of 2.5%, thereby falling short of the guided target return of

around 2.9% for the year under review. This was due principally to the

strategically motivated active realisation of unrealised losses in our fixed-

income portfolio as well as a profit from participating interests measured at

equity that came in lower than expected. This was opposed by ordinary

income that surpassed expectations. In addition, the impairment losses

taken in the real estate sector proved to be significantly lower than

anticipated.

Investment income



in EUR million	2024	2025	+/- previous year
Ordinary investment income	2,353.2	2,544.1	+8.1%
Expected credit losses, impairment, depreciation and appreciation of investments	-98.3	-85.7	-12.8%
Change in fair value of financial instruments	2.7	22.4	+715.8%
Profit / loss from investments in associated companies and joint ventures	27.4	-33.2	-221.1%
Realised gains and losses on investments	-90.4	-564.2	+523.9%
Other investment expenses	189.6	210.5	+11.0%
Net investment income	2,005.1	1,672.9	-16.6%

Financial position and net

assets

– Risk-commensurate investment policy

– Highly diversified investment portfolio

– Equity base remains robust

Investment policy

Hannover Re’s investment policy continues to be guided by the following

core principles:

– generation of stable and risk-commensurate returns while at the same

time maintaining the high quality standard of the portfolio

– ensuring liquidity and solvency at all times

– high diversification of risks

– limitation of currency exposure and maturity risks through active

matching of currencies and maturities

With these goals in mind, we engage in active risk management and

continuously strive for balanced risk/return profiles. To this end, we adhere

to centrally implemented investment guidelines and incorporate insights

gained from dynamic financial analysis. They form the basis for investment

ranges which are specified in light of the prevailing state of the market and

the requirements on the liabilities side and within which operational

management of the portfolio takes place. These measures are intended to

safeguard the generation of an appropriate level of return. In so doing, we

pay strict attention to compliance with our clearly defined risk appetite,

which is reflected in the risk capital allocated to the investments and

constitutes the foundation for the asset allocation of the entire Group and

the individual portfolios. Our ability to meet our payment obligations at all

times is also ensured in this way. Within the scope of our asset/liability

management (ALM), the allocation of investments by currencies and

maturities is determined by the liabilities. The modified duration of our bond

portfolio is geared largely to the technical liabilities.

By adjusting the maturity pattern of our fixed-income securities to the

average expected payment patterns of our liabilities, we reduce the

economic exposure to the interest rate risk. Through active and regular

management of the currency spread in our fixed-income portfolio we also

aim for extensive matching of currencies on the assets and liabilities sides

of the balance sheet, as a consequence of which fluctuations in exchange

rates have only a limited effect on our result. As at year-end 2025 we held

29.6% (previous year: 27.1%) of our investments in euros, 45.3% (48.7%)

in US dollars, 6.0% (5.5%) in Australian dollars and 4.9% (4.6%) in pound

sterling.

Breakdown of investments



in %	2024	2025
Government bonds	33.2	30.9
Semi-government bonds	14.7	16.5
Corporate bonds	31.5	32.9
Covered bonds	6.5	6.2
Equity (listed, private)	3.4	4.0
Real assets	6.6	6.7
Other	2.0	1.4
Short-term investments	2.1	1.3

in EUR million
Investments	65,888.2	66,339.1

Investment portfolio

At EUR 66.3 billion, our portfolio of assets under own management was

slightly higher than the comparable level of the previous year

(EUR 65.9 billion). On the one hand, effects associated with the revaluation

of some of our investments held in foreign currencies – especially US dollar

holdings – had a particularly significant adverse impact. Higher euro interest

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Annual Report 2025

rates in medium and long maturities also made themselves felt. On the

other hand, the very pleasing operating cash flow and lower interest rates –

most notably in the area of USD and GBP – comfortably offset these

declines.

Our investments benefited from our stable positioning. Furthermore, in the

context of our asset-liability management we always strive for the most

balanced possible interest rate positions of our investments in relation to

the technical liabilities so as to be able to leverage opposing effects of

changes in market rates on the value development of investments and

provisions. This is also reflected in the balance sheet due to the applicable

IFRS 17 and IFRS 9 accounting standards. Observed interest rate volatility

therefore has only a limited impact on our shareholders' equity and

solvency.

We held our asset allocation largely stable in the year under review. In so

doing, we consistently keep a very close eye on the markets relevant to our

portfolio so as to be able to act on attractive entry opportunities. We

therefore made the most of the price declines on stock markets triggered by

a looming trade war – most notably between the United States and China –

at the start of the second quarter to move back into equities and equity

funds on a limited scale. Further minimal adjustments to the asset

allocation were prompted primarily by the constant goal of maintaining

matching currencies and durations with our technical liabilities. In line with

the maturity profiles of our technical liabilities, we somewhat shortened the

modified duration of our portfolio of fixed-income securities compared to the

end of the previous year to 3.8 (4.4). In addition, while largely maintaining

our asset allocation, we systematically sold extensive holdings of interest-

bearing securities with unrealised losses and reinvested at current interest

rate levels. In this way, we further expanded our flexibility to take action on

the markets and in our liquidity management.

We made the most of market opportunities in our real estate portfolio by

acquiring five properties in Europe, Asia and the United States, and selling

five properties in the same markets. We monitor movements on markets

relevant to our worldwide real estate portfolio very closely. Uncertainties

around the future development of specific properties were recognised in the

valuation at the balance sheet date.

In all other asset classes we made only minimal changes in the context of

regular portfolio maintenance.

The net charges on debt instruments recognised at fair value through OCI in

other income and expenses amounted to EUR 2.1 billion (EUR 3.3 billion).

As to the quality of the bonds measured in terms of rating categories, the

proportion of securities rated “A” or better remained on a consistently high

level of 76.9% (75.7%) at year-end.

Rating of fixed-income securities



in %		2025
AAA		27.3
AA		27.6
A		22.0
BBB		17.2
< BBB		5.9

Holdings of alternative investment funds increased overall in the year under

review. As at 31 December 2025 an amount of EUR 2,185.8 million

(EUR 2,265.1 million) was invested in private equity funds, with a further

EUR 730.2 million (EUR 673.9 million) attributable predominantly to fund

investments in high-yield bonds and loans. In addition, altogether

EUR 1,273.8 million (EUR 1,221.2 million) was invested in structured real

estate and infrastructure investments. The uncalled capital with respect to

the aforementioned alternative investments totalled EUR 2,187.5 million

(EUR 1,909.0 million).

At the end of the year under review, we held a total amount of

EUR 875.5 million (EUR 1,365.7 million) in short-term investments.

Analysis of the capital structure

Our business as a reinsurer shapes the structure of our balance sheet.

Accordingly, our investments serve to cover our technical liabilities. Both

the equity including non-controlling interests, at 19.5% (17.6%) of the

balance sheet total, and the long-term debt – especially notes payable – at

altogether 5.8% (6.5%) of the balance sheet total represent our most

important sources of financing.

The technical provisions and liabilities are of course by far the most

significant item in our balance sheet. The technical provisions and liabilities

shown, including the contractual service margin and the risk adjustment for

non-financial risk, make up 67.5% (68.7%) of the balance sheet total. They

are clearly more than covered by our investments and the reinsurance

recoverables on technical reserves.

Through ongoing monitoring and by taking appropriate steering actions, we

ensure that our business is backed with sufficient capital at all times. The

following table shows our capital structure as at 31 December 2025.

Capital structure as at 31 December



in %		2025
Equity		19.5
Contractual service margin (net)		11.1
Risk adjustment for non-financial risk		5.2
Other technical provisions and liabilities ¹		51.2
Long-term debt and notes payable		5.8
Other liabilities		7.4

¹ Plus asset items included in the CSM and in the risk adjustment

Group shareholders’ equity

Compared to the position as at 31 December 2024, Group shareholders’

equity increased in the year under review from EUR 12,688.3 million to

EUR 13,930.5 million. After adjustment for non-controlling interests, it grew

by EUR 1,134.2 million or 9.6% to EUR 12,928.7 million. The book value

per share increased accordingly by 9.6% to EUR 107.21. The changes in

the shareholders’ equity were shaped chiefly by the following

developments:

Cumulative foreign currency losses amounting to EUR -673.3 million were

recorded as at the balance sheet date due to exchange rate movements of

foreign currencies relative to the euro. Compared to the cumulative foreign

currency gains of EUR 667.5 million in the previous year, this constitutes a

decline of EUR 1,340.8 million in the foreign currency gains and losses

recognised in OCI. This decrease in the currency translation reserve from

the translation of the shareholders’ equity of foreign subsidiaries resulted

principally from the devaluation of the euro against almost all relevant

currencies, especially the US dollar.

The balance of unrealised gains and losses on investments stood at

EUR -1,494.5 million, an increase of EUR 502.9 million compared to the

beginning of the year under review, and can be attributed largely to the

realisation of unrealised losses on fixed-income securities in the financial

Hannover Re

Investor Relations

Annual Report 2025

year. The fair value of our technical provisions and liabilities retreated by

EUR 136.0 million to EUR 1,576.0 million due to interest rate effects.

Non-controlling interests in shareholders’ equity increased by

EUR 107.9 million to EUR 1,001.7 million as at 31 December 2025. The bulk

of this is attributable to the non-controlling interests in E+S

Rückversicherung AG.

The Group net income for 2025 attributable to the shareholders of

Hannover Rück SE amounted to EUR 2,641.5 million

(EUR 2,328.7 million). The non-controlling interest in the profit generated in

the year under review totalled EUR 126.0 million (EUR 68.1 million).

In its capital management Hannover Re is guided by the requirements and

expectations of the rating agencies with an eye to its targeted rating.

Furthermore, while making appropriate allowance for business policy

considerations and factors that influence market presence, the allocation of

capital to the Group’s operational companies is based upon the economic

risk content of the business group in question. The Group companies are

also subject to national capital and solvency requirements. Adherence to

these capital requirements is continuously monitored by the responsible

organisational units on the basis of the latest actual figures as well as the

corresponding planned and forecast figures. From the Group perspective

we manage Hannover Re’s solvency largely through the use of our internal

capital model (see the “Opportunity and risk report“).

Financing and Group debt

In addition to the financing effect of the changes in shareholders’ equity

described above, debt financing on the capital market is a significant

component of Hannover Re’s financing. It is essentially composed of bonds

issued to ensure lasting protection of our capital base – in part also in

observance of rating requirements. The total volume of notes payable stood

at EUR 3,484.5 million (EUR 3,980.8 million) as at the balance sheet date.

Our bonds supplement our equity resources with the aim of reducing the

cost of capital and also help to ensure liquidity at all times. As at the balance

sheet date altogether six (previous year: six) bonds had been placed on the

European capital market through Hannover Rück SE.

The following table presents an overview of the amortised cost of the issued

bonds.

Amortised cost of our bonds



in EUR million	Issue date	Coupon	2024	2025
Hannover Rück SE, subordinated debt, EUR 500 million; 2014/undated	15.9.2014	3.375%	499.6	—
Hannover Rück SE, senior bond, EUR 750 million; 2018/2028	18.4.2018	1.125%	747.7	748.5
Hannover Rück SE, subordinated bond, EUR 750 million; 2019/2039	9.10.2019	1.125%	745.1	746.2
Hannover Rück SE, subordinated bond, EUR 500 million; 2020/2040	8.7.2020	1.750%	497.0	497.5
Hannover Rück SE, subordinated bond, EUR 750 million; 2021/2042	22.3.2021	1.375%	745.2	745.8
Hannover Rück SE, subordinated bond, EUR 750 million; 2022/2043	14.11.2022	5.875%	746.3	746.6
Total			3,980.8	3,484.5

Several Group companies have also taken up long-term debt – principally in

the form of mortgage loans – amounting to EUR 565.7 million

(EUR 581.5 million).

For further explanatory information please see our remarks in the notes to

this report, section 6.7 “Financing liabilities” and section

6.8 “Shareholders’ equity and treasury shares”. Various financial

institutions have provided us with letters of credit for the collateralisation of

technical liabilities. We report in detail on existing contingent liabilities in the

notes, section 9.7 “Contingent liabilities and commitments”.

Analysis of the consolidated cash flow

statement

Liquidity

We generate liquidity from our operational reinsurance business, investing

activities and financing measures. Through regular liquidity planning and by

managing the fungibility of our investments, we ensure that Hannover Re is

able to make the necessary payments at all times. Hannover Re’s cash flow

is shown in the consolidated cash flow statement.

Hannover Re does not conduct any automated internal cash pooling within

the Group. Liquidity surpluses are managed and created by the Group

companies. Various loan relationships exist within the Hannover Re Group

for the optimal structuring and flexible management of the short- or long-

term allocation of liquidity and capital.

Consolidated cash flow statement



in EUR million	2024	2025
Cash and cash equivalents at the beginning of the period	1,054.8	1,253.1
Cash flow from operating activities	5,681.9	5,686.9
Cash flow from investing activities	-4,412.1	-4,030.2
Cash flow from financing activities	-1,105.0	-1,746.3
Exchange rate differences on cash	33.5	-112.0
Change in cash and cash equivalents	198.3	-201.7
Cash and cash equivalents at the end of the period	1,253.1	1,051.5

Cash flow from operating activities

The cash flow from operating activities, which also includes inflows from

interest received and dividend receipts, amounted to EUR 5,686.9 million in

the year under review compared to EUR 5,681.9 million in the previous

year.

Cash flow from investing activities

The balance of cash inflows and outflows from operating activities and

financing activities in an amount of EUR -4,030.2 million

(EUR -4,412.1 million) was invested in accordance with the company’s

investment policy, giving particular consideration to the matching of

currencies and maturities on the liabilities side of the technical account.

Regarding the development of the investment portfolio, please see also our

remarks at the beginning of this subsection.

Cash flow from financing activities

The cash inflow from financing activities amounted on balance to

EUR -1,746.3 million (EUR -1,105.0 million) in the year under review. This

item includes the dividends paid out in the financial year by Hannover Rück

SE, E+S Rückversicherung AG and other Group companies to parties

outside the Group totalling EUR 1,121.5 million (EUR 913.1 million). The

balance from the issuance and repayment of long-term debt, which is also

Hannover Re

Investor Relations

Annual Report 2025

included in the cash flow from financing activities, amounted to

EUR -600.8 million (EUR -196.3 million).

Overall, the cash and cash equivalents therefore decreased year-on-year by

EUR -201.7 million to EUR 1,051.5 million.

For further information on our liquidity management please see the

opportunity and risk report.

Information pursuant to § 315 and

§ 315a Sentence 1 German

Commercial Code (HGB)

The common shares (share capital) of Hannover Rück SE amount to

EUR 120,597,134.00. They are divided into 120,597,134 registered no-par

shares. In this connection reference is made to the required disclosures

pursuant to § 160 Para. 1 No. 2 Stock Corporation Act (AktG) in the notes to

the consolidated financial statement. The Executive Board of the company

is not aware of any restrictions relating to voting rights or the transfer of

shares, including cases where these may arise out of agreements between

shareholders.

The following companies hold direct or indirect capital participations that

exceed 10% of the voting rights: Talanx AG, Hannover, directly holds

50.2% (rounded) of the company’s voting rights. This participation is

indirectly allocable to HDI Haftpflichtverband der Deutschen Industrie

Versicherungsverein auf Gegenseitigkeit, Hannover, which holds the

majority stake in Talanx AG.

There are no shares with special rights granting their holders powers of

control, nor is there any specially structured voting rights control for

employees who have capital participations and do not directly exercise their

rights of control.

The appointment and recall of members of the Executive Board are

determined by §§ 84 et seq. Stock Corporation Act (AktG). Amendment of

the Statute is governed by §§ 179 et seq. Stock Corporation Act (AktG) in

conjunction with § 18 (2) of the Statute of Hannover Rück SE.

The powers of the Executive Board with respect to the issue and

repurchase of shares are defined in the Statute of Hannover Rück SE (§ 6

“Contingent capital” and § 7 “Authorised capital”) as well as in §§ 71 et seq.

Stock Corporation Act (AktG). In this connection the Annual General

Meeting authorised the Executive Board on 7 May 2025 pursuant to

§ 71 Para. 1 Number 8 Stock Corporation Act (AktG) to acquire treasury

shares on certain conditions for a period of five years, ending on

6 May 2030.

We describe below major agreements concluded by the company that are

subject to reservation in the event of a change of control, inter alia following

a takeover bid, as well as the resulting effects. Some letter of credit lines

extended to Hannover Rück SE contain standard market change-of-control

clauses that entitle the banks to early termination of a credit facility if Talanx

AG loses its majority interest or drops below the threshold of a 25%

participation or if a third party acquires the majority interest in Hannover

Rück SE.

In addition, retrocession covers in property & casualty and life & health

business contain standard market change-of-control clauses which in each

case grant the other contracting party a right of termination if a significant

change occurs in the ownership structure and participation ratios of the

affected contracting party.

The company has not concluded any compensation agreements with the

members of the Executive Board or with employees in the event of a

takeover bid being made.

I nformation on

Hannover Rück SE

(Condensed version in accordance with the German Commercial Code

(HGB))

Hannover Re exercises the option to present a combined management

report pursuant to § 315 Para. 5 of the German Commercial Code (HGB) in

conjunction with § 298 Para. 2 of the German Commercial Code (HGB).

Supplementary to the reporting on the Hannover Re Group, we discuss

below the development of Hannover Rück SE.

The annual financial statement of Hannover Rück SE is drawn up in

accordance with German accounting principles (HGB). The balance sheet

and profit and loss account, in particular, are reproduced here in condensed

form.

Hannover Rück SE transacts reinsurance in the business groups of

Property & Casualty and Life & Health reinsurance. Through its global

presence and activities in all lines of reinsurance, the company achieves

extensive risk diversification.

Since 1 January 1997 Hannover Rück SE has written active reinsurance for

the Group – with few exceptions – solely in foreign markets. Responsibility

within the Hannover Re Group for German property and casualty

reinsurance business rests with the subsidiary E+S Rückversicherung AG.

Result of operations

Hannover Rück SE recorded a satisfactory business development in the

2025 financial year. The gross premium in total business contracted

marginally by 0.5% to EUR 29.7 billion (EUR 29.8 billion). The level of

retained premium decreased to 64.0% (65.3%). Net premium earned

slipped slightly by 0.9% to EUR 18.8 billion (EUR 19.0 billion).

The underwriting result before changes in the equalisation reserve came in

at EUR -886.9 million (EUR 44.6 million). An amount of EUR 742.2 million

(EUR 268.6 million) was withdrawn from the equalisation reserve and

similar provisions in the year under review.

Hannover Re

Investor Relations

Annual Report 2025

A considerable number of large losses were again recorded in the 2025

financial year. The total net expenditure on large losses for Hannover Rück

SE amounted to EUR 1,062.1 million (EUR 941.9 million). The combined

ratio deteriorated to 104.9% (99.6%). The underwriting result declined to

EUR -144.7 million (EUR 313.3 million).

Ordinary investment income including deposit interest came to

EUR 2,693.2 million (EUR 2,242.5 million). Ordinary income from fixed-

income securities and bond funds totalled EUR 1,045.9 million (EUR 990.0

million).

Net gains of EUR 498.9 million (EUR 27.5 million) were realised on

disposals. This reflects, on the one hand, the realisation of considerable

unrealised gains from the sale of an intermediate company that held shares

in Viridium Group and of a fixed-income portfolio. On the other hand,

opposing effects derived from the active realisation of unrealised losses on

older fixed-income securities with lower rates of return.

Write-downs of EUR 18.8 million (EUR 33.9 million) were taken on

investments. They were attributable in roughly equal parts to fund units,

fixed-income securities and a participating interest. In the reporting period

we wrote down a small part of our fixed-income securities held as fixed

assets to the lower fair value even if impairment is not expected to be

permanent. This similarly applies to future reporting periods. In the period

under review this accounts for EUR 1.1 million (EUR 1.7 million) of the

aforementioned write-downs.

The write-downs contrasted with write-ups of EUR 1.5 million

(EUR 2.9 million) that were made on assets written down in previous

periods to reflect increased fair values. All in all, the net investment result

increased to EUR 3,047.6 million (EUR 2,075.1 million). It was thus higher

than anticipated, driven primarily by significantly increased earnings from

fixed-income securities and high realised gains, in respect of which the

underlying transactions could not yet be considered in the forecasts for the

reporting period.

The profit on ordinary activities improved by 31.7% to EUR 2,226.9 million

(EUR 1,691.2 million). The year under review closed as forecast with a profit

for the year that amounted to EUR 1,896.3 million (EUR 1,120.2 million).

Condensed profit and loss account of Hannover Rück SE



in EUR thousand	2024	2025
Earned premiums, net of retrocession	18,950,178	18,780,448
Allocated investment return transferred from the non-technical account, net of retrocession	188,535	186,230
Other technical income, net of retrocession	127	286
Claims incurred, net of retrocession	14,392,380	15,023,421
Changes in other technical provisions, net of retrocession	-209,957	-145,558
Bonuses and rebates, net of retrocession	441	186
Operating expenses, net of retrocession	4,490,042	4,683,716
Other technical charges, net of retrocession	1,381	997
Subtotal	44,639	-886,914
Change in the equalisation reserve and similar provisions	268,621	742,235
Net technical result	313,260	-144,679
Investment income	2,414,248	3,658,182
Investment charges	339,174	610,590
Allocated investment return transferred to the technical account	-191,678	-188,084
Other income	243,040	351,915
Other charges	748,544	839,799
Profit or loss on ordinary activities before tax	1,691,152	2,226,945
Taxes on profit and income and other taxes	570,953	330,611
Profit for the financial year	1,120,199	1,896,334
Profit brought forward from previous year	615,701	649,626
Allocations to other retained earnings	900	960
Disposable profit	1,735,000	2,545,000

Development of the individual lines of

business

The following section describes the development of the various lines of

business. The cooperation and exchange of business between Hannover

Rück SE and E+S Rückversicherung AG has been regulated since the 2014

financial year through a quota share retrocession from Hannover Rück SE

to E+S Rückversicherung AG in property and casualty reinsurance.

Hannover Rück SE: Breakdown of gross premium by individual lines of business



in EUR million	2021	2022	2023	2024	2025
Fire	4,015	5,602	5,788	6,481	6,377
Casualty	2,992	3,669	3,417	3,329	3,309
Accident	379	861	696	566	445
Motor	3,197	3,989	3,840	4,826	4,936
Aviation	315	280	303	321	336
Marine	544	645	702	581	491
Life	5,679	6,042	5,764	6,108	6,075
Other lines	4,820	6,533	6,812	7,610	7,706
Total	21,941	27,621	27,321	29,822	29,676

Fire

Gross premium income for the fire line decreased by -1.6% to

EUR 6,377.1 million (EUR 6,480.9 million). The net loss ratio amounted to

65.2% (63.3%). The underwriting result closed at EUR 113.8 million

(EUR 187.6 million). An amount of EUR 141.5 million (EUR 189.1 million)

was allocated to the equalisation reserve and similar provisions.

Liability

Gross premium in liability business contracted by -0.6% to

EUR 3,309.1 million (EUR 3,328.5 million). The net loss ratio increased to

111.8% (76.1%). An amount of EUR 551.4 million (EUR 193.0 million) was

withdrawn from the equalisation reserve and similar provisions. The

underwriting result deteriorated to EUR -289.0 million (EUR 57.5 million).

Accident

Gross premium income for the accident line retreated to EUR 444.8 million

(EUR 565.6 million). The net loss ratio stood at 56.0% (46.9%). The

underwriting result came in at EUR 9.5 million (EUR 26.7 million). An

amount of EUR 30.7 million (EUR 75.8 million) was allocated to the

equalisation reserve and similar provisions.

Motor

Gross premium for the motor line increased by 2.3% to EUR 4,936.4 million

(EUR 4,825.9 million). The loss ratio increased to 88.7% (82.4%). The

underwriting result came in at EUR -131.3 million (EUR -90.9 million). An

amount of EUR 349.5 million (EUR 192.5 million) was withdrawn from the

equalisation reserve and similar provisions.

Hannover Re

Investor Relations

Annual Report 2025

Aviation

Gross premium income rose by 4.8% to EUR 336.1 million

(EUR 320.8 million). The loss ratio climbed to 233.8% (190.9%), driven in

part by increased provision made for the group of losses associated with the

war in Ukraine. The underwriting result amounted to EUR -401.1 million

(EUR -142.1 million). An amount of EUR 16.2 million (withdrawal: EUR

104.2 million) was allocated to the equalisation reserve and similar

provisions.

Marine

The gross premium volume for the marine line declined by -15.5% to

EUR 491.1 million (EUR 581.4 million). The net loss ratio improved to

32.0% (53.8%). An amount of EUR 21.9 million ( EUR 127.6 million) was

withdrawn from the equalisation reserve and similar provisions. The

underwriting result decreased to EUR 144.2 million (EUR 179.6 million).

Life

The gross premium in the life line decreased slightly by -0.5% to

EUR 6,075.2 million (EUR 6,108.4 million). Life and health reinsurance

business has a clear international focus. We write our business on all

continents, thereby achieving a good diversification of risks. In many

instances we are directly available as a local point of contact thanks to our

extensive network. In addition to traditional mortality business, we write

financial solutions business as well as health and longevity risks on a

worldwide basis in life and health reinsurance. The underwriting result in the

life line amounted to altogether EUR 173.6 million (EUR 93.4 million).

Other lines

The lines of health insurance, credit and surety, other indemnity insurance

and other property insurance are reported together under other lines. Other

property insurance consists of the extended coverage, comprehensive

householder’s (contents), comprehensive homeowner’s (buildings),

burglary and robbery, water damage, plate glass, engineering, loss of

profits, hail, livestock and windstorm lines. Other indemnity insurance

encompasses legal protection, fidelity as well as other pure financial losses

and property damage.

Gross premium income in the other lines grew by 1.3% to

EUR 7,706.1 million (EUR 7,610.0 million). The net loss ratio decreased to

68.3% (72.2%). The underwriting result closed at EUR 235.6 million

(EUR 1.4 million), A withdrawal of EUR 7.8 million (allocation of

EUR 83.7 million) was made from the equalisation reserve and similar

provisions.

Assets and financial position

Condensed balance sheet of Hannover Rück SE



in EUR thousand	2024	2025
Assets
Intangible assets	104	208
Investments	59,147	59,356
Receivables	6,760	7,318
Other assets	609	672
Prepayments and accrued income	377	398
Total assets	66,998	67,951
Liabilities
Subscribed capital	121	121
Capital reserve	881	881
Retained earnings	631	631
Disposable profit	1,735	2,545
Capital and reserves	3,367	4,177
Subordinated liabilities	3,250	2,750
Technical provisions	49,384	51,372
Provisions for other risks and charges	927	737
Deposits received from retrocessionaires	4,911	4,478
Other liabilities	5,160	4,438
Total liabilities	66,998	67,951

Our portfolio of assets under own management decreased modestly to

EUR 47.1 billion (EUR 48.1 billion). The net balance of unrealised losses on

fixed-income securities and bond funds amounted to EUR 427.3 million

(EUR 968.9 million). This primarily reflects the active realisation of

unrealised losses from our portfolio of older fixed-income securities with

lower yields and the sale of shares in an equity investment.

Deposits with ceding companies, which are shown under the investments,

increased to EUR 12.3 billion (EUR 11.1 billion). This was attributable in part

to the transfer of life and health reinsurance business from E+S Rück to

Hannover Rück SE.

Our capital and reserves – excluding the disposable profit – were

unchanged at EUR 1,631.7 million (EUR 1,631.7 million). The total capital,

reserves and technical provisions – comprised of the capital and reserves

excluding disposable profit, the subordinated liabilities as well as the net

technical provisions, including the equalisation reserve and similar

provisions – amounted to EUR 55.8 billion (EUR 54.3 billion). The balance

sheet total of Hannover Rück SE grew to EUR 68.0 billion

(EUR 67.0 billion).

An ordinary dividend of EUR 7.00 per share plus a special dividend of

EUR 2.00 per share was paid out in the year under review for the 2024

financial year. This was equivalent to EUR 1,085.4 million

(EUR 868.3 million). It will be proposed to the Annual General Meeting on

6 May 2026 that a dividend of EUR 12.50 per share should be paid for the

2025 financial year. This corresponds to a total distribution of

EUR 1,507.5 million. The dividend proposal does not form part of this

consolidated financial statement.

Risks and opportunities

The business development of Hannover Rück SE is essentially subject to

the same risks and opportunities as that of the Hannover Re Group. As a

general principle, Hannover Rück SE shares in the risks of participating

interests and subsidiaries according to the amount of its respective holding;

these risks are described in the risk report. The relations with participating

interests of Hannover Rück SE may give rise to losses from legal or

contractual contingent liabilities (particularly novation clauses and

guarantees). Please see our explanatory remarks in the notes to this report.

Other information

We received an adequate consideration for all transactions with affiliated

companies according to the circumstances of which we were aware at the

time when the transactions were effected. We incurred no disadvantages as

defined by § 311 Stock Corporation Act (AktG).

Hannover Rück SE maintains branches in Australia, Bahrain, Canada,

China, France, Hong Kong, India, Ireland, Malaysia, South Korea, Sweden

and the United Kingdom.

Hannover Re

Investor Relations

Annual Report 2025

Outlook for Hannover Rück SE

In view of the interrelations between Hannover Rück SE and the Group

companies and the former’s large share of business within the Group, we

refer to the subsection “Forecast” with respect to expectations for

developments affecting the macroeconomic environment, capital markets

and the insurance industry as well as developments on reinsurance

markets. We thus anticipate gross premium slightly below the level of the

previous year for Hannover Rück SE and a significantly improved

underwriting result before changes in the equalisation reserve and similar

provisions. with the investment result expected to come in lower. Against

this backdrop, the profit reported for the 2026 financial year under the

German Commercial Code (HGB) will be somewhat below the level of the

previous year.

Outlook

Forecast

– Group net income of at least EUR 2.7 billion expected

– Property and casualty reinsurance: Reinsurance revenue

(gross) in traditional business to show growth in the mid-

single-digit percentage range adjusted for exchange rate

effects

– Property and casualty reinsurance: Combined ratio below

87%

– Life and health reinsurance: Reinsurance service result of

around EUR 925 million expected

– Return on investment target of around 3.5%

Economic developments

Global economy

For 2026, the Organisation for Economic Co-operation and Development

(OECD) anticipates a moderate slowdown in global economic growth to

2.9% (2025: 3.2%), followed by a modest recovery to 3.1% in 2027.

Inflation will likely gradually reach the target set by the respective national

central bank in most major economies by the middle of 2027.

The OECD believes that these projections are subject to considerable risks

that may exacerbate one another. Should trade barriers increase still further

or change abruptly – for example, due to higher tariffs on more products or

stricter export controls for critical goods such as rare earths –, this would

put the brakes on growth, increase political uncertainty and appreciably

disrupt global supply chains. Along with weaker growth, lower returns on

investments in artificial intelligence or surprisingly high inflation could

trigger a broad-based reassessment of risks. This would be especially

critical given high asset prices and the considerable expectations placed on

corporate earnings. Additional turmoil could ensue if highly leveraged non-

bank financial intermediaries (NBFIs) were compelled to quickly sell off

assets.

According to the OECD, the high volatility of crypto assets and growing

interconnections between NBFIs and the traditional financial system further

elevate the risks to financial stability. In the absence of progress towards

reducing fiscal vulnerabilities, yields on long-term government bonds could

rise. This would lead to a deterioration in general financial conditions, add to

government debt burdens and weigh on growth prospects.

On the positive side, the elimination of trade barriers could support growth

and alleviate inflationary pressures. Not only that, companies may prove to

be more resilient than expected and respond flexibly even in challenging

circumstances, which would limit the negative effects on growth. In

addition, new technologies may deliver productivity gains more quickly and

broadly than anticipated, thereby further bolstering prospects for global

growth. The OECD urges political decision makers to tackle underlying

vulnerabilities, move forward with structural reforms and optimise public

finances in order to strengthen growth prospects and living standards on a

sustainable basis.

Growth in gross domestic product (GDP)



in %	2025 (provisional calculation)	2026 (forecast)	2027 (forecast)
USA	2.0	1.7	1.9
Europe
Eurozone	1.3	1.2	1.4
Germany	0.3	1.0	1.5
France	0.8	1.0	1.0
UK	1.4	1.2	1.3
Asia
China	5.0	4.4	4.3
Japan	1.3	0.9	0.9
Australia	1.8	2.3	2.3
World	3.2	2.9	3.1

Source: OECD Economic Outlook, Volume 2025, Issue 2

Capital markets

In 2026, current and looming geopolitical circumstances and their impacts

on global energy, commodity and food supplies as well as the availability of

advanced technology will likely continue to have a significant influence on

capital markets. It will be especially important to evaluate the extent to

Hannover Re

Investor Relations

Annual Report 2025

which current geopolitical tensions could continue to come up against

extremely resilient capital markets. It may still be the case that tendencies

towards deglobalisation and the formation of blocs – with associated

slowing effects – will be more than offset by the many applications of

artificial intelligence, a field that strongly promotes the investment climate,

or momentum may slow somewhat. Inflation will probably remain an

observable but less relevant influencing factor for capital markets in 2026,

since lower levels than in previous years are widely expected. Particularly

where potentially stubborn core inflation is concerned, however, the policy

pursued by central banks will be pivotal for the economy and capital

markets, and they will again have to navigate the difficult balancing act of

keeping inflation in check while at the same time allowing sufficient stimuli

for economic growth. For 2026, we see positive effects here through the

higher weighting of the latter.

Along with the progressive march of digitalisation, the ongoing development

and implementation of artificial intelligence and increased defence

spending, the necessary efforts to bring greater efficiency to the supply of

energy and raw materials and the reduction of dependencies in the field of

high tech will likely have positive effects on the economy. New markets and

synergies will also emerge through the forging of new economic and

security alliances. The various economic areas will tend to show rather

mixed developments. We consider the United States to have something of

an edge over the eurozone, because the former will benefit from

consumption by affluent consumer groups, investments in artificial

intelligence and a sizeable budget deficit. We similarly anticipate modest

growth for the eurozone, driven by an uptick in private consumption and

investment, especially against the backdrop of fiscal stimulus packages.

The sometimes ambivalent political landscapes in major economies and

frictions in connection with structural change processes may, however,

have a restraining effect. China’s growth will continue to be slowed by the

real estate crisis and soft domestic demand. Monetary policy measures and

investments in high tech will nevertheless ensure robust, albeit slower,

growth.

Overall, a somewhat lower interest rate level for short-term investments and

increased volatility affecting equity and credit markets as well as long-term

interest rates are to be anticipated. Markets for alternative and real asset

classes should continue to stabilise. If medium- and long-term rates come

down significantly over the course of the year, however, it is more likely that

renewed upward pressure on valuations can be expected in these asset

classes.

As a consequence of the unusual capital market constellations seen in

recent years and prevailing geopolitical tensions, market players find

themselves no longer able to take their lead consistently from

fundamentals, with capital markets increasingly affected by non-traditional

– otherwise known as idiosyncratic – influencing factors as well.

Insurance industry

The major rating agencies are split on the outlook for the reinsurance

industry. Fitch Ratings, for example, revised its outlook for the global

reinsurance sector from “neutral” to “deteriorating”. This reflects the

expectation that operating conditions will take a turn for the worse, although

they are likely to remain favourable overall for reinsurers around the world.

Abundant capacities and the resulting increase in competition will probably

lead to a gradual price decline in most reinsurance segments and easing

underwriting terms in property business, Fitch noted in its “Global

Reinsurance Outlook 2026” published in September. Weaker pricing

conditions since the peak of 2024 and rising claims costs, especially due to

more frequent and severe catastrophe losses, are expected to put

underwriting margins under pressure. Rating agency Moody's also

downgraded its outlook in September, from positive to stable, citing falling

prices on account of a shift in the balance between supply and demand in

favour of reinsurance purchasers.

S&P Global Ratings, on the other hand, maintained its “stable” outlook for

the sector. S&P Global Ratings points to the industry’s healthy

capitalisation, solid underwriting margins, strong investment returns and

continued favourable earnings prospects that exceed the sector’s cost of

capital. AM Best revised its outlook for the global reinsurance segment from

“positive” to “stable” in January 2026. The reasons cited by AM Best

include growing pressure on pricing in property insurance. Strong growth in

the area of insurance-linked securities, which attract additional capital, will

further ratchet up the pressure on prices in property catastrophe business.

At the same time, markets remain highly disciplined. Overall, solid operating

results are expected for 2026, while the supply of reinsurance will likely

reach a record high.

Property and casualty reinsurance

Overview

The treaty renewals in property and casualty reinsurance as at 1 January

2026 passed off successfully for Hannover Re, supporting the high quality

of our portfolio. Thanks to our disciplined underwriting, Hannover Re’s

robust financial strength and our long-standing client relationships, we were

able to generate further profitable growth despite appreciably more intense

competition and higher retentions carried by individual clients. This

performance is additionally bolstered by our lean cost structure, thereby

cementing our strategic positioning in the market. At the same time, we

experienced a moderate decline in prices for most products and in most

regions, while conditions remained essentially stable. However, price

reductions in natural catastrophe business and in some specialty lines were

significantly larger than in the previous year. Reinsurance prices

nevertheless remain on an adequate level in relation to the risks.

Hannover Re increased the premium income in traditional property and

casualty reinsurance by 3.3% on an underwriting-year basis. With the

quality of the renewed business remaining good, an average inflation- and

risk-adjusted price decline of 3.2% was recorded.

Treaties with a premium volume of EUR 10,196 million were up for renewal

on 1 January 2026. This corresponded to 61% of the business in traditional

property and casualty reinsurance (excluding facultative reinsurance,

structured reinsurance and ILS business). A premium volume of

EUR 827 million was cancelled.

Hannover Re renewed treaties with a premium volume of

EUR 9,369 million. Together with EUR 1,165 million from new and

restructured treaties and from changes in prices and treaty shares, the

renewed premium volume grew to EUR 10,535 million.

Expectations for the development of individual markets and lines in property

and casualty reinsurance are described in greater detail below.

Regional markets

In North America, Hannover Re expects to see softer rates in property

insurance in 2026, although margins will still be adequate. Insurers and

reinsurers alike anticipate further modest price increases and

improvements in conditions for liability business. We expect stable

reinsurance revenue and an adequate price level for the region as a whole.

In Latin America, we anticipate sufficient capacity in the market and hence

slight pressure on prices and corresponding adjustments to conditions in

primary business and reinsurance alike.

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Annual Report 2025

In European markets, we achieved prices and conditions that were still

broadly commensurate with the risks in the treaty renewals as at 1 January

2026. Below-average natural catastrophe expenditure and a substantially

increased supply of reinsurance capacity nevertheless led to rate erosion,

while treaty conditions remained broadly unchanged. Thanks to our long-

standing, partnership-based client relationships, we were able to selectively

grow our diversified portfolio still further, even though individual cedants

raised their retentions.

Property and casualty lines in Germany delivered a particularly pleasing

performance in 2025 due to the unusually favourable claims situation,

producing technical results in the German primary market that were

exceptionally positive. Claims expenditure can be expected to normalise in

2026. Premium growth in motor insurance is again projected to reach the

mid-single digits, thereby offsetting the trend towards higher claims

payments. All in all, healthy earnings can be expected for the German

insurance industry in property and casualty lines, although they will likely fall

short of 2025 levels.

We see potential for moderate, but sustained growth in the Middle East and

retakaful market. Demand for retakaful reinsurance solutions continues to

grow, bolstered by regulatory reforms and a slight increase in insurance

penetration in these markets. We are looking to further strengthen our

market position in these geographies, combined with a cautiously positive

profit outlook.

The exceptionally low loss expenditure of recent years has led to an

appreciable decline in rates in South Africa. After the vigorous growth of

2024 and 2025, we now expect our portfolio to stabilise. The upgrade of

South Africa’s sovereign rating is a positive indicator that economic

conditions there may improve in the future.

Most markets in the Asia-Pacific region should see broadly stable or

slightly looser conditions and continued fierce competition. Elevated

demand for catastrophe covers is evident in markets impacted by major

natural disasters such as floods, cyclones or earthquakes. Against this

backdrop, our strategic focus remains on profitable and selective growth

with our clients.

In China, we observed a marked decline in the volume of business ceded

and in margins. Thanks to our long-standing client relationships, however,

we were able to secure our role as a reliable partner in the market and

maintain our market share. By offering our clients innovative solutions, we

intend to further expand our position in this diversified market going

forward.

In India, we are pressing ahead with our proven strategy and focusing on

profitable growth by expanding and building partnerships. In a highly

competitive environment, we benefit from our long-standing client

relationships.

In Australia and New Zealand, the competitive pressure on prices looks set

to continue in 2026, especially in the industrial segment, with impacts also

extending to the local reinsurance renewals. Nevertheless, all market

players are clearly committed to preserving a sustainable market

environment. This is particularly important to cushion volatility in markets

prone to natural disasters.

Worldwide markets

Demand for structured reinsurance remains on a stable level, albeit with

increasingly intense competition. Thanks to close cooperation between

different underwriting teams and years of marketing efforts, we were

nevertheless able to initiate new treaty relationships. All in all, though, the

premium volume is expected to contract on the back of reduced cessions

under individual large contracts.

In business with insurance-linked securities (ILS), we anticipate rising

demand over the long term as investors seek greater diversification of their

investments. We respond to this need by offering individually tailored

solutions for the transfer of property and life reinsurance risks to the capital

market.

Specialty lines

Price competition in facultative reinsurance has intensified against the

backdrop of increased reinsurance capacity. Despite this, we expect to

successfully renew our business on the basis of risk-adequate prices and

write profitable new treaties by concentrating on established regions and

lines with an above-average profit contribution.

The comparatively low loss ratios to date in the credit, surety and political

risks lines will increase moderately due to worsening economic conditions

around the world, with prices in the primary and reinsurance market

essentially remaining stable.

The various rounds of treaty renewals in aviation and marine business

during 2026 are expected to bring declining prices and largely unchanged

conditions. This can be attributed to surplus capacities in the market as well

as the high price level that had been achieved in recent years.

Where agricultural risks are concerned, we anticipate consolidation of our

portfolio in 2026 on the back of rising demand for agricultural covers. Due to

low loss expenditures in 2025, we are seeing an increase in reinsurance

capacities in some markets. Prices and conditions are therefore expected

to soften slightly but remain on an adequate level.

Life and health reinsurance

Business is expected to develop favourably in 2026. In a competitive

landscape we continue to see strong demand worldwide for our products

and tailored solutions. Along with our focus on traditional life and health

reinsurance, we are keen to work with our local partners around the world to

expand our business and leverage new opportunities, especially in the

areas of financial solutions and longevity.

The United States will remain a major market for financial solutions

business, and we are optimistic that we can build on the achievements of

past years by expanding new structures. As far as longevity covers are

concerned, the dialogue with local partners remains key to successfully

writing this business internationally. Here, too, we are nevertheless well

positioned with our decentralised approach and superlative expertise.

Innovative solutions and data analytics remain central preoccupations for

our clients. We share our know-how in seminars and presentations to

ensure that we continue to be considered a partner of choice in the future,

as we have in the past. In this way, we actively support our clients and

provide expert advice in these fields.

Investments

Given the challenging geopolitical and economic landscape, we shall

continue to invest major parts of our asset holdings conservatively, while

keeping a close eye on the markets and leveraging attractive opportunities

to somewhat increase the overall risk profile of our investments. Most

notably in this respect, we are contemplating expanding our exposure to the

credit sector and alternative investments. Similarly, we may use market

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Investor Relations

Annual Report 2025

corrections to moderately grow our portfolio of listed equities. We continue

to place great emphasis on broad diversification, assisted by further

expansion of our investments addressing the environmental, social and

governance (ESG) topic areas. Going forward, as in the past, we shall focus

in particular on attractive risk/return profiles. By maintaining the most

neutral possible modified duration relative to the expected maturities of the

liabilities, we ensure that the interest rate risk remains tightly managed.

The operating cash flow generated by the expected favourable

development of business should be reflected in an enlarged asset portfolio

and hence have a positive effect on investment income. Despite the

declines in US interest rates observed in the reporting period, we shall

benefit from higher medium and long-term euro rates for new investments

and reinvesting activities in 2026. The fact that we sold a sizeable volume of

older securities with lower yields during the period under review and

reinvested at the higher interest rates seen in the reporting period will also

have positive effects.

Turning to inflation, we expect momentum on the measured indices to be

slower than in prior years, leading to a lower return from the amortisation of

our inflation-linked bonds.

Due to application of the accounting standard IFRS 9, it remains our

expectation that the investment result will show increased market-driven

volatility and somewhat reduced predictability. This is because the fair value

changes of a significantly larger part of the investments are required to be

recognised directly in profit or loss.

Outlook for the 2026 financial year

In a landscape still overshadowed by geopolitical uncertainties, demand for

reliable reinsurance protection remains undiminished on a high level.

Hannover Re therefore anticipates Group net income of at least

EUR 2.7 billion for the 2026 financial year. This represents an increase of

12.5% compared to the original earnings expectation for 2025.

Adjusted for exchange rate effects, traditional business (excluding

structured reinsurance) in property and casualty reinsurance is projected to

deliver growth in reinsurance revenue (gross) in the mid-single-digit

percentage range. Hannover Re also anticipates a combined ratio below

87%.

Hannover Re expects a reinsurance service result of around

EUR 925 million in life and health reinsurance.

In view of the expected positive cash flow that we generate from the

technical account and the investments themselves, and assuming roughly

stable exchange rates and interest rate levels, our portfolio of investments

should remain roughly stable. The return on investment should reach

around 3.5%.

In response to the growth in the book of property and casualty reinsurance

and the rising loss expectancy from natural catastrophes, Hannover Re has

raised its net large loss budget for 2026 to EUR 2.3 billion (EUR 2.1 billion).

Achievement of the earnings guidance for 2026 is based on the premise

that large loss expenditure does not significantly exceed this budgeted level

and assumes that there are no unforeseen distortions on capital markets.

Financial ambition over the

strategy cycle 2024–2026

In the current strategy cycle 2024–2026 Hannover Re has set itself the

following financial ambitions: we want to achieve a return on equity of more

than 14% annually on average and growth of more than 5% in the operating

result (EBIT). The contractual service margin (net) is planned to grow by

more than 2% per year on average across the cycle. Furthermore, a capital

adequacy ratio under Solvency II of more than 200% is targeted for the

Hannover Re Group.

The increasing profits expected over the strategy cycle will support further

dividend growth. In October 2025, the Executive Board approved a

realignment of the dividend policy that takes effect from the 2025 financial

year. The payout ratio for the regular dividend will be around 55% of IFRS

Group net income. Furthermore, the goal is to distribute a dividend per

share at least on the level of the previous year and to increase it over the

long term. Going forward, it is envisaged that an additional special dividend

will only be paid in exceptional circumstances.

Opportunity and risk

report

Risk report

– Hannover Re's capital resources over the course of the year

are in excess of the defined threshold. The capital position is

reviewed on an ongoing basis.

– Our risk management system constantly monitors newly

added and changing risks and is able to respond flexibly to

changes in internal and external factors.

Risk Governance

Strategic framework conditions

The Group strategy entitled “Staying Focused. Thinking Ahead.” for the

2024–2026 strategy cycle is based on the foundations of sustainability and

internal governance and rests on the three pillars of focussing, growing and

accelerating.

We derive our Risk Management Strategy from the Group strategy. It is the

central element for our handling of risks. We review the Risk Management

Strategy, the risk register and the centralised limit and threshold system as

components of our risk and capital management policy at least once a year.

This ensures that our risk management system is up to date.

Our solvency ratio should be at least 180%; 200% is already considered to

be a threshold, which would result in countermeasures if the solvency ratio

is not met. Adherence to the regulatory requirement of a solvency ratio of at

least 100% is therefore also ensured. Solvency capital requirements are

monitored using our internal capital model. The Executive Board is

informed quarterly about adherence to the key thresholds as part of our

regular risk reporting as well as on an additional basis in the case of major

events or changes. In addition to the above mentioned threshold of 200%,

the necessary equity resources are also influenced by the expectations of

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rating agencies and customers. Limits and threshold values for risk

mitigation are defined across multiple organizational levels.

Policies for risk-limiting limits and thresholds across multiple levels

Risk management through multiple levels of limits.png

Organisation and processes of risk management

Hannover Re has Group-wide risk management functions to safeguard an

efficient and effective risk management system. The individual elements of

the risk management functions are closely interlinked and the roles, tasks

and reporting channels are clearly defined and documented in terms of the

so-called three lines of defence model. The first line of defence consists of

the risk steering and the original risk responsibility at divisional and

company level within the business groups of property and casualty

reinsurance and life and health reinsurance. The second line of defence is

made up of the core functions risk management, the actuarial function and

the compliance function. These functions are responsible for process-

integrated monitoring and control. The third line of defence is the process-

independent monitoring performed by the internal audit function. The

following chart provides an overview of the central functions and bodies

within the overall system as well as of their major tasks and powers.

Central functions of risk monitoring and steering

Group-wide risk communication and an open risk culture are central

components to our risk management.Risk management requirements are

formulated in guidelines that are discussed with the relevant functions and

published throughout the organisation.

Key elements of our risk management system

Our Risk and Capital Management Policy, including our Risk Management

Strategy and our system of limits and thresholds for material risks of the

Hannover Re Group, describe the central elements of our risk management

system. This is subject to a constant cycle of planning, execution,

verification, and improvement. Systematic risk identification, risk analysis,

risk assessment, risk steering, risk monitoring as well as risk reporting are

especially crucial to the effectiveness of the overall system.

The policy is derived from the corporate strategy as well as the strategic

principles of the Risk Management Strategy and takes into account

international standards and developments in addition to the regulatory

requirements for risk management.

Risk-bearing capacity concept

The establishment of the risk-bearing capacity involves determining the

total available risk coverage potential and calculating the funds required to

cover all risks. This is done in conformity with the parameters of the Risk

Management Strategy and the risk appetite defined by the Executive Board.

Individual risks and the risk position as a whole are measured using our

internal capital model. A system of limits and thresholds is in place to

monitor material risks. Adherence is verified on an ongoing basis.

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Risk identification

The regular risk identification takes place on the basis of the documentation

of all identified risks in the central risk register, which contains all material

risks. Risks are identified through, among other things, interviews and

scenario analyses as well as in the evaluation of new products and large

transactions. External insights from associations and working groups are

incorporated into the process.

Risk analysis and assessment

In principle, every risk that is identified and considered material is

quantitatively assessed. Types of risks as strategic risks, reputation risks or

emerging risks for which quantitative risk measurement is currently

impossible or only possible with difficulty are primarily assessed

qualitatively, e.g. through expert evaluations. The quantitative assessment

of risks and the overall risk position is performed using Hannover Re’s

internal capital model. The model makes allowance for risk concentration

and diversification.

Risk steering

The steering of all risks is the task of the operational business units on the

divisional and company level. The identified and analysed risks are thereby

either consciously accepted, avoided, increased or minimised. The risk /

reward ratio is factored into the division’s decision. Risk steering is assisted

by the standards specified in the central and decentralised underwriting and

investment guidelines, including the defined limits and thresholds.

Risk monitoring

Risk monitoring is a core function of risk management. It includes the

monitoring of all identified material risks, among others, in relation to

adherence to the limits and thresholds as well as monitoring execution and

effectiveness of risk steering measures. Also the execution of the Risk

Management Strategy is monitored.

Risk communication and risk culture

Risk management is firmly integrated into our operational processes. It is

assisted by transparent risk communication and dealing openly with risks

as part of our risk culture. Risk communication takes place, for example,

through internal risk reports, in the context of committee and project work,

through information on current risk complexes in the intranet and by way of

training activities for staff.

Risk reporting

Our internal and external risk reporting provides systematic and timely

information about all material risks and their potential implications. The

central risk reporting system consists primarily of regular risk reports.

Complementary to the regular risk reporting, immediate internal reporting

on material risks that emerge at short notice takes place as necessary.

Process-integrated / -independent monitoring and quality

assurance

The Executive Board is responsible for the orderly organisation of the

company’s business. This also encompasses monitoring of the internal risk

steering and control system. In addition, the risk management system is

regularly audited by the internal audit function. The risk management

system is rounded off with process-integrated procedures and rules, such

as those of the internal control system.

Internal control system

The internal control system (ICS) is an integral part of the risk management

system and compiles the entirety of controls within the organisation.

Particularly important controls are labelled as key controls and listed in

policies. The ICS safeguards:

– the adherence to laws and regulations and contractual agreements as

well as internal stipulations,

– the accuracy of relevant records and

– the operation within defined risk tolerance.

The core elements of Hannover Re’s ICS are summarised in a policy that

sets out the framework at Group level and establishes the common

understanding of (key) controls and their execution, roles and

responsibilities for the stipulation of controls as well as standards for control

documentation, testing and reporting. The system includes structured

organisational measures, such as the principle of dual control, separation of

functions and documentation, and technical measures, such as plausibility

checks and access privileges in the IT systems.The proper functioning of

the ICS necessitates the involvement of management, policy-, process- and

control owners and employees on all levels.

In particular, financial reporting must satisfy international and national

financial reporting standards as well as regulatory requirements.

Completeness and accuracy of the annual and consolidated financial

statements (incl. Hannover Rück SE) are to be ensured. This is

safeguarded by identifying and minimising the risk of errors in the annual

and consolidated financial statements at an early stage, with differentiated

criteria, control points and materiality thresholds. These include:

– Accounting manual: All relevant accounting principles are collated in a

Group Accounting Manual that sets out uniform Group-wide rules for the

recognition, measurement and reporting of items in the consolidated

financial statement. The process for updating and, if necessary,

adjusting these rules is clearly regulated with respect to information

channels, responsibilities and period of validity as well as prompt Group-

wide notification of significant developments and modified requirements

in Group financial reporting.

– Process documentation: The processes for the organisation and

implementation of consolidation tasks and for the preparation of the

consolidated financial statement as well as the accompanying controls

are consistently documented.

– IT solution: We use a central IT solution with standardised accounting

and consolidation processes, posting rules and interfaces for data

delivery in order to draw up the consolidated financial statement. Data

for the preparation of the consolidated financial statement is delivered

using a networked IT application. The relevant data for Group financial

reporting is collected in a database and processed via automatic

interfaces in a consolidation system. Given that our Group financial

reporting is heavily dependent on IT systems, these systems also need

to be subject to controls. Content-based and system-side checks have

therefore been implemented for system access. Access rights for the

reporting systems are assigned through an approval process.

– Data checks: As part of the financial reporting process, we perform

preventive and detective checks on the reported figures in order to

minimise the probability and reduce the impacts of a potentially incorrect

disclosure. Depending upon the results of our checks, these figures can

be corrected if necessary.

– Affirmation: The management and Chief Financial Officers of the Group

companies defined as material in our control system affirm to the

Executive Board of Hannover Rück SE at each closing date the

completeness, correctness and reliability of the financial data that they

pass on to Group Accounting.

In order to safeguard and continuously improve the adequacy of the control

system it is subject to regular review and evaluation. In this regard, the

internal audit function ensures that the quality of the control system is

constantly monitored.

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Risk landscape of Hannover Re

In the context of its business operations the Hannover Re Group is

confronted with a broad variety of risks. These risks are deliberately

accepted, steered, and monitored as appropriate to the actions taken on the

associated opportunities. The parameters and decisions of the Executive

Board with respect to the risk appetite of the Hannover Re Group, which are

based on the calculations of risk-bearing capacity, are fundamental to the

acceptance of risks. In this context, crucial importance attaches to our risk

management in order to ensure that, among other considerations, risks to

the reinsurance portfolio remain calculable and even exceptional major

losses do not have an unduly adverse impact on the result.

The risk landscape of Hannover Re encompasses:

– underwriting risks in property and casualty and life and health

reinsurance which originate from our business activities and manifest

themselves inter alia in fluctuations in loss estimates as well as in

unexpected catastrophes and changes in biometric factors such as

mortality,

– market risks which arise in connection with our investments, and also as

a consequence of the valuation of sometimes long-term payment

obligations associated with the technical account,

– counterparty default risks resulting from our diverse business

relationships and payment obligations inter alia with clients,

retrocessionaires and banks,

– operational risks which may derive, for example, from deficient

processes or systems, and

– sustainability risks, reputation risks, liquidity risks, strategic risks, and

emerging risks.

Currently, our most significant individual risks are the default and spread

risks within the market risks, the reserving and catastrophe risks within the

underwriting risks of property and casualty reinsurance and the mortality

(incl. catastrophe) and morbidity & disability risks within the underwriting

risks of life and health reinsurance.

Risk landscape of Hannover Re

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Annual Report 2025

Geopolitics as a major external factor

influencing risk management

Global geopolitical tensions intensified further in the financial year 2025 and

were therefore of particular importance for our risk management.

Over the course of 2025, the United States of America has undergone a

noticeable shift in its political and economic orientation. This change is

particularly evident in trade policy, which is increasingly being employed as

a strategic instrument of leverage. By imposing tariffs or threatening to do

so, the U.S. administration seeks to secure bilateral concessions. In some

cases, the affected countries have responded with retaliatory measures,

resulting in a marked escalation of existing trade disputes and a heightened

level of uncertainty across global supply chains.

Against the backdrop of Russia’s ongoing war of aggression against

Ukraine, the US government exerted significant pressure on Kyiv to accept

a peace proposal that would involve territorial concessions to Russia.

These developments have also contributed to a deterioration in

transatlantic relations, intensifying debates within Europe regarding the

need for greater autonomous defence efforts. Disagreements over

approaches to the war in Ukraine, as well as over the scale of European

defence and financing contributions, are further exacerbating political

tensions. Taken together, these trends point to a phase of elevated

uncertainty in which the transatlantic partnership is being politically and

economically recalibrated.

The geopolitical environment in the Middle East continues to be

characterised by substantial instability. The fragile ceasefire in the Gaza

Strip, alongside parallel conflicts in Iran, Syria, the Israeli‑Lebanese border

region and Yemen, increases the risk of disruptions to key energy and trade

routes, particularly along the Suez Corridor and the Bab al‑Mandab Strait.

Recurrent security‑related incidents have an immediate impact on transport

costs in international goods trade. At the same time, divergent interests

among the various actors involved complicate efforts to establish stable

and predictable framework conditions.

In South and East Asia, differing interpretations of land and maritime

boundaries are increasingly fuelling geopolitical tensions with considerable

escalation potential. The political status of Taiwan represents a central focal

point in this context. At the same time, Taiwan remains a key pillar of the

global economy, particularly in the semiconductor industry. Developments

linked to China’s territorial claims also carry the risk of further escalation,

potentially involving military means, which would have significant adverse

effects on international supply chains.

The persistently elevated level of geopolitical uncertainty therefore

necessitates the continuous monitoring of regional developments. For the

Hannover Re Group, these geopolitical dynamics translate, among other

things, into increased uncertainty regarding financial market developments

and the stability of supply chains, potentially giving rise to renewed

inflationary risks.

Generally spoken, risks from armed conflicts are excluded in reinsurance

treaties but may be covered under special arrangements such as for marine

risks. Political risk and political violence covers, among others, are available

for other risks from violent conflicts and their consequences.

Risk Capital

In the interests of our shareholders and clients, we strive to ensure that our

risks remain commensurate with our capital resources.

Our quantitative risk management provides a uniform framework for the

evaluation and steering of the risks affecting the company as well as of our

capital position. The internal capital model—a stochastic enterprise model

—is a central tool in this context. It covers all subsidiaries and business

groups of the Hannover Re Group. The core variable in risk and enterprise

management is the economic equity, which is calculated according to

market-consistent valuation principles and also constitutes the basis for

calculating the own funds under Solvency II. Hannover Re’s internal capital

model reflects the risks that influence the development of the economic

equity. These are split into underwriting risks, market risks, counterparty

default risks and operational risks. For each of these risk categories we

have identified a number of risk factors for which we define probability

distributions. Risk factors include, for example, economic indicators such

as interest rates, exchange rates and inflation indices, but also insurance-

specific indicators such as the mortality of a particular age group within our

portfolio of insureds in a particular country or the number of natural

catastrophes in a certain region and the insured loss amount per

catastrophe. The specification of the probability distributions for the risk

factors draws upon historical and publicly available data, exclusive industry

data and the internal data resources of the Hannover Re Group. This

process is further supplemented by the know-how of internal and external

experts. The fit of the probability distributions is regularly checked by our

specialist departments, although more importantly it is also verified in the

context of the regular, company-wide use of the capital model when

assessing risks and allocating the cost of capital. The Hannover Re Group

calculates the required risk capital as the Value at Risk (VaR) of the

economic change in value over a period of one year with a confidence level

of 99.5%. This corresponds to the requirements of Solvency II. For its

capitalisation under Solvency II Hannover Re has set a limit of 180% and a

threshold of 200% for the capital adequacy ratio (Solvency ratio). Both, limit

and threshold are exceeded.

Own funds and solvency capital requirements ¹



in EUR million	31.12.2024	31.12.2025
Available economic capital	21,667.8	21,369.4
Eligible own funds (Solvency II)	21,031.8	20,672.6
Solvency capital requirement/required risk capital at the confidence level 99.5%	8,051.0	8,061.2
Excess capital (Solvency II)	12,980.8	12,611.4
Solvency ratio (Solvency II)	261.2%	256.4%

¹ The figures are based on the Solvency II reporting as at 31 December 2025. The Solvency II balance sheet

related audit procedures have still to be completed by the independent auditor. The remaining figures

have not been audited. The solvency capital requirements take into account model changes that are

currently in the regulatory approval process as at the reporting date.

The eligible own funds of the Hannover Re Group for regulatory purposes

are lower than the available economic capital because non-controlling

interests are in part treated as non-eligible under Solvency II. The available

economic capital, the eligible own funds and the required risk capital include

the volatility adjustment, i.e. the add-on to the risk-free yield curve

envisaged in the Solvency II supervisory regime.

The own funds under Solvency II differ from shareholders’ equity primarily

with regard to the treatment of the contractual service margin.

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Annual Report 2025

Reconciliation (economic capital/shareholders' equity) ¹



in EUR million	31.12.2024	31.12.2025
Shareholders’ equity including minorities	12,688.3	13,930.5
Contractual Service Margin	8,162.4	7,907.7
Other differences	-1,157.6	-1,497.9
Economic equity	19,693.1	20,340.3
Hybrid capital	3,095.3	2,580.6
Foreseeable dividends	-1,120.6	-1,551.5
Available economic capital	21,667.8	21,369.4

¹ The figures are based on the Solvency II reporting as at 31 December 2025. The Solvency II balance sheet

related audit procedures have still to be completed by the independent auditor. The remaining figures

have not been audited

Apart from the Hannover Re Group, the legal entity Hannover Rück SE is

also subject to regulatory capital requirements. The solvency ratio of

Hannover Rück SE is typically higher than the solvency ratio of the

Hannover Re Group because there are no restrictions with regard to the use

of own funds attributable to non-controlling interests.

We strive for a rating from the rating agencies most relevant to our industry

that facilitates and secures our access to all reinsurance business

worldwide. Hannover Re is analysed by the rating agencies Standard &

Poor’s (S & P) and A.M. Best as part of an interactive rating process. The

current financial strength is assessed as “AA-” (Very Strong, stable outlook)

by Standard & Poor’s and “A+” (Superior, stable outlook) by A.M. Best. In

this context both Standard & Poor’s and A.M. Best consider Hannover Re’s

risk management to be a very important aspect in the evaluation of financial

strength and rate it as “very good”.

Against the backdrop of the planned growth of our business in property and

casualty reinsurance and selected areas of life and health reinsurance, we

continuously track the impacts on our capitalisation and rating. In order to

safeguard an adequate level of capitalisation and our rating, we initiate

measures promptly based on forecasts. Possible measures include, among

others, adjusting the structure and scope of our retrocessions, adjusting the

amount of debt capital and managing business growth through risk

budgets.

When it comes to aggregating the individual risks, we make allowance for

dependencies between risk factors. Dependencies arise, for example, as a

consequence of market shocks, such as the financial crisis, which

simultaneously impact multiple market segments. What is more, several

observation periods may be interrelated on account of market phenomena

such as price cycles. Generally, however, it is our assumption that not all

extreme events occur at the same time. The absence of complete

dependency is referred to as diversification. Hannover Re’s business model

is based inter alia on building up the most balanced possible portfolio so as

to achieve the greatest possible diversification effects and in order to deploy

capital efficiently. Diversification exists between individual reinsurance

treaties, lines, business segments and risks. We define the cost of capital to

be generated per business unit according to the capital required by our

business segments and lines and based on their contribution to

diversification.

Required risk capital ¹ at the confidence level of 99.5%



in EUR million	31.12.2024	31.12.2025
Underwriting risk property and casualty reinsurance	6,919.9	7,110.3
Underwriting risk life and health reinsurance	2,618.0	2,525.2
Market risk	6,082.6	5,882.7
Counterparty default risk	404.6	453.0
Operational risk	711.1	723.6
Diversification	-5,656.5	-5,702.9
Tax effects	-3,028.7	-2,930.7
Required risk capital of the Hannover Re Group	8,051.0	8,061.2

¹ This information has not been audited by the independent auditor. The solvency capital requirements take

into account model changes that are currently in the regulatory approval process as at the reporting date.

The risk capital at the confidence level of 99.5% reflects the loss from the

respective risk that will not be exceeded with a probability of 99.5%. The

risk capital required for specific risks is shown before tax in each case.

Underwriting risks in property and

casualty reinsurance

Risk management in property and casualty reinsurance has defined various

overall guidelines for efficient risk steering. These include, among other

things, the use of retrocessions to reduce volatility and conserve capital.

Furthermore, it is important to utilize the available risk budgets based on the

risk management parameters of the Hannover Re Group and to steer the

acceptance of risks systematically through the existing central and local

underwriting guidelines. Our conservative reserving level is a key factor in

our risk management, too.

For risk steering purposes we make a fundamental distinction between risks

that result from business operations of past years (reserve risk) and those

stemming from activities in the current or future years (price / premium risk).

Particularly in the latter case, special importance attaches to the

catastrophe risk.

Diversification within the Property & Casualty reinsurance business group is

actively managed through allocation of the cost of capital according to the

contribution made to diversification. A high diversification effect arises out

of the underwriting of business in different lines and different regions with

different business partners. In addition, the active limitation of individual

risks—such as natural catastrophes—enhances the diversification effect.

The risk capital with a confidence level of 99.5% for underwriting risks in

property and casualty reinsurance breaks down as follows:

Required risk capital ¹ for underwriting risks in property and casualty

reinsurance



in EUR million	31.12.2024	31.12.2025
Premium risk (including catastrophe risk)	5,090.5	5,076.0
Reserve risk	4,101.2	4,432.7
Diversification	-2,271.8	-2,398.4
Underwriting risk property and casualty	6,919.9	7,110.3

¹ Required risk capital with a confidence level of 99.5%; information not audited by the independent auditor.

The solvency capital requirements take into account model changes that are currently in the regulatory

approval process as at the reporting date.

A large share of the required risk capital for the premium risk (including

catastrophe risk) is attributable to risks from natural disasters. They

constitute the main concentration risk in property and casualty reinsurance.

The following table shows the required risk capital for five of our largest

natural hazards scenarios. The natural catastrophe risk was increased over

the course of the year. However, the effect was partially mitigated by the

USD’s depreciation relative to the EUR.

Required risk capital ¹ for five large natural hazards scenarios



in EUR million	2024	2025
Hurricane US	3,162	3,132
Earthquake US West Coast	2,256	2,366
Winter storm Europe	1,798	2,014
Earthquake Japan	1,284	1,206
Earthquake Chile	1,772	2,071

¹ Required risk capital with a confidence level of 99.5% on an aggregate annual loss basis; information not

audited by the independent auditor.

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Investor Relations

Annual Report 2025

The reserve risk, i.e. the risk of under-reserving of incurred or foreseeable

losses and the resulting burden on the underwriting result, is a high priority

in our risk management. We attach importance to maintaining a

conservative reserving level. In order to counter the risk of under-reserving

we calculate our loss reserves based on our own actuarial estimations and

establish, where necessary, additional reserves supplementary to those

posted by our cedants for reported claims. Liability claims have a major

influence on the latter reserve. Reserves are calculated on a differentiated

basis according to line of business and regions.

In calculating the reserves, we use actuarial methods based on run-off

triangles. Run-off triangles show the changes in the reserve over time due to

paid claims and the recalculation of the reserves to be established as at the

respective balance sheet date. Their adequacy is monitored by the actuarial

departments.

Our own actuarial calculations regarding the adequacy of the reserves are

also subject to annual quality assurance reviews in the form of an external

analysis.

The price / premium risk lies in the possibility of a random claims realisation

that diverges from the claims expectancy on which the premium calculation

was based. Regular and independent reviews of the models used for treaty

quotation as well as central and local underwriting guidelines are vital

management components. We have put in place a quotation process to

ensure the quality of our portfolios that considers the claims expectancy

including anticipated rate of inflation, anticipated costs and cost of capital

(volatility).

In addition, Hannover Re’s treaty departments prepare regular reports on

the progress of their respective renewals. They report on, among other

things, significant changes in conditions, risks (e.g. in relation to the

premium level) and also on emerging market opportunities as well as the

strategy pursued in order to accomplish targets. The development of the

combined ratio in property and casualty reinsurance in 2024 and prior years

is shown in the table below:

Development of the combined ratio



in %		Combined ratio
2016 ¹		93.7
2017 ¹		99.8
2018 ¹		96.5
2019 ¹		98.2
2020 ¹		101.6
2021 ¹		97.7
2022 ² ³		94.5
2023 ³		94.0
2024 ³		86.6
2025 ³		84.0

¹ Persuant to IFRS 4

² Restated perstuant to IAS 8

³ Reinsurance service result / reinsurance revenue (net)

For the purpose of assessing our material catastrophe risks from natural

hazards (especially earthquake, windstorm and flood) we use licensed

scientific simulation models, supplemented by the experience of our own

specialist departments. The monitoring of the risks resulting from natural

hazards is rounded out by scenario analyses. Major scenarios and stress

tests are shown in the following table:

Stress tests for natural catastrophes after retrocessions (estimated effect on

forecast net income)



Aggregate annual loss in EUR million	2024	2025
Hurricane US
100-year loss	-1,854	-1,860
250-year loss	-2,510	-2,607
Earthquake US West Coast
100-year loss	-1,030	-1,094
250-year loss	-1,900	-2,085
Winter storm Europe
100-year loss	-988	-1,164
250-year loss	-1,467	-1,647
Earthquake Japan
100-year loss	-620	-637
250-year loss	-1,053	-1,019
Earthquake Chile
100-year loss	-587	-669
250-year loss	-1,522	-1,827

As part of this process for steering risks connected with natural

catastrophes, the Executive Board defines the risk appetite and the limit for

natural perils once a year on the basis of the Risk Management Strategy.

Risk management considers numerous scenarios and extreme scenarios,

determines their effect on portfolio and performance data, evaluates them in

relation to the planned figures and identifies alternative courses of action.

For the purposes of risk limitation, maximum amounts are also stipulated

for various extreme loss scenarios and return periods; the limits set take

into account the profitability of the respective business. Risk management

ensures adherence to these maximum amounts. The Executive Board, the

Risk Committee and the P & C Executive Committee are kept regularly

updated on the degree of capacity utilisation.

Net expenditure on major losses in the year under review amounted to

EUR 1,725.1 million (EUR 1,629.2 million); the major loss budget for 2025

totalled EUR 2,100 million. Our company incurred the following catastrophe

and other large losses in the 2025 financial year:

Hannover Re

Investor Relations

Annual Report 2025

Large losses ¹ in 2025



in EUR million	Date	Gross	Net
California Wildfires	7–31 January 2025	1,342.9	595.4
Hurricane Melissa / Jamaica	28–31 October 2025	331.8	328.5
11 Property losses		284.9	281.6
Earthquake Myanmar	28 March 2025	118.7	118.1
Hailstorms / Australia	23–25 November 2025	130.0	102.3
3 Aviation losses		119.1	89.9
Tornadoes, Hail / USA	14–20 May 2025	56.4	43.8
Hailstorms / Australia	26 October– 2 November 2025	39.1	37.1
2 Marine losses		27.2	19.1
Typhoon Ragasa / Philippines	17–25 September 2025	17.3	17.3
Flood Southern Thailand	19–23 November 2025	15.0	15.0
Storm Amy / Europe	1–6 October 2025	14.7	14.0
Storms, Tornadoes / USA	14–19 March 2025	12.6	11.0
Storm / Australia	31 October– 2 November 2025	10.9	10.9
Severe Weather / USA	28 March –7 April 2025	10.5	10.4
Storm Éowyn / Europe	21–25 January 2025	10.4	10.4
1 Credit loss		10.2	10.2
1 Political risk loss		11.9	10.0
Total		2,563.4	1,725.1

¹ Natural catastrophes and other large losses in excess of EUR 10 million gross

Current developments, in particular the following highlighted risks, are

monitored by risk management and accompanied by appropriate risk

prevention measures.

Climate change

During the reporting year, California wildfires, Hurricane Melissa in the

Caribbean, a hailstorm in Queensland, Australia, and several tornado and

hail events across the United States resulted in substantial losses.

To assess such events, we draw on a combination of internal and external

models that incorporate current climate trends and are continuously

refined.

Beyond short‑term natural hazard assessments, the Life & Health

reinsurance segment is increasingly focusing on climate‑related health

impacts, including the spread of infectious diseases and rising

psychological stress following natural catastrophes.

To analyse climate‑driven developments, we currently examine two

potential temperature‑rise pathways through 2050. The insights gained

feed into key decision‑making processes such as annual reporting and

strategic portfolio management.

In addition, the global transition toward a low‑carbon economy is expected

to bring considerable economic shifts and potentially reshape business

models — with implications for investment decisions and the stability of

asset portfolios. Particular attention is given to identifying the conditions

under which assets may experience significant long‑term value

deterioration.

We expect climate change to have a material impact on all risk categories

over the long term (> 50 years). In the near term, particularly within the next

five years, we anticipate notable effects in the natural catastrophe segment

of Property & Casualty reinsurance. Annual renewals, pricing adjustments,

and the ongoing calibration of the large‑loss budget enable us to respond

swiftly to price / premium and reserve risks.

Despite these challenges, climate‑related developments also generate

opportunities. These include innovative reinsurance solutions designed to

address rising natural catastrophe losses, as well as products tailored to the

effects of extreme temperatures in the Life & Health reinsurance space.

Inflation

Inflation worldwide potentially affects multiple factors of our business

activities, such as the insured values and their premium calculation, the loss

reserves, the large loss budget, the investments, and the administrative

expenses. We have developed measures to deal with inflation in all these

respects.

We monitor inflation drivers over the entire course of the business and

reduce them by, among other things, taking them into account in the

premium calculation, by means of index clauses and sliding-scale

commissions.

In our reserving process, the consideration of inflation is initially based on

average inflation rates in the past. The claims inflation index specific to

Hannover Re is a blend of various line of business- and region-specific

indices for each currency. If there are indications of a future rise in inflation,

the need of applying loadings is reviewed. This is especially important in

long-tail lines as multiple underwriting years can be affected at the same

time.

Hannover Re holds inflation-linked bonds to partially hedge the loss

reserves against inflation risks.

Underwriting risks in life and health

reinsurance

All risks directly connected with the life or health of an insured person are

referred to as biometric risks. They include in particular the miscalculation

of mortality, life expectancy, morbidity and occupational disability.

Biometric risks are the material risks for our company in the area of life and

health reinsurance. Our goal is to strike a balance between biometric risks.

Furthermore, we are exposed to lapse risks because the cash flows

resulting from our reinsurance treaties are in part dependent on lapse rates

among policyholders. Counterparty default risks are also material since we

partly prefinance our cedants’ new business acquisition costs.

Furthermore, we are exposed to catastrophe risks, especially events

involving a high number of fatalities in our insured portfolio such as those

recorded in connection with the Covid-19 pandemic.

The reserves are determined on the basis of secure biometric actuarial

bases in light of the information provided by our clients. The biometric

actuarial bases used and the lapse assumptions are continuously reviewed

with an eye to their adequacy and if necessary adjusted. This is done using

the company’s own empirical data as well as market-specific insights. Our

current risk profile in life and health reinsurance is dominated by mortality

risks (incl. catastrophe risks). Morbidity risks are also playing a central role.

These result from a variety of products including Critical Illness and

disability business. Longevity risks originate from treaties under which we

pay survival benefits. The volume of our annuity portfolio contributes to

diversification within life and health reinsurance. We calculate the

diversification effect between mortality and longevity risks prudently

because the contracts are normally taken out for different regions, age

groups and individuals. The required risk capital with a confidence level of

99.5% for underwriting risks in life and health reinsurance breaks down as

follows:

Hannover Re

Investor Relations

Annual Report 2025

Required risk capital ¹ for underwriting risks in life and health reinsurance



in EUR million	31.12.2024	31.12.2025
Mortality risk ²	1,778.4	1,701.1
Longevity risk	1,582.4	1,296.3
Morbidity and disability risk	1,563.6	1,524.6
Lapse risk	400.1	396.3
Expense risk	169.5	235.0
Diversification	-2,876.0	-2,628.1
Underwriting risk life and health	2,618.0	2,525.2

¹ Required risk capital with a confidence level of 99.5%; information not audited by the independent auditor

² Mortality risk incl. catastrophe risk

The monitoring of the risk exposure is complemented by regular stress tests

and sensitivities performed with regard to selected underwriting risk

factors.

Sensitivities of the underwriting risks (impact on the available economic capital)



in %	2024	2025
Mortality +5% (excluding annuity business)	-6 to -4	-6 to -4
Morbidity +5%	-4 to -2	-4 to -2
Mortality -5% (annuity business only)	-3 to -1	-3 to -1
Lapse rate +10%	-2 to 0	-1 to 0
Costs +10%	-1 to 0	-1 to 0

Diversification is a central management tool for our company. We seek to

spread risks as far as possible across different risk classes and different

regions. In our pricing of reinsurance treaties we provide incentives to

further increase diversification.

Through our quality assurance measures we ensure that the reserves

established by ceding companies in accordance with local accounting

principles satisfy all requirements with respect to the calculation methods

used and assumptions made (e. g. use of mortality and morbidity tables,

assumptions regarding the lapse rate). In addition, the assumptions are

continuously reviewed on the basis of empirical data and modified if

necessary. New business is written in all regions in compliance with

underwriting guidelines applicable worldwide, which set out detailed rules

governing the type, quality, level and origin of risks and how these

considerations are factored into the pricing. These global guidelines are

revised annually and approved by the Executive Board. Special

underwriting guidelines give due consideration to the particular features of

individual markets. By monitoring compliance with these underwriting

guidelines we minimise the potential implications of an inability to pay or of

deterioration in the financial status of cedants. Regular reviews and holistic

analyses (e. g. with an eye to lapse risks) are carried out with respect to new

business activities and the assumption of international portfolios. Large

transactions are also examined by our risk management department.

Individual actuarial reports and documentation ensure that regular scrutiny

also takes place at the subsidiary level. The interest rate risk, which in the

primary sector is important in life business owing to the guarantees that are

given, is of only minimal relevance to our company thanks to the design of

our reinsurance treaties. We have confidence in the entrepreneurial abilities

of our underwriters and grant them the most extensive possible powers. In

our decentralised organisation we manage risks where they arise using a

consistent Group-wide approach in order to obtain an overall view of the

risks in life and health reinsurance. Our global underwriting guidelines

provide underwriters with an appropriate framework for this purpose.

We regularly monitor the development of our global mortality and morbidity

businesses in the aftermath of the Covid-19 pandemic.

In some market segments, we observe that mental illnesses are playing an

increasingly significant role in the occurrence of claims, particularly in the

context of disability covers. We take past claims experience into account

when setting future assumptions and continue to monitor developments, as

potential impacts on other types of coverage (such as life insurance due to

an increased number of suicides) are conceivable.

The risks arising out of life and health reinsurance are reflected in the

internal capital model.

Market risks

Faced with a challenging capital market climate, particularly high

importance attaches to preserving the value of assets under own

management and the stability of the return. Hannover Re’s portfolio is

therefore guided by the principles of a balanced risk / return profile and

broad diversification. Based on a risk-averse asset mix, the investments

reflect both the currencies and durations of our liabilities. Market price risks

include equity risks, interest rate risks, foreign exchange risks, real estate

risks, infrastructure risks, spread and default risks. Our portfolio currently

consists in large part of fixed-income securities, and hence default and

spread risks account for the bulk of the market risk. We minimise interest

rate and foreign exchange risks through the greatest possible matching of

payments from fixed-income securities with the projected future payment

obligations from our insurance contracts. Market risks derive from the

investments managed by Hannover Re itself and from investment risks of

ceding companies that we assume in connection with insurance contracts.

The following table shows the risk capital with a confidence level of 99.5%

for the market risks from investments under own and third-party

management.

Required risk capital ¹ for market risks



in EUR million	31.12.2024	31.12.2025
Default and spread risk	3,573.5	3,321.6
Interest rate risk	1,346.3	1,008.7
Foreign exchange risk	2,494.1	2,345.8
Equity risk ²	2,062.7	2,166.3
Real estate risk	1,083.7	1,135.3
Diversification	-4,477.7	-4,095.0
Market risk	6,082.6	5,882.7

¹ Required risk capital with a confidence level of 99.5%; information not audited by the independent auditor.

The solvency capital requirements take into account model changes that are currently in the regulatory

approval process as at the reporting date.

² Including private equity

The short-term loss probability measured as the Value at Risk (VaR) is a

vital tool used for operational monitoring and management of the market

price risks associated with our securities positions. It is calculated on the

basis of historical data, e. g. the volatility of the securities positions under

own management and the correlation between these risks. As part of these

calculations the decline in the fair value of our securities portfolio is

simulated with a certain probability and within a certain period. The VaR of

the Hannover Re Group determined in accordance with these principles

Hannover Re

Investor Relations

Annual Report 2025

specifies the decrease in the fair value of our securities portfolio under own

management that with a probability of 95% will not be exceeded within ten

trading days. A standard market model is used to calculate the VaR

indicators for the Hannover Re Group. It is based on historical time series of

relevant market parameters (equity prices, yield curves, spread curves and

exchange rates). Against the backdrop of a very turbulent capital market

and interest rate environment, volatilities – especially of fixed-income

assets – again reached a high level at times in the year under review. Based

on continued broad risk diversification and the orientation of our investment

portfolio, our VaR was nevertheless clearly below the VaR upper limit

defined in our investment guidelines. It amounted to 0.6% (0.8%) as at the

end of the reporting period.

Value at Risk ¹ in % for the investment portfolio of the Hannover Re Group

¹ VaR-upperlimit according to Hannover Re’s investment guidelines: 2.5%

Stress tests are conducted in order to be able to map extreme scenarios as

well as normal market scenarios for the purpose of calculating the Value at

Risk. In this context, the loss potentials for fair values and shareholders’

equity (before tax) are simulated on the basis of already occurred or

notional extreme events.

Scenarios for changes in the fair value of material asset classes



in EUR million	Scenario	Portfolio change on a fair value basis	Change in equity before tax
Equity securities and private equity	Share prices -10%	-268.9	-268.9
Equity securities and private equity	Share prices -20%	-537.8	-537.8
	Share prices +10%	+268.9	+268.9
	Share prices +20%	+537.8	+537.8
Fixed-income securities	Yield increase +50 basis points	-1,183.1	-1,183.1
	Yield increase +100 basis points	-2,312.6	-2,312.6
	Yield decrease -50 basis points	+1,241.0	+1,241.0
	Yield decrease -100 basis points	+2,544.9	+2,544.9
Real estate	Real estate market values -10%	-444.2	-210.0
	Real estate market values +10%	+444.2	+139.4

In addition to the various stress tests, which estimate the loss potential

under extreme market conditions, other key risk management measures

include sensitivity and duration analyses and our asset liability

management (ALM). The internal capital model provides us with the

quantitative underpinning of the capital investment strategy as well as

various VaR calculations. Tactical duration bands are also installed, within

which the portfolio is opportunistically positioned in line with market

expectations. The specifications for these bands and our calculated risk-

bearing capacity are interlinked. It should be noted that the subordinated

bonds issued and the resulting interest rate risk are also actively taken into

account in ALM. Please refer to our comments in the section 6. “Notes on

the individual items of the balance sheet”, subsection

6.1 “Investments” in the notes to the consolidated financial statements.

Share price risks result from the possibility of unfavourable changes in the

value of equities, equity derivatives and equity index derivatives in our

portfolio. Although we took advantage of the price slump on the equity

markets in response to the threat of a trade war - particularly between the

USA and China - at the beginning of the second quarter to make a limited re-

entry into equities and equity funds, the relevance of equity risks for our

investments remains very low, as the proportion of equities in our total

investment portfolio is well below 1%. We continue to be exposed to the

market for private equity. Here, changes in market value are based less on

general market conditions and more on company-specific assessments.

The risks are therefore primarily in the business model and profitability and,

to a lesser extent, in the interest component of the cash flow

forecasts.Please refer to our comments in the section 6. “Notes on the

individual items of the balance sheet”, subsection 6.1 “Investments” in

the notes to the consolidated financial statements.

The portfolio of fixed-income securities is exposed to an interest rate risk.

Declining market yields lead to increases and rising market yields to

decreases in the fair value of the fixed-income securities portfolio. The

credit spread risk should also be mentioned. The credit spread refers to the

interest rate differential between a risk-entailing bond and risk-free bond

with the same maturity. Changes in these risk premiums, which are

observable on the market, result—analogously to changes in pure market

yields—in changes in the fair values of the corresponding securities. We

minimise interest rate risks by matching the durations of payments from

fixed-income securities as closely as possible with the projected future

payment obligations under our insurance contracts.

Currency risks exist in particular when there is a currency imbalance

between the technical liabilities and the assets. We reduce this risk on the

basis of the Group's individual balance sheets by largely matching the

currency distribution between assets and liabilities on the Solvency II

balance sheet. The quantification of currency risk is therefore not included

in the short-term VaR. We regularly compare the liabilities and the

associated capital per currency with the assets covering them and optimise

currency coverage by reallocating investments. Remaining currency

surpluses are systematically quantified and monitored as part of solvency

and economic modelling. A detailed presentation of the currency

breakdown of our investments can be found in section 6 “Notes on the

individual items of the balance sheet”, subsection 6.1 “Investments” of

the notes to the consolidated financial statements.

Property and infrastructure risks arise from the possibility of negative

changes in the value of properties and infrastructure assets held directly or

via fund units. They can be caused by a deterioration in specific property

characteristics or a general decline in market value. The significance of

property and infrastructure risks has gradually increased for us in recent

years due to our ongoing involvement in this area. We spread these risks

through broadly diversified investments in markets worldwide, each of

which is preceded by detailed property, manager and market analyses. We

monitor developments in the markets relevant to our portfolio very closely.

Hannover Re

Investor Relations

Annual Report 2025

We have taken into account uncertainties regarding the future development

of individual properties in the valuation as at the reporting date.

We use derivative financial instruments only to the extent needed to hedge

risks. The primary purpose of such financial instruments is to hedge against

potentially adverse developments on capital markets. A portion of our cash

flows from the insurance business as well as foreign exchange risks arising

because currency matching cannot be efficiently achieved are hedged to

some extent using forward exchange transactions. Hannover Re holds

further derivative financial instruments to hedge interest rate risks from

loans taken out to finance real estate and to hedge inflation risks from the

life reinsurance business written by our Australian branch. In addition,

Hannover Re holds hedges in the form of equity swaps to hedge price risks

in connection with the virtual stock appreciation rights granted under the

Share Award Plan. These are intended to neutralise changes in the fair

values of the awarded stock appreciation rights. Contracts are concluded

with reliable counterparties and for the most part collateralised on a daily

basis so as to avoid credit risks associated with the use of such

transactions. The remaining exposures are controlled according to the

restrictive parameters set out in our investment guidelines.

As a supplementary instrument for liquidity management, we have been

entering into temporary repurchase agreements (repo transactions) for

several years. The portfolios exchanged are fully collateralised.

Some insurance derivatives linked to insurance business are also

recognised under the investments due to IFRS financial reporting

requirements. For a more detailed presentation of the underlying

underwriting risks we would refer to the subsection “Derivative financial

instruments in connection with reinsurance”, section 9.1 “Derivative

financial instruments and financial guarantees” in the notes to the

consolidated financial statements.

Our investments entail credit risks that arise out of the default risk (interest

and/or capital repayment) or a change in the credit status (rating

downgrade) of issuers of securities. We attach equally vital importance to

exceptionally broad diversification as we do to credit assessment

conducted on the basis of the quality criteria set out in the investment

guidelines. We measure credit risks in the first place using the standard

market credit risk components, especially the probability of default and the

potential amount of loss – making allowance for any collateral and the

ranking of the individual instruments depending on their effect in each case.

We then assess the credit risk first on the level of individual securities

(issues) and in subsequent steps on a combined basis on the issuer level.

In order to limit the risk of counterparty default we set various limits on the

issuer and issue level as well as in the form of dedicated rating quotas. A

comprehensive system of risk reporting ensures timely reporting to the

functions entrusted with risk management.

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Investor Relations

Annual Report 2025

Rating structure of our fixed-income securities ¹



Rating classes	Government bonds		Securities issued by semi-governmental entities ²		Corporate bonds		Covered bonds / asset-backed securities
	in %	in EUR million	in %	in EUR million	in %	in EUR million	in %	in EUR million
AAA	25.4	5,256.3	63.4	7,003.8	0.4	75.0	78.4	3,246.8
AA	52.9	10,926.4	20.9	2,311.8	10.8	2,310.2	5.6	229.9
A	13.5	2,789.9	7.3	806.2	41.0	8,725.0	6.0	246.8
BBB	5.6	1,153.7	1.2	133.2	38.5	8,209.1	8.1	336.2
< BBB	2.6	540.2	7.2	791.2	9.3	1,985.9	1.9	80.1
Total	100.0	20,666.6	100.0	11,046.3	100.0	21,305.3	100.0	4,139.8

¹ Securities held through investment funds are recognised pro rata with their corresponding individual ratings.

² Including government-guaranteed corporate bonds

In general terms, Hannover Re gears its investment portfolio to the

principles of a balanced risk / return ratio coupled with broad diversification.

Accordingly, we counter the risk concentrations that nevertheless arise in

individual asset classes with the broadest possible spread of different

issuers per asset class. This is just as much a key component of our

investment policy as credit rating assessment and management based on

the quality criteria defined in the investment guidelines.

On a fair value basis EUR 8,833.0 million of the corporate bonds held by our

company were issued by entities in the financial sector. Of this amount,

EUR 7,164.8 million was attributable to banks. The vast majority of these

bank bonds (79.4%) are rated “A” or better. Our investment portfolio under

own management does not contain any written or issued credit default

swaps.

Counterparty default risks

The counterparty default risk consists primarily of the risk of complete or

partial unwillingness or inability to pay of counterparties and the associated

default on payment. Counterparty default risks exist with respect to

cedants, retrocessionaires and in connection with short-term deposits at

banks. We address credit risks from fixed-income investments in the

preceding section “Market risks ”.

The following table shows the required risk capital for counterparty defaults

with a confidence level of 99.5%.

Required risk capital ¹ for the counterparty default risk



in EUR million	31.12.2024	31.12.2025
Counterparty default risk	404.6	453.0

¹ Required risk capital with a confidence level of 99.5%; information not audited by the independent auditor

Since the business that we accept is not always fully retained, but instead

portions are retroceded as necessary, the counterparty default risk is also

material for our company in reinsurance transactions. Our retrocession

partners are carefully selected and monitored in light of credit

considerations in order to keep the risk as small as possible. This is also

true of our broker relationships, which entail a risk inter alia through the

potential loss of the premium paid by the cedant to the broker. We minimise

these risks, among other measures, by reviewing broker relationships with

an eye to criteria such as the existence of professional indemnity insurance,

payment performance and proper contract implementation. The Security

Committee decides on measures where necessary to secure receivables

that appear to be at risk of default. This process is supported by a risk

management application, which specifies cession limits for the individual

retrocessionaires participating in protection cover programmes and

determines the capacities still available for short-, medium- and long-term

business. Depending on the type and expected run-off duration of the

reinsured business, the selection of reinsurers takes into account not only

the minimum ratings of the rating agencies Standard & Poor’s, A.M. Best,

Fitch and Moody’s but also internal and external expert assessments.

Overall, retrocessions conserve our capital, stabilise and optimise our

results and enable us to act on market opportunities across a broader front,

e. g. following a major loss event. A close and regular dialogue with our

retrocessionaires gives us a reliable overview of the market and puts us in a

position to respond quickly to capacity changes.

The following table shows how the proportion of assumed risks that we do

not retrocede (i.e. that we run in our retention) has changed year-on-year:

Reinsurance revenue retained



in %	31.12.2024	31.12.2025
Group cumulated	87.3	86.9
Property and casualty cumulated	85.1	86.2
Life and health cumulated	92.7	88.7

Alongside traditional retrocessions in property and casualty reinsurance we

also transfer risks to the capital market. Any counterparty default risks

associated with investors in a capital market transfer are collateralised via

LOCs or a trust account (e.g. using cash) in favour of Hannover Re.

Retrocession gives rise to claims that we hold against our

retrocessionaires. These reinsurance recoverables—i.e. the reinsurance

recoverables on unpaid claims—amounted to EUR 1,897.3 million

(EUR 2,566.1 million) as at the balance sheet date. For the majority of our

retrocessionaires we also function as reinsurer, meaning that in most cases

recoverables can potentially be set off against our own liabilities. In addition

a portion of our recoverables are secured by deposits or letter of credits.

In terms of the Hannover Re Group`s major companies, EUR 790 million of

our accounts receivable from reinsurance business were older than

180 days as at the balance sheet date. In the previous year, the amount was

EUR 651 million.

The following table shows the accounts receivables, broken down by rating

class.

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Annual Report 2025

Accounts receivables as of balance sheet date



in EUR million	31.12.2024	31.12.2025
AAA	—	—
AA	158.9	143.0
A	575.7	393.9
< BBB, NR	74.0	18.8

Counterparty default risks, among other risks, are also relevant to our

investments and in life and health reinsurance because we prefinance

acquisition costs for our ceding companies. Our cedants, retrocessionaires

and broker relationships as well as our investments are therefore carefully

evaluated and limited in light of credit considerations and are constantly

monitored and controlled within the scope of our system of limits and

thresholds.

Lastly, short-term deposits at banks are also at risk of counterparty default.

Operational risks

Operational risk means the risk related to business operations and due to

inadequate processes, human errors, system failures or external events.

Within the overall framework of operational risks, we pay particularly close

attention to business continuity risks, business process and data quality

risks, compliance risks, fraud risks, human resources risks, information

security risks and third-party provision risks.

Management of operational risks

Operational risks are an indivisible part of our business activities. With the

aid of half-yearly Group-wide self-assessments, in which all relevant

corporate operations are actively involved, we determine the maturity level

of our risk management system for operational risks and define action fields

for improvements. In order to calculate the capital requirement in our

internal capital model we perform extensive scenario analyses. In joint

workshops, experts across all disciplines establish assumptions for the loss

frequency and impact, and take the results as a basis for specifying the

parameters for the stochastic model. In addition, internal (near) loss events

are systematically recorded and examined with an eye to possible

measures for improving the control system. The internal data are enhanced

with insights gained from external events, which either become known

through public channels or were reported through a loss data consortium of

which we are a member.

Regular quarterly risk reporting incl. risk indicators to the Risk Committee

and the Executive Board takes place with regard to all operational risks.

Required risk capital ¹ for operational risks



in EUR million	31.12.2024	31.12.2025
Operational risk	711.1	723.6

¹ Required risk capital with a confidence level of 99.5%; information not audited by the independent auditor

Unlike market, counterparty default and underwriting risks, operational risks

are categorised as non-financial risks. We discuss below the subcategories

of operational risks.

Business continuity risks

Business continuity risks arise from natural or man-made hazards that

threaten or disrupt business operations. The risk also includes the

continuity of IT infrastructure and services. Our Business Continuity

Management (BCM) system reduces the risk through preventive resilience

measures that are regularly tested. A special organisational and operational

structure has been set up to respond reactively to a crisis event and to

recover business operation.

Business process and data quality risks

Business process risks are associated with the risk of inadequate or failed

internal processes, which can arise inter alia as a consequence of an

inadequate process organisation. We have defined criteria for managing the

risk that result in a high process quality. Data quality is similarly a very

critical success factor, especially in risk management, because for example

the validity of the internal model is largely based on the data provided. As

part of our central data quality management, we have defined extensive

automatic routines that continuously determine data quality in central

systems.

Compliance risks

We define compliance risks as the risks of violating or failure to observe

provisions of the applicable statutory and regulatory provisions and internal

policies and procedures. Compliance risk includes legal and tax risk.

Responsibilities within the compliance organisation are regulated and

documented throughout the Group. Interfaces to risk management have

been established. Regular compliance training programmes and

awareness-raising measures complement the range of tools.

In conformity with a risk-based approach, a software for sanctions

screening is used on our business partners, the relevant parts of the

Hannover Re Group’s portfolio as well as on loss advices to filter out

individuals that are subject to sanctions. In case of a hit, suitable steps are

taken. Goods and services are checked according to their risk

classification. Countries that pose a high risk due to sanctions evasion

measures are also subject to stricter rules.

We report on our compliance management system as part of our combined

non-financial statement. For further information on compliance-related

topics, including for example lawsuits, contingent liabilities and

commitments, please see section 9. “Other notes”, subsection

9.6 “Lawsuits” and subsection 9.7 “Contingent liabilities and

commitments” in the notes to the consolidated financial statements.

Fraud risks

Fraud risks refer to the risk resulting from intentional violations of laws or

rules by own employees and/or external parties in order to gain an unlawful

financial or other personal advantage for themselves or third parties. This

risk is mitigated by the established internal control system as well as by

audits conducted by Group Audit on a line-independent basis. Should an

instance of fraud occur, established escalation processes are in place to

involve all relevant functions and to conduct a risk-specific analysis (e.g.

forensic investigation) including the determination of appropriate measures.

Human resources risks

Personnel risks arise from an inadequate use or availability of human

resources, as well as from inappropriate behaviour. While labour markets

around the globe remain challenging, there are signs of gradual easing in

certain areas. Hannover Re Group addresses the risk of an existing

shortage of skilled professionals by placing particular emphasis on the

qualifications, experience, and commitment of our employees.

Information security risks

Information security risks arise, inter alia, out of an inadequate protection of

confidentiality, integrity (incl. authenticity) or availability of information,

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Annual Report 2025

which is stored/processed in information technology or handled by human

beings.

With a view to protecting against, among other threats, cyber attacks and

the loss of sensitive information, Hannover Re has implemented an

Information Security Management System (ISMS) that is closely aligned

with international standards as well as regulatory requirements such as

DORA, and harmonised with other management systems. Specific policies

and control standards regulate all technical and organisational measures.

Consideration is given to all types of digital and physical information assets.

The Executive Board bears overall responsibility for information security

and is supported by the Risk Committee. The Information Risk & Security

Committee (IRSC) is a sub-committee of the Risk Committee and is

comprised of the Head of Risk Management, the Chief Information Security

Officer (CISO) and the Head of IT. The IRSC evaluates and monitors the

corresponding information risks and steers any conflicts of interest on a

quarterly basis. The full Executive Board is provided with information at

least annually by way of an information security report and also within the

year if necessary.

The CISO, as the main process owner, is responsible for the planning,

implementation and ongoing development of the ISMS as well as for

coordinating the corresponding tasks with local contacts within the

Hannover Re Group. The CISO cooperates closely with Information Risk

Management (IRM), the central Compliance function and the Data

Protection Officer. Both, the CISO and the other specified functions, form

part of the second line of defence. Furthermore, every single member of

staff is responsible for adhering to the relevant security standards. To this

end, all employees undergo regular training in information security topics as

well as awareness-raising, e.g. through phishing simulations.

Third-party provision risks

Third-party provision risks result from the provisioning of services by third-

parties, whether directly or by sub-provisioning. Mandatory rules and

processes have been put in place to limit this risk. Among other things, a

risk analysis and partner assessment is to be performed prior to

provisioning to identify specific risks associated with the provisioning and to

take adequate risk steering measures. The analysis is subject to regular

review.

In selected market niches we transact primary insurance business that

complements our reinsurance activities. In so doing, just as on the

reinsurance side, we always work together with partners from the primary

sector—such as insurance brokers and underwriting agencies. The

associated distribution channel risks are minimised through the careful

selection of agencies, mandatory underwriting policies and regular checks.

The distribution channel risk forms an integral part of management of the

third-party provision risk and of business partners.

Other risks

Under other risks we include emerging risks, strategic risks, sustainability

risks, reputation risks as well as liquidity risks.

Management of other risks

Other risks are managed primarily using qualitative methods and on the

basis of risk indicators. Risk management monitors and reduces the other

risks through mitigation measures such as company-wide working groups

and policies. Regular quarterly risk evaluation and reporting to the Risk

Committee and the Executive Board takes place.

Within the risk management processes we also take into account any

impact on the operational risks and the other risks in relation to

environmental management, employee matters, social concerns, respect

for human rights and the combating of corruption and bribery, as required

by the CSR Directive Implementation Act.

Emerging Risks

Emerging risks are potential future risks or potential material changes in

existing risks. They are characterised by a high degree of uncertainty about

whether and how they materialise. These risks may evolve over time from

weak signals to clear tendencies. They can directly impact our treaty

portfolio in both property and casualty and life and health reinsurance, and

influence our investments.

Certain risks are subject to particular dynamics or future claims; or costs in

business operations are to be expected. We were particularly concerned

with the following risk complexes in the reporting year:

– Drug abuse: We are observing the global abuse of psychoactive

substances, especially opioids. These include both natural opiates and

synthetic opioids, which have an opium-like effect. They are often

prescribed after serious injuries and surgical procedures and are also

used to treat chronic pain.

The opioid crisis started in the U.S. and is due to the over-prescription of

strong opioid painkillers. As a result, more than two million Americans

have fallen victim to addiction—either to prescription opioids or to

heroin. Public discussion has focused primarily on four substances

closely associated with the current crisis: Hydrocodone, oxycodone,

fentanyl and heroin. In recent years, numerous states, cities and

counties in the U.S. have filed lawsuits against manufacturers,

wholesalers and retailers of opioids. Nearly every state is currently

involved in these lawsuits, and the wave of lawsuits is increasingly

expanding to include distributors and counselling organisations. The

impact of the opioid epidemic on liability insurance remains uncertain.

The uncertainty is further compounded by varying interpretations of

terms such as “Bodily Injury” and “Occurrence” in policies. The extent to

which liability insurance policies could be affected and possibly the

reinsurance cover offered by Hannover Re has not yet been conclusively

clarified. The issue is also gaining relevance outside the U.S., particularly

in Canada and increasingly in Europe.

– Hazardous substances: Chemicals that possibly have a harmful effect

on creatures and nature are observed by Hannover Re. One focussed

substance are Per- and polyfluoroalkyl substances (PFAS), which are a

group of chemicals with water-, grease- and dirt-repellent properties.

Some PFAS have been categorised as hazardous. Possible health

effects potentially include cancer, reduced fertility, a weakened immune

system, increased cholesterol levels and/or the risk of obesity and

developmental delays in children. In the U.S. in particular, several

lawsuits in connection with PFAS against companies that manufacture

PFAS, use PFAS in their products or process or sell products containing

PFAS have already been settled and/or are still pending. There have now

been settlements totalling billions of Dollars in the U.S. Claims for

alleged PFAS contamination of soil, groundwater and drinking water

have so far been the main cause of litigation. Although such legal

disputes are still at an early stage in Europe compared to the U.S.,

PFAS-related lawsuits are on the rise here too. Currently, there is no

standardised global regulation for the definition, handling and restriction

of PFAS use, but there is increasing regulatory activity on PFAS

worldwide. There are now binding drinking water limits in the U.S. (EPA)

and the REACH process for a comprehensive PFAS ban is underway in

the EU. A decision is expected in 2026. PFAS that are already regulated

can be found in the form of PFOA and PFOS, two specific substances in

the PFAS substance group that are considered to be of particular

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concern in both the EU and the U.S. Hannover Re is therefore

monitoring the entire PFAS risk complex closely as it may have a

negative financial impact on various lines of business.

– Artificial intelligence: Artificial intelligence opens up a wide range of

opportunities, particularly for the automation of data processing and

decision-making processes. At the same time, there are risks, such as

incorrect or incomprehensible data and decisions derived from it. It is

therefore crucial to define and continuously adapt company-wide rules

for the use of AI. We expect AI to fundamentally change numerous

aspects of human life and production processes in the future. In the

medium term, this could lead to developments such as the automation of

workplaces and even their partial replacement by AI. At the same time,

the emergence of new industries is possible, as well as personalised

services and a changed communication and information culture. This

offers opportunities for education, but also harbours risks such as the

spread of disinformation. In the long term, issues such as the redefinition

of work and income, possible global power shifts and ensuring ethics

and control over autonomous systems will come to the fore. Insurance-

specific areas will also be affected, such as process support when

concluding contracts, improvements in customer service and claims

management in general, as well as refined medical diagnostics and its

impact on health insurance in particular. In addition to the opportunities,

AI also bears risks, for example as an additional tool for cybercrime.

Companies and private individuals must therefore increasingly protect

themselves against attacks. Hannover Re must position itself

strategically in such a way that AI is neither overestimated nor

underestimated as a social phenomenon. Close monitoring on a

scientific and economic basis and the ability to act quickly are essential

for this and are already being implemented. Please refer to section

“Macroeconomic climate and industry specific environment” in the

risk report for the current state of regulation with regard to artificial

intelligence.

Early detection and subsequent evaluation of risks are crucially important

when it comes to emerging risks. For this reason, we deploy Hannover Re's

internal, interdepartmental and multi-line expert working group on

“Emerging Risks & Scientific Affairs” and we ensure its linkage to risk

management. The analyses performed by this working group are used

Group-wide in order to initiate any necessary measures. The working group

is currently exploring around 20 risk complexes, some of them megatrends,

to facilitate the identification and adequate evaluation of not only existing

but also emerging risks. Megatrends are defined as developments with a

trend cycle of at least 30 years. They are not presently associated with

direct impacts on operations, but may potentially evolve in this direction.

Examples are:

– Biodiversity: A decline in biodiversity can be viewed in conjunction with

emerging risks associated with scarcity of resources, air pollution,

genetically modified organisms or food security and availability—but

also goes hand-in-hand with a need for innovative (insurance) solutions

and services.

– Climate Change: The current action on climate change means new or

refined technologies, such as renewable energies, energy storage

innovations or hydrogen concepts and their various possible

applications, for which insurance coverages are needed.

– Urbanisation: The steady increase in urbanisation means the growth and

change of cities. Those leaving the countryside and moving to the city

are mostly young, hence altering both rural and urban age distributions.

Correlated trends such as the ageing society and new types of mobility,

increasingly against a backdrop of sustainability, are throwing up major

questions. The significance of these trends and the speed of change are

compelling the insurance industry to plan which role it wants to play in

helping to shape the future. In this context it is important to consider both

business opportunities and risks. Given that all this is affected by climate

change, people's property—especially when value concentrations form

in future megacities—will have to be insured against natural perils. In a

worst-case scenario, this could mean that certain regions and risks

become uninsurable if adequate urban planning—taking account of

natural hazards—is neglected in the spread of large cities around the

world. Urbanisation not only means new buildings, technologies and

lifestyles that have to be insured; rather, living close together also has

implications for people's physical and mental well-being, which is

relevant to our portfolio of life and health insurance.

Hannover Re publishes summary position papers on various emerging risks

which can be accessed on our website. In 2025, papers on class actions,

psychoactive substances, demography, social media, genetically modified

organisms and skills gap/skills shortage, among others, were created.

Hannover Re is a member of the Chief Risk Officer (CRO) Forum and a

constant participant in the CRO Forum’s Emerging Risk Initiative, which

continuously tracks and analyses various emerging risks, publishes

information on those risks considering possible trends thereof and

conducts corresponding impact analyses. The trends considered include

“Ageing and health”, “Economic development”, “Environment and climate”,

“Changes in the geopolitical landscape”, “Technological developments” as

well as “Demographic and social change”. A new topic added in the year

under review was “Deterioration of public healthcare systems”. The

publications are publicly accessible on the CRO Forum website.

Strategic Risks

Strategic risks may arise from deficiencies in strategic planning in general or

from a potential misalignment between the corporate strategy of the

Hannover Re Group and the constantly evolving general business

environment - for example due to changing market conditions, regulatory

requirements or emerging geopolitical risks. Such an imbalance might be

caused, for example, by incorrect strategic policy decisions, a failure to

consistently implement the defined strategies and business plans or an

incorrect allocation of resources. We therefore regularly review our

corporate strategy in a multi-step procedure and adjust our processes and

the resulting policies as and when required. We have defined performance

criteria and indicators for operational implementation of the strategic

principles and objectives; these are authoritative when it comes to

determining fulfilment of the various targets. The process for the

management of strategic risks continues to be assessed annually as part of

the monitoring of business process risks.

Sustainability risks and reputation risks

The handling of sustainability risks has come into increasing focus in recent

years, above all against the backdrop of climate change. Instead of

sustainability risks, reference is often made to risks associated with

environmental, social and governance (ESG) issues.

Topics related to sustainability are assessed from two different

perspectives: (i) impact materiality, which considers the positive and

negative impacts that a company has on the outside world; and (ii) financial

materiality, which considers how sustainability issues affect a company

through sustainability-related risks and opportunities.

Reputation risks refer to the risk that the trust put in our company by clients,

shareholders, employees or the public at large may be damaged. This risk

has the potential to significantly jeopardise the business foundation of the

Hannover Re Group. A good corporate reputation is therefore an

indispensable prerequisite for our core business as a reinsurer. Reputation

risks may arise out of all business activities conducted by the

Hannover Re Group. Reputational damage may be caused, inter alia, by a

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Annual Report 2025

data leakage that becomes public knowledge or financial difficulties on

account of an underwriting risk. We use a number of different techniques for

risk mitigation, such as our defined and tested crisis communication

channels, a professional approach to corporate communications as well as

our established Code of Conduct. A reputation risk can occur isolated or as

a result of a materialisation of any other risk category.

Reputation and sustainability risks are closely interconnected, as e.g. failing

to meet societal expectations on sustainability can quickly escalate into

reputational damage. Risk Management, Group Sustainability & Strategy,

and Corporate Communications collaborate closely to identify ESG‑related

and reputational risks. This includes assessing ESG risks, monitoring

media coverage, analysing NGO activities, and maintaining an active

dialogue with key stakeholder groups.

Liquidity risks

We define liquidity risk as the risk of not being able to fulfil our financial

obligations when they fall due. Liquidity risk consists of refinancing risk

(required funds cannot be obtained or can only be obtained at higher costs)

and market liquidity risk (financial market transactions can only be

concluded at a lower price than expected due to a lack of market liquidity).

Key elements of the liquidity management of our investments are, on the

one hand, the management of the maturity structure of our investments on

the basis of the planned payout profiles from the technical obligations and,

on the other hand, regular liquidity planning and the investment structure of

the investments. Beyond the foreseeable payouts, unexpected,

extraordinarily high payouts could pose a liquidity risk. However, in the

reinsurance business, significant events (major claims) are generally paid

out with a predictable lead time. Nevertheless, as part of our liquidity

management, we have defined portfolios that have proven to be highly

liquid even in situations of financial stress, such as the 2008 financial crisis.

During the reporting year, our holdings of free German, British and US

government bonds and financial resources were larger than possible

payouts for assumed extreme events, so that our liquidity is guaranteed

even in the unlikely event of a combination of financial crises and the need

for an extreme event to be paid out quickly. The liquidity reserve totalled

EUR 10.2 billion (EUR 9.9 billion) as at the reporting date. In addition, we

manage the liquidity of the portfolio by monitoring the liquidity of the

portfolio securities on each trading day. When reinvesting fixed-income

securities in the reporting period, we increasingly invested in securities and

funds with short-term maturities in line with the technical liabilities while

shortening the average residual term. In addition, we sold extensive

holdings of interest-bearing securities with hidden liabilities and reinvested

them at current interest rate levels. As a result, we have further expanded

our room for manoeuvre on the markets and in our liquidity management.

As an additional liquidity management tool, we have been entering into

temporary repurchase agreements (repo transactions) for several years.

We use these measures to reduce our liquidity risk.

Opportunity report

Speed is one of the qualities used to measure successful adaptability.

Hannover Re's ambition is to offer quick and effective solutions that keep us

one step ahead of the competition. Hannover Re searches systematically

for new business opportunities in order to generate sustainable growth and

strengthen the company’s profitable development. With a view to identifying

opportunities and successfully translating ideas into business,

Hannover Re adopts a number of closely related approaches in order to

achieve holistic opportunity and risk management. Of significance here is

the efficient interplay of the various functions within opportunity and risk

management, which is ensured by defined interfaces. In light of this

structure, regulatory observations may also lead to new opportunities for

Hannover Re. The materiality assessment as part of the sustainability

statement also plays a role in opportunity management, as not only

impacts and risks, but also opportunities for the company are analysed and

evaluated when double materiality is taken into account.

The focus of Hannover Re’s business opportunity management is on

various market-specific innovations in the Life & Health and Property &

Casualty reinsurance business groups (see section “Forecast” in the

outlook).

Trends affecting these business groups are systematically identified and

analysed with the support of external sources and partners and the needs of

our clients are anticipated along the entire insurance-related value-added

chain. Business opportunities that promise access to innovative

technologies and enhance our appeal in the eyes of customers are

specifically pinpointed. With this in mind, Hannover Re cultivates business-

related partnerships with, for example outside accelerators, incubators,

company builders, start-ups and research institutes in order to boost our

competitiveness in the insurtech sector and the field of digital solutions.

Various competence centres have been set up in the Hannover Re Group to

evaluate the strategic and technical significance of innovative new digital

technologies and the goals pursued by these innovation units have been

put on a strategic footing. The interplay between these units is based on a

dedicated approach that enhances the activities with specific expertise and

efficiency.

In-house accelerator units covering the areas of business and technology

explore the specifics of their respective fields and maintain a close dialogue

with one another. The tasks performed by these organisational units

include, among others, global scaling of existing market-specific products

and solutions, developing new sector- and customer-specific digital assets,

providing systematic support for insurtechs as they build their digital

business models as well as internal efficiency improvements through

targeted cooperation with external technology providers. An intensive

exchange and targeted collaboration with the market departments are

crucially important here in order to build on existing networks and expertise.

In this way, we strive to identify business opportunities at a transformative

stage to deliver innovative solutions to customers.

This broad spectrum of tasks is geared to the clearly defined goals of

generating new profitable business for the Group, optimising risk

assessment through the use of innovative tools, cultivating new strategic

partnerships and acquiring new capabilities in the fields of digitalisation,

automation (among other things with the help of artificial intelligence) and

data analytics.

Strengthening resilience against

natural perils

Insurance and reinsurance solutions make an essential contribution to the

financial resilience of households, communities, businesses, countries and

regions. This socially important function of the sector is receiving increasing

recognition and is being further strengthened within the framework of

international cooperation between the Global North and the Global South.

Extreme weather events and other natural hazards continue to pose major

challenges, particularly for already highly vulnerable economies and

population groups whose livelihoods are threatened by such events. In

2025, several international conferences – including the Financing for

Development Conference in Sevilla, Spain, or the Climate Change

conference COP in Belém, Brazil – highlighted the role that the insurance

sector can play through risk management and risk transfer solutions.

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Hannover Re continues to engage in advancing financial protection against

climate and disaster risk in developing and emerging economies and

provides reliable reinsurance capacity for corresponding programmes. This

aligns with our long-term perspective in these markets and the vision of

enabling more people to rebuild their lives after a destructive event. We

pursue these activities in close cooperation with our clients, through multi-

stakeholder initiatives and together with partners from the public sector.

A central pillar of our approach is the partnership with the Natural Disaster

Fund (NDF), whose parametric risk-transfer programmes target

beneficiaries in low- and middle-income countries. In 2025, Hannover Re

significantly expanded its support for the NDF and increased its committed

risk capacity from USD 50 million to USD 100 million; implementation is

currently underway. The NDF is a successful public-private partnership with

capitalisation from the German and British governments via the KfW

Development Bank and the UK Foreign, Commonwealth and Development

Office, and managed by Global Parametrics Limited, a wholly owned

subsidiary of CelsiusPro AG. In 2025, the NDF provided protection to 34.3

million poor and vulnerable beneficiaries (with less than USD 15 in

purchasing power parity per day) in 82 countries. The programmes include

covers for regional risk pools, international humanitarian and development

organisations, microinsurers and agribusinesses. A key advantage of

parametric insurance products lies in the rapid payout based on predefined

triggers – such as precipitation amount, wind speed or earthquake intensity

– without the need for a loss assessment.

Hannover Re also continues to support the Insurance Development Forum

(IDF). In this unique global partnership the insurance industry and public

sector institutions work together to improve climate risk management and

to implement risk-transfer solutions in low- and middle-income countries.

Hannover Re’s contribution includes sharing expertise and experience to

support the IDF’s objectives and, in one of the IDF projects, co-leading the

development of a parametric flood-risk solution for cities in Argentina

together with other partners.

For the often predominantly rural developing and emerging economies,

insurance solutions in the agricultural sector are of central importance.

Hannover Re is a large provider of corresponding reinsurance solutions,

thereby supporting local insurance markets. A very good example is Peru,

where Hannover Re, in cooperation with the government and the primary

insurance market, protects smallholder farmers in the entire country against

yield losses.

In addition, Hannover Re has demonstrated in a mature market how active

risk reduction can be integrated into a capital market transaction. An

innovative new catastrophe bond with a resilience feature was facilitated by

the insurance-linked securities team of Hannover Re for the North Carolina

Insurance Underwriting Association. The bond includes a low resilience

spread that accrues with interest and is returned to the issuer if a predefined

loss threshold is not exceeded, and it may be used exclusively to support

policyholder resilience – for example, through improvements to residential

roofs in line with the 'Fortified Roof’ standard.

Opportunities from emerging risks and

new product process

The dynamic networking of the members of staff active in the field of

innovation at Hannover Re gives rise to close links with other projects,

working groups and bodies, such as with the working group on “Emerging

Risks & Scientific Affairs” in regard to emerging risks and opportunities (see

section “Other risks” in the risk report). This working group conducts

qualitative assessments of emerging risks, examining not only potential

threats but also associated business opportunities. It develops analyses

that explore how Hannover Re can respond to megatrends, such as climate

change, digitalisation and demographic shifts, through innovative

(re)insurance products and targeted capital investments.

If a business idea is translated into reality and a new reinsurance product

results, the specific procedure – provided the criteria defined for this

purpose by Risk Management are applicable – is to work through the so-

called new product process. This process is supported by Risk

Management at Hannover Re. The process is always worked through if a

contractual commitment is to be entered into in a form not previously used

by Hannover Re or if a new type of risk is to be insured. If this is the case, all

material internal and external influencing factors are examined beforehand

by Risk Management (e. g. implications for the overall risk profile or the Risk

Management Strategy) and evaluated. Risk Management ensures that

before it can be used or sold a new reinsurance product must be approved

by the Executive Board.

Cyber insurance

Cyber attacks continue to be a significant threat to economies worldwide.

Successful attacks can cause considerable financial losses and could

severely hamper private and public life, especially if critical infrastructures

are impacted. Supply shortages with lasting effects as well as major

disruptions to public safety may ensue. With globally connected digital

ecosystems the repercussions of cyber attacks are intensifying because the

volume of globally stored data and the extent of system dependencies are

constantly growing. In addition, cloud computing is increasingly shifting the

focus to third-party digital infrastructures and the associated network

connection. As part of our holistic approach to risk and business

opportunity management, we are actively exploring innovative solutions for

our clients in order to protect against the relevant risks. The constant

refinement of our systemic analyses for the assessment of cyber risks

forms the basis for developing new (re)insurance products. We aim to bring

transparency to the customer’s cyber risks and we seek to cover the need

for risk-mitigating measures by offering tailored structures.

Overall assessment by the

Executive Board

Based on our currently available insights arrived at from a holistic analysis

of the opportunities and risks, the Executive Board of Hannover Re cannot

discern any risks that could jeopardise the continued existence of the

Hannover Re Group in the short or medium term or have a material and

lasting effect on its assets, financial position or net income. We are

convinced that:

– our established system of risk management affords us a transparent

overview of the current risk situation at all times,

– our overall risk profile is appropriate, and

– our opportunity management plays an important part in Hannover Re’s

sustainable and profitable growth.

As an internationally operating reinsurance group, we move in a highly

complex environment. Nevertheless, thanks to our business activities in all

lines of reinsurance we are able to achieve optimal risk spreading through

geographical and risk-specific diversification while at the same time

maintaining a balanced opportunity / risk profile. We consider the risks

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Investor Relations

Annual Report 2025

described in the above sections to be manageable, particularly because our

steering and monitoring measures are effectively and closely interlinked.

Despite these diverse mechanisms, individual and especially accumulation

risks can decisively affect our assets, financial position and net income. In

accordance with our understanding of risk, however, we consider not only

risks but also at the same time opportunities. We therefore only enter into

those risks that go hand-in-hand with opportunities. Our steering and

monitoring tools as well as our organisational and operational structure

ensure that we identify risks at an early stage and are able to act on our

opportunities. Our central monitoring tool is the system of risk management

that we have installed Group-wide, which brings together both qualitative

and quantitative information.

Our own evaluation of the manageability of existing risks is confirmed by

various financial indicators as well as by external assessments of rating

agencies (Standard & Poor’s and A.M. Best). Specific monitoring

indicators, corresponding notification thresholds and potential escalation

steps are defined on a mandatory basis in our central system of limits and

thresholds for the material risks of the Hannover Re Group. As a result, the

system provides us with a precise overview of potentially undesirable

developments in the defined risk tolerances and enables us to react in a

timely manner. Our necessary equity resources are determined by the

requirements of our economic capital model, solvency regulations, the

assumptions of rating agencies with respect to our target rating and the

expectations of our clients and shareholders. We have a sufficient capital

cushion to be able both to absorb risks and act on lucrative business

opportunities that may present themselves. Similarly, our financial strength

ratings also testify to our financial stability. The quality of our Risk

Management, for example, is assessed as very good by Standard & Poor’s

as a key factor in the rating process. Special consideration is given to our

established risk management culture, which promotes the development of

appropriate risk monitoring systems and supports strategic risk

management. The rating encompasses in particular the areas of risk

culture, risk controls, emerging risk management, risk models and strategic

risk management. This external appraisal confirms the quality of our holistic

approach to risk management.

The Group-wide risk management system and the internal control system

are also a regular part of the audits conducted by the internal audit function

as well as part of the assessment of the governance system by the

Executive Board.

Enterprise management

Declaration on Corporate

Governance pursuant to

§§ 289f, 315d German

Commercial Code (HGB)

This subsection is a part of the report that the legislator has

expressly exempted from the audit of the financial statement/

audit of the management report (§ 317 Para. 2 Sentence 6 and

Sentence 4 German Commercial Code (HGB); unaudited

information).

Hannover Re’s objective continues to be to consolidate its position as one

of the leading, most profitable reinsurance groups operating worldwide. In

aspiring towards this goal, it is particularly important to observe and fulfil the

principles of good and sustainable corporate governance.

The Executive Board and Supervisory Board of Hannover Rück SE

expressly support the suggestions and recommendations of the German

Corporate Governance Code (DCGK) and are guided by them in their

activities. Integrity in dealings with business partners, staff, shareholders

and other stakeholder groups as well as value-based and transparent

enterprise management and control are key pillars of corporate

governance. The Supervisory Board, Executive Board and employees of

Hannover Re identify with these principles, which thus form part of our

corporate self-image.

Hannover Rück SE hereby provides insight into its enterprise management

practices as part of the Declaration on Corporate Governance pursuant to

§ 289f German Commercial Code (HGB) and pursuant to § 315d German

Commercial Code (HGB) in conjunction with § 289f German Commercial

Code (HGB) for the Hannover Re Group:

Corporate Governance

As an instrument of self-regulation for the business world, the German

Corporate Governance Code defines current best practices for corporate

governance and is intended to make the German system of corporate

governance transparent and comprehensible. It seeks to foster the trust of

international and national investors, customers, employees and the general

public in the management and supervision of German listed companies.

Although the Code does not have binding legal force, the enterprises

addressed by the Code are nevertheless required by § 161 Stock

Corporation Act (AktG) to provide an annual declaration as to whether or

not the recommendations of the Code were and are complied with in the

reality of the company’s business activities. If recommendations were not

acted upon, this is to be explained and disclosed as part of the Declaration

of Conformity. Supplementary to the present declaration, the Declarations

of Conformity pursuant to § 161 Stock Corporation Act (AktG) regarding

compliance with the German Corporate Governance Code for recent years

are published on our website: Declaration of Conformityä

Declaration of Conformity pursuant to

§ 161 Stock Corporation Act (AktG)

regarding compliance with the German

Corporate Governance Code at

Hannover Rück SE

Under § 161 Stock Corporation Act (AktG) it is incumbent on the

Management Board and Supervisory Board of German listed companies to

provide an annual declaration of conformity with the recommendations of

the “German Corporate Governance Code Government Commission”

published by the Federal Ministry of Justice and Consumer Protection or to

explain which recommendations of the Code were/are not applied and why

this is the case.

The Executive Board and Supervisory Board declare pursuant to

§ 161 Stock Corporation Act (AktG) that Hannover Rück SE is in conformity

with all recommendations of the German Corporate Governance Code

contained in the version of the Code adopted on 28 April 2022 (announced

Hannover Re

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Annual Report 2025

on 27 June 2022) and also intends to remain in conformity with these

recommendations in the future.

Hannover, 7 November 2025

Executive Board, Supervisory Board

Remuneration

Remuneration of the Executive Board

The applicable system of remuneration for the members of the Executive

Board of Hannover Rück SE was adopted by the Supervisory Board at its

meeting on 4 August 2020. It was presented to the Annual General Meeting

for approval on 5 May 2021. The remuneration system was developed by

the Supervisory Board with the support of an independent consultant and is

in conformity with the requirements of the Stock Corporation Act (AktG) as

well as the recommendations of the German Corporate Governance Code

as amended on 28 April 2022 (announced on 27 June 2022). The

remuneration system is submitted to the Annual General Meeting for

approval if any material changes are made to the remuneration system, and

at least every four years. Since the remuneration system has proven itself,

only minor changes were made after four years. These were approved by

the Supervisory Board at its meeting on 8 November 2024. The slightly

modified remuneration system was adopted by the Annual General Meeting

on 7 May 2025 with a vote of 80.11%.

The remuneration report contains detailed information about the amount of

remuneration received by the members of the Executive Board. The

applicable remuneration system for the members of the Executive Board as

well as the remuneration report submitted annually to the Annual General

Meeting for approval (including the report of the independent auditor) can

be accessed on the website of Hannover Rück SE: Remuneration report

and systemä

Remuneration of the Supervisory Board

The system of remuneration for the members of the Supervisory Board is

geared to the legal requirements and reflects the recommendations and

suggestions of the German Corporate Governance Code. It is governed by

§ 14 of the company's Statute: Statuteä

The Annual General Meeting approved adjustments to the remuneration of

the Supervisory Board on 7 May 2025. The Supervisory Board

remuneration was increased effective 1 January 2025 from currently EUR

75,000 annually to EUR 100,000 owing to the heavier workload and the

constantly increasing requirements placed on the work of the members of

the Supervisory Board. As has been the case to date, the remuneration of

the Chairman of the Supervisory Board and his Deputy shall be two and a

half times and one and a half times the basic remuneration respectively.

Furthermore, the remuneration for work on the Finance and Audit

Committee and on the Standing Committee was increased. The attendance

allowance remains unchanged. Further details of the adopted resolution

can be found in the information on the Annual General Meeting of 7 May

2025.

The remuneration of the members of the Supervisory Board is balanced

overall and commensurate with the responsibility and tasks of the

Supervisory Board members and the position of the company, with

consideration also given to the remuneration arrangements of comparable

listed companies. The remuneration arrangements as well as the

remuneration system are regularly reviewed by the Supervisory Board with

an eye to their adequacy, in which regard the advice of external consultants

may also be sought. The Annual General Meeting considers the

remuneration of the Supervisory Board members at least every four years

and if changes to the remuneration arrangements are proposed. The

Annual General Meeting can confirm the existing system of remuneration

for the Supervisory Board or adopt a resolution to amend it.

A breakdown of the individual remuneration received by the members of the

Supervisory Board for the 2024 financial year is provided in the

remuneration report, which can be accessed on Hannover Re's website:

Remuneration report and systemä

Further enterprise management

principles of Hannover Re

The Code of Conduct of Hannover Rück SE applies Group-wide and can be

accessed online: Code of Conductä. Complementing our corporate

strategy, it sets out the rules governing integrity in the behaviour of all

employees of Hannover Re and helps members of staff cope with the

ethical and legal challenges they face as part of their day-to-day work. The

rules defined therein reflect the high standards that guide our actions

worldwide. It is our belief that integrity in dealings with all stakeholders

constitutes the foundation of a successful enterprise. In both our strategic

planning and our day-to-day business activities, we therefore aspire to

consistently apply the highest ethical and legal standards; for our actions

and the way in which every single one of us presents and conducts himself

or herself are crucial in shaping the image of Hannover Re.

Risk monitoring and steering

The risk management system applicable throughout the entire Hannover

Re Group is based on the strategic principles of risk management, which for

their part are derived from the corporate strategy. A core component is the

systematic and comprehensive recording of all conceivable risks that from

the current standpoint could potentially jeopardise the company’s

profitability and continued existence. Further details in this regard may be

obtained from the risk report contained in the present Annual Report.

Adequacy and effectiveness of the

internal control system and risk

management system

A detailed description of the main elements of the internal control system

(ICS) and risk management system (RMS) is included in the opportunity

and risk report. The adequacy and effectiveness of the ICS and RMS are

reviewed and evaluated at Hannover Re primarily through the following

measures:

– regular and systematic risk identification, analysis, assessment, steering

and monitoring, including risk reporting,

– a continuous improvement cycle of Plan-Do-Check-Act in relation to risk

management and the ICS, also including continuous monitoring and the

rectification of deficiencies identified in the RMS/ICS in collaboration

with the responsible units,

– regular review of the controls established in processes by the process

owners,

– review of the controls in information security processes by the

department headed by the Chief Information Security Officer,

– evaluation of controls, policies and processes relating to operational

risks conducted annually in a self-assessment by expert groups,

– annual assessment of the ICS and RMS by a committee established to

assess the system of governance,

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Annual Report 2025

– independent evaluation of the adequacy and effectiveness of

implemented measures, including compliance-related controls, as part

of continuously conducted compliance monitoring procedures, and

– in the context of regular audits conducted by the internal audit unit in

relation to the ICS and RMS.

In connection with the aforementioned extensive measures, no facts or

circumstances became known to the Executive Board in the reporting

period that overall would argue against the adequacy and effectiveness of

the ICS and RMS.

Sustainability of enterprise

management

The considerable strategic and regulatory significance attached to ESG

issues was again evident in the year under review. The associated risks and

opportunities go hand-in-hand with increasing expectations placed on the

role of corporate governance and on the management of sustainability

risks. Requirements derive from, among other things, the G20/OECD

Principles of Corporate Governance, Solvency II, the Corporate

Sustainability Reporting Directive (CSRD) and the European Sustainability

Reporting Standards (ESRS), the BaFin Guidance Notice on Dealing with

Sustainability Risks, the German Corporate Governance Code (DCGK), the

Supply Chain Due Diligence Act (LkSG) and prospectively the Corporate

Sustainability Due Diligence Directive (CSDDD). In this respect, it is

envisaged that corporate governance will assume a prominent role in

shaping ESG topics and integrate them into enterprise management.

The Executive Board is responsible for the underlying strategies, the

implementation of corresponding structures and provision of appropriate

resources as well as the definition of responsibilities in the organisational

guidelines. The Supervisory Board is tasked with providing advice and

oversight for the Executive Board in its leadership of the company, inter alia

with an eye to the handling of sustainability risks. The wide-ranging

qualifications, skills and relevant experience of the members of both bodies

facilitate a nuanced evaluation of the opportunities and risks in business

operations and enable balanced actions and decisions to be taken on this

basis.

The Executive Board is advised by the ESG Management Team, which

plays a central role in ESG governance. This interdisciplinary team is

comprised of participants from various areas. The ESG Management Team

ensures coordinated dovetailing with the Group strategy and serves as the

interface to local units as well as the central point of contact for fulfilment of

ESG-related regulatory requirements. The ESG Management Team reports

half-yearly to the Executive Board. More extensive submissions on

sustainability issues are also presented as necessary during the year.

The competency profile of the Supervisory Board explicitly recognises

“ESG” as an important topic, with one of its members designated as an

ESG expert. Furthermore, sustainability-related issues were again

addressed at the meetings of the Finance and Audit Committee and the full

Supervisory Board in the year under review.

Compliance

Hannover Re considers a properly functioning compliance structure to be

an essential tool for ensuring compliance with external rules and regulations

as well as requirements imposed internally by the company. Further details

of the compliance management system are provided in the combined non-

financial statement. The results of our compliance activities are

documented annually in the compliance report, which is submitted to the

Finance and Audit Committee of the Supervisory Board and the full

Supervisory Board; in this regard please see the report by the Supervisory

Board included in this Annual Report.

Working practice of the Executive

Board and Supervisory Board

The Executive Board and Supervisory Board of Hannover Rück SE work

together on a trusting basis to manage and supervise the company and the

Group as a whole. In accordance with § 13 of the Statute and the Rules of

Procedure of the Executive Board, matters of fundamental importance

require the consent of the Supervisory Board. The Supervisory Board is

comprised of nine members. Six members are elected as shareholder

representatives by the shareholders at the Annual General Meeting. The

three seats held by employee representatives, which are currently allocated

to Germany pursuant to Part III, § 13 (3) of the Agreement regarding the

Participation of Employees in Hannover Rück SE of 23 January 2013, are

elected in accordance with the provisions of the SE Participation Act

(SEBG) by the responsible representative body (currently the joint

Employee Council of Hannover Rück SE and E+S Rückversicherung AG).

The Supervisory Board appoints the members of the Executive Board.

Since members of the Supervisory Board cannot at the same time belong to

the Executive Board, a high degree of independence in the oversight of the

Executive Board is thus already ensured by structural means. In addition,

the Supervisory Board is kept informed on a regular and timely basis of the

business development, the execution of strategic decisions, material risks

and planning as well as relevant compliance issues.

The Chairman of the Supervisory Board stays in regular contact with the

Chairman of the Executive Board in order to discuss with him significant

business occurrences. The composition of the Executive Board (including

areas of responsibility) as well as of the Supervisory Board and its

committees (including period of membership) is provided within this report.

The Rules of Procedure of the Executive Board are intended to ensure that

a consistent business policy is elaborated and implemented for the

company in accordance with its strategic objectives. Within the framework

of a consistent business policy, the principle of “delegation of responsibility”

enjoys special status. In the interests of shareholders, importance is

expressly attached to an organisation that facilitates cost-effective, quick

and unbureaucratic decision processes. Open and trusting cooperation

geared to the interest of the whole is the foundation of success. In this

context, the members of the Executive Board bear joint responsibility for the

overall management of business. Irrespective of their overall responsibility,

each member of the Executive Board leads their own area of competence at

their individual responsibility within the bounds of the resolutions adopted

by the Executive Board. The Executive Board has not set up any Executive

Board committees, but has put in place a committee structure that supports

it in the performance of its tasks. In addition to members of the Executive

Board, senior executives and specialist employees of the Hannover Re

Group sit on these committees.

The Rules of Procedure of the Supervisory Board provide inter alia that

each member of the Supervisory Board must have the knowledge, skills

and professional experience required for orderly performance of their tasks

and that a sufficient number of independent members on the shareholder

side shall belong to the Supervisory Board. The Supervisory Board has

reached the assessment that Mr. Harald Kayser, Dr. Alena Kouba, Dr.

Ursula Lipowsky and Dr. Michael Ollmann on the Supervisory Board are

each to be considered independent in accordance with Recommendation

C.6 of the German Corporate Governance Code as amended on

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Investor Relations

Annual Report 2025

28 April 2022. A Supervisory Board member shall be considered

independent within the meaning of this recommendation if they are

independent of the company and its Management Board and independent

of any controlling shareholder. Nor do any of the criteria restricting

independence specified in Recommendation C.7 of the German Corporate

Governance Code apply to any of the aforementioned candidates. Persons

suggested to the Annual General Meeting as candidates for election to the

Supervisory Board may not be older than 75 at the time of their election and

shall normally not belong to the Supervisory Board as a member for longer

than three full consecutive terms of office; the term of office commencing

from the end of the 2014 Annual General Meeting is the first term of office to

be counted for this purpose. Nominations shall take account of the

company’s international activities as well as diversity considerations.

Furthermore, it shall be ensured that the proposed person can allocate the

expected amount of time. The Supervisory Board meets at least twice each

calendar half-year. The Supervisory Board’s report provides information

about the attendance of individual Supervisory Board members at the

meetings. No more than two former members of the company’s Executive

Board may belong to the Supervisory Board.

The Supervisory Board decides in individual cases whether external advice

should also be sought as a decision-making aid. A regular self-assessment

is intended to survey the general efficiency of its working approach and

assure it on a lasting basis. The efficiency review took place in May 2025.

The findings confirm the high effectiveness of the board’s work. Potential

areas for improvement are continuously addressed.

Working practice of the committees of

the Supervisory Board

In order to efficiently perform its tasks the Supervisory Board has formed a

number of committees: the Finance and Audit Committee, the Standing

Committee and the Nomination Committee. The Supervisory Board

committees prepare matters within their scope of competence for

discussion and adoption of a resolution by the full Supervisory Board.

Moreover, the committees are also assigned their own authority to adopt

resolutions. The number of meetings of the committees in the period under

review as well as the attendance of the committee members are discussed

in greater detail in the report by the Supervisory Board.

The Finance and Audit Committee was made up of Dr. Ursula Lipowsky

(Chairwoman), Mr. Torsten Leue and Mr. Herbert Haas in the year under

review; Dr. Lipowsky can certainly be considered independent within the

meaning of the German Corporate Governance Code. Dr. Lipowsky and Mr.

Haas are financial experts pursuant to §100 Para. 5 Stock Corporation Act

(AktG), with Dr. Lipowsky having the necessary expertise particularly in

accounting matters and Mr. Haas in particular when it comes to the auditing

of financial statements. The committee monitors the accounting process

and the effectiveness of the internal control system, the risk management

system and the internal auditing system. It also handles issues relating to

compliance and the information system for the Supervisory Board and

discusses the Quarterly Statements as well as the Half-yearly Financial

Report prior to their publication. It prepares the Supervisory Board’s

examination of the annual financial statement, management report and

proposal for the appropriation of profit as well as of the consolidated

financial statement and Group management report. In this context, the

Finance and Audit Committee receives detailed information on the auditor’s

view of the net assets, financial position and results of operations as well as

explanations of the effects of any modified recognition and measurement

principles on the net assets, financial position and results of operations

together with available alternatives. In addition, the committee prepares the

Supervisory Board’s decision on the commissioning of the independent

auditor for the financial statements. It considers matters associated with the

necessary independence of the auditor, the awarding of the audit mandate

to the independent auditor, the determination of the audit concentrations,

the fee agreement and the quality of auditing. The agendas and minutes of

the meetings of the Finance and Audit Committee are also made available

to the members of the Supervisory Board who do not sit on the committee.

Mr. Torsten Leue (Chairman), Mr. Herbert Haas, Ms. Ilka Hundeshagen and

Dr. Ollmann met as the Standing Committee. The body prepares personnel

decisions for the Supervisory Board. It bears responsibility for granting

loans to the group of persons specified in §§ 89 Para. 1, 115 Stock

Corporation Act (AktG) and those considered equivalent pursuant to

§ 89 Para. 3 Stock Corporation Act (AktG) as well as for approving

contracts with Supervisory Board members in accordance with § 114 Stock

Corporation Act (AktG). It exercises the powers arising out of § 112 Stock

Corporation Act (AktG) in lieu of the Supervisory Board and – in cooperation

with the Executive Board – ensures that long-term succession planning is in

place. A systematic approach is adopted, with a list of potential candidates

– including development periods and taking account of diversity targets –

compiled, updated and discussed in committee. This is regularly a matter

for reporting and deliberation in the committee meetings and is explored in

detail – also in connection with the Executive Board’s strategic targets in

relation to talent management.

The Nomination Committee is comprised of Mr. Torsten Leue (Chairman),

Mr. Herbert Haas and Dr. Lipowsky. The committee is tasked with

proposing to the Supervisory Board appropriate candidates for the

nominations that it puts forward to the Annual General Meeting for election

to the Supervisory Board. The committee did not meet in the year under

review.

For further details of the activities of the Supervisory Board committees in

the year under review, please see the explanatory remarks provided in the

report by the Supervisory Board.

Targets pursuant to § 289f Para. 4

Sentence 1 in conjunction with

Para. 2 No. 4 German Commercial

Code (HGB)

Four members of the Supervisory Board of Hannover Rück SE are women.

A woman chairs the Finance and Audit Committee and one serves as a

member of the Supervisory Board’s Nomination Committee and Standing

Committee. The proportion of women serving on the Supervisory Board in

2025 was thus 44%. This figure is thus in line with the target of 44% or four

women set for the proportion of women serving on the Supervisory Board of

Hannover Rück SE in the period from 1 July 2022 to 30 June 2027.

On the level of the Executive Board, the goal has hitherto been to appoint

one additional woman as a member of the company’s Executive Board by

the year 2025. The target for the proportion of women on the Executive

Board of Hannover Rück SE was set at 29% or two women by 30 June

2027. In 2025 three women served on the body, comprised of altogether

eight members.

A target of 25% (corresponding to 26 women) has been set for the two

levels of senior management below the Executive Board in the period from

1 July 2022 to 30 June 2027.

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Annual Report 2025

Diversity concept – Goals for the

composition of the Executive Board

and Supervisory Board as well as

status of implementation (§ 289f Para.

2 Number 6 German Commercial Code

(HGB)

Description of the diversity concept for the

composition of the Executive Board and

Supervisory Board and goals

When appointments are made to the Executive Board and Supervisory

Board, Hannover Rück SE is guided by a number of considerations

including the principle of diversity. Wide-ranging qualifications, expertise

and experience on the part of the members of the Executive Board and

Supervisory Board facilitate a nuanced evaluation of the opportunities and

risks associated with business operations and enable balanced and

professional actions and decisions to be taken on this basis. Due

consideration is given to the aspect of diversity when members of the

Executive Board and Supervisory Board are appointed. In addition to

specialist and personal qualifications (competencies), this aspect

encompasses in particular age, gender, internationality, education and

professional career. With a view to ensuring that the concept of diversity is

applied on an ongoing basis, an assessment is made in the context of every

new appointment to the Executive Board or Supervisory Board as to

whether the envisaged appointment is also in keeping with the diversity

concept.

In selecting members of the Executive Board the goal is to ensure that the

members have the skills and experience needed to properly perform their

tasks. The Supervisory Board considers diversity in the composition of the

Executive Board. The age limit for the Executive Board is set at 67. The

members of the Executive Board are appointed by the Supervisory Board

for a term of at most five years. Members of the Executive Board are initially

appointed for no more than three years.

The composition of the Supervisory Board shall be such that overall its

members are equipped with the knowledge, abilities and specialist

experience necessary for proper performance of the tasks. The make-up of

the Supervisory Board shall ensure that the Executive Board in an

internationally operating, broadly positioned reinsurance group receives

qualified supervision and advice from the Supervisory Board. The

competency profile of the Supervisory Board is published in a skills matrix.

Moreover, special attention is to be paid to the integrity, character,

commitment, professionalism and independence of individuals put forward

for election. In accordance with the Rules of Procedure for the Supervisory

Board, for example, members of the Supervisory Board shall ensure that

they have sufficient time at their disposal for their activities and that

potential conflicts of interest are avoided. Furthermore, candidates shall be

put forward to the Annual General Meeting for election to the Supervisory

Board only if they will not have passed the age of 75 by the time of their

election and – with effect from the election of the new Supervisory Board in

2014 – provided they have not sat on the Supervisory Board for more than

three full consecutive terms of office.

With an eye to Hannover Re’s international orientation, it is to be ensured

that a sufficient number of members with long-standing international

experience belong to the Supervisory Board. The goal is to at least maintain

the currently existing international profile.

On the shareholder side, the Supervisory Board shall include an adequate

number of members considered to be independent. At least one

independent member must have expertise in accounting and in the auditing

of financial statements.

In addition, the Supervisory Board bears responsibility for developing and

implementing the diversity concept for the composition of the Executive

Board and Supervisory Board and the associated reporting, or for providing

an explanation if no such diversity concept is to be pursued.

Implementation approach and results achieved in

the financial year

Diversity on the Supervisory Board and Executive Board continued to be a

major focus in the 2025 financial year. Altogether four women belong to the

Supervisory Board. Female members of the Supervisory Board sit on all

Supervisory Board committees. The Finance and Audit Committee is

chaired by a woman.

Furthermore, the Supervisory Board considers it important that an

adequate number of Supervisory Board members are independent as

defined by the German Corporate Governance Code (DCGK). The

Supervisory Board has reached the assessment that the Supervisory Board

members Mr. Harald Kayser, Dr. Alena Kouba, Dr. Ursula Lipowsky and Dr.

Michael Ollmann are each to be considered independent in accordance

with Recommendation C.6 of the German Corporate Governance Code as

amended on 28 April 2022. A Supervisory Board member shall be

considered independent within the meaning of this recommendation if they

are independent of the company and its Management Board and

independent of any controlling shareholder. Nor do any of the criteria

restricting independence specified in Recommendation C.7 of the German

Corporate Governance Code apply to any of the aforementioned

candidates.

The age diversity on the Executive Board ranged from 45 to 58 in the 2025

financial year. On the Supervisory Board the age range was from 45 to 71.

There were three female members of the Executive Board in 2025.

Information on share-based payment is provided in subsection 9.3 of the

notes “Share-based payment” and with respect to the members of the

Executive Board in the remuneration report on the Hannover Re website:

Remuneration reportä

In addition to the present Declaration on Corporate Governance, the

Declaration of Conformity pursuant to § 161 Stock Corporation Act (AktG)

regarding compliance with the German Corporate Governance Code and

the associated reports of recent years are published on our website:

Corporate Governanceä

Hannover Re

General Disclosures - ESRS 2

Investor Relations

Annual Report 2025

Overview of qualifications of the members of the Supervisory Board of Hannover Rück SE in 2025 (valid: May 2025)

Members of the Supervisory Board

Leue

Haas ¹

Dr. Kouba

Kayser ²

Hundeshagen

Dr. Lipowsky ³

Dr. Ollmann

Kaufmann

Kempff

Length of service

Member since

2018

2002

2024

2019

2018

2019

2024

Personal fitness

√

Diversity

Gender

Male

Female

Male

Female

Male

Female

Year of birth

1966

1954

1966

1973

1958

1980

1965

Citizenship

German

Czech / Swiss

German

Qualification

Trained banker, business

administration graduate

Business administration

graduate

Mathematician /

statistician

Auditor / tax adviser

Graduate in law

Fully qualified in law

Business administration

graduate

Commercial lawyer

Mathematician

Expertise / professional competence⁴

Investing

√

Underwriting

√

Accounting / auditing of financial statements

√

Internationality

√

M&A

√

RIsk management

√

Compliance

√

Personnel

√

IT / digitalisation

√

ESG (Environmental, Social, Governance)

√

Internal model

√

¹ Has expert knowledge in the field of auditing financial statements pursuant to § 100 Para. 5 Stock Corporation Act (AktG) (“financial expert”).

² Expert in ESG (Environmental, Social, Governance) matters.

³ Has expert knowledge in the field of accounting pursuant to § 100 Para. 5 Stock Corporation Act (AktG) (“financial expert”).

⁴ Evaluation based on annual self-assessment (2023). On a rating scale from A to E “√” corresponds to an evaluation of at least B (“sound knowledge” or “good knowledge”)

Hannover Re

Investor Relations

Annual Report 2025

Sustainability statement,

which at the same time fulfils the requirements for the combined non-financial statement drawn up in accordance

with §§ 289b et seq. and 315b to 315c German Commercial Code (HGB).

Basis for preparation

Governance

Strategy and Business Model

Disclosures regarding the process for materiality

assessment

Disclosures in accordance with Article 8 of the EU

Taxonomy Regulation

Climate Change - ESRS E1

Own Workforce - ESRS S1

Business Conduct - ESRS G1

104

Hannover Re

Report of the Independent German Public Auditor on a Limited

Investor Relations

Annual Report 2025

General Disclosures – ESRS 2

Basis for preparation

General basis for preparation of the sustainability

statement [BP-1]

The present sustainability statement was drawn up in conformity with the

requirements of the Corporate Sustainability Reporting Directive (CSRD

(EU) 2022/2464) in full compliance with European Sustainability Reporting

Standards (ESRS). It covers the period from 1 January to 31 December

2025.

In view of the fact that the European Directive has not yet been transposed

into national German law, the sustainability statement for the 2025 financial

year is published in accordance with the requirements of §§ 315c in

conjunction with 289c to 289e German Commercial Code (HGB) as well as

Article 8 of Regulation (EU) 2020/852 of the European Parliament and of

the Council of 18 June 2020 on the establishment of a framework to

facilitate sustainable investment, and amending Regulation (EU)

2019/2088 (hereinafter EU Taxonomy Regulation), which continue to apply.

The sustainability statement has been reviewed on a voluntary basis with

limited assurance by the auditing firm of PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft, Hannover, in accordance with the audit

standard ISAE 3000 (Revised) (see the section entitled “Assurance

Assurance Engagement in Relation to the Group Sustainability

Statement”).

The sustainability statement constitutes the combined non-financial

statement for the Hannover Re Group and Hannover Rück SE. In its

structure, prioritisation and level of detail, it is geared to the requirements

applicable to the Hannover Re Group and Hannover Rück SE under the

CSRD and the ESRS that are material for the Hannover Re Group as well as

under the EU Taxonomy Regulation. The ESRS are divided into twelve

reporting standards, consisting of two overarching mandatory reporting

standards and ten topical standards that are allocated to the three ESG

pillars (ESG = Environment, Social, Governance) and cover a broad

spectrum of sustainability-related topics. The disclosure requirements are

identified by means of references within the report based on the

paragraphs, MDR (Minimum Disclosure Requirements) and AR

(Application Requirements) of the Commission Delegated Regulation (EU)

2023/2772 (ESRS) and the official EFRAG (European Financial Reporting

Advisory Group) list of data points.

Pursuant to the materiality assessment conducted for the 2025 reporting

year, the following standards are material for Hannover Re and thus form

the basis for the reporting:

– E1 – Climate change

– S1 – Own workforce

– G1 – Business conduct

In addition, general disclosures with respect to the report and materiality

assessment are required by the general standard “ESRS 2”. The materiality

assessment also identified “Data privacy and cyber security” as a material

undertaking-specific non-financial topic. Information in this regard can be

found in the chapter on business conduct (G1). The impacts, risks and

opportunities identified in the context of the materiality assessment in

connection with sustainability matters are identified through numbering (#)

and addressed in the report. A complete overview can be found in the

chapter “Disclosures regarding the process for materiality

assessment”.

[BP-1_5a, b] The sustainability statement was compiled on a combined

basis for the Hannover Re Group and Hannover Rück SE. As a general

principle, the disclosures cover all Group entities within the IFRS scope of

consolidation. This consistent approach within the management report

promotes the comparability of the Hannover Re Group's financial and non-

financial reporting. All Group entities not consolidated in accordance with

IFRS that fall under the operational control of Hannover Re were examined

with an eye to potential positive or negative impacts on sustainability

matters and are considered not to be material for the sustainability reporting

with respect to their informational value for the 2025 reporting year.

Associated greenhouse gases of these undertakings are, however,

disclosed separately from the consolidated group under chapter E1-6 in

accordance with ESRS E1 subsection 50b. For the 2025 reporting year, no

other Group entities of the Hannover Re Group are subject to reporting

requirements under the CSRD. Consequently, no other Group company is

exercising the option to be exempted.

[BP-1_5c] Material aspects and impacts of the upstream and downstream

value chain are included in the reporting:

– The value chain is considered in the materiality assessment.

– Policies, actions and targets incorporate the value chain.

– The GHG balance sheet (see also E1-6) includes material emissions

from both the upstream and downstream value chain.

Disclosures in relation to specific circumstances

[BP-2]

Disclosures regarding reporting obligations under commercial law

[BP-2_15] The sustainability statement was drawn up in accordance with §§

315b to 315c German Commercial Code (HGB) for the Hannover Re Group

and, applying the exemption, for Hannover Rück SE as the Group’s parent

company. It was compiled in full compliance with the ESRS, which qualify

as the reporting framework pursuant to §§ 315c Para. 3 in conjunction with

289d German Commercial Code (HGB). Furthermore, a separate

framework was not used for Hannover Rück SE in accordance with § 289d

German Commercial Code (HGB).

Disclosures based on the Taxonomy Regulation

The sustainability statement fulfils disclosure requirements pursuant to Art.

8 of the Taxonomy Regulation. The disclosures are provided in the chapter

“Disclosures in accordance with Article 8 of the EU Taxonomy

Regulation” as part of the environmental information.

Supplementary disclosures

The policies, actions, targets and metrics described apply to both the

Hannover Re Group and Hannover Rück SE. Diverging frameworks were

not used.

Various constraints should be borne in mind when interpreting the

sustainability statement based on ESRS. The present statement has been

compiled on the basis of requirements from the sector-agnostic ESRS. In

view of the specificity of the financial services and (re)insurance business,

some requirements have only restricted applicability to these sectors and

the informational value of the reporting is therefore limited. In addition, there

are still uncertainties surrounding the interpretation of many ESRS

requirements. Hannover Re has validated its interpretative decisions to the

best of its ability based on its own analyses, with the involvement of external

experts and through dialogue in industry associations. Despite exercising

all due care, however, it cannot be ruled out that opinions on the

interpretation of ESRS will continue to change. To this extent, the

statements are to be considered a snapshot at the time when the report is

Hannover Re

Investor Relations

Annual Report 2025

published and are continuously evolving. The comparability and

interpretability of the results of the non-financial reporting according to the

CSRD will only emerge over time and after market standards have become

established. There are also uncertainties of interpretation regarding the

definition of the value chain as distinct from the company's own operations.

Hannover Re takes own operations to mean the factors required for its

performance such as the employees, the operation of office space and the

associated infrastructure. In line with existing industry practice, the

investments and the original reinsurance activities are not allocated to own

operations but rather to the downstream value chain.

Internal and external data and information as well as – in certain places –

quantitative extrapolations and estimates following a best effort approach

are used to determine non-financial information for the reporting. The

absence of reference values in many instances presented a special

challenge. The availability of external data and reference values is expected

to steadily increase as CSRD reports become more widely available.

Given that the ESRS are fully used for the first time as the reporting

framework pursuant to §§ 315c Para. 3 in conjunction with 289d German

Commercial Code (HGB), comparative information is provided on a

voluntary, basis for selected metrics.

[BP-2_13] During the financial year, methodological adjustments were

made to the calculation of the greenhouse gas balance (E1-6) compared to

the previous year. The figures for the 2024 comparison year were adjusted

accordingly to facilitate improved comparability over time. The adjustments

relate on the one hand to the significance assessment of emissions from

coolant losses. These were categorised as not significant in the year under

review and were therefore not included in the accounting of Scope 1

emissions. The Scope 1 emissions attributable to own operations for the

2024 comparison year were reported as 182,7 tCO₂e lower, primarily due to

the changed significance assessment. On the other hand, emissions

factors of the Department for Environment, Food & Rural Affairs (Defra

emissions factors) will henceforth be used to calculate emissions from

district heating. As a result of the adjustment of the comparative values for

2024, which is mainly due to this changeover, the location-based Scope 2

emissions are reported as 180,1 tCO₂e lower and the market-based Scope

2 emissions as 229,5 tCO₂e higher.

Should a need for correction be identified subsequent to publication, a

restatement will be made in time for the next publication and, in the event of

material divergences, express reference will be made to the correction in

the following report.

[BP-2_10] Estimates and averages for the upstream and downstream value

chain are used in the quantitative reporting for the GHG balance sheet

where real values are unavailable or can only be obtained with very

considerable effort.

In its preparation of the greenhouse gas emissions balance sheet Hannover

Re is guided by the requirements of the Greenhouse Gas Protocol (GHG

Protocol) Corporate Accounting and Reporting Standard as well as the

Partnership for Accounting in Financials Initiative (PCAF). The standards

allow the use of estimates and approximations for accounting purposes if

primary data are unavailable. The accounting methodology under both

standards is subject to a certain imprecision, irrespective of the effort

invested to obtain the data used for calculation. There are a number of

reasons for this, including the variability of the emission factors used. These

are supposed to indicate the quantity of greenhouse gases (generally

measured as CO₂ equivalents) released per unit of a certain activity

parameter (e.g. through the combustion of one litre of fuel). These emission

factors, which are available in varying granularity and from various external

providers, normally constitute an averaged picture of a large number of

variables. Furthermore, a considerable amount of data from complex value

chains is not available or certain processes cannot be measured.

[BP-2_10d] The GHG Protocol recognises the limits of accounting and

recommends regular review of the methods and emission factors to

minimise uncertainty as well as transparent reporting on these

methodological uncertainties and the approximation methods used. GHG

accounting is to be seen as a continuous improvement process in which the

primary focus should be on key emission drivers. The PCAF Standard for

calculating financed emissions similarly recognises that the required

primary data (e.g. reported CO₂ emissions of the investee undertakings or

projects) are frequently unavailable and allows the use of estimates or

sector averages for accounting purposes.

[BP-2_10a] As far as the downstream value chain of the Hannover Re

Group is concerned, disclosures relating to financed emissions pursuant to

the PCAF Standard (Scope 3.15, Investment emissions, see also E1-6) are

subject to estimates and (sector) averages to a particularly high degree.

[BP-2_10b] Such assumptions are made when published metrics are not

available from issuers or can only be obtained with undue effort. Overall, the

methodology behind this accounting is still subject to significant

uncertainties and fails to recognise that Hannover Re, primarily in its

capacity as a lender, can exert only a limited influence on the financed

investments. For reasons associated with the business model, the portfolio

also contains a large proportion of government bonds that cannot be

substituted. Due to their very high carbon intensity, these account for by far

the largest share of the total financed emissions. [BP-2_10c] The resulting

total financed emissions are thus based on both verified information and

estimates. If more accurate data that is relevant for assessment purposes

becomes available at a later date, the corresponding figures for the previous

year will be adjusted.

[BP-2_11] In its quantitative reporting, Hannover Re strives, where possible,

to use real values as at the reporting date. This is especially true of

information on own operations for own-use office space (e.g. energy

consumption figures) and personnel metrics. Hannover Re's highly

decentralised organisation and the varying requirements and standards in

the different countries where it operates nevertheless present challenges

(e.g. different lease arrangements for office premises and the timely

availability of invoices from energy suppliers or travel service providers). In

the initial years of reporting, this entails time-intensive quality assurance

processes, which is why the environmental metrics for own operations (see

E1-5 and E1-6) are extrapolated for the last two months of the year under

review. The extrapolations are determined using reference values from the

previous year in order to allow for seasonal fluctuations in energy

consumption figures or travel patterns. The accuracy of the extrapolations

is thus subject to annual assurance. Assumptions are also made for the

disclosure of greenhouse gas emissions of affiliated non-consolidated

undertakings (see also E1-6) and their energy consumption due to

immateriality. These are based on the average emission intensity and

energy intensity values per employee within the consolidated group.

[BP-2_16] At certain places in the report mandatory disclosures are

satisfied through references to other relevant documents. The following

data points are involved:

Hannover Re

Investor Relations

Annual Report 2025

Information included through reference ¹



Information included through reference	Referenced document	Referenced chapter
ESRS 2 GOV-3, 29b and ESRS 2 E1 GOV-3 subsection 13.	Remuneration report pursuant to Directive 2007/36/EC of the European Parliament and of the Councilä	Variable remuneration components
ESRS 2 IRO-1, 53 in conjunction with ESRS E1, 20 and 21.	Annual Report 2025 Hannover Re Group	Combined management report, Sustainability statement, ESRS E1 - Climate change, Description of the processes to identify and assess material climate- related impacts, risks and opportunities [ESRS 2 IRO-1]

¹References to further disclosures outside the (Group) sustainability statement do not form part of the

ESRS reporting.

Governance

The role of the administrative, management and

supervisory bodies [GOV-1]

[GOV-1_21a] Hannover Rück SE is managed in accordance with the two-

tier governance system of Executive Board and Supervisory Board.

The Executive Board directs the undertaking at its own responsibility; its

members bear joint responsibility. The Executive Board takes all key

decisions in day-to-day business, develops the corporate strategy and

ensures its implementation, including financial planning and risk

management. The work of the Executive Board is coordinated by the Chief

Executive Officer.

[GOV-1_21a, b] The Executive Board was comprised of eight persons at the

reference date of 31 December 2025, all of whom are executive members.

There is no elected employee representation on the Executive Board.

[GOV-1_21d] The percentage of female members of the Executive Board

amounts to 37.5 % based on a breakdown into five men and three women.

The average age on the Executive Board is around 53, with an age range

from 45 to 58. The Executive Board has members of four different

nationalities.

[GOV-1_21a] The Supervisory Board is charged with an oversight and

advisory function. The Supervisory Board is directly involved in decisions of

fundamental importance to the undertaking. One of its central tasks is the

appointment and dismissal of members of the Executive Board. The work of

the Supervisory Board is coordinated by the Chairman of the Supervisory

Board. The members of the Supervisory Board are appointed by the

General Meeting.

[GOV-1_21a, b] The Supervisory Board was comprised of nine persons at

the reference date of 31 December 2025, all of whom are non-executive

members. [GOV-1_21a] Three employee representatives elected by the

responsible representative body currently belong to the Supervisory Board.

[GOV-1_21d] The percentage of female members of the Supervisory Board

amounts to roughly 44 % based on a breakdown into four women and five

men. The average age on the Supervisory Board is 60. The age range is

from 45 to 71. The Supervisory Board has members of two different

nationalities.

[GOV-1_21e] In accordance with the German Corporate Governance Code

(DCGK), the Supervisory Board shall have an adequate number of

independent members on the shareholder side. Four of the six members on

the shareholder side of the Supervisory Board are independent according to

the criteria of the German Corporate Governance Code. This corresponds

to a ratio of roughly 66 %. Note: The recommendation of the German

Corporate Governance Code regarding the independence of Supervisory

Board members refers solely to shareholder representatives (Code Chapter

C “Composition of the Supervisory Board”, Section II “Independence of

Supervisory Board members”, Recommendations C.6-C.12). In line with

the Code, we report solely on the independence of shareholder

representatives with respect to ESRS 2, GOV-1_21e.

[GOV-1_21c, 23a] The Executive Board and Supervisory Board must have

the expertise needed to steer and supervise the undertaking.

Based on their training and professional experience, the members of the

Executive Board have wide-ranging expertise in sustainability topics. The

members of the Executive Board shall at all times demonstrate the

professional fitness required for sound and prudent leadership of the

undertaking. This requires an understanding of the business transacted by

the undertaking as well as the ability to evaluate the resulting risks for the

undertaking within the scope of legal provisions. Insofar as a member has

divisional responsibility, sound theoretical and practical knowledge of this

area is required. In areas outside their divisional responsibility, the member

of the Executive Board must be able to understand and question the

decisions of other Board members in order to fulfil the overall responsibility

of the Executive Board.

For each position on the Executive Board that is to be filled, Hannover Rück

SE draws up a concrete requirements profile as well as an explanation of

the extent to which an envisaged member satisfies this profile. In evaluating

professional fitness, special consideration is given to the following criteria:

– sufficient theoretical and practical knowledge in the areas: insurance and

financial markets, business strategy and business model, governance

system, financial analysis and actuarial analysis, regulatory matters,

internal model,

– insurance-specific knowledge in the fields of risk management and

information technology,

– leadership skills,

– professional qualifications and knowledge (specialist expertise),

– relevant experience in the insurance sector, other financial sectors and

other undertakings (market knowledge),

– language skills and

– analytical understanding.

[GOV-1_21c] Clemens Jungsthöfel has served as the company’s Chief

Executive Officer since 1 April 2025 and in this capacity bears

responsibility, in particular, for the areas of strategy, sustainability,

organisation, information technology, human resources management,

corporate communications, risk management, legal, compliance and

internal audit. His career path includes leadership positions at HDI Global

SE and KPMG, coupled with international professional experience in

London. After training as a certified insurance practitioner, Mr. Jungsthöfel

graduated in economics with majors in tax and auditing. He has passed the

professional examinations to become a tax adviser, auditor and chartered

accountant. Mr. Jungsthöfel served as the Chief Financial Officer of

Hannover Rück SE and E+S Rückversicherung AG until 31 March 2025.

Jean-Jacques Henchoz was Chief Executive Officer until 31 March 2025.

Mr. Henchoz can look back on an extensive career spanning multiple

executive positions in the (re)insurance industry. He has a university degree

in political science and business administration.

The Chief Executive Officer represents the Executive Board and the

company in interactions with the broader public, especially with public

authorities, associations, economic organisations and the media. In

Hannover Re

Investor Relations

Annual Report 2025

addition, he is responsible for coordination of all the divisions and for

coordination with the Supervisory Board.

Sven Althoff is responsible, as a member of the Executive Board, for

worldwide coordination of the Property & Casualty reinsurance business

group. He bears worldwide responsibility for the areas of aviation and

marine, credit, surety and political risks, and quotations as well as regional

responsibility for North America and the United Kingdom, including the

London Market. Mr. Althoff, who has a master’s degree in economics,

brings many years of international expertise in the various areas of property

and casualty reinsurance.

Claude Chèvre bears worldwide responsibility, as a member of the

Executive Board, for coordination of the Life & Health reinsurance business

group. He has regional responsibility for Asia, Latin America, the Middle

East and Continental Europe. Mr. Chèvre has a master’s degree in

mathematics and extensive international professional experience in life and

health reinsurance.

Dr. Christian Hermelingmeier was appointed as Chief Financial Officer of

Hannover Rück SE and E+S Rückversicherung AG effective 1 April 2025.

His responsibilities include asset management, finance, tax and investor

relations. Previous professional roles include most notably leadership

positions at HDI Global SE. Dr. Hermelingmeier holds a master’s degree in

business mathematics and a doctorate in economics.

Brona Magee is a member of the Executive Board for life and health

reinsurance with worldwide responsibility for longevity solutions and

regional responsibility for North America, Bermuda, the United Kingdom

and Ireland. Ms. Magee, who holds a bachelor’s degree in actuarial and

financial studies, has international professional experience in the field of life

and health reinsurance.

Sharon Ooi is a member of the Executive Board for property and casualty

reinsurance with worldwide responsibility for facultative reinsurance and

also regional responsibility for Asia-Pacific markets and Sub-Saharan

Africa. Ms. Ooi has long-standing international experience in property and

casualty reinsurance, especially in the markets of Australia, Asia-Pacific,

Southeast Asia, India, South Korea, Hong Kong and Taiwan. Ms. Ooi holds

a Bachelor of Science degree in cellular and molecular biology.

Silke Sehm is a member of the Executive Board for property and casualty

reinsurance with worldwide responsibility for natural catastrophe business,

structured reinsurance, insurance-linked securities, retrocessions as well

as cyber & digital. Ms. Sehm is an actuary with a master’s degree in

mathematics and has many years of experience in the field of structured

reinsurance.

Thorsten Steinmann is a member of the Executive Board for property and

casualty reinsurance with responsibility for agricultural business worldwide

as well as regional responsibility for Continental Europe, Latin America and

North Africa. Mr. Steinmann holds a postgraduate degree in business

administration and has extensive professional experience as an underwriter

and senior executive in the primary insurance and reinsurance sectors. Mr.

Steinmann additionally serves as Chief Executive Officer of E+S

Rückversicherung AG.

Members of the Supervisory Board must similarly have the knowledge,

skills and professional experience (expertise) needed to properly perform

their tasks. The required expertise encompasses sound industry

knowledge, a basic understanding of the undertaking’s international

business activity as well as specialist and methodological know-how. It

forms the basis for effective supervisory board work. The Supervisory

Board draws up written guidelines that serve as the basis for evaluating the

professional fitness and reliability of the Supervisory Board members.

These guidelines are regularly reviewed and adjusted according to the

latest developments in the undertaking. The competence profile of the

Supervisory Board is published annually in the form of a skills matrix.

In view of his relevant professional qualifications and experience, Mr. Harald

Kayser was designated as an ESG expert on the Supervisory Board in

2024.

Hannover Re

Investor Relations

Annual Report 2025

Skills matrix of shareholder representatives ¹

Haas ²

Kayser

Dr. Kouba

Leue

Dr. Lipowsky ³

Dr. Ollmann

Length of service / member since

2002

2024

2018

2019

Personal suitability

☑

Diversity

Gender

Male

Female

Male

Female

Male

Year of birth

1954

1966

1958

Nationality

German

Czech/Swiss

German

Qualification

Degree in

business

administration

(Diplom-

Kaufmann)

Auditor, tax

consultant

Mathematician/

statistician

Banker, degree in

business

administration

(Diplom-

Kaufmann)

Lawyer

Degree in

business

administration

(Diplom-

Kaufmann)

Expertise / professional qualification

Investment management

☑

Insurance technology

☑

Financial accounting / auditing

☑

Internationality

☑

M&A

☑

Risk management

☑

Compliance

☑

Personnel

☑

IT / digitalisation

☑

ESG / sustainability

☑

Internal model

☑

¹ Evaluation based on self-assessment. A tick for a subject area in the skills matrix corresponds to a rating of at least B (“sound” or “good” knowledge) on a rating scale from A to E.

² Pursuant to Section 100 (5) AktG, possesses expertise in the area of annual auditing (“financial expert”)

³ Pursuant to Section 100 (5) AktG, possesses expertise in the area of annual auditing (“financial expert”)

[GOV-1_23a] Both the Executive Board and Supervisory Board have

access to a wide range of internal and external training opportunities. A

need for training is ascertained at various points in time, for example in

connection with onboarding, the identification of new subject areas or if

requested by individual members. The costs of external training are

generally borne by the company.

[GOV-1_23b] The ESG governance structure approved by the Executive

Board encompasses the “Sustainability Function”, the “ESG Management

Team” (ESGMT) and a supporting “ESG Expert Network”. The ESG

governance structure ensures that the Executive Board and Supervisory

Board can access qualified employees regarding all matters assessed as

material. The matters identified as material in the context of the materiality

assessment are presented to the Executive Board and the ESGMT.

[GOV-1_22a] Overall responsibility for adequate handling of the impacts of

business activity, risks and opportunities rests with the Executive Board.

The Supervisory Board is entrusted with an advisory and monitoring role

and examines the sustainability statement.

[GOV-1_22a, d] The Executive Board systematically identifies and

assesses the risks and opportunities for the undertaking associated with

social and environmental factors as well as the ecological and social

impacts of the business activity. The corporate strategy considers not only

long-term economic goals but also ecological and social goals. Similarly,

the company’s planning includes corresponding financial and sustainability-

related targets.

As the management body, the Executive Board is actively involved in the

determination of sustainability goals. It discussed and approved both the

Group Strategy 2024–2026 and the Environmental Strategy. The Executive

Board receives half-yearly progress updates on the strategy from Group

Strategy & Sustainability. Decision papers are also submitted to the

Executive Board throughout the year on various sustainability topics which

consider material impacts, risks and opportunities, among other things.

[GOV-1_22a, d, 23] The Supervisory Board is tasked with monitoring and

considering developments relating to sustainability. The Chief Risk Officer

(CRO) regularly updates the Supervisory Board on the undertaking’s risk

situation. The Supervisory Board also fulfils its monitoring role with respect

to the sustainability statement. The Finance and Audit Committee of the

Supervisory Board monitors the accounting process, the effectiveness of

the internal control system, the risk management and the internal audit

system. It also deals with matters relating to compliance and the information

system on behalf of the Supervisory Board. The Finance and Audit

Committee oversees the auditing of the annual financial statement and the

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consolidated financial statement. It is also responsible for monitoring the

independence of the auditor and the additional services performed by the

auditor.

[GOV-1_22b, c] The Executive Board is supported by various committees.

They include the Risk Committee, which relieves the Executive Board of the

workload associated with risk monitoring. The Risk Committee informs the

Executive Board once a quarter about material risks in the context of risk

reporting. As part of this reporting, risk assessment is also carried out on

the basis of risk indicators. Numerous scenarios are considered in

connection with risk management, including extreme loss scenarios. The

Executive Board, the Risk Committee and the Non-Life Executive

Committee are updated regularly. The Risk Committee reviews the risk

position and the numbers presented quarterly and assigns further tasks to

the Risk Management function in the form of actions. In addition, the risk

reports are submitted to the Executive Board for approval. This reporting

also highlights to the Risk Committee, the Executive Board and the

Supervisory Board the undertaking’s ESG impact through key indicators,

risks and opportunities (e.g. through information on new products). The

results of the analyses are also incorporated into the annual ORSA report,

which is similarly checked by the Risk Committee, then approved by the

Executive Board and brought to the attention of the Supervisory Board.

Among other things, the undertaking explores at length here the subject of

climate change. In addition, ESG risks and compliance risks, which also

involve inter alia legislation and regulations on environmental law and ESG

requirements, are reviewed for example within the scope of every New

Product Process (NPP). The Executive Board assumes responsibility for

managing risks and opportunities.

Hannover Re has a Sustainability Policy as well as a Risk and Capital

Management Policy that address impacts, opportunities and risks and are

applicable Group-wide.

[GOV-1_22c i] The interdisciplinary ESGMT updates the Executive Board

half-yearly on relevant developments relating to ESG topics. The team also

observes the impacts, risks and opportunities relating to ESG topics from

an interdisciplinary perspective and advises the Executive Board on any

actions that may be needed. The Executive Board updates the Supervisory

Board several times a year through various formats. The Chief Risk Officer

also reports to the Supervisory Board in the meetings on specific topics in

risk management. This also includes the risk category of sustainability, for

example in the context of climate change in general and especially natural

catastrophe risks.

All reporting requirements are clearly defined at Hannover Re. The

Executive Board reports back to the Supervisory Board on a regular basis.

These reports include an assessment of the current risk and opportunity

situation as well as an evaluation of the effectiveness of initiated actions.

The Supervisory Board reviews these reports to ensure that the

management of the undertaking adequately responds to risks and

effectively uses opportunities.

[GOV-1_22c ii, iii] A more detailed description of the major elements of the

internal control system (ICS) and risk management system (RMS) is

provided in the opportunity and risk report. At Hannover Re, the adequacy

and effectiveness of the ICS and RMS are reviewed and evaluated primarily

through the following actions:

– regular and systematic risk identification, analysis, assessment, steering

and monitoring, including risk reporting,

– a permanent improvement cycle of plan-do-check-act in relation to the

RMS/ICS, including continuous monitoring and the elimination of

vulnerabilities identified in the RMC/ICS,

– regular review of the controls established in processes by the process

owners in the context of an annual self-assessment,

– review of the controls in information security processes by the unit led by

the Chief Information Security Officer,

– evaluation of controls, policies and processes relating to operational

risks conducted annually in a self-assessment by expert groups,

– annual assessment of the ICS and the RMS by a committee set up to

evaluate the governance system,

– an independent assessment of the adequacy and effectiveness of

implemented actions, including compliance-related controls, carried out

as part of the continuous conduct of compliance monitoring procedures

as well as

– in the context of regular audits conducted by the Internal Audit function

in relation to the ICS and RMS.

In connection with the aforementioned extensive actions, the Executive

Board did not become aware of any circumstances in the reporting period

that overall would argue against the adequacy and effectiveness of the ICS

and RMS. Identified vulnerabilities were delegated to the responsible units

for processing. Risk reporting provides systematic and timely information

about all material risks and their potential impacts. The central system of

risk reporting consists primarily of regular risk reports. The regular reporting

is supplemented, as needed, by internal immediate reporting on material

risks emerging at short notice. The Executive Board thus has a constant

overview of the undertaking’s risk profile and can manage it by taking

actions. Consistent communication takes place between Risk Management

and the Executive Board with regard to the defined, monitored risk

categories. The Supervisory Board is informed accordingly about the risk

situation on the basis of this data and can review specific risks and actions

or require individual analyses.

The ESGMT advises the Executive Board on sustainability matters. In

addition to regulatory developments, this also encompasses strategic

issues and the coordination of overarching topics. This also includes

impacts and opportunities.

[GOV-1_22d] The quarterly risk report provides the Executive Board with an

overview and metrics regarding the risk position, which also extend to

sustainability topics. Risk Management has defined key indicators

regarding the level of risk within the reputational hazard and metrics for

operations with regard to environmental matters, which it reports regularly

to the Executive Board. In this way, the Executive Board uses the

opportunity - through continuous improvement of the metrics and a good

reputation - to tap into new customer groups and at the same time optimise

own ecological impacts. Similarly, hazards from environmental risks, such

as climate change, are considered as part of the quarterly reporting to the

Executive Board. The focus here is on the reinsurance of natural perils,

accumulation control and scenario analyses. The opportunities that are to

be acted on in connection with protection against natural perils, or indeed

the development of (re)insurance solutions for renewable energy risks or

carbon reduction technologies, for example, form part of the strategy

development. Such goals go hand in hand with risk limits, which are

documented in the risk report.

Information provided to and sustainability matters

addressed by the undertaking’s administrative,

management and supervisory bodies [GOV-2]

[GOV-2_26b, c] Every three years, the Hannover Re Group revises its

strategy to ensure the sustainable success of its business. The strategy for

2024–2026 is entitled “Staying Focused. Thinking Ahead.”. Beyond

financial targets, the ambition of the Group Strategy also encompasses

economic and environmental targets, together with strategic goals related

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to employee engagement. The Executive Board receives half-yearly

information from Group Strategy & Sustainability on progress towards

achieving the strategy, as well as decision papers throughout the year on

various sustainability topics. In the year under review, it validated the

materiality assessment (see section SBM-3).

[GOV-2_26a] The Supervisory Board similarly considers sustainability

topics. The Supervisory Board, the Finance and Audit Committee and the

ESG expert on the Supervisory Board engaged with sustainability matters

in the year under review, including, among other things, the findings of the

materiality assessment. They also received information on regulatory

developments. Furthermore, the Chief Risk Officer reported to the

Supervisory Board and the Finance and Audit Committee on risk topics,

including natural catastrophe risks. Through its annual review of the

sustainability statement, the Supervisory Board additionally engages with

the material impacts, risks and opportunities. A complete, numbered

overview of the identified material impacts, risks and opportunities in

reinsurance business is provided in the table “Identified material impacts,

risks and opportunities”.

Integration of sustainability-related performance in

incentive schemes [GOV-3]

[GOV-3_29a] The remuneration of the Executive Board is geared to publicly

communicated financial and non-financial targets, as well as the

shareholder return, and thereby promotes the sustainable and long-term

development of the Group.

The system of remuneration, which is in line with statutory and regulatory

requirements as well as the recommendation of the German Corporate

Governance Code (DCGK), establishes the basis for the Supervisory

Board’s determination of the total remuneration paid to each member of the

Executive Board. In addition to the regular adoption of a resolution by the

Annual General Meeting on approval of the remuneration system, the

shareholders can also address questions and comments about the

remuneration of the members of the Executive Board to the undertaking

annually at the Annual General Meeting in connection with the presentation

of the remuneration report and take a consultative vote on the remuneration

report (“say on pay”).

The members of the Executive Board receive a fixed and variable

remuneration component as part of their direct remuneration. In order to

include an appropriate focus on performance, the target direct remuneration

is made up of 40 % fixed remuneration and 60 % variable remuneration

components. The latter are comprised of a short-term and long-term

component, and they reflect in particular the degree of target attainment for

the respective financial year. [GOV-3_29b] In order to determine an

individual premium or deduction of -25 % points to +25 % points in

connection with the variable remuneration, the Supervisory Board defines

target criteria and metrics in advance for the coming financial year for each

individual member of the Executive Board,which also include sustainability

goals.

Where sustainability issues are concerned, higher-level targets have been

defined with respect to social and environmental topics that are in

accordance with the Group Strategy 2024–2026 and the underlying

Environmental Strategy. On the ecological side, every effort is made to

refine and execute the Environmental Strategy. For further information on

the Environmental Strategy, we refer to the chapter E1-4 (Targets related to

climate change mitigation and adaptation). [GOV-3_29c, e] With regard to

environmental matters, a target has been set for the Carbon Disclosure

Project (CDP) rating that is defined as "Management level". In addition, a

target has been set in the social sphere with respect to the topic of

leadership/engagement, which is measured by the Engagement Index

(annual employee survey).

The sustainability-related targets are considered to be guideline values in

determining target attainment for the Executive Board; specific quantitative

sustainability-related performance criteria are not defined as targets for the

remuneration of the Executive Board. The conversion of qualitative

assessments regarding fulfilment of sustainability criteria to an overall

percentage for attainment of all target criteria takes the form of the

Supervisory Board’s exercise of due discretion. [GOV-3_29d] On account

of the existing remuneration structure, it is not possible to make a

mathematically precise determination of the proportion of variable

remuneration dependent on sustainability- or climate-related targets or

impacts.

[GOV-3_29a-e] The members of the Supervisory Board receive the fixed

remuneration defined by the Annual General Meeting in accordance with

the Statute, the amount of which varies according to the function performed

on the Supervisory Board and the membership of Supervisory Board

committees. In view of the oversight role performed by the Supervisory

Board, the remuneration of the Supervisory Board is not linked to any target

attainment and does not include any variable remuneration components.

Further information on the remuneration of the Executive Board and

Supervisory Board is provided in the remuneration report; the specific

sustainability targets of the members of the Executive Board are included

there in the table on individual targets and target attainment of the members

of the Executive Board in the subsection Short-Term Incentive (STI).

Statement on due diligence [GOV-4]

[GOV-4_30, 32, AR8-10] In the following table, Hannover Re provides an

overview of the information contained in its sustainability statement on the

procedure for fulfilment of due diligence.

Information on the due diligence procedure



Core elements of due diligence		Paragraphs in the sustainability statement
Embedding due diligence in governance, strategy and business model		ESRS 2 GOV-2 ESRS 2 GOV-3 ESRS 2 SBM-3
Engaging with affected stakeholders in all key steps of the due diligence		ESRS 2 GOV-2 ESRS 2 SBM-2 ESRS 2 IRO-1 ESRS 2 MDR-P Topic-related ESRS
Identifying and assessing adverse impacts		ESRS 2 IRO-1 incl. IRO-1 in topic-related ESRS ESRS 2 SBM-3
Taking actions to address those adverse impacts		ESRS 2 MDR-A Topic-related: Actions and transition plans
Tracking the effectiveness of these efforts and communicating		ESRS 2 MDR-M ESRS 2 MDR-T Topic-related ESRS metrics and targets

Risk management and internal controls over

sustainability reporting [GOV-5]

[GOV-5_36a, b] All risk-related processes are governed by the risk

management process and an internal control system (ICS), which are

applicable Group-wide. Risk assessment and prioritisation takes place

using the risk management system on a consistent Group-wide basis and is

communicated and applied worldwide through the Risk and Capital

Management Policy. Qualitative assessment of the risk management

systems is conducted, for example, through an annual maturity evaluation

in workshops.

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In preparation for the compilation of the sustainability statement, the

reporting process was refined to meet the increased requirements with

respect to data quantity, data quality and depth of information. In this

connection, processes were implemented in the internal process

management tool, in which roles, controls and reviews are embedded.

[GOV-5_36c] Any type of reporting is identified as a potential risk inasmuch

as individual report contents may not be accurately reported. Within the risk

landscape, this risk is allocated to the operational risks as a business

process and data quality risk. Sustainability management, including

sustainability reporting, is listed as an explicit element of the internal control

system in the corresponding Group-wide guideline and is therefore subject

to mandatory control.

The most important identified risks in connection with sustainability

reporting include incorrect or delayed data deliveries, misinterpretations of

metrics or processes, as well as incomplete data from the upstream or

downstream value chain. Hannover Re addresses the identified potential

risk through a number of process-integrated individual control measures.

These mitigation strategies encompass, among other things, plausibility

checks, the principle of checks made by multiple pairs of eyes and deadline

management. The sustainability statement is subject to quality controlling

by two members of staff in the Group Risk Management division prior to

publication.

Hannover Re uses an authoring system that documents workflows to

prevent unauthorised inputs. Reports are compiled by qualified employees

with assigned roles. All inputs are stored with approvals, enabling controls

to be systematically implemented and documented.

Where quantitative information is concerned, Hannover Re is governed by a

Group-internal reporting manual of the parent company Talanx. This

reporting manual defines requirements for quantitative data, describes

every KPI and its collection, and ensures that everyone involved proceeds

in a consistent manner.

[GOV-5_36d, e, AR_11] The Executive Board and Supervisory Board are

informed at least annually of material developments and outcomes in the

sustainability reporting.

Strategy and Business Model

Strategy, business model and value chain [SBM-1]

[SBM-1_40ai, ii] Hannover Rück SE is a European Company, Societas

Europaea (SE), based in Hannover, Germany. With reinsurance revenue of

around EUR 26.8 billion, it is one of the largest reinsurers in the world.

Established in 1966, the Hannover Re Group today is comprised of

numerous subsidiaries, branches and representative offices worldwide and

serves major markets in Europe, the Americas, Africa, Asia and the Middle

East with its products. Business partners and clients from the primary

insurance sector around the world are offered traditional, bespoke and

innovative reinsurance solutions through a global network. Property and

casualty reinsurance – the protection of assets and claims – and life and

health reinsurance – the protection of natural persons – are the primary

business activities (NACE Code K65.2.0). Further information on the major

markets in which Hannover Re operates, can be found in the section of the

combined management report entitled “Results of operations”.

[SBM-1_40aiii] In addition to its main location in Hannover, Hannover Re is

present on all continents and employs altogether more than 4,000 staff. The

geographical breakdown of the workforce is provided in the table

“Employees by contract type, broken down by region”.

Group Strategy 2024–2026 – Staying Focused. Thinking Ahead.

[SBM-1_40e, f, g] The strategy cycle at Hannover Re spans three years.

The Group Strategy 2024–2026 “Staying Focused. Thinking Ahead.”

centres on industry-leading performance in terms of profitability and

earnings growth, reliable economic value creation, as well as an attractive

dividend. Hannover Re’s capital strength is another strategic criterion.

Along with these financial targets, the ambition set out in the Group

Strategy also includes strategic targets in relation to employee engagement

and environmental stewardship.

The Corporate Level Strategy is concretised and supported by various

Business Level Strategies. Of particular relevance to major sustainability

matters are the Environmental Strategy and the People & Culture Strategy.

These operationalise action fields and measures in relation to the most

important sustainability goals and challenges. The Group Strategy thus

addresses not only the interests of customers and investors, but also those

of employees, society and other key Hannover Re stakeholders. From an

overarching perspective, the focus of environmental sustainability is on

progressive decarbonisation of the reinsurance and investment portfolios,

as well as on promoting societal resilience in the face of the growing

impacts of climate change. The People & Culture Strategy highlights the

importance of employees for Hannover Re’s business success and

specifically addresses the well-being of employees, a performance-

enhancing work environment free of discrimination and increased

attractiveness as an employer to secure future talent on the labour market.

Description of the business model and value chain

As a globally operating reinsurer, Hannover Re takes on a key role in

ensuring the stability and resilience of the international insurance market.

Value is created through the systematic assumption, analysis, assessment,

management and diversification of risks in the areas of property & casualty

and life & health reinsurance. These activities serve to provide financial

protection against risks and create added value for clients, investors and

other stakeholders.

[SBM-1_42a] Hannover Re’s major inputs are risk data and capital. Risk

data are obtained through cooperation with primary insurers and brokers as

well as through internal and external data sources and are subject to

continuous analysis in order to ensure precise risk assessment. The capital

structure is made up of the technical provisions and liabilities, including the

contractual service margin and the risk adjustment for non-financial risk, as

well as the shareholders’ equity. Hannover Re is committed to rigorous risk

management processes, investments in digital analysis tools and the

ongoing enhancement of its employees’ know-how in order to secure these

inputs on a lasting basis.

[SBM-1_42b] Hannover Re’s main outputs are reinsurance protection,

financial security and tailored solutions for complex risks. Capital is used to

cover these risks. Customers benefit from improved risk-carrying capacity,

stable premium structures and a partner that remains financially capable of

acting even in extreme situations such as natural disasters or pandemics.

Investors receive a return, supported by a diversified business model and a

solid investment policy. Society benefits from the promotion of insurance

solutions that ensure social and economic stability in various regions of the

world.

[SBM-1_42c] The upstream value chain encompasses actors and

processes that prepare the reinsurance process. Along with primary

insurers, these also include capital providers that make available financial

resources for business activity and risk coverage, brokers that mediate

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reinsurance solutions between primary insurers and Hannover Re, as well

as service providers and suppliers of operating resources. In addition,

reinsurance partners, so-called retrocessionaires, play an important role by

assuming parts of the risks and thereby contributing to diversification of the

portfolio. The downstream value chain encompasses the settlement of

claims and investing activities. Hannover Re is active worldwide in various

market segments and continuously adjusts its business model to the

dynamic requirements of the global risk landscape.

Interests and views of stakeholders [SBM-2]

[SBM-2_45ai, b] Understanding and considering the interests and views of

key stakeholders forms the basis for Hannover Re's sustainable business

success. Hannover Re's most important stakeholders include its customers

and brokers, investors, employees, regulators and financial supervisory

authorities, as well as civil society. A continuous dialogue is held with these

stakeholders on a wide range of levels and on an ongoing basis.

[SBM-2_45aiii, b] What matters here are not only institutionalised dialogue

formats, but also the various forms of contact with different stakeholders in

everyday operations – e.g. in direct discussions with clients. In the highly

professional B2B world of a reinsurer, individual needs are regularly

explored and form part of the strategy and product development process.

Employees are similarly able to raise issues with the company at any time

through various channels (such as annual employee surveys) and are

directly involved in business decisions through employee representative

bodies. Another relevant dialogue channel is through membership of

industry associations and participation in initiatives in which a range of

stakeholders regularly come together, e.g. lawmakers, NGOs and various

market players. As a capital market-oriented undertaking, investor

concerns are also a pivotal success factor. To this end, Hannover Re

regularly engages directly with investors on matters including sustainability

and ESG and participates in a number of established ESG ratings that cater

to the capital market's information requirements. The regularly conducted

materiality assessments consider the views of stakeholders (see also

chapter IRO-1).

[SBM-2_45bav, ci] The Group Strategy for 2024–2026 considers these

views and specifically picks up on major expectations in the Corporate

Level Strategy and further resulting Business Level Strategies, which

provide additional granularity for individual functional and business areas.

Thus, for example, major expectations of employees constitute central

action fields of the People & Culture Strategy, while societal and legislative

expectations around progressive decarbonisation are factored into the

Environmental Strategy. [SBM-2_45ciii] Given that the Group Strategy

2024–2026 confirms the core elements of the business model, the

relationship to stakeholders is not expected to change significantly as a

consequence of this Group Strategy.

[SBM-2_45cii] The Group Strategy is developed continuously in light of

strategic analysis, making allowance for the views of key stakeholders.

Insights into expectations that are obtained through various dialogue

formats are incorporated into the definition of strategic targets and the

elaboration of strategic concentrations. This ensures that proposed

strategic actions are harmonised with long-term corporate objectives and

stakeholder interests. [SBM-2_45d] The Executive Board and Supervisory

Board, as central control bodies, are closely involved in the strategy

development process. The Executive Board also validates the results of the

materiality assessment. The Supervisory Board and the Finance and Audit

Committee are informed of the findings.

Material impacts, risks and opportunities and their

interaction with strategy and business model

[SBM-3]

[SBM-3_48a] In conformity with CSRD requirements, a validation of the

materiality assessment was carried out in the year under review (for further

information the reader is referred to the chapter “Disclosures regarding

the process for materiality assessment”). [ESRS-2_AR17] In this

context, the Hannover Re Group identified impacts as well as potential risks

and opportunities in connection with climate change, its own workforce and

the conduct of business. The IROs (Impacts, Risks, Opportunities)

identified in connection with climate change are concentrated primarily on

global core business in the downstream value chain, while IROs connected

with the undertaking’s workforce and business conduct relate to own

operations. Generally speaking, the findings confirm the materiality

assessment of prior years. [SBM-3_48g] No major changes were identified

in relation to previous reporting periods. In addition, individual impacts, risks

and opportunities were further specified and, as appropriate, consolidated.

Individual positive impacts were also classified as actions against potential

negative impacts. Furthermore, anti-competitive behaviour was categorised

as a non-material matter.

[SBM-3_48b] Hannover Re has recognised its impacts, risks and

opportunities in connection with sustainability matters for many years and

pursues longer-term policies and actions as part of its strategic orientation

to reduce negative impacts, reinforce positive impacts, minimise risks and

systematically leverage business opportunities. This also includes regular

voluntary and statutory reporting to satisfy the information needs of a wide

range of stakeholders. In connection with climate change, for example,

mention should be made of various policies that actively reduce the

exposure to business partners and investments related to fossil fuels and

thereby directly influence our business model. In addition, protecting

against customers' physical climate risks forms part of a reinsurer's

business model, which is why such risks are deliberately assumed but

closely controlled and managed (see also “Current and expected financial

effects”). Impacts, risks and opportunities connected with the company's

own workforce or business conduct are not associated with the business

model because every company seeks to attract the best possible talent and

people to be successful. This is supported by a positive, non-discriminatory

and legally compliant work environment and a favourable external

perception, justifying the strategic actions taken by Hannover Re as

described in chapters “Own workforce – ESRS S1” and ”Business

conduct – ESRS G1”.

Impacts

[SBM-3_48ci-iv] Hannover Re's material impacts in connection with climate

change are associated with the business model and, on the one hand,

positively affect people and society inasmuch as resilience to catastrophic

events is increased through reinsurance protection, or sustainable business

models and the energy transition are promoted through targeted

investments or reinsurance protection. On the other hand, financial services

such as reinsurance protection or investments encourage negative effects

on climate change because many different economic activities are

connected with greenhouse gas emissions. The impacts are therefore more

indirect in nature and occur in the downstream value chain. [ESRS-2_AR17]

The impacts are not time-limited overall and can occur at any time and

anywhere Hannover Re operates. Positive impacts on the company's own

workforce (e.g. through a modern and performance-enhancing work

environment) affect people directly and are supported by strategic actions,

but are not specific to the business model. Negative impacts are potential in

nature and occur if actions do not prove successful or if Hannover Re is

unable to create a positive work environment for all employees.

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Current and expected financial effects

[SBM-3_48e, f] In the context of the materiality assessment, risks and

opportunities were identified that could have short-, medium- and long-term

implications for the company's financial position, performance or future

business prospects. In connection with climate change, these are in

particular short-, medium- and long-term physical as well as long-term

transition climate risks for reinsurance activities or investments. The

identified risks of anti-competitive behaviour, from incidents of corruption

through breaches of data privacy to cyber attacks (these involve identified

undertaking-specific risks), similarly entail the risk of diminished demand

and lost customers due to reputational damage. This can result in lost

revenue in the short term and a weakened market position over the long

term. In relation to its own workforce, the competition for talent has potential

financial implications for the Hannover Re Group over the long term.

Increased personnel expenditures, recruitment costs and retention costs

can prove a drag on profitability over the longer term if Hannover Re is

unable to be seen as an attractive employer. For this reason, Hannover Re

regularly evaluates its strategic human resources activities in order to

maintain long-term resilience in the face of these risks and preserve

business opportunities (see also chapter S1). It is currently impossible to

put a more precise number on the financial impacts because they are

dependent on a range of unforeseeable factors that are difficult to quantify.

[SBM-3_48d] Although these risks are potentially material, they caused no

material financial impacts on the undertaking's assets, financial position

and net income in the reporting period. The loss expenditure due to events

influenced by climate change was within the anticipated budget in the

reporting period. As already described, the business model of a reinsurer is

explicitly geared to taking on and protecting against short-term risks

connected with losses from climate-related natural disasters. If these risks

are not adequately managed, the risk exists in principle that they can impact

the assets and net income in the coming reporting period. Details of the

extensive risk management processes put in place in this regard can be

found both in the chapter “Climate change – ESRS E1” and in the

“Opportunity and risk report”. Among other things, they include

information on long-term scenario analyses in order to make allowance in

risk management for expected medium- and long-term developments due

to climate changes. The Hannover Re Group continuously tracks the

development of these risks and opportunities and has established internal

processes to evaluate and manage their potential impacts. Actions were

taken inter alia with respect to pricing for climate-influenced natural

disasters such as floods and heavy rainfall.

Resilience of the strategy and business model

[SBM-3_48f] As a global reinsurer, the consequences of climate change are

a particularly relevant topic for the future resilience of the business model

because they influence business activities in all areas: in property and

casualty as well as life and health reinsurance and on the investing side. At

the same time, the impacts of climate change constitute the most significant

sustainability risk for Hannover Re and are therefore closely analysed,

monitored and managed.

[ESRS-2_AR17] Hannover Re draws up detailed business planning for each

subsequent year and an aggregated business outlook for the following four

years. The business planning and outlook include assumptions regarding

the run-off of existing business and assumptions regarding future new

business and new investments. The planning horizons are guided by,

among other things, the length of customary market cycles and market

changes following large natural catastrophes. The period covered by the

business planning is thus consistent with the short-term time horizon for

identification of climate risks, and the medium-term business outlook is

consistent with the corresponding medium-term time horizon for

identification of climate risks. Due to the dynamic pace of market changes,

there is no outlook for business figures beyond a 5-year timeframe. The

capital allocation is determined in each case for the coming year based on

market cycles and business dynamics.

Strategic risks exist in the event that the insurability of risks is influenced

over the long term by climate change, for example if (re)insurance

protection can no longer be provided for buildings in certain parts of the

world due to increased natural catastrophe risks. Hannover Re is therefore

also committed to the expansion of risk-mitigating actions, e.g. in the form

of water and fire protection management.

[SBM-3_48h, 49] The material impacts, risks and opportunities and their

interaction with strategy and business model are specifically addressed in

the corresponding material topic-related ESRS on E1, S1 and G1. A

complete list of the identified matters is also provided in the table

“Identified material impacts, risks and opportunities”.

Disclosures regarding the process for

materiality assessment

Description of the process to identify and assess

material impacts, risks and opportunities [IRO-1]

[IRO-1_53a] As part of Hannover Re's materiality assessment, a structured

process is used to identify and evaluate material impacts, risks and

opportunities. This assessment follows the principle of “double materiality”

and considers both the impacts of the undertaking’s business activity on the

environment and society, and the financial risks and opportunities

associated with sustainability matters for the undertaking.

The process is divided into two stages. In accordance with the EFRAG

Materiality Assessment Implementation Guidance, No. 170, Hannover Re

conducts an annual trigger analysis to check whether significant changes

(triggers) have occurred that make it necessary to conduct an entirely new

materiality assessment. If no material triggers have occurred, a validation of

the last materiality assessment is carried out.

The trigger analysis considers, among other things, significant changes

affecting key stakeholders, the business model, the strategy, the product

portfolio and the sustainability-related risk inventory. In addition, peer group

comparisons, desk research analyses and a quantitative portfolio analysis

are carried out. Based on the outcome of the trigger analysis, a validation of

the entire materiality assessment for the year 2024 was carried out for the

2025 reporting year.

The difference compared to the complete materiality assessment lies in the

fact that within the scope of validation the impacts, risks and opportunities

identified as material in the previous assessment are reassessed. At the

same time, it is checked whether additional matters should be included or

removed in light of new information or external developments. In addition,

individual impacts, risks and opportunities are further specified and, as

appropriate, consolidated in accordance with the disclosures under

subsection 48g.

Irrespective of the outcome of the trigger analysis, Hannover Re conducts a

complete materiality assessment at the latest every three years.

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The materiality assessment is supported by qualitative and quantitative

methods. A key element of the methodology is the involvement of

stakeholders to ensure that the assessment of material topics is based on a

comprehensive understanding of different perspectives. Internal

stakeholders are included in the process through workshops. External

stakeholders are represented by internal stakeholders in accordance with

ESRS 1 AR8.

Impacts, risks and opportunities consider both the topic and the sub-topic

levels. In the context of the materiality assessment, impacts, risks and

opportunities that consider topics, sub-topics and sub-sub-topics are

grouped on the level of sub-topics pursuant to ESRS 2 AR18. This ensures

an aggregated assessment within the sub-topics.

The qualitative assessment of impacts, risks and opportunities takes place

in the context of topic-specific workshops. The results are quantified using a

scoring model on the basis of predefined criteria.

In addition, Hannover Re draws on external data sources to assess

impacts. These quantitative analyses supplement the qualitative

assessments.

Impacts

[IRO-1_53b] Hannover Re's process for determining, assessing, prioritising

and monitoring potential and actual impacts on the environment and society

is based on a comprehensive approach.

The process begins with the systematic recording of potential and actual

impacts on the environment and society along the undertaking's value

chain. Consideration is given both to the company's own business activities

and to indirect impacts from business relationships (e.g. suppliers,

customers and investments). The impacts are determined through a

combination of internal and external data sources, such as stakeholder

surveys, data from risk management, and external data sources such as the

UNEP-FI impact mappings for assessment of the investment portfolio.

Quantification of the qualitative assessments of impacts is based on the

following scoring model:

– Actual negative impacts are scored based on the degree of severity

(scale, scope and irremediability).

– Potential negative impacts are additionally supplemented by the

likelihood of occurrence, although severe impacts – especially in relation

to human rights – can be categorised as material even if the likelihood of

occurrence is low.

– Positive impacts, both actual and potential, are scored according to their

scale and scope. Potential positive impacts are additionally scored

according to their likelihood of occurrence.

In this context, impacts are considered without regard to planned mitigating

or supporting measures.

This produces a materiality score which integrates both qualitative

evaluations and quantitative assessment factors (especially quantitative

analysis of the investment portfolio).

The assessed impacts are prioritised on the basis of the materiality score.

Prioritisation takes place both on the level of environmental and social

impacts. Impacts that exceed a materiality threshold are categorised as

material and included in the reporting.

Monitoring takes the form of regular updating of the assessment in the

context of the annual materiality assessment.

[IRO-1_53bi] Hannover Re's primary value creation activities, namely

underwriting and investing, form a special focus in the materiality

assessment because it is here that the most significant potential and actual

impacts on the environment and society can occur.

– Underwriting: Sustainability-related impacts arise in particular in areas

such as the coverage of industries with a high environmental burden

(especially in connection with fossil fuels). Given the increased risk here

of negative environmental impacts, corresponding underwriting

decisions in the Facultative Division are examined particularly closely.

– Investing: Investments in certain sectors or regions, such as in polluting

industries or in countries with weak environmental and human rights

laws, are monitored particularly closely. The focus here is on avoiding

negative social or environmental impacts through the investments made

by Hannover Re.

[IRO-1_53bii] In its determination and assessment of impacts, Hannover Re

considers both direct impacts from its own business activities and indirect

impacts along the value chain. This includes, in particular, underwriting and

investing activities, in respect of which potential and actual environmental

and social impacts are systematically recorded using the standardised

assessment and scoring process of the materiality assessment.

[IRO-1_53biii] Affected stakeholders are systematically included in the

assessment process to ensure a balanced understanding of the actual and

potential impacts.

The stakeholders include both internal actors, such as employees, and

external actors such as business partners and representatives of civil

society. Inclusion is achieved through workshops held with internal

stakeholders, taking into consideration external stakeholder perspectives in

accordance with ESRS 1 AR8. The insights are incorporated directly into

the qualitative evaluation and prioritisation of sustainability-related impacts.

[IRO-1_53biv] Negative and positive impacts are systematically evaluated

and prioritised as part of Hannover Re’s materiality assessment.

Positive and negative impacts are prioritised according to their degree of

severity and probabilities of occurrence. The degree of severity is derived

from the factors scale and scope. The factor irremediability is additionally

considered for negative impacts.

– Scale: This describes the intensity of impacts on the environment and

society.

– Scope: The scope refers to the reach of impacts.

– Irremediability: This factor assesses the extent to which negative

impacts can be reversed or alleviated.

Scale, scope and irremediability are scored on a scale of 0 (minimal) to 5

(high). Given that irremediability is not scored for positive impacts, the

values for the scale and scope are multiplied by a factor of 1.5 to obtain a

consistent materiality score for positive and negative impacts. The sum of

the scores produces the degree of severity of the impact, which can be

between 1 (minimal) and 15 (critical).

In the case of potential impacts, the probability of occurrence is additionally

scored and ranges from 0.65 (very low) to 1 (highly likely). The product of

the degree of severity and probability produces the materiality score for the

respective impact. Positive and negative impacts are categorised as

material if the materiality score reaches 8 or more.

Risks and opportunities

[IRO-1_53ci] The interrelationships between the undertaking's impacts and

its dependencies with respect to the environment and society, as well as the

associated risks and opportunities, are extensively considered. Double

materiality is applied, addressing both the impacts of the undertaking on

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external actors (environment and society) and the impacts of external

factors on the undertaking itself (opportunities and risks).

The assessment concentrates on how certain impacts – such as

environmental or social factors – can simultaneously present a risk or an

opportunity for the undertaking. For example, pollution caused by business

activities may not only have negative consequences for the environment

but can also entail financial risks for the undertaking, e.g. through regulatory

penalties or loss of reputation. Conversely, positive environmental actions

such as investments in sustainable projects may not only protect the

environment, but can also open up new business opportunities and

strengthen the undertaking's image.

[IRO-1_53cii] Hannover Re uses qualitative and quantitative methods

according to ESRS 1 section 3.3 to assess the financial materiality of risks

and opportunities. This assessment encompasses the analysis of the

likelihood, magnitude and nature of the potential financial impacts.

– Likelihood: The probability of occurrence of a risk or opportunity is

assessed on a scale of 0.65 (very low) to 1 (highly likely).

– Magnitude: The magnitude of the financial impacts is assessed on a

scale of 1 (low) to 5 (high).

– Nature of impact: The nature of the financial impacts is considered on a

differentiated basis according, for example, to whether they are short-

term or long-term, direct or indirect.

The product of likelihood and magnitude forms the total score. A risk or

opportunity is categorised as financially material if the total score exceeds a

threshold of 3. This ensures that all relevant financial risks and opportunities

are assessed systematically and transparently.

[IRO-1_53ciii] Sustainability risks are assessed according to the same

principles as traditional risks. In this context, Hannover Re uses risk

assessment tools that are in conformity with Commission Delegated

Regulation (EU) 2015/35 (Solvency II).

[IRO-1_53d] The decision-making process as part of Hannover Re's

materiality assessment is systematically structured and supported by

internal control procedures.

Decisions are reached in multiple phases. First, all relevant data and

information are gathered regarding potential and actual impacts on the

environment and society, as well as the associated risks and opportunities.

This step includes the involvement of stakeholders to obtain the most

complete possible picture of the situation. Based on this information, initial

assessments are made in workshops and working groups. Experts from

various areas of risk management, including the Chief Risk Officer,

contribute to a holistic assessment of risks. The results of these analyses

are then integrated into the materiality assessment. In this context, topics

are prioritised according to clearly defined criteria such as degree of

severity, likelihood of occurrence and financial significance.

The internal control procedures are used for quality assurance and risk

mitigation in the decision process. A central element is regular review of the

obtained results by various levels of the undertaking, including Risk

Management, Group Strategy & Sustainability and senior management.

These controls ensure that all relevant information is fully considered and

the assessments are consistent and objective. In addition, mechanisms are

in place to validate the results, including top-down validation by the

Executive Board.

[IRO-1_53e] Hannover Re has implemented a comprehensive procedure

for the identification, assessment and management of sustainability risks

and opportunities to ensure that ESG factors are also integrated into the

risk management system. In addition, risk management is embedded in the

risk assessment process. The sustainability-related risk inventory serves as

the starting point for this process. For further information on risk

management, we refer to GOV-5 as well as the “Opportunity and risk

report”. The handling of impacts, risks and opportunities is described in

IRO-2 subsection 59.

[IRO-1_53g] The qualitative input parameters include stakeholder views

collected through workshops. These include assessments of social,

environmental and governance aspects that are relevant both from the

perspective of the affected stakeholders and from the undertaking's

perspective. Furthermore, qualitative insights from the internal risk

management processes, as well as sector-specific market analyses, such

as peer group comparisons, are incorporated into the assessment.

Quantitative input parameters include, among other things, data on the

environmental and social impacts of the undertaking and its locations, such

as CO₂ emissions, energy consumption figures and information about its

employees. In addition, financial metrics, such as the potential costs and

returns of risks and opportunities, as well as data from the investing side are

used. External data sources, such as the UNEP-FI impact mappings, are

used to quantify the impacts of investments on the environment and

society.

[IRO-1_53h] The trigger analysis described in subsection 53a was

implemented for the 2025 reporting year. The materiality assessment is

thus a two-stage process with effect from the 2025 reporting year onwards.

The process is conducted annually.

Disclosures in connection with IRO-1 “Climate change (E1)”

Various material impacts and risks in connection with climate change were

determined for the Hannover Re Group as part of the materiality

assessment. These are grouped together in the table “Identified material

impacts, risks and opportunities”. Disclosures required under IRO-1 in

connection with climate change pursuant to ESRS E1 subsection 20 and

corresponding scenario analyses pursuant to ESRS E1 subsection 21 are

provided in the section of the chapter on climate change entitled

“Management of impacts, risks and opportunities”.

Disclosures in connection with IRO-1 “Pollution (E2”)

[E2-IRO-1_11] As a reinsurance undertaking, the Hannover Re Group does

not have any production of its own that impacts the environment. An

examination of the investing activities and the reinsurance business did not

identify any material impacts on the environment. Consequently, the

undertaking did not conduct any consultations with communities affected

by pollution.

In the context of the materiality assessment, no material impacts, risks or

opportunities were identified for the Hannover Re Group in connection with

pollution or the dependency on ecosystem services. This includes an

analysis of the investments using the UNEP-FI Impact Map.

Disclosures in connection with IRO-1 “Water and marine resources (E3)”

[E3-IRO-1_8] In the context of the materiality assessment, the Hannover Re

Group did not identify any material business activities in respect of which

impacts, risks or opportunities in connection with water and marine

resources could arise in own operations, investing or insurance business.

This included a location analysis conducted using external data sources,

such as the WWF Risk Filter Suite and the WWF Water Risk Filter, as well

as an analysis of the investments using the UNEP-FI Impact Map.

Consultations, especially with affected communities, were not conducted

as part of the materiality assessment.

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Disclosures in connection with IRO-1 “Biodiversity and ecosystems

(E4)”

[E4-IRO-1_17,19] As a result of the materiality assessment, no material

impacts in relation to own operations and business activities in investing

and insurance could be identified for the topic of biodiversity and

ecosystems. Consideration was also given to the perspective on the

material physical locations of the Hannover Re Group by surveying

environmental and sustainability managers as part of the analysis. The

analysis was supplemented by the use of external data sources such as the

WWF Risk Filter Suite. No material sources for any impacting of biodiversity

by the physical locations could be determined.

Nor were any material dependencies in relation to biological diversity or

ecosystems and their services established at the undertaking’s own

locations or in the upstream and downstream value chain. No assessment

of ecosystem services was carried out in this respect. Systemic risks were

not explicitly considered. The materiality assessment also did not establish

any material transition or physical risks or opportunities in connection with

biodiversity and ecosystems that could have material financial impacts. The

analysis was supplemented by the use of external data sources such as the

WWF Biodiversity Risk Filter. Hannover Re therefore did not conduct any

consultations with affected communities on sustainability assessments of

jointly used biological resources and ecosystems.

In addition, an analysis of the investments was carried out using the UNEP-

FI Impact Maps.

Disclosures in connection with IRO-1 “Resource use and circular

economy (E5)”

[E5-IRO-1_11] In the context of the materiality assessment, no material

impacts in relation to own operations involving investing activities,

insurance business or other business areas were identified for the topic of

resource use and circular economy. Aspects such as material consumption

and waste management were examined particularly closely, without any

indications of significant negative or positive impacts on the environment

and society. In addition, an analysis of the investments was carried out

using the UNEP-FI Impact Maps. Based on the risk inventory conducted

and the materiality assessment according to the described methodology, it

was also not possible to establish any material risks or opportunities in

connection with resource use and circular economy. Consequently, no

consultations were conducted with affected communities in connection with

the topic of resource use and circular economy.

Disclosures in connection with IRO-1 “Business Conduct (G1)”

Various criteria were considered in the determination of material impacts,

risks and opportunities in connection with business conduct. These include,

in particular, the specific features of the business model as a global

reinsurer and the associated activities, customer relationships and

international transactions. In the context of the materiality assessment,

various material impacts, risks and opportunities were identified in this

connection. These are listed in the table “Identified material impacts,

risks and opportunities”.

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Disclosure requirements in ESRS covered by the undertaking’s sustainability statement [IRO-2]

[IRO-2_56]


Topical ESRS	Sustainability matters covered in topical ESRS			Disclosures in the sustainability statement
	Topic	Sub-topics	Sub-sub-topics	Pages
ESRS E1	Climate change	Climate change adaptation		83–96
		Climate change mitigation		83–96
		Energy		83–96
ESRS E2	Pollution	Pollution of air		—
		Pollution of water		—
		Pollution of soil		—
		Pollution of living organisms and food resources		—
		Substances of concern		—
		Substances of very high concern		—
		Microplastics		—
ESRS E3	Water and marine resources	Water	Water consumption	—
			Water withdrawals	—
			Water discharges	—
		Marine resources	Water discharges in the oceans	—
		Marine resources	Extraction and use of marine resources	—
ESRS E4	Biodiversity and ecosystems	Direct impact drivers of biodiversity loss	Climate change	—
			Land-use change, fresh water-use change and sea water-use change	—
			Direct exploitation	—
			Invasive alien species	—
			Pollution	—
			Others	—
		Impacts on the state of species	Example: Species population size	—
		Impacts on the extent and condition of ecosystems	Example:oil degradation	—
		Impacts and dependencies on ecosystem services		—
ESRS E5	Resource use and circular economy	Resources inflows, including resource use		—
		Resource outflows related to products and services		—
		Waste		—

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Topical ESRS	Sustainability matters covered in topical ESRS			Disclosures in the sustainability statement
	Topic	Sub-topics	Sub-sub-topics	Pages
ESRS S1	Own workforce	Working conditions	Secure employment	96–104
			Working time	96–104
			Adequate wages	96–104
			Social dialogue	96–104
			Freedom of association, the existence of works councils and the information, consultation and participation rights of workers	96–104
			Collective bargaining, including rate of workers covered by collective agreements	96–104
			Work-life balance	96–104
			Health and safety	96–104
		Equal treatment and opportunities for all	Gender equality and equal pay for work of equal value	96–104
			Training and skills development	96–104
			Employment and inclusion of persons with disabilities	96–104
			Measures against violence and harassment in the workplace	96–104
			Diversity	96–104
		Other work-related rights	Child labour	—
			Forced labour	—
			Adequate housing	—
			Privacy	—
ESRS S2	Workers in the value chain	Working conditions	Secure employment	—
			Working time	—
			Adequate wages	—
			Social dialogue	—
			Freedom of association, the existence of works councils and the information, consultation and participation rights of workers	—
			Collective bargaining, including rate of workers covered by collective agreements	—
			Work-life balance	—
			Health and safety	—
		Equal treatment and opportunities for all	Gender equality and equal pay for work of equal value	—
			Training and skills development	—
			Employment and inclusion of persons with disabilities	—
			Measures against violence and harassment in the workplace	—
			Diversity	—
		Other work-related rights	Child labour	—
			Forced labour	—
			Adequate housing	—
			Privacy	—

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Topical ESRS	Sustainability matters covered in topical ESRS			Disclosures in the sustainability statement
	Topic	Sub-topics	Sub-sub-topics	Pages
ESRS S3	Affected communities	Communities' economic, social and cultural rights	Adequate housing	—
			Adequate food	—
			Water and sanitation	—
			Land-related impacts	—
			Security-related impacts	—
		Communities' civil and political rights	Freedom of expression	—
			Freedom of association	—
			Impacts on human rights defenders	—
		Rights of indigenous peoples	Free, prior and informed consent	—
			Self-determination	—
			Cultural rights	—
ESRS S4	Consumers and end-users	Information-related impacts for consumers and/or end-users	Privacy	—
			Freedom of expression	—
			Access to (quality) information	—
		Personal safety of consumers and/or end-users	Health and safety	—
			Security of a person	—
			Protection of children	—
		Social inclusion of consumers and/or end-users	Non-discrimination	—
			Access to products and services	—
			Responsible marketing practices	—
ESRS G1	Business conduct	Corporate culture		104 –107
		Protection of whistleblowers		104 –107
		Animal welfare		—
		Political engagement and lobbying activities		—
		Management of relationships with suppliers including payment practices		—
		Corruption and bribery	Prevention and detection including training	104 –107
		Corruption and bribery	Incidents	104 –107

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List of data points in cross-cutting and topical standards that derive from other EU legislation



Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Materiality
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	Indicator number 13 Table #1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816 (5), Annex II		Material
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)			Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 10 Table #3 of Annex 1				Material
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicator number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6), Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818 (7), Article 12 (1) Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12 (1) Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14				Regulation (EU) 2021/1119, Article 2 (1)	Material
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 12 (1) (d) to (g) and Article 12 (2)		Not material
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		Material
ESRS E1-5 Energy consumption from fossil fuels disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1				Material
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex 1				Material
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex 1				Material
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5 (1), 6 and 8 (1)		Material
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicator number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8 (1)		Material
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2 (1)	Material
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		Phase-in

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Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Materiality
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk			Phase-in
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book – Climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral			Phase-in
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		Phase-in
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1				Not material
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex 1				Not material
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table #2 of Annex 1				Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	Indicator number 6.2 Table #2 of Annex 1				Not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29	Indicator number 6.1 Table #2 of Annex 1				Not material
ESRS 2 – SBM-3 – E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex 1				Not material
ESRS 2 – SBM-3 – E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex 1				Not material
ESRS 2 – SBM-3 – E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex 1				Not material
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex 1				Not material
ESRS E4-2 Sustainable oceans/ seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex 1				Not material
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex 1				Not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex 1				Not material
ESRS 2 SBM3 – S1 Risk of incidents of forced labour paragraph 14 (f)	Indicator number 13 Table #3 of Annex 1				Material
ESRS 2 SBM3 – S1 Risk of incidents of child labour paragraph 14 (g)	Indicator number 12 Table #3 of Annex 1				Material
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				Material
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1-8, paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex 1				Not material
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex 1				Not material
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex 1				Material
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex 1				Not material

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Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Materiality
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex 1				Material
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex 1				Material
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 104 (a)	Indicator number 10 Table #1 and Indicator number 14 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		Not material
ESRS 2 SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	Indicators number 12 and number 13 Table #3 of Annex 1				Not material
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicators number 11 and number 4 Table #3 of Annex 1				Not material
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex 1				Not material
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 in Table #3 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		Not material
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex 1				Not material
SRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		Not material
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex 1				Not material
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex 1				Material
ESRS G1-1 Protection of whistleblowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex 1				Material
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Material
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex 1				Material

Hannover Re

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Annual Report 2025

Identified material impacts, risks and opportunities

Number

Category

IRO

Dimension

Description

Time horizon

Chapter

Impact (positive)

General insurability of climate risks through

stable product and pricing design

Underwriting

By designing risk-adequate and stable products and pricing structures, informed by qualitative and quantitative climate scenario

analyses, the company supports the general insurability of climate risks, contributes to the financial protection of society, and

strengthens the overall resilience to natural disasters.

medium-term

ESRS E1 – Climate

change

Impact (negative)

Gap in insurance coverage due to non-

insurance of climate risks

Underwriting

Incomplete reinsurance coverage and financial risks for society due to lack of insurance against climate risks. Certain risks (e.g.,

natural catastrophes) are no longer insurable, impacting the economy, while the unaffordability of premiums for selective population

groups and/or regions (e.g., homeownership becomes less financially viable for more people) can promote social inequality.

short-, medium-, long-term

ESRS E1 – Climate

change

Risk

Loss of profitability

Underwriting

Loss of product profitability due to calculation and liability risks in reinsuring the transition to sustainable technologies because of lack

of experience. Additionally, due to potentially higher claims burdens resulting from increasing intensity and frequency of natural

disasters and related cumulative losses.

short-, medium- and long-term

ESRS E1 – Climate

change

Risk

Declining investment values due to physical

and transitory risks

Investments

Threat to the value of capital investments (especially in real assets) in regions particularly affected by climate change, with subsequent

impact on the balance sheet and profit and loss statement of the group (e.g., need for depreciation, credit defaults).

short-, medium- and long-term

ESRS E1 – Climate

change

Impact (positive)

Directing capital flows into sustainable

investments

Investments

Reinsurers can support the transition to a low-carbon economy by directing capital flows into sustainable investments. This can be

achieved by partially excluding investments in climate-damaging sectors.

medium- and long-term

ESRS E1 – Climate

change

Impact (positive)

Supporting Paris climate targets supported

by investments

Investments

Investing in sustainable infrastructure projects such as wind and solar farms contribute to global efforts to reduce emissions and

therefore support Paris Climate Agreement.

long-term

ESRS E1 – Climate

change

Impact (positive)

Promoting low-emission mobility

Investments

Promotion of climate-friendly mobility to indirectly reduce greenhouse gas emissions.

short- and medium-term

ESRS E1 – Climate

change

Impact (negative)

Investing in CO₂-intensive sectors

Investments

Contribution to global warming through investments in GHG-intensive sectors.

medium- and long-term

ESRS E1 – Climate

change

Impact (negative)

Failure to reduce CO2 emissions due to

climate-unfriendly transportation

Own operations

Failure to reduce CO2 emissions due to the use of climate-unfriendly transportation for business travel

short-term

ESRS E1 – Climate

change

Impact (negative)

Insuring climate-damaging industries

Underwriting

Climate harm through reinsuring climate-damaging industries, and businesses involved in the extraction, storage, transportation, or

production of fossil fuels, as well as vehicles, property, or other facilities serving these purposes.

short-, medium-, long-term

ESRS E1 – Climate

change

Risk

Liability risks in non-sustainable business

practices

Underwriting

Liability risks in cases of non-sustainable business practices.

medium- and long-term

ESRS E1 – Climate

change

Impact (negative)

Energy consumption for heat and power

supply of company buildings

Own operations

Energy consumption due to the heating and electricity supply of company buildings, increasing energy demand due to growing

digitalisation (more IT and servers), and the climate-unfriendly mobility of employees through the use of company cars.

short-term

ESRS E1 – Climate

change

Impact (positive)

Financing renewable energy generation

projects

Investments

Supporting energy transition by financing economic activities in the field of renewable energy, as well as by financing real estate with

low energy consumption.

medium-term

ESRS E1 – Climate

change

Impact (negative)

Lack of transparency for investors regarding

non-renewable investments

Investments

Intransparent investment practices regarding fossil and non-renewable investments can mislead investors and undermine sustainable

investment goals.

long-term

ESRS E1 – Climate

change

Impact (negative)

Insuring fossil energy generation projects

and industries

Underwriting

Reinsurance of energy-intensive sectors and industries leads to an exacerbation of climate change and global warming due to

increased GHG-emissions.

medium-term

ESRS E1 – Climate

change

Impact (positive)

Improvement of working conditions

Own operations

The working conditions at Hannover Re, including regulated working hours and the promotion of work-life balance, have a positive

impact on health.

short-, medium- and long-term

ESRS S1 – Own

workforce

Impact (positive)

Enabling workplace co-determination

Own operations

Enabling workplace co-determination can promote fairness between employer and employee.

short-, medium- and long-term

ESRS S1 – Own

workforce

Impact (positive)

Paying adequate wages

Own operations

Paying adequate wages that are in line with collective bargaining agreements enables employees and their families to make a good

living.

short-, medium- and long-term

ESRS S1 – Own

workforce

Impact (negative)

Poor working conditions

Own operations

Poor working conditions at Hannover Re can lead to employee dissatisfaction and decreased motivation, which can negatively affect

work performance, workplace climate, and health.

medium- and long-term

ESRS S1 – Own

workforce

Risk

Increased wage and benefit levels

Own operations

Competition for talent can increase the cost of recruiting and retaining skilled workers, posing a significant challenge.

short-, medium- and long-term

ESRS S1 – Own

workforce

Opportunity

Direct impact on employee satisfaction and

performance

Own operations

Good working conditions directly impact employee satisfaction and performance, enhancing company reputation and financial

success.

short-term

ESRS S1 – Own

workforce

Opportunity

Important for employer attractiveness

Own operations

Attractive working conditions are crucial for recruiting skilled employees, which is key to company success.

medium- and long-term

ESRS S1 – Own

workforce

Hannover Re

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Annual Report 2025

Number

Category

IRO

Dimension

Description

Time horizon

Chapter

Impact (positive)

Promoting equal treatment within the

company

Own operations

If Hannover Re promotes equal treatment within its own company, this can have a positive impact on the workforce, but also on the

economy and society.

short-term

ESRS S1 – Own

workforce

Impact (positive)

Education and development of employees

Own operations

The education, training and development of employees is not only beneficial to the company, but also benefits the workforce itself.

short-, medium- and long-term

ESRS S1 – Own

workforce

Impact (negative)

Discrimination and inequality

Own operations

Discrimination and inequality can have a major negative impact on affected workers, leading to direct consequences such as impaired

health or prevented career opportunities.

short- and medium-term

ESRS S1 – Own

workforce

Opportunity

Good training and development

programmes

Own operations

Education and training strengthen the workforce and can enhance the economic development of the group.

short- and medium-term

ESRS S1 – Own

workforce

Impact (negative)

Compliance management and anti-

corruption training

Own operations

Establishing a compliance management system, compliance guidelines, employee training, annual risk analysis, and adherence to

compliance requirements prevent corruption and promote ethical behaviour.

short- and medium-term

ESRS G1 – Business

conduct

Impact (negative)

Transparency and integrity through

disclosure

Own operations

Strengthening trust and integrity by dealing transparently with issues of corruption and fraud, avoiding conflicts of interest, and

requiring board approval for donations.

short- and medium-term

ESRS G1 – Business

conduct

Risk

Decline in demand and reputation loss from

non-compliance

Underwriting

Decline in demand and loss of customers due to reputational damage, e.g., in the event of non-compliance with Group-wide Code of

Conduct “Connected – outside, inside, and all-around”.

short- and medium-term

ESRS G1 – Business

conduct

Risk

Revenue loss from regulatory and

blacklisting issues

Own operations

Corruption and bribery can lead to a loss of sales due to non-compete clauses and blacklists and cause disproportionately high

expenses as well as internal economic damage. These factors jeopardise the company's profitability and require effective anti-

corruption measures to ensure financial stability and business success.

medium- and long-term

ESRS G1 – Business

conduct

Impact (negative)

Decreased security through missing

whistleblower protection

Own operations

The absence of effective whistleblower protection mechanisms may hinder the detection of non-compliant behaviour, thereby

increasing legal and reputational risks. This can compromise organisational integrity and reduce stakeholder confidence in the

company’s governance structures.

short- and medium-term

ESRS G1 – Business

conduct

Impact (negative)

Cyber security breaches impact corporate

clients

Own operations

Negative effects for corporate customers, suppliers and business partners in the event of data breaches.

short-, medium- and long-term

ESRS G1 – Business

conduct

[IRO-2_59] The key information provided in the sustainability statement

in connection with the impacts, risks and opportunities assessed as

material is determined primarily on the basis of internal policies, actions,

targets and data. In addition to inclusion in the materiality assessment,

this also entails extensive coordination with all relevant areas that

provide information on material impacts, opportunities and risks. In the

case of sustainability matters connected with climate change, these are

first and foremost areas closely associated with underwriting, investing

and business operations. For sustainability matters related to the

company's own workforce, this is primarily the division Global Human

Resources. For sustainability matters connected with governance

topics, this is Group Legal Services, which includes the Compliance unit.

Corresponding report contents are identified, documented and included

in the reporting process for each of these topics in accordance with the

requirements of ESRS 1 section 3.2 “Material matters and materiality of

information”. Implementation is carried out in conformity with the

procedure described under IRO-1. Hannover Re has appropriate control

steps in place to ensure the quality and accuracy of the information.

Hannover Re

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Annual Report 2025

Disclosures in accordance with

Article 8 of the EU Taxonomy

Regulation

Article 8 of the EU Taxonomy Regulation (EU) 2020/852 requires reporting

entities pursuant to § 289 of the German Commercial Code (HGB) to

publish information on how and to what extent their activities are consistent

with economic activities that qualify as environmentally sustainable under

the EU Taxonomy. The Taxonomy is a central element of the EU Action

Plan for Financing Sustainable Growth and is intended – as a unified

classification system – to foster transparency on sustainability in the

financial market.

The Commission Delegated Regulation (EU) 2021/2139 supplementing

Article 8 of the EU Taxonomy Regulation addresses various environmental

objectives of the EU and establishes catalogues of criteria for a wide range

of economic activities. For Hannover Re, both its investments and its

property and casualty reinsurance business fall within the scope of

consideration in this context and are discussed and reported below. In

compiling reporting in accordance with the EU Taxonomy, the provisions of

the Commission Delegated Regulation (EU) 2021/2178 as in force on

31 December 2025 apply pursuant to Article 4 of the Commission

Delegated Regulation (EU) 2026/73.

Reinsurance business

Reinsurance solutions that protect against climate-related natural perils

such as flood or storm damage can contribute to climate change

adaptation. The provision of corresponding reinsurance capacities

increases resilience in the face of natural catastrophes by protecting those

impacted and compensating them in case of loss. Furthermore, reinsurance

solutions ensure the continuation of major projects and the development of

new technologies, thereby sustainably fostering economic growth. Long-

standing experience in risk assessment and risk management facilitates the

early detection of new and emerging risks and the development of

appropriate risk transfer solutions.

The Taxonomy eligibility of our reinsurance activity specifies what

proportion of our economic activities is described in the Taxonomy and for

which economic activities technical screening criteria have been

developed. These criteria determine the substantial contribution to the set

environmental objectives, prevent harm to other environmental objectives

and are intended to ensure adherence to social minimum standards. The

proportions of the economic activities established using the screening

criteria are Taxonomy-aligned and must be reported since the financial year

2023. The informative value of the KPIs is considered to be still too slight

due to various interpretative uncertainties to be able to incorporate them for

effective steering purposes into business decisions and product

development processes.

Note

The EU Taxonomy Regulation and the underlying delegated acts contain

requirements and passages that make unambiguous and consistent

interpretation and implementation difficult. In view of the remaining

interpretation uncertainties, it can be assumed that the evaluation of the

disclosures in accordance with Article 8 of the EU Taxonomy Regulation –

in particular the assessment of eligibility and alignment – will undergo

gradual adjustments over time and that comparability within sectors can

only emerge progressively. In accordance with the Commission Notice

published by the European Commission on 8 November 2024, only

premiums that are demonstrably used for the concrete coverage of climate

change-related perils specified in Annex A of the Commission Delegated

Regulation (EU) 2021/2139 are considered to be Taxonomy-aligned

(premium split).

As a reinsurance undertaking, Hannover Re is reliant on extensive external

data supplied by its clients and business partners for the computation of its

Taxonomy alignment, although many of these are not subject to any

European reporting obligation. Data gaps – which in some cases will be

considerable – must therefore be expected in the early reporting years with

regard to available information on the avoidance of significant harm to other

environmental objectives. Further information on Hannover Re’s

conservative handling of these data gaps is provided in the following

description.

Taxonomy eligibility

Notwithstanding further attempts at explanation in the context of the

European Commission FAQs, the concept of taxonomy-eligible premiums

is subject to uncertainty, leading to various approaches within the insurance

industry. Hannover Re defines as Taxonomy-eligible those reinsurance

products on the contract level in respect of which climate perils were clearly

factored into the pricing in climate peril modelling. These contracts are

considered to be Taxonomy-eligible in their entirety. All other reinsurance

products in property and casualty reinsurance that do not include direct

climate-relevant covers are classified as Taxonomy-non-eligible subject to

more precise specifications by the legislator.

Taxonomy alignment

Establishment of Taxonomy alignment requires proof of fulfilment of the

technical screening criteria, which are intended to ensure the substantial

contribution made by reinsurance activities to the environmental objective

of “adaptation to climate change” (economic activity 10.2; NACE Code

K65.2.0). It must then be demonstrated that these activities do not have a

negative impact on the environmental objective of “climate change

mitigation” and that the minimum safeguards are met.

Substantial contribution

For reinsurance undertakings, the Delegated Regulation (EU) 2021/2039

includes five dedicated technical screening criteria. These reflect business

practices and processes that the legislator considers to be essential

prerequisites for being able to declare sustainable revenues within the

meaning of the EU Taxonomy.

Leadership in modelling and pricing of climate risks

In its economic activities, Hannover Re considers state-of-the-art modelling

techniques with regard to climate-related natural perils. For further

information on its approach to dealing with these risks see the

“Opportunity and risk report”.

Supporting development and supply of enabling non-life reinsurance

products

Hannover Re has implemented processes to ensure that the major needs of

its clients regarding climate-related natural perils are considered in

reinsurance products. The pricing of such products is risk-based, meaning

that preventive measures to minimise these risks (e.g. adherence to certain

building standards) can be factored into the pricing. In the case of obligatory

reinsurance business, only the share of the portfolio's premiums that meet

the technical screening criteria is reported as aligned.

Innovative reinsurance solutions

Hannover Re supports the development of innovative reinsurance solutions

with regard to climate-related natural perils in order to satisfy the growing

needs of its clients and society.

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Annual Report 2025

Data sharing

Hannover Re engages in an exchange with local authorities and shares data

on a regular basis and on request for analytical purposes to advance

knowledge about changes caused by climate change. The requirements of

technical screening criterion 4.1 are thus fully met.

High level of service in a post-disaster situation

If large loss events connected with climate-related natural perils occur,

Hannover Re has implemented high standards of claims management that

ensure coherent communication within a short timeframe. The

requirements of technical screening criterion 5 are therefore fully met.

Compliance with the technical screening criteria can be ensured through

standardised processes, work instructions and policies. These apply to all

reinsurance products (in both obligatory and facultative business) that are

in principle considered to be Taxonomy-eligible and where Hannover Re

serves as risk carrier. In order to identify premiums connected with aligned

products, Hannover Re refers to its internal risk and pricing processes and

considers only explicit shares of reinsurance products that are used for

coverage of climate change-related perils. This includes, among other

things, wind-related natural perils such as storms, water-related natural

perils such as floods and heavy rain, and temperature-related natural perils

such as wildfires. The revenues that Hannover Re recognises as

Taxonomy-aligned on this basis thus make a substantial contribution to

social adaptation to perils associated with climate change.

Avoidance of significant harm

In order to be able to recognise economic activities as sustainable within the

meaning of the EU Taxonomy, it must be ensured that they do not

significantly harm other environmental objectives (“Do No Significant

Harm”, DNSH). For reinsurance activities, this must be established for

environmental objective 1 “Climate change mitigation”. This means that the

activities recognised as sustainable do not cover cession of insurance of

the extraction, storage, transport or manufacture of fossil fuels or the

cession of insurance of vehicles, property or other assets dedicated to such

purposes.

Hannover Re has implemented processes to ensure that the revenues

reported as Taxonomy-aligned do not include any covers related to fossil

fuels as described above. In order to identify these covers in obligatory

reinsurance activities (the coverage of large portfolios), Hannover Re is

dependent on data supplied by its clients and brokers, which it actively

requests. In this respect, sometimes sizeable data gaps are evident in the

year under review. Portfolios for which no information is available are

conservatively considered to be Taxonomy-non-aligned. It can be assumed

that increasing data coverage over the coming years will affect the ratio of

Taxonomy-aligned revenues.

Compliance with minimum safeguards

Economic activities must be carried out in accordance with the minimum

safeguards criteria if they are to be reported as Taxonomy-aligned. Four

core topics that undertakings should consider are specified here:

– Respect for human rights

– Prevention of corruption and bribery

– Fair taxation

– Fair competition

Hannover Re has implemented processes for all four core topics to ensure

compliance in its business activities. There are no known incidents or

pending proceedings for the reporting year that would indicate a breach of

the minimum safeguards requirements.

Further information on reported key performance indicators

(KPIs)

The Taxonomy KPIs for the 2025 financial year include disclosures on our

eligible and aligned revenues from economic activity 10.2 Reinsurance

(NACE Code K65.2.0). The mandatory template for (re)insurance

undertakings contained in Annex X to the Commission Delegated

Regulation (EU) 2021/2178 was used for the presentation. In this context,

the stated KPIs refer to the Group revenues of Hannover Re recognised and

consolidated pursuant to IFRS 17. In accordance with the Commission

Notice published by the European Commission on 8 November 2024,

Hannover Re only reports as Taxonomy-aligned the revenues that are

demonstrably used to provide concrete coverage for climate-related natural

perils (premium split) and at the same time are not connected with fossil

fuels. The climate-related natural perils exposure is established on the level

of contracts to assess Taxonomy eligibility. The premium split for

determination of the shares of premiums used to exclusively cover climate-

related natural perils is calculated using modelled expected loss values per

contract and natural peril. The Taxonomy alignment ratio is derived from the

Taxonomy-aligned revenues (numerator) over the total revenues in non-life

insurance business (denominator). The share of the aligned revenues from

retrocession activities is determined from internal retrocession ratios of the

business areas relevant to natural perils.

The KPIs can be found in the table contained in the annex to this chapter.

Investments

The key performance indicators (KPIs) relating to the EU Taxonomy are

determined in accordance with the requirements of the Commission

Delegated Regulation (EU) 2021/2178. At the present time, these are not

incorporated into strategic business decisions because there is still

considerable uncertainty around how they are to be understood as well as

room for interpretation. The environmental sustainability of investing

activities is managed using other approaches. The regulatory requirements

are intended to capture the proportions of environmentally sustainable

(Taxonomy-aligned) as well as potentially environmentally sustainable

(Taxonomy-eligible) investments in the numerator relative to the total

investments considered of Hannover Re in the denominator.

The denominator is derived from the investments of Hannover Re shown in

the balance sheet excluding funds withheld. The Commission Delegated

Regulation (EU) 2021/2178 further specifies under Article 7 (1) the

exclusion of all exposures to central governments, central banks and

supranational issuers from the calculation of the denominator.

The observation horizon of the numerator includes, in particular, securities

exposures to issuers covered by the European reporting obligation

pursuant to the Non-financial Reporting Directive (NFRD) or CSRD as well

as tangible assets and loans where the specific purpose of the lending is

known. Special Purpose Vehicles (SPVs), in respect of which the use of the

proceeds is known and taxonomy-eligible, are classified as taxonomy

eligible. If the use of the proceeds is unknown, the KPIs of the most recent

beneficiary undertaking are used and, insofar as this is subject to

mandatory reporting under the NFRD or CSRD, included in the numerator.

Exposures to undertakings that are not covered by the reporting obligation

pursuant to the NFRD or CSRD are excluded from the numerator pursuant

to Article 7 (3) of the Commission Delegated Regulation (EU) 2021/2178. In

the case of issuers whose registered office is within the EU, a check is made

to verify the obligation to publish non-financial information.

In order to verify the Taxonomy eligibility and alignment of liquid securities

of issuers whose registered office is within the EU, in other words which are

potentially subject to the NFRD or CSRD, we draw on data from an external

service provider, as well as the results of internal screening for a significant

portion of the liquid assets for further allocation purposes. In the case of

Hannover Re

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Annual Report 2025

issuers subject to a reporting obligation, the Taxonomy ratios published in

the context of non-financial reporting are applied to the investments of

Hannover Re. The reported ratios are similarly either obtained from an

external service provider or subsequently acquired manually, where such

ratios are not available.

All investments in tangible assets connected with the purchase and

ownership of real estate are generally considered to be Taxonomy-eligible.

This includes investment property. A property held is also considered to be

Taxonomy-aligned if the technical screening criteria, the “Do no significant

harm” criteria and compliance with minimum safeguards could be

established. Evidence of Primary Energy Demand and the Deepki Index

were used and the individual features of the buildings were analysed to

document a substantial contribution to climate change mitigation. The “Do

No Significant Harm” (DNSH) test entailed the compilation of robust climate

risk and vulnerability assessments in accordance with Annex 1 Appendix A

of the Delegated Act (EU) 2022/1214 on the Taxonomy on Gas and Nuclear

Energy (Taxonomy Complementary Climate Delegated Act [CDA]).

Hannover Re has evidence of Taxonomy alignment for roughly 10.8 %

(10.4 %) of the real estate assets. The remainder of the real estate assets

do not make any substantial contribution to climate change mitigation or

adaptation according to the technical screening criteria of the regulation.

Property, plant and equipment acquired by Hannover Re in connection with

infrastructure investments as well as loans in respect of which the financed

economic activity is known are subject to internal review with an eye to

Taxonomy eligibility and alignment. It was possible to obtain information

regarding the correct classification of around 100 % (99 %) of the total

investments considered for the numerator with reasonable effort. Hannover

Re does not have corresponding data for less than 1 % of the investments,

which are therefore initially conservatively reported as Taxonomy-non-

eligible. Hannover Re is making every effort to gradually enhance the data

quality and coverage and assumes that further improvement of the

information base will be possible, in part through progressive

standardisation of the reporting and the expansion of regulatory reporting

requirements.

The key performance indicators for our Taxonomy-eligible and Taxonomy-

aligned investments as well as the other required disclosures can be found

in the reporting template in the annex to this chapter. The prior-year

comparison takes the form of duplicated reporting templates. A minimal

exposure exists indirectly through participations in undertakings and loans

in connection with the generation of energy from nuclear power or gas

within the meaning of the Commission Delegated Regulation (EU)

2022/1214. These are not shown individually in the annex due to minimal

materiality.

Further information on reported key performance indicators

The Taxonomy-aligned investments of Hannover Re derive primarily from

liquid investments in undertakings that are subject to the obligation to report

under the NFRD or CSRD and that publish Taxonomy-aligned revenues

and capital expenditures (CapEx). In addition, five properties held are

currently included in our Taxonomy-aligned investments. The Taxonomy

alignment of financial undertakings was published for the first time for the

2023 financial year and is considered in the numerator of the KPIs from this

year onwards. The internationally oriented investment horizon of Hannover

Re naturally results in a large proportion of issuers not subject to mandatory

reporting. At the same time, this gives rise to a relatively small proportion of

Taxonomy-eligible and Taxonomy-aligned investments. For the breakdown

of the numerator by environmental objective, the value of the Taxonomy-

aligned investments is used as the denominator.

Hannover Re’s turnover and CapEx-based investments in the year under

review stood at 2.3 % (2.0 %) and 3.0 % (2.7 %).

Hannover Re

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Annual Report 2025

Template: The underwriting KPI for non-life insurance and reinsurance undertakings



	Substantial contribution to climate change adaptation			DNSH (Do No Significant Harm)
Economic activities	Absolute premiums, year 2025	Proportion of premiums, year 2025	Proportions of premiums, year 2024	Climate change mitigation	Water and marine resources	Resource use and circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards
	in EUR million	%	%	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N
A.1 Non-life insurance and reinsurance underwriting taxonomy-aligned activities (environmentally sustainable)	1,835.8	9.8%	8.2%	Y	Y	Y	Y	Y	Y
A.1.1 Of which reinsured	855.4	4.6%	4.7%	Y	Y	Y	Y	Y	Y
A.1.2 Of which stemming from reinsurance activity	1,835.8	9.8%	8.2%	Y	Y	Y	Y	Y	Y
A.1.2.1 Of which reinsured (retrocession)	855.4	4.6%	4.7%	Y	Y	Y	Y	Y	Y
A.2 Non-life insurance and reinsurance underwriting taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned)	4,175.2	22.2%	24.3%	—	—	—	—	—	—
B. Non-life insurance and reinsurance underwriting Taxonomy-non-eligible activities	12,759.5	68.0%	67.5%	—	—	—	—	—	—
Total (A.1+A.2+B)	18,770.5	100.0%	100.0%	—	—	—	—	—	—

Template: The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-aligned economic activities in relation to total investments


The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxon- omy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: Turnover-based: 2.3% Capital expenditures-based: 3.0%		The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below: Turnover-based: EUR 874.6 m Capital expenditures-based: EUR 1,128.4 m
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. Coverage ratio: 100.0%		The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. Coverage: EUR 37,963.5 m

Additional, complementary disclosures: breakdown of denominator of the KPI


The percentage of derivatives relative to total assets covered by the KPI: 0.4%		The value in monetary amounts of derivatives: EUR 165.2 m
The proportion of exposures to financial and nonfinancial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 30.3% For financial undertakings: 29.2%		Value of exposures to financial and nonfinancial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: EUR 11,495.6 m For financial undertakings: EUR 11,073.2 m
The proportion of exposures to financial and nonfinancial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 26.4% For financial undertakings: 25.5%		Value of exposures to financial and nonfinancial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/ EU: For non-financial undertakings: EUR 10,028.9 m For financial undertakings: EUR 9,679.2 m

Hannover Re

Investor Relations

Annual Report 2025

Additional, complementary disclosures: breakdown of denominator of the KPI


The proportion of exposures to financial and nonfinancial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 7.6% For financial undertakings: 26.5%		Value of exposures to financial and nonfinancial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: EUR 2,865.8 m For financial undertakings: EUR 10,061.2 m
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 6.1%		Value of exposures to other counterparties and assets : EUR 2,302.5 m
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holder: 100.0%		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders. EUR 37,963.5 m
The value of all the investments that are funding economic activities that are not Taxonomy eligible relative to the value of total assets covered by the KPI: Turnover-based: 16.0% Capital expenditures-based: 15.2%		Value of all the investments that are funding economic activities that are not Taxonomy eligible: Turnover-based: EUR 6,074.0 m Capital expenditures-based: EUR 5,776.7 m
The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: Turnover-based: 21.8% Capital expenditures-based: 21.9%		Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned: Turnover-based: EUR 8,280.8 m Capital expenditures-based: EUR 8,324.4 m

Additional, complementary disclosures: breakdown of numerator of the KPI


The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: For non-financial undertakings: Turnover-based: 0.7% Capital expenditures-based: 1.4% For financial undertakings: Turnover-based: 0.3% Capital expenditures-based: 0.4%		Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: Turnover-based: EUR 282.4 m Capital expenditures-based: EUR 516.5 m For financial undertakings: Turnover-based: EUR 125.2 m Capital expenditures-based: EUR 144.8 m
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: 2.3% Capital expenditures-based: 3.0%		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: EUR 874.6 m Capital expenditures-based: EUR 1,128.4 m
The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: 1.2% Capital expenditures-based: 1.2%		Value of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: EUR 467.1 m Capital expenditures-based: EUR 467.1 m

Breakdown of the numerator of the KPI per environmental objective

Taxonomy-aligned activities – provided ‘do-no-significant-harm’(DNSH) and social safeguards positive assessment



	Turnover	CapEx
(1) Climate change mitigation	2.2%	2.8%
(2) Climate change adaptation	0.0%	0.1%
(3) The sustainable use and protection of water and marine resources	0.0%	0.0%
(4) The transition to a circular economy	0.1%	0.1%
(5) Pollution prevention and control	0.0%	0.0%
(6) The protection and restoration of biodiversity and ecosystems	0.0%	0.0%



	Turnover	CapEx
Transitional activities Enabling activities	0,1 % 0,4 %	0,1 % 0,7 %
Enabling activities	0.0%	0.0%
Enabling activities	0.0%	0.0%
Enabling activities	0.0%	0.0%
Enabling activities	0.0%	0.0%
Enabling activities	0.0%	0.0%

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Annual Report 2025

Template 1: Nuclear and fossil gas related activities



Row	Nuclear energy related activities	YES / NO
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

Templates with previous year’s data

Template: The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-aligned in relation to total investments, year 2024


The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxon- omy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: Turnover-based: 2,0% Capital expenditures-based:2.7%		The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below: Turnover-based: EUR 742.2 m Capital expenditures-based: EUR 992.0 m
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. Coverage ratio: 100.0%		The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. Coverage: EUR 37,348.8 m

Additional, complementary disclosures: breakdown of denominator of the KPI, year 2024


The percentage of derivatives relative to total assets covered by the KPI: 0.6%		The value in monetary amounts of derivatives: EUR 230.4 m
The proportion of exposures to financial and nonfinancial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 31.2% For financial undertakings: 41.1%		Value of exposures to financial and nonfinancial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: EUR 11,656.0 m For financial undertakings: EUR 15,346.7 m
The proportion of exposures to financial and nonfinancial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 27.1% For financial undertakings: 32.2%		Value of exposures to financial and nonfinancial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/ EU: For non-financial undertakings: EUR 10,115.7 m For financial undertakings: EUR 12,036.5 m

Hannover Re

Investor Relations

Annual Report 2025

Additional, complementary disclosures: breakdown of denominator of the KPI, year 2024


The proportion of exposures to financial and nonfinancial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 9.9% For financial undertakings: 8.7%		Value of exposures to financial and nonfinancial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: EUR 3,700.9 m For financial undertakings: EUR 3,248.1 m
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 8.5%		Value of exposures to other counterparties and assets : EUR 3,166.7 m
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy: 100.0%		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders. EUR 37,348.8 m
The value of all the investments that are funding economic activities that are not Taxonomy eligible relative to the value of total assets covered by the KPI: Turnover-based: 14.3% Capital expenditures-based: 13.6%		Value of all the investments that are funding economic activities that are not Taxonomy eligible: Turnover-based: EUR 5,332.9 m Capital expenditures-based: EUR 5.016.7 m
The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: Turnover-based: 10.8% Capital expenditures-based: 10.9%		Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned: Turnover-based: EUR 4,040.6 m Capital expenditures-based: EUR 4,062.0 m

Additional, complementary disclosures: breakdown of numerator of the KPI, year 2024


The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: For non-financial undertakings: Turnover-based: 0.7% Capital expenditures-based:1.4% For financial undertakings: Turnover-based: 0.2% Capital expenditures-based: 0.2%		Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU : For non-financial undertakings: Turnover-based: EUR 274.2 m Capital expenditures-based: EUR 516.1 m For financial undertakings: Turnover-based: EUR 85.8 m Capital expenditures-based: EUR 92.9 m
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: 2.0% Capital expenditures-based:2.7%		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: EUR 742.2 m Capital expenditures-based: EUR 992.0 m
The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: 1.0% Capital expenditures-based: 1.0%		Value of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: EUR 382.1 m Capital expenditures-based: EUR 382.9 m

Breakdown of the numerator of the KPI per environmental objective, year 2024

Taxonomy-aligned activities – provided ‘do-no-significant-harm’(DNSH) and social safeguards positive assessment



	Turnover	CapEx
(1) Climate change mitigation	2.0%	2.6%
(2) Climate change adaptation	0.0%	0.0%
(3) The sustainable use and protection of water and marine resources	—%	—%
(4) The transition to a circular economy	—%	—%
(5) Pollution prevention and control	—%	—%
(6) The protection and restoration of biodiversity and ecosystems	—%	—%



	Turnover	CapEx
Transitional activities Enabling activities	0.1 % 0.4 %	0.1 % 0.7 %
Enabling activities	0.0%	0.0%
Enabling activities	—%	—%
Enabling activities	—%	—%
Enabling activities	—%	—%
Enabling activities	—%	—%

Hannover Re

Investor Relations

Annual Report 2025

Template 1: Nuclear and fossil gas related activities, year 2024



Row	Nuclear energy related activities	YES / NO
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

Climate change – ESRS E1

Management of impacts, risks and

opportunities

Transition plan for climate change mitigation [E1-1]

[E1_17] Hannover Re is not planning to adopt a transition plan as defined by

the ESRS at the present point in time.

Policies related to climate change mitigation and

adaptation [E1-2]

Environmental Strategy

[MDR-P_65b] An Environmental Strategy applicable Group-wide was

approved for the 2024–2026 strategy cycle. This addresses the three action

fields of ecological and climate matters in underwriting, investments and

own operations for the entire Hannover Re Group and integrates them

efficiently and effectively into daily actions. These action fields encompass:

– progressive decarbonisation of the underwriting and investment

portfolios as well as of the undertaking’s own operations

– increased engagement on sustainability and climate matters with

cedants, brokers, issuers and own employees

– providing targeted support for the sustainable transition and

strengthening society’s resilience against the impacts of advancing

climate change through Hannover Re’s core competencies

[E1-2_25a, AR_16-18] The Environmental Strategy responds to material

identified impacts, risks and opportunities connected with climate change

mitigation, adaptation to climate change and the energy transition, and is

operationalised in the three action fields through various measures and

targets in the respective value chain activities. These are taken up on a

dedicated basis in the following chapters. [MDR-P_65e] As described in the

section ESRS 2 SBM-2, the interests of Hannover Re’s key stakeholders

are considered in various ways in the strategy development processes and

have been incorporated into the Environmental Strategy. [MDR-P_65a]

Ultimate responsibility for implementation rests with the Executive Board of

Hannover Re. Compliance with the targets is continuously reviewed and the

Executive Board receives half-yearly progress reports.

Material impacts, risks and opportunities and their

interaction with strategy and business model

[ESRS 2 SBM-3]

[E1-SBM-3_19] As a global reinsurer, the consequences of climate change

are a relevant issue for the future resilience of Hannover Re’s business

model because they influence business activity in all areas – in property &

casualty, life & health reinsurance and investments. At the same time, the

impacts of climate change constitute the most important sustainability risk

for Hannover Re and they are therefore closely analysed, monitored and

managed.

The analysis of risks associated with climate change is currently focused on

changes in the frequency and severity of natural catastrophes (physical

risks). In addition, investments (including with respect to transition risks),

biometric factors and liability contracts are analysed in relation to risks from

climate change. In order to assess potential consequences and determine

actions, scenarios were developed that evaluate the material physical and

transition impacts of climate change on business activities. Natural

catastrophes such as floods, hail events and tropical cyclones are modelled

in this context. Hannover Re’s interdisciplinary team for natural hazard

modelling factors the insights gained into the pricing of reinsurance

solutions and into risk management, among other things, when it comes to

setting the large loss budget. Furthermore, internal studies are conducted

to assess the risks from climate change and the topic is addressed in

international working groups. The findings of the analyses are presented to

the Risk Committee and integrated into the annual Own Risk and Solvency

Assessment (ORSA) report. Regular evaluation of the exposure and the

actions taken to manage the business have to date ensured that Hannover

Re's business model can demonstrate its resilience even in times of rising

loss expenditures due to the consequences of climate change. At the same

time, these developments are driving the need and demand for reinsurance

protection, enabling Hannover Re to make a relevant contribution to

strengthening societal resilience. [E1_AR_6] As a general principle, no

material physical and transition risks are excluded from consideration.

[E1_AR_8b] The findings of the scenario analyses can also result in

adjustments to reinsurance products, if needed, and are processed for use

in training the affected employees.

In the context of the materiality assessment, the Hannover Re Group

identified various material impacts and risks in connection with climate

change adaptation in the individual value chain activities. They are specified

and numbered in the respective subchapters and are supported with

corresponding policies and – as appropriate – targets. In this context, the

material risk #3 is impacted by climate-related physical risks, the material

risk #11 by climate-related transition risks and the material risk #4 by both

types of climate-related risks. A complete overview is provided in the table

“Identified material impacts, risks and opportunities”.

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Annual Report 2025

Description of the processes to identify and assess

material climate-related impacts, risks and

opportunities [ESRS 2 IRO-1]

This chapter contains information regarding the “Description of the

processes to identify and assess material climate-related impacts, risks and

opportunities [IRO-1]” as defined by European Sustainability Reporting

Standards (ESRS). [E1-IRO-1_20a] Hannover Re’s business activities are

associated with adverse effects on climate change. These can be caused

both directly through emissions in own operations (e.g. through the

operation of office buildings and through business travel) and they may be

of a more indirect nature in the downstream value chain, inasmuch as

reinsurance protection and capital enable other economic activities that

result in CO₂ emissions. Quantified data on Hannover Re's greenhouse gas

emissions can be found in E1-6. [E1_AR_9a] Hannover Re continuously

calculates greenhouse gas emissions in accordance with the GHG Protocol

and monitors developments around accounting approaches for emission

sources not previously considered (e.g. emissions from insurance

business).

[E1_AR_9b] Hannover Re's material actual and potential impacts on climate

change are reflected in the respective amounts of the individual greenhouse

gas categories. Key drivers are addressed by appropriate concepts. The

approach to dealing with Hannover Re’s impacts is discussed in detail in the

following chapters.

Management of risks and opportunities from climate change

[E1_AR_11a] Due to its business model, Hannover Re regularly determines

its exposure to short-, medium- and long-term physical and transition

climate risks as part of its risk management processes and closely

manages these risks. Climate change and the transition to a lower-emission

economy go hand-in-hand with numerous impacts on economic activities

and are important topics within risk management. Among other things,

therefore, the various effects of climate change – and of the induced social

and technological developments – on the business model are evaluated.

This relates to both risks arising from the transition to a lower-emission

economy and resulting opportunities.

Climate change risk analysis is currently focused on changes in the

frequency and severity of natural catastrophes in relation to property and

casualty reinsurance, since it is here that short-term changes are in some

cases to be expected or could already be observed in the past. For this

reason, the models for managing and pricing natural catastrophe risks are

regularly revisited with an eye to changes resulting from climate change.

Among other things, scenario analyses guided by the assumptions of the

Representative Concentration Pathways (RCPs) of the Intergovernmental

Panel on Climate Change (IPCC) are used.

As far as Hannover Re’s life and health reinsurance business is concerned,

mortality and morbidity risks induced by climate change are also

considered. Given that obligations in life and health business generally have

a long-term horizon, the effects of climate change – such as from global

warming or environmental pollution – are still subject to considerable

uncertainty. Currently, close attention is paid here to the impacts of an

increased frequency of extreme heat events, as well as a lower frequency of

extreme cold events. The expected future claims were analysed to verify

any exposure. For the modelling of various scenarios, both different regions

and the emission pathways RCP 4.5 and RCP 8.5 for the year 2100 are

considered.

Risks from climate change and natural catastrophes and from adaptation

processes to reduce greenhouse gases also have increasing implications

for various (sub-)asset classes, issuers or targets in the investment

portfolio. Where climate change risks are concerned, it is especially

important to consider the risks posed by more frequent and more severe

natural catastrophes, e.g. elevated flood risks for physical assets such as

real estate. Risk analyses have been implemented for assets belonging to

the directly held real estate portfolio in response to such elevated risks.

Temperature-, wind- and flood-related risks, among others, are reported.

Hannover Re has not identified any material climate change-related risks to

its own operations.

[E1_AR_11b] In assessing the materiality of climate-related risks connected

with Hannover Re’s business model, three time horizons are contemplated:

short-term (up to 1 year), medium-term (up to 5 years) and long-term

(longer than 5 years). The risk categories of Hannover Re’s risk register are

considered here. On the highest level, these are the underwriting risk, the

market risk, the default risk, the operational risk and other risks, such as

strategic risks. Climate change and its impacts will, in our view, affect all

these risk categories, especially in more extreme climate change scenarios.

Hannover Re draws up detailed business planning for the coming year and

an aggregated business outlook for the following four years. The planning

and outlook involve assumptions regarding the development of existing

business and assumptions around future new business and new

investments. The planning horizons are guided by, among other things, the

length of customary market cycles and market changes after major natural

disasters. The period of the business planning is thus consistent with the

short-term time horizon for identification of climate risks, while the medium-

term business outlook is in line with the corresponding medium-term time

horizon for identification of climate risks. At the present time, no outlook

exists for business metrics over a period of more than five years, especially

with respect to the expectations for future new business after five years. The

metrics considered include the present values of underwriting liabilities on

Hannover Re’s books, which – especially in life reinsurance – frequently

extend over many decades. Some of the assets are therefore also invested

over a very long time horizon.

With regard to the impacts of climate change, both the expected time

horizon of a material, climate change-induced effect and the available

response time to take management actions are considered for all relevant

risk categories. Thus, for example, the annual renewals in property and

casualty reinsurance give rise to short response times and the possibility of

steering risks accordingly. In current analyses and actions, the focus is on

risk categories with anticipated short-term impacts as well as anticipated

medium-term impacts with a medium-term response time. The materiality

assessment is qualitative, based on estimates and past loss experience,

and is factored into management actions. Various individual scenario

analyses make assumptions on the impacts of climate change in the next

10-30 years. The assumptions are in some instances based on best

estimates and sometimes on stress tests.

[E1_AR_11c] It must currently be assumed that climate change has already

materially impacted the natural hazards windstorm, flood, heavy rain, hail,

heatwaves and cold snaps, as well as wildfires and will continue to do so in

the short term. Hannover Re accepts the aforementioned physical risks

worldwide as part of its underwriting activity. Since consideration is given to

the impacts in management processes, it will continue to be possible to

control the specified risks. The assessment takes into account both the

duration and scope of the perils as well as regional specificities.

As far as all other risks associated with climate change are concerned, it is

anticipated that the impacts will only manifest themselves over the medium

to long term, depending on the scale of climate change and the adaptation

processes. Hannover Re accepts such risks worldwide.

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Annual Report 2025

[E1_AR_7c] In the investment portfolio, the risk to the assets and earnings

position is currently not considered to be material. Minimal impacts are

expected over the short and medium term because appropriate actions

have been taken.

Effects on the upstream supply chain with material impacts on Hannover Re

have not been identified to date. Investments and policyholders do not

belong to the upstream supply chain as defined by the CSRD.

[E1_AR_15] The assumptions set out here and in the following subsections

refer largely to adverse scenarios relating to the impacts of climate change.

The discretionary decisions and estimates relating to the impacts of climate

change that have been made for the Annual Report, on the other hand, refer

to less adverse scenarios.

Process to identify climate-related physical risks

[E1-IRO-1_20bi, AR_11d] Climate-related perils can give rise to physical

risks affecting in particular Hannover Re's reinsurance business. The

reinsurance of risks resulting from climate-related natural catastrophes is a

central component of the business model. A closely integrated network of

risk management processes has therefore been put in place to assess and

steer these risks. Thus, for example, both external and internal risk models

are used to model catastrophe scenarios. A team of experts applies,

analyses and refines these models in close collaboration with specialised

providers, scientific experts and institutions. In addition, deterministic

climate change scenarios and forward-looking simulation models are used

with the goal of evaluating potential implications of climate change for

Hannover Re’s entire business activity and establishing actions to steer the

business on this basis. The monitoring of risks deriving from natural

hazards is rounded off with stress tests as well as scenario and sensitivity

analyses.

[E1_AR_13a] In this context, as a scenario encompassing qualitative and

quantitative aspects, Hannover Re uses an internally developed climate-

related approach and looks at two main scenarios with a temperature

increase of 2 °C by 2050 (~RCP 4.5) and 4 °C by 2050 (significantly more

extreme than RCP 8.5). These scenarios are used to evaluate natural

catastrophe, mortality and morbidity risks.

[E1_AR_13b] The two main scenarios used for climate change are defined

for 2050, but their impacts would occur next year under the stress test

(instant shock). The 2°C and 4°C scenarios define the increase in the global

average surface temperature compared to the pre-industrial level.

Compared with the increase in the average surface temperature of around

1°C already recorded today, these scenarios account for an increase of 1°C

and 3°C respectively. This stress test is conducted every two years on the

Group level. It should be noted that the scenario for global warming of 4°C

by 2050 is physically highly unrealistic and therefore constitutes an extreme

case intended to cover all ranges. The climate change scenarios examined

for the IPCC show a warming of between roughly 1.5°C and 3°C by 2050

compared to the pre-industrial level.

[E1_AR_13c] The analyses are in each case based on the current portfolio

status at year-end prior to conducting the scenario analysis. They relate, for

example, to the insured portfolio with natural hazards exposure. The

impacts that climate change by 2050 would have in the event of immediate

occurrence following year-end are examined. In this context, other factors

that will probably change in the future – such as the trend towards

urbanisation, consumer / service price inflation – as well as risk-mitigating

actions – such as new or upgraded dikes and damns or extended

floodplains – are disregarded to isolate the influence of climate change.

Numerous other assumptions about the effect of this temperature increase,

e.g. on natural catastrophes and population mortality, are made on this

basis. [E1_ AR_8a] The assumptions are largely derived from scientific

studies. All assumptions made are subject to considerable uncertainty.

[E1_AR_13d] Regional recalibrations for the most relevant natural perils in

Hannover Re’s portfolio – including tropical cyclones in the North Atlantic,

and North-West Pacific, floods in Europe, hail events as well as wildfires in

the United States – are currently considered using a detailed approach to

event allocation. All other hazards/regions are analysed using a simplified

approach. All licensed models used for the pricing and risk management of

natural catastrophe risks are validated and recalibrated as necessary to

reflect our own risk assessment. Scientific insights on climate change are

also taken into consideration. This process presents multiple challenges.

For example, historical data series are used for modelling, and it cannot

always be unambiguously identified to what extent climate change is

already considered in the models. A further factor is that scientific

projections are normally longer term (2050 or 2100), whereas Hannover Re

attaches importance to short-term impacts owing to the typical contract

period of one year. Furthermore, there are opposing effects associated with

various hazard characteristics (e.g. expected increase in the intensity of

tropical cyclones, but a potential decrease in the overall frequency of such

events), a lack of statistically significant evidence for changes and a lack of

scientific consensus for many hazards and regions. Despite this,

recalibrations are determined and hence the additional risk associated with

short-term climate change is considered both in the pricing and in the

overall current solvency calculation. As far as the long-term impacts of

climate change on reinsurance treaties covering mortality risks are

concerned, assumptions regarding excess mortality are based on more

intensive and protracted periods of hot weather. Here, too, reference is

made to existing scientific studies. Analyses in the directly held real estate

portfolio reflect the present and address, among other things, temperature-,

wind- and flood-related risks.

Processes to identify transition risks and opportunities

[E1-IRO-1_20c, AR_12a] Hannover Re conducts extensive analyses to

examine more closely the effects of transition events. Reference is made to

scientific studies, including those of the IPCC. In addition, we participate in

internal and external working groups. In conclusion, the expectation –

especially in the case of severe global warming – is that all risks can be

affected over the long term. Our focus in quantitative analyses is on risks,

the impacts of which are already possible in the short and medium term. In

the case of transition risks, these are litigation risks and decreases in asset

values affecting investments in sectors that may be particularly vulnerable

to climate change. [E1_AR_8a] Overall, all analyses are subject to very

considerable uncertainty owing to the long periods to be considered,

necessary assumptions around the implementation of societal measures to

reduce greenhouse gases and the complexity of the climate system.

Changes in natural catastrophe risks due to climate change may trigger

increased demand for traditional reinsurance products designed to protect

against natural catastrophes, but can also be reflected in a need for new or

modified products. Along with risk management, importance therefore also

attaches to business opportunity management. Hannover Re

systematically seeks to identify new business opportunities to generate

sustainable growth and strengthen the company’s profitable development.

Key elements in Hannover Re’s business opportunity management include

its various market-specific innovations in the Life & Health and Property &

Casualty reinsurance business groups. In property and casualty

reinsurance, for example, analyses of emerging risks are carried out within

a specialised working group, on the basis of which new risks and business

options are identified and presented to the relevant committee. Overall,

considerable uncertainty and unpredictability surrounds the opportunities

associated with climate change. At the current point in time, the extent of

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these opportunities is not assessed as material for Hannover Re’s assets

and earnings position.

[E1_AR_12b] Transition risks are especially relevant to Hannover Re’s

business model on the investing side, because institutional investors

generally pursue a long-term investment horizon. Transition risks derive

from the progressive transition towards a climate-friendly economy and the

necessary changes to business models. In some industries, the current

business model is being questioned, for example in the case of operators of

fossil power plants or in sectors engaged in coal mining and oil production.

This can result in a dramatic decline in the market value of affected assets

(stranded assets). Other industries and the wider economy will also have to

adjust to changes in their business processes, e.g. because equipment and

technologies used today, such as combustion engines powered by fossil

fuels, can no longer be used in the future. These developments affect the

business and earnings potential of undertakings and hence their credit

ratings, ability to pay dividends and share price performance, and are

therefore relevant to investment activities.

Climate change-induced litigation risks in underwriting business can arise

when undertakings are held financially responsible for impacts of climate

change and the payments are covered by insurance contracts. Hannover

Re’s exposure in this regard is regularly monitored with the aid of scenarios.

Potential litigation risks are evaluated primarily using a scenario with heavy

impacts from climate change (aligned with RCP 8.5), with the assumption

also being made that countermeasures through legal changes enable those

responsible for advancing climate change to be held liable. [E1-IRO_20ci] A

corresponding working group has been set up to ensure that the methods

used to evaluate climate change-induced risks are state of the art. The

capabilities for evaluating a wide range of risks are constantly refined based

on the insights from the IPCC Assessment Reports and other scientific

publications.

[E1_AR_12c,13a] In analysing possible transition risks for Hannover Re’s

investments, a particular focus is on emitters and sectors that have lasting

adverse implications for the achievement of the Paris agreement on climate

change. These are generally subject to an elevated risk of being more

heavily impacted than other sectors by future transition changes (e.g. legal

prohibitions or higher carbon prices) for achievement of the Paris climate

goals, which can therefore result in losses of value. Various parameters are

included to assess these potential risks (e.g. also extending to external risk

ratings) that make allowance for substantial adjustment processes. In this

context, however, no explicit scenario within the meaning of the ESRS is

used that restricts global warming to 1.5°C with or without a limited

overshoot. For risk assessment purposes, a stress test is regularly carried

out on the investment portfolio to identify issuers and sectors at the greatest

risk of inadequate adjustment to a low-carbon economy. This is based on

the issuer’s carbon intensity and further ESG information provided by an

external service provider. It encompasses the asset categories of corporate

bonds, covered bonds and equities. Depending on the risk classification,

increases in credit spreads on bonds and price reductions on equities have

been defined for the implemented stress scenarios. Guided by these

parameters, transition risks in relation to industries and issuers can be

assessed and incorporated into the investment process. The scenarios are

of a qualitative nature and based on own assumptions and expert opinions.

[E1_AR_12c] When looking at scenarios to assess litigation risks,

assumptions regarding insured market losses are based on the greenhouse

gas emissions of the insured undertakings. Another scenario addresses

litigation risks arising out of divergences between targets and actions

communicated by undertakings and the targets actually achieved.

[E1_AR_13b] Given that in each case an instantaneous loss of value or

reinsurance loss is assumed, the time horizon for these scenario analyses

is of minor significance. The scenarios for the investment side differentiate

the losses in value by sector and maturity of the securities. The litigation

scenarios are differentiated according to, among other things, the

greenhouse gas emissions of the insured undertakings.

[E1_AR_13c] The analyses are based in each case on the current portfolio

status at least at year-end prior to conducting the scenario analysis. The

impacts that climate change would have in the event of immediate

occurrence following year-end are examined. In this context, other factors

and trends – such as measures to adjust the business models of affected

undertakings – are disregarded to isolate the influence of climate change.

All assumptions made are subject to considerable uncertainty.

[E1_AR_13c, d] An individual scenario that does not directly reference the

IPCC is taken as a basis for assessing transition risks affecting

investments. This puts the focus on the differing degrees to which sectors

are affected with an eye to the resilience of their business models in the

transition to a climate-friendly economy. As a general principle, the

scenarios are merely inspired by the IPCC parameters and do not

correspond to them in every detail. Among other things, further granular

assumptions are needed, e.g. regarding the extent to which individual

sectors are impacted and the coverage provided in reinsurance treaties.

[E1_AR_12d] The business activity of a reinsurer and the associated

investing activity is essentially considered a service capable of mitigating

the financial impacts of climate change for society and individual insureds.

Reinsurance business

Policies related to climate change mitigation and

adaptation [E1-2]

In view of the increasing impacts of climate change on global economic and

living conditions, reinsurance undertakings find themselves challenged

both to promote climate change mitigation and develop adaptation

strategies in order to ensure their long-term stability and profitability.

Consideration of ESG criteria in the insurance business, for example, has

an impact on sustainable development. With a view to tackling these

challenges, Hannover Re has developed and adopted various policies in

reinsurance business that reduce adverse impacts and risks in relation to

climate change. At the same time, they can have a positive influence on

climate change. [E1-2_MDR-P 65a] The “three lines of defence” system is

used to monitor all Hannover Re policies connected with climate change

mitigation and climate change adaptation. For further information the reader

is referred to the section “Business conduct policies”. The complete

numbered overview of the material impacts and risks in reinsurance

business addressed by the following policies is provided in the table

“Identified material impacts, risks and opportunities”.

Environmental Strategy

The central policy for anchoring environmental matters in Hannover Re’s

reinsurance business with an eye to the future is the Environmental

Strategy that entered into force in 2024 for the strategy cycle 2024–2026.

This contains work packages and goals specific to reinsurance business for

addressing material identified impacts, risks and opportunities. The action

field “decarbonisation” is intended, in particular, to mitigate negative

impacts on climate change (#10) and the energy transition (#15) and

reduce transition-related risks (#11). It is envisaged that greater interaction

with cedants and brokers in the context of the second action field

“Engagement” will similarly make a positive contribution to the impacts and

risks. The third action field geared to strengthening social resilience picks

up on actions and targets that are intended to support the positive impacts

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of core business as a global risk carrier (#1, #2). For further minimum

disclosure requirements regarding the strategy, the reader is referred to the

overarching subsection “Policies related to climate change mitigation

and adaptation”. Hannover Re’s strategic orientation is complemented by

further internal policies and guidelines in connection with climate change.

ESG Position Paper of the Property & Casualty (P&C) Business Group

[E1-2_25a-e, AR_16-18] Back in 2022 Hannover Re had already approved

an internal positioning in the form of a global ESG P&C position paper that

addresses the sustainability matters of climate change mitigation, climate

change adaptation and the reinsurance of renewable energy sources. The

position paper summarises the understanding of ESG topics within the

property and casualty reinsurance sector in order to establish a uniform

basis for the dialogue with Hannover Re’s property and casualty

reinsurance clients. It also regulates the exclusions and underwriting policy

with which carbon-intensive property and casualty reinsurance business

connected with fossil fuels will be reduced (#10, #15). Since 2022, for

example, Hannover Re has committed to decline portfolios used

exclusively for coverage of thermal coal risks. The same applies to covers

associated exclusively with the exploration and/or development (upstream)

of new oil and gas reserves (greenfield) or that exclusively support the

transportation and storage (midstream) of new oil and gas reserves

(greenfield). As a global risk carrier, Hannover Re also promotes

technological progress and thereby supports the ongoing development of

low-emissions processes and products in undertakings, for example in

connection with the reinsurance of renewable energy sources.

In this regard, the ESG position paper addresses the approach to new

climate-friendly and low-emissions technologies. Closing protection gaps is

similarly a stated action field in the position paper with a view to promoting

the climate and disaster resilience of society worldwide (#1, #2). [MDR-

P_65d] In the context of the ESG position paper, Hannover Re respects

international human rights in the property and casualty reinsurance sector

as described in the United Nations Universal Declaration of Human Rights

and the Declaration on the Rights of Indigenous Peoples, the UN Guiding

Principles on Business and Human Rights and the National Action Plan.

[MDR-P_65b] The ESG position paper is applicable to Hannover Re’s entire

property and casualty reinsurance sector. [MDR-P_65c] Responsibility for

observance and implementation of the ESG position paper rests with the

Property & Casualty Executive Committee.

ESG Manual of the Facultative Division

Complementing the ESG position paper, the Facultative Division has a

global ESG manual containing further specifics. This touches on additional

environmental matters and, among other things, regulates exclusions for

carbon-intensive business in the Facultative Division (#10, #15). The

Facultative Division’s ESG manual also defines the approach to new

climate-friendly and low-emissions technologies and industries. [E1-2_25a-

e, AR_16-18] The ESG manual thereby addresses the sustainability matters

of climate change mitigation and the use of renewable energy. Targeted risk

exclusions that help to reduce the exposure to fossil fuels are a key element

of the ESG manual. Since as far back as April 2019, the Facultative Division

has no longer provided reinsurance for any planned new coal-fired power

plants or thermal coal mines. Moreover, any new business connected with

thermal coal infrastructure has been excluded from February 2020

onwards. Thermal coal infrastructure encompasses thermal coal mines,

coal-fired power plants and facilities as well as port and rail operations that

are exclusively dedicated to the thermal coal industry. The Facultative

Division also excludes reinsurance contracts for individual risks that

generate more than 30 % of their revenues from activities in thermal coal.

Complementing the stated exclusions, a long-term exit plan for the existing

facultative business of thermal coal risks was adopted in 2021. The phased

plan, which is set out in the Facultative Division’s ESG manual, provides for

exclusions based on thresholds. It is envisaged that these thresholds will be

progressively lowered in subsequent years until the complete exclusion of

all thermal coal risks in 2038. In accordance with the Facultative Division’s

exit plan, the scaling back of business with thermal coal producers whose

annual production from all mines amounts to 100 million tonnes or more

was implemented and existing business with coal-fired power plant

operators whose installed total coal-fired power plant capacity reaches or

exceeds 25 gigawatts was reduced. In addition, the facultative reinsurance

of stand-alone coal-fired power plants with an installed capacity of more

than 5 gigawatts was discontinued by the end of 2025. Furthermore, since

mid-2022 the Facultative Division has no longer taken on any new covers

for project policies associated with the exploration and/or development

(upstream) of new oil and gas reserves (greenfield) or for project policies

that exclusively support the transportation and storage (midstream) of new

oil and gas reserves (greenfield). It is already the case that since 2020 the

Facultative Division has also no longer accepted any new individual risks

that generate 20 % or more of their revenue from oil sands. This also

excludes oil sands extraction and processing operations. Oil sands

extraction and processing encompass extraction from bituminous sand,

refinement of synthetic crude oil, further processing of this synthetic crude

into petroleum products and the associated transportation by pipeline or

rail. No existing business has remained in this segment since 2025.

The Facultative Division also does not reinsure any new stand-alone oil-

fired power plants that were not in operation or under construction by

1 July 2023. Furthermore, the Facultative Division no longer accepts any

new risks connected with projects for the extraction of oil and gas in Arctic

regions – this policy applies to both new and existing projects (greenfield

and brownfield). Hannover Re defines “Arctic regions” – in line with the

procedure followed in its investing activities – as the zone around the Arctic

Circle which runs in a circle of latitude 66.34° north of the Equator. This

includes the Arctic National Wildlife Refuge (ANWR) in the United States. In

addition, no risks are written that are connected with the development of

new oil and gas deposits in deep waters. Nor has the Facultative Division

supported any projects connected with deep-sea mining since 2023.

The Facultative Division also declines business that may entail damage to

protected wetlands (Ramsar Convention), protected areas classified as

category 1a and 1b by the International Union for Conservation of Nature

(IUCN) or UNESCO World Heritage sites. Similarly, no new projects are

supported where it is known that impacted indigenous peoples have not

given their free, prior and informed consent (FPIC). In addition, the

Facultative Division addresses in its ESG manual the International Labour

Organization (ILO) frameworks and also excludes business with

undertakings that are connected to internationally controversial weapons.

[MDR-P_65d] The Facultative Division is also required to comply with the

standards described in the ESG position paper of the P&C business group.

As another element of the Facultative Division’s ESG manual, Hannover Re

has continuously striven since 2021 to identify undertakings from various

economic sectors that are to be assessed as attractive from an ESG

perspective in order to give them special support in the context of its

facultative reinsurance activities.

[MDR-P_65b] The ESG manual is applicable to Hannover Re’s entire

Facultative Division and is operationalised through a range of measures.

[MDR-P_65c] Responsibility for operational implementation rests with the

Managing Director of the Facultative Division.

Climate and Disaster Resilience Position

With its range of reinsurance products, Hannover Re helps people around

the world gain access to insurance protection. Primary insurers are often

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only able to underwrite large portfolios, major individual risks, or risks

arising from natural hazards with the support of internationally operating

reinsurers. In this way, Hannover Re also promotes higher insurance

penetration in countries of the Global South and contributes to social and

financial inclusion.

A cross-functional and interdisciplinary working group within Hannover Re

addresses issues around the “protection gap” and resilience. The aim is to

make insurance solutions available to population groups that previously

had insufficient insurance coverage or were only able to access coverage

with difficulty (#1, #2). [MDR-P 65a] These ambitions are set out at a higher

level policy in the “Climate and Disaster Resilience Position” and are

operationalised through additional measures and targets. [E1-2_25a-e,

E1-2_AR_16-18] The position paper therefore addresses the sustainability

topic of climate change adaptation. [MDR-P_65b] The position paper’s

scope applies to Hannover Re’s entire property and casualty reinsurance

business. [MDR-P 65c] Implementation is coordinated by a cross-functional

working group with the support of local offices across the Hannover Re

Group.

Risk and Capital Management Policy

The risks associated with climate change affect all risk categories of

Hannover Re’s risk register, e.g. through changing parameters for natural

catastrophe risks. They are therefore treated as part of the risk

management processes within every risk category of the risk register.

Adequate risk management in relation to climate change is indispensable

for Hannover Re’s business model and supports social adaptation to

climate change (#1). At the same time, potential litigation risks (#11) as well

as impacts on Hannover Re’s assets and earnings position through rising

losses from climate change are reduced (#3). [MDR-P_65a] The detailed

rules and processes in risk management are recorded in the Risk and

Capital Management Policy (RCMP). [E1-2_25a-e, E1-2_AR_16-18] The

policy addresses the sustainability matters of climate change mitigation and

climate change adaptation. [MDR-P_65b] The policy’s scope of application

encompasses all activities of the Hannover Re Group. [MDR-P_65c]

Responsibility for operational implementation of the policy rests with the

Chief Risk Officer of Hannover Re. A description of Hannover Re’s

approach to physical and transition climate change risks through NatCat

modelling and scenario analyses can also be found in the section on

ESRS2 SBM-2 in this chapter.

Actions and resources in relation to climate change

policies [E1-3]

Aside from implementation of the climate change-related policies described

under E1-2, Hannover Re does not engage in any other actions in

reinsurance business that can be subsumed under the requirements of the

ESRS. This is primarily due to the fact that possible actions with the

potential for carbon reduction are quantifiable to only a limited extent for

methodological reasons.

Targets related to climate change mitigation and

adaptation [E1-4]

[MDR-T_80a] In the context of its Environmental Strategy, Hannover Re

has set itself the goal of decarbonisation in the Facultative Division.

[E1-4_33] This goal will reduce carbon-intensive property and casualty

reinsurance business, thereby mitigating adverse impacts on climate

change (#10, #15). [MDR-T_80b, c, e] The defined target is a decrease of

20 % in the number of facultative reinsurance treaties for thermal coal risks

in the period from 2024 to 2026. [MDR-T_80d] Progress is measured on the

basis of an index-based reference value (100 %). [MDR-T_80j] Measured

against the 2023 reference year, a reduction of 19 percentage points in the

facultative reinsurance treaties connected with thermal coal risks had

already been achieved by the end of 2025.

A common understanding with global clients and increased transparency

around ESG matters is needed to advance the transition and better manage

the underwriting business in relation to ESG considerations. [MDR-T_80a]

As another element of its Environmental Strategy, Hannover Re therefore

aims to strengthen dialogue and engagement with its reinsurance clients in

connection with ESG issues. [E1-4_33] By setting this target, Hannover Re

increases transparency and obtains insights into its clients’ sustainability

efforts. The negative impact (#10) and the risk (#11) are thereby reduced.

[MDR-T_80b, c, e] The target set is to initiate contact with the 100 largest

property and casualty reinsurance clients on ESG core issues in the period

from 2024 to 2026. [MDR-T_80d] The baseline value for measuring

progress refers to zero corresponding contacts initiated in 2023. The

progress made at the end of the 2025 reporting year stood at 70 %.

[MDR-T_80a] When it comes to strengthening societal resilience, Hannover

Re has additionally set itself the target under its Environmental Strategy of

expanding its sustainable insurance solutions designed to mitigate the

impacts of climate disasters and natural catastrophes in emerging and

developing countries. [E1-4_33] By stepping up collaboration with its

partners, Hannover Re helps to close this protection gap and thereby

reduces the negative impact (#2). [E1-4_MDR-T_80b, c, e] The target set

for the period from 2024 to 2026 is to underwrite five additional programmes

in property and casualty reinsurance that cover natural catastrophe risks in

emerging and developing countries. [MDR-T_80d] The baseline value for

measuring progress refers to an existing number of such programmes in

2023, to which five are to be added. The target had already been achieved

by the end of 2025 through the writing of more than five relevant

programmes, in particular parametric reinsurance covers.

[MDR-T_80f, g] The three aforementioned targets on the underwriting side

are based on Hannover Re’s strategic assumptions and not on specific

scientific insights. [MDR-T_80h] Stakeholders were not involved in setting

the targets. Adherence to the set targets is continuously reviewed and the

Executive Board receives half-yearly progress reports. Progress towards

achieving the targets is consistent with the original planning. [MDR-T_80j]

No significant change in the company’s performance with regard to

achievement of the targets can be discerned.

Investments

Policies related to climate change mitigation and

adaptation [E1-2]

Just as with the underwriting business, material impacts and risks related to

climate change mitigation, climate change adaptation and energy were

identified for investing activities, the other part of Hannover Re’s core

business.

Incorporating ESG criteria into investing activities is an important tool in the

realisation of sustainable goals. In conformity with the European

Commission’s action plan on financing sustainable growth, capital can be

reoriented towards issuers, projects or technologies that contribute to

sustainable development. At the same time, issuers that violate predefined

ESG criteria can be excluded. Furthermore, the ESG criteria expand the

analysis of the risks associated with individual sectors or issuers, e.g. an

inadequate engagement with the impacts of climate change, and hence

help to improve the quality of decision making in strategic and tactical asset

allocation. [MDR_P_65a]. The “three lines of defence” system is used to

monitor all Hannover Re policies related to climate change mitigation and

adaptation (for further information the reader is referred to the section

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“Business conduct policies”). The complete numbered overview of the

material impacts and risks in investments addressed by the following

policies is provided in the table “Identified material impacts, risks and

opportunities”.

Responsible Investment Standards

The Hannover Re Group’s sustainable investment strategy is formalised in

the Responsible Investment Standards. [MDR-P_65a] It is based on a

multidimensional concept, with exclusion criteria forming a key element of

an integrated ESG approach. In accordance with the investment policy,

Hannover Re strives for stable, fair market returns in order to be able to

meet underwriting commitments and liquidity requirements at all times

while preserving a balanced risk/return profile and broad diversification.

[E1-2_25a-e, E1_AR_16-18] At the same time, considerable importance is

attached to the sustainability approach, incorporating environmental, social

and governance aspects (ESG criteria), with special attention paid to the

sustainability matters of climate change mitigation, climate change

adaptation and the use of renewable energy. Since as long ago as 2012,

corresponding binding guidelines have been enshrined in writing in the

internal standards. The stipulations defined here have continued to evolve

over the past years and include various exclusion criteria, inter alia relating

to fossil fuels, that serve to reduce relevant negative impacts (#8, #14) and

the transition risk (#4). The exclusions also promote the transition to a low-

emissions economy and hence support the positive impact (#5). Within the

portfolio of assets under own management, fixed-income securities

(government and semi-government bonds, corporate bonds and covered

bonds [with the exception of collateralised debt obligations, CDOs]) and

listed equities have been subject to such screening processes since 2012.

As at the reference date of 31 December 2025, these investment classes

accounted for more than 85 % of the asset portfolio. The Ten Principles of

the UN Global Compact are a decisive criterion in guiding the review of the

portfolio. Companies that fail to respect human rights or are complicit in

human rights abuses, disregard basic labour standards or go against

considerations of climate change mitigation are excluded from the

investment horizon, as are companies that have come under scrutiny for

the use of forced labour, child labour, discrimination or corruption, or for the

development and proliferation of controversial weapons. These include

anti-personnel mines, biological and chemical weapons, cluster munitions,

depleted uranium and white phosphorous. A corresponding cross-check is

made in advance of any new investments and continuously for the existing

portfolio; issuers that do not meet these ESG criteria are excluded or

actively scaled back.

Further ESG exclusion criteria with specific revenue thresholds apply when

it comes to fossil fuels. This affects:

– Issuers that generate 25 % or more of their revenues from energy

generation from shale oil / gas or oil sands extraction

– Issuers that generate 10 % or more of their revenues from the mining of

or power generation from thermal coal

– Issuers that generate 5 % or more of their revenues from offshore oil and

gas drilling within the Arctic Circle (66°34’N)

No new investments are made in issuers that exceed the specified

thresholds. Existing investments are disposed of as soon as possible in

light of current market conditions. Over the long term, the goal is to reduce

the exposure to thermal coal by 2038. On the one hand, these actions have

a positive effect on climate change mitigation (#5, #6), while at the same

time they reduce possible risks from the transition to a climate-neutral

economy (#4) by lowering the exposure to high-risk industries through a

piecemeal approach.

The best-in-class analyses, which facilitate qualitative management

according to ESG criteria, similarly support climate change mitigation and

promote the use of renewable energies (#7, #13). [MDR-P_65a] Further

items of the Responsible Investment Standards include the requirement to

act in accordance with the Ten Principles of the United Nations Global

Compact and the orientation towards the Principles for Responsible

Investment. [MDR-P_65b] The standards’ scope of application extends to

both the investment decisions made by Hannover Re itself and the

collaboration with external asset managers acting on behalf of Hannover

Re.

The Chief Financial Officer is informed of anomalous findings from the

screening process. Hannover Re’s Investment Committee and the

Executive Board are also provided upon request with individual reports

about the progress and implementation of the Responsible Investment

Policy as well as any changes to it. [MDR-P_65c] Responsibility for

operational implementation of the standards rests with the Managing

Director Investment & Collateral Management. Dedicated ESG experts on

the Investment Team also provide implementation support.

Medium- to long-term climate strategy for investing activities

In 2021 the Executive Board approved the medium- to long-term climate

strategy for investing activities. [MDR-P 65a] It is founded on three pillars:

– decarbonisation of the liquid investment portfolio

– intensified efforts to engage with a range of stakeholders

– increased investment in sustainable investments that fight climate

change and/or support the United Nations Sustainable Development

Goals

[E1-2_25a-e; E1-2_AR_16-18; MDR-P_65b] The climate strategy

addresses the sustainability matters of climate change mitigation, climate

change adaptation and the use of renewable energy and has implications

for the liquid and illiquid investments held in the asset portfolio. The

approach pursued is, on the one hand, to minimise the carbon burden in

investing activities, thereby supporting the transition and the positive

impact (#5). As a result of this striving towards decarbonisation, the

negative impacts (#8, #14) and identified risks are in turn correspondingly

reduced (#4).

On the other hand, the climate strategy promotes the approach of increased

investment in sustainable investments that fight climate change. The

positive impacts are thereby supported (#7, #13).

Intensified engagement with a range of stakeholders is integrated into the

climate strategy as another key pillar. [MDR-P_65c] Responsibility for

operational implementation of the climate strategy rests with the Managing

Director Investment & Collateral Management.

[MDR-P 65a, b] One aspect of the Environmental Strategy is the increased

investment in sustainable investments. The growing addition of sustainable

investments to Hannover Re’s asset portfolio explicitly relates to

investments that, according to expert assessment, support the

transformation to a resource-efficient and climate-neutral economy. These

include, in particular:

– sustainable infrastructure investments, e.g. in the areas of renewable

energy and clean transportation, that accelerate the move away from

fossil fuels through low-carbon alternatives,

– impact investments that promote particularly sustainable innovations,

such as in the areas of circular economy, energy storage or energy

conservation,

– sustainable forestry and agricultural investments.

By increasing these investments in accordance with the Environmental

Strategy by at least 45 % from 2024 to the end of 2026, positive impacts on

both climate change mitigation (#7) and the energy transition are to be

Hannover Re

Investor Relations

Annual Report 2025

reinforced (#13). In addition, negative effects on the climate are significantly

reduced (#8). The increase amounts to 72 % by the end of the reporting

period. This does not constitute a target as defined by ESRS E1-4 in

conjunction with ESRS 2 MDR-T.

Actions and resources in relation to climate change

policies [E1-3]

Aside from implementation of the climate change-related policies described

under E1-2, Hannover Re does not engage in any actions in investing

activities that could be subsumed under the requirements of the ESRS. This

is primarily due to the fact that possible actions with the potential for carbon

reduction are quantifiable to only a limited extent for methodological

reasons.

Targets related to climate change mitigation and

adaptation [E1-4]

In its investing activities Hannover Re has set itself the goal of actively

reducing the greenhouse gas (GHG) intensity of the liquid asset portfolio.

[E1-4_34a, c; MDR-T_ 80a, b, c, d, e, f, g] In concrete terms, a reduction of

70 % in the enterprise-based GHG intensity (EVIC GHG intensity) in

relation to corporate bonds, covered bonds, equities and quasi-sovereign

issuers is aimed for between 2019 and the end of 2029 under the medium-

to long-term climate strategy and the Environmental Strategy. Compared to

the base intensity of 147.8 tCO₂e/EUR million from 2019, this means a

reduction of roughly 103.4 tCO₂e/EUR million by 2030. The reduction at

year-end 2025 was 65 %. The EVIC-based intensity of an undertaking is

calculated from the Scope 1 and Scope 2 emissions in tCO₂e, standardised

by the undertaking’s EVIC in EUR million. Intensity metrics of external data

providers are used for this purpose. The changeover in data provider

completed in 2025 and the resulting implications are discussed in greater

detail in chapter E1-6. Subsequently published data were also considered

retrospectively for the base year in order to ensure the best possible

coverage of the base. The calculation of the emissions relevant to the

climate strategy target is analogous to the methodology described under

chapter E1-6 for calculating the entire financed emissions under Scope 3.15

and cannot be considered a scientifically grounded target. The only

difference is that – unlike the PCAF calculation for debt instruments

described in chapter E1-6 – the market value is used rather than the nominal

value. [E1-4_34b; AR_24] The target thus covers roughly 7.3 % (5.5 %) of

Hannover Re’s Scope 3.15 emissions.

Owing to the emission trend at issuers and changes in the overall portfolio,

the intensity is subject to continuous fluctuation. Temporary target

attainment cannot therefore be seen as permanent. The decarbonisation

progress achieved since 2019 can also be attributed inter alia to the

following aspects:

– exclusion of new investments in business models with a high emissions

intensity (e.g. thermal coal or oil sands)

– reduced exposure to the fossil fuels sector; divestment from issuers with

high emission intensities

– indirectly through actual reductions in the emissions intensities of

individual issuers

[E1-4_34e; MDR-T_80f] The target is based on strategic assumptions made

by Hannover Re and was not externally validated. Hannover Re has not to

date identified or quantified any concrete levers or actions as defined by the

CSRD for achievement of its investment target. There is no direct

correlation with the policies in investing activities. Assurance has not been

obtained for the 1.5°C-compatibility of the target and it is not based on

climate scenarios. [MDR-A 80g] There is no sector-specific or cross-sector

decarbonisation path. [MDR-A 80h] There are currently no plans to adopt

new technologies for the achievement of emission reduction targets.

Internal stakeholders were involved in setting the target through the

Investment Committee. [E1-4_34c; E1_ AR_25] The baseline value used to

measure progress with respect to the targets is representative, because

2019 passed off under environmentally stable general conditions and was

not distorted by exceptional events or geopolitical conflicts.

[E1-4_33] The decarbonisation target serves to reduce both negative

impacts on climate change (#8) and resulting transition risks in connection

with the investments (#4). [E1-4_34f; E1_AR_30a-c] Relevant here are

portfolio adjustments and changes that are planned in order to achieve the

targeted reduction overall. [MDR-T_ 80j] Progress towards achieving the

target is regularly tracked by reviewing the portfolio's emissions data.

[MDR-T_80a] Along with decarbonisation of the asset portfolio, the

dialogue with issuers around ESG and climate matters (“engagement”) –

also part of the Environmental Strategy – is considered an important means

of supporting the transition to a lower-carbon world and making global

climate goals attainable. [E1-4_33] Consequently, a strategic quantitative

engagement target for the intensified dialogue with issuers was approved

for the current strategy cycle 2024–2026 with the aim of achieving a positive

impact on climate change mitigation (#6). [MDR-T_80b, c, e] The target set

is dialogue on a regular basis with at least 20 issuers in Hannover Re's

asset portfolio on ESG and climate matters from 2024 to the end of 2026.

[MDR-T_80d] The baseline value for measuring progress “technically”

references zero corresponding dialogues in 2023. 20 dialogues were

conducted with issuers in the 2025 reporting year.

[MDR-T_80a, f] Since 2025, Hannover Re has pursued the goal of reducing

the proportion of its exposures to the oil and gas sector within the liquid

corporate bonds in order to support the transition to a lower-carbon

economy and reduce associated transition risks. [MDR-T_80b, c, d] The

goal refers to the entire value chain and is based on the 2024 base year with

a reference value of 7.4 %. [MDR-T 80e, j] By the end of 2029 a reduction of

30 % in this share is targeted; the reduction achieved by the end of 2025

was 9.1 %.

[MDR-T_80f, g] The last two targets stated for investing activities are based

on strategic assumptions made by Hannover Re and not on specific

scientific insights. [E1-4_MDR-T_80h] External stakeholders were not

involved in setting the targets. Adherence to the set targets is continuously

reviewed and the Executive Board receives progress reports at least once a

year. Progress towards achieving the targets is consistent with the original

planning. No significant change in the company’s performance with regard

to achievement of the targets can be discerned.

Own Operations (environmental

management)

Policies related to climate change mitigation and

adaptation [E1-2]

A comprehensive and consistent approach to the challenges of climate

change also includes the management of environmental and climate-

related impacts of an undertaking’s own operations. Ensuring

“environmental stewardship” is particularly conducive to the internal and

external role model function and has the effect of signalling progressive

decarbonisation in core business. Even though the overall impacts here are

ultimately lower measured by carbon emissions, material impacts and risks

related to climate change mitigation, climate change adaptation and the

energy transition could also be identified within our own operations.

Hannover Re

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Annual Report 2025

[E1-2_25a-e] Hannover Re’s ESG positioning for its own operations was

summarised in the global Environmental Strategy 2024-2026. For further

minimum disclosure requirements regarding the strategy, the reader is

referred to the overarching section “Policies related to climate change

mitigation and adaptation”.

A focus of the Environmental Strategy for own operations is on reducing

carbon emissions stemming in particular from the supply of electricity and

heat to the company's premises. Since as long ago as 2012, Hannover Re

has purchased exclusively electricity from renewable energy at the

Hannover location. The purchasing of electricity from renewable energy

was rolled out to all office locations worldwide in 2024. In view of the

sustainable electricity and heat supplied to office premises, the negative

impact (#12) is reduced. Furthermore, Hannover Re's company car fleet is

also addressed by the Environmental Strategy. In addition, sustainable

mobility has been encouraged since 2019. To this end, Hannover Re makes

electricity available to employees at the location in Hannover to recharge

their electric vehicles at no cost. [MDR-P_65a] The complete, numbered

overview of the material impacts in own operations addressed by the

Environmental Strategy is provided in the table “Identified material

impacts, risks and opportunities”.

Actions and resources in relation to climate change

policies [E1-3]

Aside from implementation of the climate change-related policies described

under E1-2, Hannover Re does not engage in any actions that can be

subsumed under the requirements of the ESRS, because the action fields

described in the policy relating to the sustainable supply of energy to own

operations and the electrification of the vehicle fleet were defined and

reported as targets (see E1-4).

Targets related to climate change mitigation and

adaptation [E1-4]

[E1-4_33; MDR-T_80a] By setting targets under the Environmental

Strategy, Hannover Re strives to further advance decarbonisation in its own

operations.

[E1-4_33; MDR-T_80b, c, e] In 2025, as in the 2024 reporting year,

Hannover Re again set itself the goal of purchasing 100 % green electricity

(in kWh) globally for the Hannover Re Group, thereby reducing the negative

impact #12. [MDR_T_80d] The use of electricity from renewable energy for

the Group in the 2023 base year stood at 67 %. The target was achieved in

the year under review. [MDR-T_80j] Electricity will continue to be purchased

from renewable energy in subsequent years.

[MDR-T_80a, b, c, e] As far as the opportunity to lease a company car is

concerned, a further goal of the Environmental Strategy is to achieve

complete electrification of the company car fleet at the Hannover location

by 2030. [E1-4_33] The target reduces the negative impact from

employees’ use of company vehicles that are harmful to the climate (#12).

[MDR_T_80d] The proportion of electrically powered vehicles in the 2023

baseline year stood at 9 %. [MDR-T_80j] The proportion of electrically

powered vehicles in the year under review was 33 %.

[MDR-T_80f, g] The two targets in own operations are based on Hannover

Re’s strategic assumptions and not on specific scientific insights. [MDR-

T_80h] Stakeholders were not involved in setting the targets. [MDR-T_80j]

Adherence to the set targets is continuously reviewed and the Executive

Board receives half-yearly progress reports. No significant change in the

company’s performance with regard to achievement of the targets can be

discerned.

Metrics

[MDR-M_77a] The metrics in the following sections E1-5, E1-6 and E1-7 are

based on various collection methods. For metrics that can be allocated to

own operations, primary data are used where possible in the form of

electricity, heating or fuel bills, as well as additional information from service

providers supplied by all consolidated entities of Hannover Re in a

standardised process with appropriate controls. Consolidation and further

processing are handled centrally by an expert team at the Hannover

location. Due to internal quality assurance processes, the information in the

year under review was surveyed at the reference date of 31 October 2025

and the last two months of the year were extrapolated. Hannover Re takes

own operations to mean the operation of office space and buildings in which

its own employees work for Hannover Re, as well as the operation of the

associated infrastructure. Affiliated, non-consolidated undertakings are also

covered by this definition. On grounds of immateriality, extrapolations and

assumptions based on average intensities per employee of the

consolidated group are used to calculate the metrics for these

undertakings. Unlike own operations, the metrics also include energy

consumption data (E1-5) as well as Scope-1 and 2-emissions (E1-6) from

fully consolidated investments such as investment property. These figures

are based primarily on averages and estimates and hence limited in their

informational value and reliability. Significant deviations from the previous

year's figures were mainly due to improved data coverage and other factors

such as inventory movements. Further emissions from investments are

reported in Scope 3.15. The determination of all Scope 3 categories is also

described in detail under subsection AR_46h. Metrics specified under E1-7

are based on specifically purchased GHG certificates from an external

service provider. [MDR-M_77b] None of the metrics specified in ESRS E1

have been validated by an external body other than that responsible for

quality assurance.

The approach to dealing with changes in the preparation or presentation of

sustainability information is described under ESRS 2 BP-2 paragraph 13.

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Investor Relations

Annual Report 2025

Energy consumption and mix [E1-5]



Energy consumption and mix	2024	2025
Total fossil energy consumption (MWh)	39,467.2	62,804.1
Fuel consumption from coal and coal products (MWh)	—	—
thereof stemming of own operations (MWh)	—	—
Fuel consumption from crude oil and petroleum products (MWh)	1,094.6	1,236.0
thereof stemming of own operations (MWh)	1,094.6	1,236.0
Fuel consumption from natural gas (MWh)	14,852.7	16,079.2
thereof stemming of own operations (MWh)	861.7	241.2
Fuel consumption from other fossil sources (MWh)	—	—
thereof stemming of own operations (MWh)	—	—
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	23,519.8	45,488.9
thereof stemming of own operations (MWh)	2,205.8	2,837.2
Share of fossil sources in total energy consumption (in %)	37.5%	55.1%
Consumption from nuclear sources (MWh)	—	—
thereof stemming of own operations (MWh)	—	—
Share of consumption from nuclear sources in total energy consumption (in %)	—	—%
Total renewable energy consumption (MWh)	65,912.3	51,116.4
Fuel consumption for renewable sources, including biomass (MWh)	—	13,902.7
thereof stemming of own operations (MWh)	—	—
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	65,848.4	36,952.7
thereof stemming of own operations (MWh)	7,303.4	6,003.5
Consumption of self-generated non-fuel renewable energy (MWh)	63.9	261.1
thereof stemming of own operations (MWh)	63.9	64.6
Share of renewable sources in total energy consumption (in %)	62.5%	44.9%
Total energy consumption (MWh)	105,379.5	113,920.5

[E1-5_40] Pursuant to Regulation (EC) No. 1893/2006 of the European

Parliament and of the Council, Hannover Re is active in the high climate

impact sector “Real estate activities” (NACE Code section L) based on the

renting out of real estate. It is not possible to report the energy intensity for

activities in high climate impact sectors, because the total energy

consumption cannot be compared with corresponding net sales.

Hannover Re

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Annual Report 2025

Scope 1,2 and 3 gross GHG emissions and total GHG emissions [E1-6]


Total GHG emissions (Scope 1-3)	Retrospective				Milestones and target years
	Base year	2024	2025	%	2030
Scope 1 GHG emissions
Scope 1 GHG emissions (tCO ₂e)	—	3,270.3	3,551.9	8.6%	—
thereof stemming from own operations ¹	—	434.7	341.5	-21.4%	—
Scope 1 GHG emissions of consolidated accounting group (tCO ₂e)	—	3,262.6	3,545.7	8.7%	—
Scope 1 GHG emissions of non consolidated entities (tCO ₂e)	—	7.6	6.2	-19.3%	—
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)	—	—	—	—	—
Scope 2 GHG emissions
Location-based Scope 2 GHG emissions (tCO₂e)	—	28,275.2	23,987.1	-15.2%	—
thereof stemming from operations ¹	—	3,339.0	3,033.0	-9.2%	—
Location-based Scope 2 GHG emissions from consolidated accounting group (tCO ₂e)	—	28,216.6	23,932.4	-15.2%	—
Location-based Scope 2 GHG emissions from non consolidated entities (tCO ₂e)	—	58.6	54.7	-6.7%	—
Market-based Scope 2 GHG emissions (tCO₂e)	—	6,273.5	23,137.5	268.8%	—
thereof stemming from operations ¹	—	396.3	497.3	25.5%	—
Marked-based Scope 2 GHG emissions from consolidated accounting group (tCO ₂e)	—	6,266.5	23,128.5	269.1%	—
Marked-based Scope 2 GHG emissions from non consolidated entities (tCO ₂e)	—	7.0	9.0	28.9%	—
Significant Scope 3 GHG emissions
Total gross indirect (Scope 3) GHG emissions (tCO ₂e) (without Scope 3 financial investments)	—	9,480,229.0	7,580,109.9	-20.0%	—
Total gross indirect (Scope 3) GHG emissions (tCO ₂e) (with Scope 3 financial investments)	—	25,186,327.1	18,843,266.8	-25.2%	—
1 Purchased goods and services	—	157.7	399.8	153.4%	—
2 Capital goods	—	1,957.2	—	-100.0%	—
3 Fuel- and energy-related activities (not included in Scope 1 or Scope 2)	—	181.1	187.1	3.3%	—
4 Upstream transportation and distribution	—	—	—	—	—
5 Waste generated in operations	—	—	—	—	—
6 Business travel	—	5,716.3	3,984.7	-30.3%	—
7 Employee commuting	—	2,498.7	—	-100.0%	—
8 Upstream leased assets	—	—	—	—	—
9 Downstream transportation	—	—	—	—	—
10 Processing of sold products	—	—	—	—	—
11 Use of sold products	—	—	—	—	—
12 End-of-life treatment of sold products	—	—	—	—	—
13 Downstream leased assets	—	—	—	—	—
14 Franchises	—	—	—	—	—
15 Financial investments (without Scope 3 financial investments)	—	9,469,718.0	7,575,538.3	-20.0%	—
15 Financial investments (with Scope 3 financial investments)	—	25,175,816.0	18,838,695.2	-25.2%	—
Total GHG emissions
Total GHG emissions (location-based) (tCO₂e) (without Scope 3 financial investments)	—	9,511,774.5	7,607,648.8	-20.0%	—
Total GHG emissions (location-based) (tCO₂e) (with Scope 3 financial investments)	—	25,217,872.6	18,870,805.8	-25.2%	—
Total GHG emissions (market-based) (tCO₂e) (without Scope 3 financial investments)	—	9,489,772.8	7,606,799.2	-19.8%	—
Total GHG emissions (market-based) (tCO₂e) (with Scope 3 financial investments)	—	25,195,870.8	18,869,956.2	-25.1%	—

¹ Hannover Re takes own operations to mean emissions sources arising from the operation of its own

and rented office premises as well as the vehicle fleet. Further emissions in Scope 1 and 2 are caused

by fully consolidated investments that cannot be reported under Scope 3.15.

Hannover Re

Investor Relations

Annual Report 2025

For all information on base and target years, we refer to section E1-4

(Targets related to climate change mitigation and adaptation). [E1-6_53,

55, AR_53b] The greenhouse gas intensity (in relation to market- and

location-based GHG emissions) amounts to 284 tCO₂e (705 tCO₂e

including Scope 3 emissions from financial investments) per EUR million

of reinsurance revenue. Figures for reinsurance revenues are provided in

the “Consolidated statement of income”. [MDR-M_77a] The metric is

calculated by comparing the overall results of GHG accounting with the

Group’s reinsurance revenue under IFRS 17 (EUR 26.8 billion). The

result of the GHG accounting is subject to the limitations and

assumptions described below. The reinsurance revenue was taken from

the consolidated financial statement of the Hannover Re Group.

[E1_AR 39b; E1_AR_46h] As already described in the section

“Disclosures in relation to specific circumstances”, Hannover Re is

guided by the requirements of the GHG Protocol and the PCAF in its

preparation of the greenhouse gas balance sheet. As a general principle,

the accounting methodology under both standards is subject to a certain

degree of inaccuracy, irrespective of the effort invested in obtaining the data

used for calculation purposes. There are a number of methodological

reasons for this, including for example the variability of the emission factors

used. These are intended to indicate the quantity of greenhouse gases

(normally measured as CO₂ equivalents) released per unit of a specific

activity parameter (e.g. through burning one litre of fuel). These emission

factors, which are available in varying granularity and from various external

and internal providers (e.g. Defra or the International Energy Agency),

normally constitute an averaged picture of a large number of variables.

Critical assumptions are made for calculation purposes if only limited data

are available or in case of methodological uncertainties. Reference is

therefore made to estimates or averages in the calculations for various

greenhouse gas categories. [E1_AR_39b] The GHG Protocol recognises

the limits of accounting and recommends regular review of the methods and

emission factors to minimise uncertainty as well as transparent reporting on

these methodological uncertainties and the approximation methods used.

GHG accounting is to be seen as a continuous improvement process in

which the primary focus should be on key emission drivers. The PCAF

Standard for calculating financed emissions similarly acknowledges that the

required primary data (e.g. reported CO₂ emissions of the investee

undertakings or projects) are frequently unavailable and allows the use of

estimates and sector averages for accounting purposes.

[E1_AR_43c; E1_AR_45e; E1_AR_46j] Furthermore, no biogenic emissions

resulting from the combustion or biodegradation of biomass were

generated during the reporting period. Since there are no corresponding

emission sources, there is no need for separate reporting of biogenic

emissions.

[E1-6_AR_45d] In the calculation of the market-based Scope-2-GHG

emissions from purchased energy for own operations, Hannover Re uses

various recognised instruments for sourcing green energy. A distinction is

made here between office premises owned by Hannover Re and those that

are leased. Green energy certificates bundled with the locally applied

electricity tariff are used for the Hannover head office, while unbundled

instruments under various recognised standards are used for all

international locations (e.g. IRECs, REGOs as well as US/Can RECs). In its

selection of these instruments Hannover Re is guided by internal quality

standards and endeavours to keep to them wherever possible. These

include, for example, regional sourcing of energy generation if possible and

compliance of the underlying energy generation projects with the RE100

standard. Roughly 51% of the global electricity consumption of own

operations is allocable to these unbundled instruments.

[E1-6_AR_46h] Following a three-step process and in line with the GHG

Protocol “Technical Guidance for Calculating Scope 3 Emissions”, all

activities within the upstream and downstream value chain that cause

relevant emissions were identified. The relevant categories were

established using a significance analysis, taking into account the categories

emission size, stakeholder expectations and influenceability. As a result of

this analysis, the following subcategories of the GHG Protocol were

considered material and included in the inventory:

– Scope 3.1: Emissions resulting from the purchase of energy-intensive

cloud services are recognised under Scope 3.1. The direct emissions

data of the corresponding service providers are used to calculate the

emissions.

– Scope 3.3: Emissions arising from the upstream production of fuel and

energy not already included in Scope 1 and 2 are included under Scope

3.3. Indirect emissions caused by the generation or transportation of

electricity are not considered because all Hannover Re's electricity is

renewably sourced and hence no further material emissions are created.

The emission factors of the Defra database are used for the calculation.

– Scope 3.6: Emissions caused by the business travel of Hannover Re

employees are recognised under Scope 3.6. In light of materiality

considerations, only emissions from business trips by plane are

reported. The emissions are calculated using the methodology of the

Defra database.

– Scope 3.15: The financed greenhouse gas emissions are determined for

the investment portfolio in line with the guidance issued by the PCAF

(2022). The methodology was partially expanded to capture asset

classes not currently captured by the PCAF Standard (2022). These

include sub-sovereign bonds, covered bonds and indirect investments.

Even though Hannover Re endeavours to calculate the financed

emissions for the most extensive possible share of the portfolio, the

attainable degree of coverage is limited by the fact that the underlying

methodologies have still to be fully elaborated and by the availability of

reliable data. Consequently, financed emissions are not calculated for,

among other things, asset-backed securities (ABS), mortgage-backed

securities (MBS), cash and derivatives. The degree of coverage and the

quality of data are to be continuously and systematically improved as

soon as suitable methods become available. The emission figures used

for the calculations typically show a time lag of one to two years

compared to the respective investment data used from the reporting

year. Compared to the previous year, the emissions figures of the

companies were obtained from a different data provider for reasons of

data availability. Figures for the previous year cannot be restated in the

absence of historical data. The calculation methodology used remained

unchanged to ensure consistency in the reporting. It is also important to

bear in mind that the estimation methods used by the various data

providers differ from one another. Particularly where Scope-3-emissions

are concerned, this leads to limited comparability of the reported results.

Furthermore, the data source for emissions from countries was changed

in order to be more up to date. This year, most of the data used is from

2024, whereas in the previous year the figures were based mostly on

2021 data.

In accordance with the underlying asset categories, the financed emissions

are calculated in four main areas by weighting the financial investments with

the GHG intensity of the issuer or investment:

– Corporate financing debt: This includes all debt investments in liquid and

non-liquid corporate bonds as well as state-affiliated enterprises

– Corporate financing equity: This encompasses investments in listed and

private equity

– Financing of real assets: This covers investments in real estate,

infrastructure projects and mortgage loans

Hannover Re

Investor Relations

Annual Report 2025

– Sovereign debt: This consists of investments in public debtors as well as

supranational / sovereign issuers and other government institutions

Corporate financing debt: In the case of corporate bonds, the level of

investment is calculated from the nominal value unless this approach is not

appropriate for the financial instrument (as with zero bonds), in which case

the market value is used. An estimation method is used for corporate

financing without any available current data points. This draws either on

prior-year data or an approximation that references the entity's sector and

region. In this context, the average intensity of the respective sector in the

relevant region is assigned to an entity. If the population of estimators is too

small, reference is made to a global estimator for the sector concerned. It

remains the case that all estimators are adjusted for upward or downward

outliers.

Corporate financing equity: The level of investment for equities is calculated

from the market value. Missing data points regarding the EVIC intensity of

an entity are approximated according to the method for corporate financing

debt.

Financing of real assets: Hannover Re uses the methodology for GHG

accounting described in detail under PCAF Part A. These assets are also

differentiated according to whether or not they are fully consolidated. Fully

consolidated investments are reported as Hannover Re Scope-1 and

Scope-2-emissions and not as financed emissions.

Sovereign debt: The level of investment for sovereign debt is calculated as

with corporate bonds from the nominal value, unless this approach is not

appropriate for the financial instrument (as with zero bonds), in which case

the market value is used. In the absence of specific PCAF guidance for

carbon accounting of sub-sovereign issuers (excl. state-affiliated

enterprises), the methodology used for government bonds is adapted to

this asset class.

The financed emissions (without Scope-3-emissions from financial

investments) amounted to 7.58 million tonnes of CO₂ equivalent (CO₂e) in

2025. The total volume of financed greenhouse gas emissions amounted to

18.84 (25.18) million tonnes CO₂e with a degree of coverage of 88.6 %

(88.3 %). In this context, 10.7 (14.7) million tCO₂e are attributable to

Scope-3-emissions from investments in corporate financing debt, with a

further 5.8 (7.5) million tCO₂e in the area of sovereign debt. For

methodological reasons, a considerable amount of double counting arises

here in a portfolio. In addition, the direct Scope-1- and 2-emissions are

driven heavily by investments in sovereign debt.

[E1-6_AR_46g] The share of greenhouse gases in Scope-3-emissions

determined from primary data is around 0.02%. Hannover Re interprets

primary data here to mean data that are collected directly from the source

without having undergone further processing. For the purpose of

determining the proportion of primary data, fuel volumes, energy

consumption figures and distances collected or provided by suppliers or

emissions data provided directly by suppliers that verifiably originate

directly from the source are recognised as primary data. Emissions

calculated on a cost basis or values extrapolated on the basis of average

studies are not categorised as primary data. In this context, Hannover Re

also considers the data collected by issuers for the calculation of financed

emissions to be secondary data because they determine such data through

calculations or estimates. The low proportion of primary data can thus be

attributed to the large share of financed emissions within the Scope 3

emissions. Emissions from the categories Scope 3.1, 3.3 and 3.6, in

particular, are used as primary data.

[E1-6_AR_46i] Emissions from further activities within the upstream and

downstream value chain are identified as non-material in the context of the

three-step process and hence do not form part of Hannover Re's GHG

balance sheet. The non-material categories of the GHG Protocol include:

– Scope 3.2: Hannover Re sees various reasons for assessing emissions

from capital goods as non-material, including limited informational value

due to inconsistent methods for calculating product carbon footprints. As

a reinsurer, there is only minimal use of materials in the procurement of

office furniture and IT hardware.

– Scope 3.4: As a reinsurer, Hannover Re provides non-physical products.

Consequently, no emissions are produced from the transportation and

distribution of raw and other materials and products.

– Scope 3.5: As a pure financial services provider, Hannover Re only

produces waste as part of everyday office work. The emissions resulting

from the disposal and treatment of waste were assessed as non-material

relative to the emissions from other activities of Hannover Re.

– Scope 3.7: The emissions relating to employee commuting and mobile

working arise primarily due to individual decisions or in the employees’

private sphere and are therefore outside Hannover Re’s direct control.

– Scope 3.8: The emissions resulting from rented premises and leased

vehicles are assigned to Scope 1 and 2. There is no other rented or

leased property, plant and equipment.

– Scope 3.9: The same justification applies as for Scope 3.4.

– Scope 3.10: The same justification applies as for Scope 3.4.

– Scope 3.11: The same justification applies as for Scope 3.4.

– Scope 3.12: The same justification applies as for Scope 3.4.

– Scope 3.13: Hannover Re does not rent out or lease out any property,

plant and equipment such as buildings, machinery or vehicles. Any

emissions resulting from investments in real estate are recognised either

in Scope 1 and 2 or in Scope 3.15.

– Scope 3.14: Since Hannover Re does not operate as a franchisor, no

emissions arise in this connection.

GHG removals and GHG mitigation projects

financed through carbon credits [E1-7]

[E1-7_56b, 59a, MDR-M_77a] Hannover Re purchased carbon certificates

outside its value chain in an amount of 13,000 tCO₂e in the year under

review. These are based on contractual agreements and retired in full in the

following year. [E1-7_59b] Additional certificates planned for retirement

were not acquired. The purchased carbon certificates meet at least one of

the following quality standards: Verified Carbon Standard (VCS) or Gold

Standard. These carbon certificates are used separately from the emissions

and the emission reduction target.

They serve as voluntary offsets for 100 % of the emissions caused by own

operations. These include all market-related emissions from Scope 1,

Scope 2, Scope 3.1, Scope 3.3 and Scope 3.6 that are attributable to own

operations. Carbon certificates worth 13,000 tCO₂e were decommissioned

for the 2025 reporting year. Of these, carbon certificates worth 6,000 tCO₂e

decommissioned in February 2025 were already allocated to the 2024

reporting year. [E1_61c] Various quality criteria have been defined for

selection of the projects. They include, among others, ensuring that project

emissions are permanently reduced and selecting projects that create

additional social and environmental benefits along with lowering emissions.

[E1_AR_62b] The carbon certificates purchased from removal projects

originate from biogenic sinks.

[E1-7_56a] Hannover Re did not bring about any withdrawal and/or storage

of greenhouse gases in connection with projects developed within its own

activities or to which it contributed within its upstream or downstream value

chain.

Hannover Re

material impacts, risks and opportunities”.

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Annual Report 2025

Carbon credits cancelled in the reporting year



	2024	2025
Total (t CO₂e)	—	13,000.0
Share from removal projects (%)	—	9.2%
Verified Carbon Standard (in %)	—	100.0%
Share from reduction projects (%)	—	90.8%
Verified Carbon Standard (%)	—	77.1%
Gold Standard (%)	—	22.9%
Share from projects within the EU (%)	—	—%
Share of carbon credits that qualify as corresponding adjustments (%)	—	—%

Carbon credits planned to be cancelled in the future



	2024	2025
Total (t CO₂e)	6,000.00	0.0

Internal carbon pricing [E1-8]

Hannover Re does not use an internal carbon pricing scheme and is not

currently planning to implement one.

Own Workforce – ESRS S1

Impact, risk and opportunity

management

Material impacts, risks and opportunities and their

interaction with strategy and business model

[ESRS 2 SBM-3]

[SBM_48a, b, c, d] In the context of the materiality assessment, the

Hannover Re Group identified various material impacts, risks and

opportunities related to its own workforce, which are addressed through the

undertaking’s policies and strategies. [S1-SBM-3-14] All Hannover Re

employees are considered here. The impacts are not typical of a reinsurer’s

business model, but rather are general in nature. The material risks and

opportunities do not entail any risk that they will result in a material

restatement of the book values of the assets and liabilities shown in the

corresponding financial statement in the next reporting period (financial

year 2026). A complete, numbered overview of the identified material

impacts, risks and opportunities is provided in the table “Identified

Further information pursuant to ESRS 2 SBM-3

[S1-SBM-3_13a] Systematic investment is made in support of good working

conditions for employees in order to future-proof Hannover Re’s business

model. This includes, among other things, flexible working conditions and

additional social benefits. Furthermore, equal treatment and non-

discrimination are core principles of collaboration at Hannover Re.

[S1-SBM-3_13a] Hannover Re’s employees are an indispensable element

in the implementation of the corporate strategy and business model.

Particularly in the reinsurance industry, where the primary emphasis is on

cooperation with institutional clients, expertise and counselling are crucial

to long-term partnership-based business relationships. This is safeguarded

through continuous investment in state-of-the-art instructional and training

programmes and strategic alignment of the personnel strategy.

[S1-SBM-3_13b] The personnel work and strategy takes account of

employee concerns and incorporates them into the company’s own

decisions through employee feedback. In this way, matters such as working

conditions, key positions, culture, diversity and an environment free of

discrimination are concretely addressed and shaped together.

[S1-SBM-3_14a] All employees of Hannover Re can be affected by potential

or actual material impacts. As a reinsurance undertaking, Hannover Re

operates in a complex and technically specialised work environment and

therefore employs primarily highly qualified specialists as direct employees

with office tasks. Hannover Re draws on the supply of temporary workers to

a very limited extent solely to bridge short-term shortages. The activity as a

B2B service provider in the financial industry similarly means that there are

no temporary fluctuations in the number of employees over the course of

the year.

[S1-SBM-3_14b] Poor working conditions and discrimination can result in

dissatisfaction and performance restrictions in the workforce. The potential

negative impacts are associated with individual incidents and can be

attributable to an inadequate work environment or a failure to respect the

Code of Conduct and policies. These challenges are actively tackled

through Hannover Re’s focus on comprehensive training programmes, fair

working conditions and accurate performance review.

[S1-SBM-3_14c] By providing a non-discriminatory environment, extensive

learning concepts and fair pay, and by involving the workforce in decision-

making processes, Hannover Re creates positive working conditions and

promotes the well-being of its employees.

[S1-SBM-3_14d] Satisfied, motivated and highly qualified employees are a

crucial factor in Hannover Re’s success. For this reason, Hannover Re

considers improved working conditions and opportunities for further and

advanced training to be an important starting point for increasing

satisfaction in the workforce, convincing sought-after talent on the market of

Hannover Re’s appeal and advancing the Group’s economic development.

A potential financial risk arises if the competition for talent and the retention

of employees significantly influence personnel and recruitment costs amid a

growing shortage of skilled workers or if it becomes more problematic to fill

key positions.

[S1-SBM-3_14e] The policies and transition plans to mitigate the negative

impacts on the environment and bring about more environmentally friendly

and climate-neutral activities do not give rise to any significant impacts on

the employees and their ways of working.

[S1-SBM-3_14f, g] No activities have been identified within Hannover Re’s

workforce that entail a considerable risk in relation to forced or child labour.

[S1-SBM-3_15-16] Potential negative impacts on personnel such as poor

working conditions or incidents of discrimination do not affect any particular

group of employees. The same applies in connection with material

opportunities and risks such as the promotion of working conditions. The

policies, strategies and guidelines in relation to material impacts,

opportunities and risks relate to the totality of all employees, irrespective of

the specific activity. [MDR-P_65a] The “three lines of defence” system is

used to monitor all Hannover Re policies related to its own workforce (for

further information the reader is referred to the section “Business conduct

policies”).

Policies related to own workforce [S1-1]

[S1-1_17] Highly qualified and motivated employees – together with their

long-term commitment to the undertaking – are one of the most important

factors in Hannover Re's success. It is no longer merely the monetary side

that plays into the choice of employer, but instead undertakings are

increasingly called on to offer an attractive all-round package (“total

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Annual Report 2025

reward”). This encompasses responsible corporate governance, the

realisation of sustainable development in core business, adequate and

performance-based remuneration, an open corporate culture, how

meaningful the work is, compatibility of career and family life, flexibility when

it comes to working hours and place of work as well as other additional

benefits. As a reinsurance undertaking, Hannover Re operates in a complex

and technically specialised work environment and must at the same time

respond to the demands placed on companies overall in their role as

employers. The People & Culture Strategy, which came into effect in 2024

for the current strategy cycle 2024–2026, is explicitly intended to promote

the company’s appeal as an employer. Diversity, equal opportunities as well

as learning & development are further core elements of the strategic

orientation. As a central cross-cutting function, the division Global Human

Resources extensively manages personnel matters from Hannover head

office and falls within the Chief Executive Officer's scope of responsibility.

Particular efforts have been made since 2023 to advance coordination and

standardised process design with all human resources departments

worldwide as part of the FutureHR project. Group-wide strategies, internal

guidelines and policies serve to ensure that human resources work has a

transparent framework and maintains a consistently high level. [MDR-

P_65b, S1-1_19] They address all employees, with the sole exception of

employees working for the subsidiaries Argenta, Integra and underwriting

agencies belonging to the South African group.

Code of Conduct:

[MDR-P_65b] Hannover Re has a Code of Conduct applicable worldwide

that has been published on the website in six languages. It addresses

various impacts, risks and opportunities that have been identified as

material. It was adopted by the Executive Board and Supervisory Board and

assigned to the Compliance unit’s scope of responsibility. [MDR-P_65c]

Ultimate responsibility for embedding and fulfilment of the policy rests with

the Executive Board of Hannover Re.

The Hannover Re Group’s Code of Conduct provides employees with a

framework for how they are expected to behave towards one another and

for their conduct towards all internal and external stakeholders. [MDR-

P_65a] It is revisited regularly and updated by the Compliance unit as

necessary. The Code of Conduct thus contributes to a continuous

improvement in working conditions by addressing the mental and physical

well-being of employees, equality and fair treatment of one another. This

fosters employee satisfaction (#16). Poor working conditions, on the other

hand, can exacerbate employee dissatisfaction and even cause health

problems over the long term (#19). The competition for talent can lead to

rising salary and recruitment costs and thus constitutes an economic risk,

which is countered by the creation of a secure work environment and good

working conditions (#20). These good working conditions can also enhance

employee satisfaction and motivation and hence contribute to the

company’s financial success (#21, #22). What is more, the clear

commitment to fostering diversity in the workforce is an integral part of the

values addressed in the Code of Conduct. Hannover Re is dedicated to

promoting inclusive and diverse togetherness to foster the satisfaction of all

employees. [S1-1_20a] Respect for human rights is an integral part of

Hannover Re’s daily work and is underscored by the adoption of the Core

Labour Standards of the International Labour Organization (ILO). [MDR-

P_65d, S1-1_21] The contents of the Code of Conduct are guided by

various frameworks and (international) initiatives such as the ILO Core

Labour Standards and the UN Global Compact. [S1-1_20c] Should

potentially negative impacts nevertheless arise, Hannover Re takes

adequate remedial actions that are tailored to the individual cases.

Employees of Hannover Re had the opportunity to contribute to the revision

of the Code of Conduct. They are able to access the Code of Conduct

through the internal corporate intranet and were informed about the last

complete revision of the document by an e-mail from the Compliance unit

and through the intranet by a video message from the Executive Board.

[S1-1_20b; MDR-P_65e, f] New employees are provided with the Code of

Conduct as an annex to their employment contract and all employees

receive training in the Code of Conduct in a rotating three-year cycle.

People & Culture Strategy 2024–2026:

[MDR-P_65b] Hannover Re refreshes its own Group-wide corporate

strategy every three years. The new strategy cycle 2024–2026 was

launched in 2024 under the motto “Staying Focused. Thinking Ahead.”.

[MDR-P_65a] As a Business Level strategy for personnel work, the People

& Culture Strategy addresses various material impacts, risks and

opportunities identified in relation to employees. Adherence to targets is

continuously tracked and the Executive Board is updated on progress every

six months. [MDR-P_65c] Responsibility for implementing the strategy

rests with the Managing Director of Global Human Resources.

Stated action fields of the strategy:

– Increase employer attractiveness

– Strengthen performance culture and talent development

– Promote diversity, equal opportunities and inclusion

Work packages that help support and advance fair working conditions are

defined in the first action field. Most notably, for example, the topic of “fair

and competitive remuneration” as well as the development of persuasive

policies for attracting and retaining talent are backed with concrete actions

(#17, #18, #22).

The second action field focuses on policies for boosting employee

performance and on personnel development. Employer attractiveness can

be enhanced through appropriate programmes, while at the same time

employees can be empowered to take on additional tasks. Investments in

education, training and development support employee productivity and

satisfaction over the long term (#24).

The third action field encompasses various approaches taken to promote

diversity, equal opportunities and inclusion in the workforce with a view to

creating an inviting work environment. Topics such as equal pay and

increasing the number of women in leadership positions are also

addressed. In this connection, Hannover Re has set a target of > 25 % for

the proportion of women on management levels M1 to M3. This does not

constitute a measurable and outcome-oriented target as defined by ESRS

S1-5 in conjunction with ESRS 2 MDR-T. Effective 31 December 2025 the

proportion of women on management levels M1 to M3 was 29.1%.

In addition, DE&I (Diversity, Equity & Inclusion) must be integrated into all

aspects of daily work. To this end, it is absolutely essential to establish

integrated awareness among managers and staff because equal treatment

strengthens the working atmosphere and contributes to a more diverse and

inclusive corporate culture. Discrimination and inequality, on the other

hand, can adversely impact the well-being and career development

opportunities of employees (#23, #25).

[MDR-P_65f] Employees are informed about the strategy through the

corporate intranet. In addition, they are actively able to give feedback

through a number of channels.

Global Rewards Framework Policy (GRew)

SAP SuccessFactors (SF) is Hannover Re’s globally oriented and future-

proof Human Resources information system. Remuneration and social

benefits are governed by different rules within the Hannover Re Group. The

challenge is to harmonise all total rewards systems around the world and

embed them in SAP SuccessFactors. This requires consistent standards

that are applied at all Hannover Re entities.

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Annual Report 2025

For this reason, Global Human Resources drew up the Global Rewards

Framework Policy (GRew) in conjunction with a job architecture applicable

worldwide, which was rolled out in 2024.

The policy serves to establish a Group-wide framework for the creation,

modification and maintenance of adequate remuneration and benefit plans.

[MDR-P_65f] It is made available through the Global Rewards data

exchange platform to decision makers, whose support is needed for

implementation. [MDR-P_65a] The intention is that the remuneration

system will be handled consistently across the Group, and local

remuneration policies/plans are to be reviewed with this in mind.

Implementation of the Global Rewards Framework Policy is overseen by

Compensation Committees. [MDR-P_65c] Ultimate responsibility for

implementation of the Global Rewards Framework Policy rests with the

Managing Director of Global Human Resources.

A fair and transparent remuneration structure helps Hannover Re to attract

and retain the talent that is crucial for building a competitive advantage and

brand value (#20). Furthermore, this ensures that employees and their

families have a good livelihood, which contributes to general well-being and

economic stability (#18). A uniform approach also facilitates opportunities

for international, longer-term assignment of employees to various locations

and subsidiaries (see also Global Assignment Policy) (#24).

Global job architecture

[MDR-P_65b] A major outcome of the “FutureHR Project” for the global

harmonisation of personnel work is the adoption of a concept for a

consistent, Group-wide job architecture, which is summarised in the

Hannover Re Career Guide. [MDR-P_65a] The primary purpose of the

global job architecture is to create transparency around career paths within

the entire Hannover Re Group and thereby highlight individual career

development opportunities so as to attract talent (#26) and increase the

retention of qualified specialists (#20). At the same time, Group-wide

transparency promotes equal opportunities by facilitating the cross-national

comparability of positions and thereby creating a fairer and more

constructive work environment (#25). The concept is operationalised

through various actions, including for example those of the Hannover Re

Career Guide. [MDR-P_65c] Ultimate responsibility for implementation

rests with the Managing Director of Global Human Resources. [MDR-

P_65e] Managers and staff were informed about the roll-out through the

corporate intranet and given appropriate training in workshops held around

the world.

Global Assignment Policy (GAP)

With a view to promoting cross-function networking and collaboration on a

global level between all Group companies, Hannover Re offers employees a

wide range of options for long- or short-term deployments abroad under the

catchphrase “Global Mobility”. Creating a global internal job market and

hence career opportunities across the entire undertaking supports the goal

of attracting, retaining, fostering and developing talent as an appealing

employer. Assignments facilitate in-house knowledge transfer within the

Hannover Re Group. Assignments of managers particularly help to promote

the connecting corporate values around the globe. Increased employee

satisfaction strengthens Hannover Re’s corporate reputation in the market

and boosts employee retention, thereby reducing recruitment costs over

the long term (#21, #22, #20). [MDR-P_65a] The most important concept in

this regard is the “Global Assignment Policy”. This describes standards and

processes for assignments within the Group and defines consistent benefit

packages and framework conditions for all types of assignments worldwide,

so as to enhance internal transparency and compliance within the Group

and ensure equal treatment of all assigned employees. Promoting equal

treatment and preventing discrimination contribute to positive employee

development (#23, #24) and minimise potential negative impacts such as

health impairments that can be caused, for example, by stress and limited

career opportunities (#25). At the same time, the development programmes

enhance employer attractiveness and the Group’s economic development

(#26). [MDR-P_65c] Ultimate responsibility for implementation rests with

the Managing Director of Global Human Resources.

[MDR-P_65f] Employees of Hannover Re can access information about the

Global Assignment Policy through the internal corporate intranet and were

informed of its launch through a corresponding notification. [MDR-P_65e]

The employee representative bodies were involved in adoption of the policy.

Ways of working somewhat different (Wow-sd)

The idea behind “Ways of working somewhat different” is directly related to

impacts as well as opportunities and risks identified in connection with

“working conditions”. The concept helps to improve working conditions

through the optimisation of working hours, work-life balance and the work

environment. This supports the health and satisfaction of the workforce

(#16), while at the same time minimising negative impacts from poor

working conditions and unergonomically designed workplaces, which could

lead to dissatisfaction, lower motivation or health issues among the

employees (#19). A varied and comprehensively designed work

environment strengthens the perception of Hannover Re as an attractive

employer (#22). What is more, good working conditions enhance employee

satisfaction and thus play a part in Hannover Re’s long-term success (#21,

#22). In a rapidly changing world of work, Hannover Re aspires to respond

flexibly to outside influences. The intent behind Wow-sd is to align the work

environments with future requirements and foster the corporate culture. An

optimal work environment is developed at the various locations for the

individual office working situation (e.g. focus rooms for concentrated

working), supplemented by mobile working.

[MDR-P_65a] The concept rests on three guiding principles:

– Working in a flexible and mobile work environment that is based on a

desk sharing & clean desk philosophy.

– Shaping an optimal work environment for each individual work situation,

supplemented by the option of mobile working, with consideration given

to the needs of employees and the ways of working in the respective

units.

– The continuous development of work environments is intended to foster

employee engagement, strengthen their identification with Hannover Re

and encourage entrepreneurial thinking and actions.

At the Hannover head office, the concept was still in the implementation

phase in the reporting year, entailing extensive renovations. The entire roll-

out at the Hannover location will extend over the coming years. Various

international locations have already initiated steps to modernise their work

environments or are planning to do so. [MDR-P_65b] All locations follow the

common guiding principles underlying this concept. Operational

responsibility for implementation of the concept rests with the steering

committee that owns the project. [MDR-P_65f] Hannover Re employees

have access to information about the concept through the internal

corporate intranet and are encouraged to actively give feedback on

implementation through various channels. [MDR-P_65e] The employee

representative bodies were involved in adoption of the policy.

Human rights

[S1-1_20a, 21] Hannover Re acknowledges its own responsibility to respect

human rights and exercise due diligence in relation to these rights – this also

encompasses its own workforce. A corresponding Policy Statement was

published as long ago as 2021. This was adopted by the Executive Board of

Hannover Rück SE and applies to all locations and employees worldwide. It

is communicated both internally and externally and subject to regular

review. This review and approval process by the Executive Board takes

place annually. It was modified most recently in 2024 with an eye to

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Annual Report 2025

requirements stemming from the Act on Corporate Due Diligence

Obligations in Supply Chains (LkSG) and released by the Executive Board.

It was validated by the Executive Board in the 2025 reporting year.

In its observance of human rights, Hannover Re is guided by various

international standards:

– The Universal Declaration of Human Rights (UDHR)

– The International Covenant on Civil and Political Rights (ICCPR)

– The International Covenant on Economic, Social and Cultural Rights

(ICESCR)

– The UN Guiding Principles on Business and Human Rights (UNGP)

– The United Nations Global Compact (UNGC)

– The Core Labour Standards of the International Labour Organization

(ILO)

– The Sustainable Development Goals (SDGs)

As far as the employees are concerned, their actions are regulated by

further internal documents, e.g. the Code of Conduct and internal policies

relating to personnel management and data protection.

[S1-1_20b] The processes set out in S1-2 to incorporate the perspectives of

the undertaking’s own workers and workers’ representatives can also be

used by them to address and discuss human rights topics with respect to

Hannover Re.

[S1-1_20c] The Human Rights Policy Statement and the Code of Conduct

make explicit reference to the Speak Up system as a means to facilitate

targeted remedial action in the event of undesirable impacts on human

rights.

[S1-1_22] In view of its business model, Hannover Re employs highly

qualified people. Furthermore, adherence to applicable national regulations,

collective bargaining agreements and company rules is ensured. Hannover

Re therefore does not see any risk of serious violations of human rights in

terms of human trafficking, forced labour and child labour.

Occupational health and safety

[S1-1_23] Hannover Re does not have a uniform worldwide policy for the

avoidance of occupational accidents because the activities of the

employees do not entail any particular risk of work-related accidents.

Nevertheless, the rapid transformation of the world of work, the need to

efficiently organise working processes and a constant pressure for change

can impair the health of the workforce. These impairments may lead to a

reduced performance capability as well as physical or psychological

disorders – and hence to direct economic impacts on the undertaking.

Social impacts on the affected staff, their private sphere, their colleagues

and social systems may also arise. In order to protect the health of the

workforce, therefore, applicable occupational health and safety laws as well

as standards relating to ergonomic workplace design are systematically

observed and reviewed worldwide. Instruction in health and safety at the

workplace is provided annually. In addition, wellness among staff is actively

encouraged through health promotion measures such as vaccinations,

sports programmes or initiatives to promote physical activity and nutrition.

These exist worldwide and are tailored to local standards and needs.

Aspects of workplace safety and health protection are governed in

Germany by laws such as the Occupational Safety Act (ASiG), the Safety

and Health at Work Act (ArbSchG), the Infection Protection Act (IfSG) and

the Fire Protection Code. These apply to all employees, service providers

and suppliers active in Germany. Other locations are subject to local

national laws which are similarly observed. At the Hannover location

(accounting for 50 % of the total workforce) a Health and Safety Committee

meets quarterly to discuss the latest risks, define necessary measures,

coordinate activities and determine how to respond in the event of an

accumulation of incidents. Employees receive annual instruction in matters

of occupational safety. Hazard assessment helps to prevent accidents and

work-related health hazards and ensure a safe and healthy work

environment. Hazard assessment also includes exploring psychological

stresses associated with work.

Discrimination

[S1-1_24a] With its Code of Conduct and People & Culture Strategy,

Hannover Re has in place policies geared to preventing discrimination

(including harassment), promoting equal opportunities and pursuing other

avenues for encouraging diversity and inclusion.

[S1-1_24b] The following possible grounds of discrimination are expressly

highlighted in the Code of Conduct: ethnic origin, gender, religion or belief,

disability, age, family status and sexual orientation.

[S1-1_24c] Various political commitments also exist in relation to inclusion,

including, for example, at Hannover head office, the Act to Strengthen the

Participation and Self-Determination of People with Disabilities and the

Ninth Book of the German Social Code (SGB IX). In particular, these are

intended to safeguard the rights of persons with disabilities.

[S1-1_24c] The Code of Conduct makes it unmistakably clear that

Hannover Re does not tolerate any form of discrimination. A fair work

environment free of discrimination is also a strategic requirement of the

People & Culture Strategy. This is supported by specific actions and

processes, such as sensitising staff and managers through training

activities, awareness-raising campaigns and clearly defined channels for

reporting any incidents (including anonymously, if so desired). Reported

incidents are tracked in the Compliance Management System, investigated,

and if necessary, sanctioned. Complementing the work of the Works

Council, the representative body for disabled employees at the Hannover

location also has special responsibility for advocating for employees with

disabilities.

Processes for engaging with own workers and

workers’ representatives about impacts [S1-2]

[S1-2_27a] Perspectives of the employees on actual and potential impacts

that affect them are incorporated into decision and strategy processes. This

is done through both direct engagement and the employee representative

body.

[S1-2_27b, e] In the strategy cycle 2024–2026, the inclusion of employee

perspectives is highlighted for the first time as a non-financial factor

(Employee Engagement). This underscores the importance of

understanding and considering the needs and expectations of all

employees for Hannover Re’s future success. A central tool is the

“Employee Engagement Survey” which gives all employees of the

Hannover Re Group an opportunity to share feedback once a year.

Employees are surveyed anonymously. The annual survey is intended in

particular to identify and actively support engagement drivers and thereby

boost employee satisfaction. Operational responsibility for the survey rests

with the Head of Learning & Development. The findings are also used to

review the effectiveness of any personnel-related policies and actions.

[S1-2_AR_24b] Employee representation at Hannover Re constitutes a

central process for incorporating the perspectives of the workforce. It

encompasses various bodies for operational and corporate co-

determination. Operational co-determination in Germany is regulated by the

Works Constitution Act (BetrVG) and takes place at the Hannover location

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Annual Report 2025

for all non-executive staff through the joint Employee Council of E+S

Rückversicherung AG and Hannover Rück SE. The Employee Council has

extensive rights of information, consultation and co-determination in social,

personnel and business matters. The Employee Council convenes

employee meetings at least once a year and is accessible to the employees,

including as a body to which complaints may be addressed. Operational co-

determination of all employees in the European locations is ensured

through the Employee Council of Hannover Rück SE in accordance with the

Act on the Participation of Employees in a European Company (SEBG).

This has information and consultation rights, meets twice a year and

represents the interests of all employees for which it is responsible.

The executive staff at the Hannover location are represented by the joint

Executive Committee. This operates in accordance with the Act on a

Representative Body for Executive Staff (SprAuG). It cultivates an active

dialogue with executive staff and represents their concerns and interests to

management.

Corporate co-determination considers the participation of employees in

entrepreneurial decisions around setting goals and strategies that are taken

by the Executive Board. It involves the employees in key planning, steering

and organisational decisions for the entire undertaking and ensures that it is

possible to influence company policy – given that entrepreneurial decisions

normally also affect, at least indirectly, the interests of employees. The three

employee representatives on the Supervisory Board of Hannover Rück SE

are elected by the joint Employee Council of Hannover Rück SE and E+S

Rückversicherung AG as the responsible representative body and are full

members of the Supervisory Board.

[S1-2_27d] The Code of Conduct and the Policy Statement on Human

Rights are two global framework agreements at Hannover Re that address

respect for human rights. The Code of Conduct has been approved by the

Executive Board and Supervisory Board, including its employee

representatives. The involvement of the employee representative bodies

helps to identify the perspectives and interests of the workforce and

incorporate them into the policies.

[S1-2_27e] All employees Group-wide are informed about material changes

within the organisation. The supervisory boards including the employee

representative bodies must be briefed about matters that could have a

significant influence on the company’s position. Furthermore, the joint

Employee Council at the Hannover location as well as the SE Employee

Council and the Economic Committee receive all relevant information in

order to be able to influence operational changes in an advisory capacity.

[S1_AR_24e] This also includes operational changes to reduce carbon

emissions and the transition to more environmentally friendly and climate-

neutral activities, which can give rise to potential impacts on employees.

[S1-2_27c] Operational responsibility for incorporating the interests of

employees into company policies and strategies rests with the Managing

Director of Global Human Resources. [S1_AR_24d] Necessary financial

resources and budgets are made available to achieve implementation.

Processes to remediate negative impacts and

channels for its own workers to raise concerns

[S1-3]

[S1-3_32a] As an internationally operating company, Hannover Re bears

responsibility in multiple ways – including for the well-being of its own

workers. It goes without saying that Hannover Re respects the applicable

law of all jurisdictions in which it operates, recognises it as the basis for its

business activities and communicates its own moral and ethical principles

clearly and actively. Hannover Re adopts a preventative approach when it

comes to avoiding or minimising negative impacts on its employees.

Effectiveness is evaluated inter alia through employee feedback, inasmuch

as inadequate actions would be reflected accordingly in the responses. All

employees are actively encouraged, inter alia through training activities, to

disclose any grievances in the event of a negative impact.

[S1-3_32b] As part of the “Speak Up” procedure, Hannover Re actively

communicates, inter alia via the intranet and in the publicly accessible Code

of Conduct, about the various channels through which potential violations of

laws or internal policies can be reported to the company. In addition to

personal contact through direct supervisors, a global network of local

compliance officers is available for confidential discussions. An e-mail

address and telephone number set up specially for this purpose are also

designated. An online whistleblower system is available both internally and

externally for anonymous tips.

[S1-3_32c, e, 33] Hannover Re thus has in place a formal grievance

mechanism. All suspect cases reported in regard to the Code of Conduct as

well as presumed violations of applicable laws or regulations or other

damaging behaviour and risks are handled by the reporting office staff in the

strictest confidentiality and investigated promptly and appropriately. Any

actions to be taken are defined according to the relevant circumstances and

can involve both the implementation of optimisation measures on the

company level and consequences in labour law. The Code of Conduct also

makes it clear that no reprisals whatsoever are tolerated against persons

who make a report or submit a tip. The effectiveness of the reporting

procedure is evaluated by the Compliance unit.

[S1-3_32d] The Code of Conduct, which among other things defines the

reporting channels as part of the Speak Up procedure, is published in

multiple languages both in the intranet and the Internet in order to ensure

that all employees around the world have access to this information. It also

forms part of the contract in German employment contracts.

Taking action on material impacts on own

workforce, and approaches to managing material

risks and pursuing material

opportunities related to own workforce, and

effectiveness of those actions [S1-4]

[S1-4_39] Hannover Re has put in place processes to quickly identify and

effectively respond to actual and potential negative impacts on its own

employees. Among other things, the findings of the annually conducted

Employee Engagement Survey are used for this purpose. If such impacts

are determined, appropriate actions are reviewed and implemented to

protect the employees and avoid negative consequences. [S1-4_41]

Hannover Re takes account of human rights on a mandatory basis through

the Policy Statement on this matter and the Code of Conduct, thereby

ensuring that standards are maintained in relation to its own workforce.

Furthermore, the involvement of employee representatives and the

employee surveys help to ensure that no negative impacts exist. [S1-4_43]

The necessary financial resources for handling and implementing the

individual actions are made available in relevant budgets. The actions

described address all employees, with the sole exception of employees

working for the subsidiaries Argenta, Integra and the underwriting agencies

belonging to the South African group.

Global learning platform “MyLearning”

As part of the People & Culture Strategy, the global learning platform

“MyLearning” was rolled out in 2024. This platform offers instruction and

further training that foster continuous personal and professional growth.

The action boosts learning motivation, performance capability, as well as

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the skills and competencies of employees, and sustainably increases the

company’s attractiveness as an employer. [MDR-A_68a] It opens up an

extensive range of learning opportunities, encompassing both mandatory

training in areas such as occupational safety and data protection and

optional advanced training activities (#21, #22, #24). The learning platform

can also be used for personal growth outside working hours. [S1-4_38c]

The action is intended to improve the working conditions of employees

through skills-based, individual learning programmes that are relevant to

the business, thereby enhancing both employee motivation and

satisfaction. [S1-4_40a, b] The improved learning infrastructure strengthens

employer attractiveness and the positioning as a modern employer, which

can lead to more successful recruitment and retention of talent and skilled

workers, while at the same time moderating rising costs in this area. In this

way, all employees enjoy equal access to further and advanced training

measures, which can favourably impact well-being and equal opportunities

within the undertaking. [S1-4_38c] At the same time, individually tailored

training programmes contribute to direct improvements in job satisfaction

and performance. [MDR-A_68b] The action extends across all business

centres and regions in which Hannover Re operates. [S1-4_38d] Use of the

learning platform is monitored through a role and authorisation concept as

well as reports, e.g. by establishing the number of participants in individual

learning opportunities and the duration of training. [MDR-A_68c] There is no

set final deadline because the learning platform is designed as a long-term

tool to promote employee development.

Mobile and flexible working

Mobile working is an important element of the “Ways of working somewhat

different” (Wow-sd) world. Management and employees have regulated

mobile working with a company agreement and thereby brought about

flexibilisation of the working world through clear guidelines. Ergonomic

furniture, appropriate technical equipment and a lump sum to cover costs

for mobile working serve as the basis for bringing flexibility to both the work

location and working time (#16, #18). [S1-4_38a, 38c, S1-4_40b] This

enhanced flexibility is intended to improve the compatibility of professional

and private life for employees through a working world that can be adjusted

to fit the individual life situation. At the same time, Hannover Re is

strengthening its own position in the competition for skilled workers

because the availability of flexible working models is increasingly seen as

an important consideration (#21, #22). [S1-4_40a, MDR-A_68a] In addition,

the action facilitating mobile and flexible working is intended to help

minimise the rising costs of recruiting and retaining skilled workers by

boosting employee satisfaction and lowering employee turnover (#20).

[MDR-A_68b] The arrangement is applicable to all employees at the

Hannover location and is continuously enhanced to meet the growing

requirements of employees. [S1-4_38d] The effectiveness of the action is

tracked through the findings of the annual Employee Engagement Survey.

[MDR-A_68c] The action is ongoing because flexibilisation of the working

world is to be considered a long-term process.

Hannover Re Career Guide

[MDR-A_68a, c] An important ongoing action for Group-wide

operationalisation of the new job architecture concept (see S1-1) is the

launch of the Hannover Re Career Guide in 2023. [MDR-A_68b] The

Hannover Re Career Guide presents an overview of various globally valid

career paths and levels, and establishes the organisational framework for all

positions within the entire Hannover Re Group based on the type of activity

performed by employees. [MDR-A_68a] Pillars of the new job architecture

are defined career paths, including their career levels, with the aim of

creating a transparent uniform structure for career openings across national

borders and thereby promoting equal opportunities and employee retention

(#20, #25, #26).

[S1-4_38a] The roll-out of the global job architecture is intended to improve

and advance equal treatment, which can reduce stresses on employees

and strengthen daily collaboration in the workplace. [S1-4_38d] The

effectiveness of the action is not tracked. [S1-4_40b] Through a consistent

and transparent career structure, the goal is to increase employer

attractiveness and facilitate talent acquisition. [S1-4_40a] At the same time,

recruitment and retention costs are lowered because the clear career

progression maps out a career plan for employees and can thus retain them

on a long-term basis. The Hannover Re Career Guide forms the basis for

implementing human resources programmes and processes with a Group-

wide orientation that are introduced progressively through the global HR

information system. The Managing Director of Global Human Resources is

responsible for the job architecture (support, development and

management, monitoring and governance) and hence for the Hannover Re

Career Guide. The workshops that have been held Group-wide since 2022

to validate the consistent classification of international units in the new job

architecture underwent final processing in 2024 and were completed.

Leadership Development Portfolio

[S1-4_40b] The existence of good training and development opportunities

for staff and managers contributes to employer attractiveness and

employee satisfaction (#26) through the continuous advancement and

further development of staff and managers. [MDR-A_68a, b, c] In 2024,

therefore, as part of the People & Culture Strategy, already existing

programmes for executive development were evaluated, expanded and

combined into an extensive “Leadership Development Portfolio” for all

managers across the Group for ongoing implementation. In a constantly

evolving business world, it is crucially important for managers to have the

skills and competencies needed to successfully master current and future

challenges. [MDR-A_68a] The development programmes brought together

in the Leadership Development Portfolio are designed to give managers on

all levels feedback on their strengths and further development, expand their

leadership skills and foster the abilities of all employees throughout the

organisation.

Data Exchange Platform Global Rewards

Following the roll-out of the Global Rewards Framework Policy, Global

Human Resources set up a data exchange platform for Group-wide

collaboration across all HR departments. The platform is used, in the first

place, for providing information on all matters relating to the total rewards,

job architecture and reporting, and, secondly, for the exchange of external

benchmark results and for the already initiated harmonisation of local bonus

systems. The local Compensation Committees, which have been set up

Group-wide, use standardised templates for better Group-wide data

transparency. They meet twice yearly to coordinate and decide on

remuneration matters with local management, the division Global Human

Resources (GHR) and the responsible member of the Executive Board

(#16, #19, #23, #25). [S1-4_38c, MDR-A_68a] This action makes it possible

to align the bases for remuneration within the Group and thereby work

towards the equal treatment of employees. [S1-4_38a] In this way, the

intention is to prevent inequities and unequal opportunities so as to protect

health and career opportunities, as well as to avoid negative impacts on

work results and employee wellness due to dissatisfaction and lower

motivation. [S1-4_38d] The effectiveness of the action is not explicitly

tracked. [MDR-A_68c] No end date is envisaged for the action because the

harmonisation is a multi-year process.

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Metrics and targets

[MDR-M_77a] Hannover Re’s personnel metrics were determined centrally

by the Human Resources controlling function at the reference date of

31 December 2025. Data is collected worldwide through an internal IT

system into which all branches and subsidiaries upload their relevant

personnel data. The branch and subsidiary data is collated by the system

and subsequently consolidated centrally with the personnel data of the

Hannover location. The central IT system and standard definitions ensure

that all data from the local branches and subsidiaries is consistent and

collected according to uniform standards. In this way, all metrics are based

on a comparable and transparent data basis. The KPIs are calculated

according to a defined, organisation-wide consistent methodology which

ensures transparency, traceability and comparability of the results. The

methods used can also have limitations. Due to country-specific differences

in data availability and local differences in personnel processes,

discrepancies in comparability may occur.

Quality assurance of all data is performed internally by the central Human

Resources controlling team and by the respective branches and

subsidiaries themselves. All metrics are checked for consistency and

accuracy. [MDR-M_77b] Other external bodies are not involved in validating

the metrics. [MDR-M_77d] Local currencies are consistently translated to

EUR in the case of remuneration-related metrics. The option to omit the

metrics S1-11, S1-12, S1-13 and S1-15 has again been exercised in 2025,

as in 2024.

Targets related to managing material impacts,

advancing positive impacts, as well as to risks and

opportunities [S1-5]

As part of its personnel activities, Hannover Re has implemented extensive

policies and actions that were set out under S1-1 and S1-4 and are regularly

reviewed in the context of the strategy process. In this way, Hannover Re

monitors the effectiveness of its own actions and policies for promoting

employee satisfaction, health and development. For this purpose,

Hannover Re uses various internal methods, including for example

analyses of workshop results, sickness rates, employee turnover and

employee surveys. Progress is analysed semi-annually based on these

qualitative and quantitative indicators so as to ensure continuous

improvement in working conditions.

It was not considered necessary to set more extensive specific, measurable

and outcome-oriented targets within the meaning of ESRS S1-5 in

conjunction with ESRS 2 MDR-T and they were therefore not defined.

Characteristics of the undertaking’s employees

[S1-6]

Number of employees (headcount) by gender



	2024	2025
Gender	Number of employees	Number of employees
Male	2,010	2,065
Female	2,129	2,180
Other	—	—
Gender not disclosed	—	—
Total	4,139	4,245

Employee headcount by countries



	2024	2025
Country	Number of employees	Number of employees
Germany	1,935	1,972
United States	383	375
Australia	222	222
Bahrain	59	61
China	153	169
France	68	66
India	35	41
Ireland	70	73
Canada	28	32
Malaysia	150	149
Sweden	54	55
South Africa	527	551
South Korea	10	13
United Kingdom	445	466
Total	4,139	4,245

Employees by contract type, broken down by gender



2025
Female	Male	Other	Not disclosed	Total
Number of employees (headcount)
2,180	2,065	—	—	4,245
Number of permanent employees (headcount)
1,994	1,883	—	—	3,877
Number of temporary employees (headcount)
186	182	—	—	368
Number of non-guaranteed hours employees (headcount)
—	—	—	—	—
Number of full-time employees (headcount)
1,783	1,949	—	—	3,732
Number of part-time employees (headcount)
397	116	—	—	513



2024
Female	Male	Other	Not disclosed	Total
Number of employees (headcount)
2,129	2,010	—	—	4,139
Number of permanent employees (headcount)
1,901	1,832	—	—	3,733
Number of temporary employees (headcount)
224	177	—	—	401
Number of non-guaranteed hours employees (headcount)
4	1	—	—	5
Number of full-time employees (headcount)
1,739	1,901	—	—	3,640
Number of part-time employees (headcount)
390	109	—	—	499

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Employees by contract type, broken down by region



2025
Europe	Americas	Africa	Asia	Australia	Total
Number of employees (headcount)
2,632	407	551	433	222	4,245
Number of permanent employees (headcount)
2,418	389	532	332	206	3,877
Number of temporary employees (headcount)
214	18	19	101	16	368
Number of non-guaranteed hours employees (headcount)
—	—	—	—	—	—
Number of full-time employees (headcount)
2,154	400	544	424	210	3,732
Number of part-time employees (headcount)
478	7	7	9	12	513



2024
Europe	Americas	Africa	Asia	Australia	Total
Number of employees (headcount)
2,572	411	527	407	222	4,139
Number of permanent employees (headcount)
2,357	383	496	310	187	3,733
Number of temporary employees (headcount)
215	28	28	95	35	401
Number of non-guaranteed hours employees (headcount)
—	—	3	2	—	5
Number of full-time employees (headcount)
2,106	404	517	406	207	3,640
Number of part-time employees (headcount)
466	7	10	1	15	499

The employee turnover rate at Hannover Re in 2025 was 10.2 %.

Altogether, 423 employees left the company for a range of different

reasons, including those who left voluntarily or due to dismissal, age-related

exits, termination arrangements by mutual agreement and the end of

temporary contracts. The calculation of the employee turnover rate is based

on all work-related exits.

[S1-6_50di, dii; MDR-M_77a] As a general principle, all quantitative

information on the characteristics of the employees refers to the head

count. A broad definition under the ESRS is followed in this context, and

each person with an employment contract with one of the Hannover Re

companies is included in the headcount. The eight members of the

Executive Board of the Hannover Re Group do not fall under the definition

of employees. In compiling the information, Hannover Re uses the figures

reported by all operational units at the reference date of 31 December 2025.

[S1-6_50f; MDR-M_77a] There are differences between the definition of an

employee according to IFRS and ESRS. Under IFRS, a more restrictive

definition applies with regard to national German law (German Commercial

Code [HGB]), excluding for example trainees and employees in dormant

employment relationships. For this reason, the headcounts under ESRS

are higher than in the financial reporting.

Collective bargaining coverage and social dialogue

[S1-8]

Coverage rate of collective bargaining and social dialogue



2025
Coverage rate	Collective bargaining coverage		Social dialogue
	Employees - EEA	Employees - Non- EEA	Workplace representation
0–19%	Ireland	Australia, Americas, Asia, Africa, United Kingdom
20–39%
40–59%
60–79%
80–100%	Germany, France, Sweden		Germany, France, Ireland, Sweden



2024
Coverage rate	Collective bargaining coverage		Social dialogue
	Employees - EEA	Employees - Non- EEA	Workplace representation
0–19%	Ireland	Australia, Americas, Asia, Africa, United Kingdom
20–39%
40–59%
60–79%
80–100%	Germany, France, Sweden		Germany, France, Ireland, Sweden

The total percentage of employees covered by collective bargaining

agreements in the 2025 reporting year is 46.7%. [MDR-M_77a] Various

collective bargaining agreements apply in the European Economic Area. In

Germany, France and Sweden, all non-executive staff are covered by local

collective bargaining agreements.

[S1-8_63b] The employee-employer relationship for the workforce at the

European locations is regulated in the Act on the Participation of

Employees in a European Company (SEBG), in the Statute of

Hannover Rück SE and in the “Agreement on the Participation of

Employees in Hannover Rück SE”. The agreement applies to all employees

of Hannover Re and the subsidiaries based within the European Union or

the European Economic Area. All employees who fall under the “Agreement

on the Participation of Employees in Hannover Rück SE” are represented

by the SE Employee Council.

Diversity metrics [S1-9]

Breakdown of employees by age groups



	2024	2025
Total head count	4,139	4,245
under 30	679	707
Percentage of employees under 30	16.4%	16.7%
between 30 and 50	2,369	2,500
Percentage of employees between 30 and 50	57.2%	58.9%
over 50	1,091	1,038
Percentage of employees over 50	26.4%	24.5%

Gender breakdown on the top management level



	2024	2025
Total head count on the top management levels	176	179
Female	44	52
Percentage	25.0%	29.1%
Male	132	127
Percentage	75.0%	70.9%
Various	0	0
Percentage	—%	—%
Gender not reported	0	0
Percentage	—%	—%

The top management level encompasses management levels M1, M2 and

M3 below the Group’s Executive Board.

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Adequate wages [S1-10]

As a globally operating reinsurance undertaking with locations across the

entire world, Hannover Re considers it very important that all employees are

adequately remunerated for their work. By considering country-specific

reference values or relevant collective bargaining agreements, it is ensured

that the remuneration meets the requirements of the complex and

specialised work environment. Consequently, all employees of

Hannover Re receive pay commensurate with their work.

Disclosures on adequate wages



Adequacy of remuneration	2024	2025
Total number of employees paid below an adequate wage in HC	0	0
Total number of employees paid below an adequate wage in %	—%	—%
All employees are paid an adequate wage	Yes	Yes

Remuneration metrics (pay gap and total

remuneration) [S1-16]

Remuneration metrics


	2024	2025
Gender pay gap ¹	30.0%	27.1%
Annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees ²	34.6	22.7
¹ Expressed relative to the average remuneration of a male employee ²Excluding the highest paid individual

[MDR-M_77a] The remuneration-related metrics are based on the gross

hourly wages determined for all employees. The actual remuneration of the

employees is compared with the hours worked in accordance with their

contracts. Both fixed and variable remuneration components and fringe

benefits are considered. Standardisation on an hourly basis makes it

possible to take into account, for example, employees who joined the

company during the year. Average values are calculated for each company

from the individual gross hourly wages. These are also applied to

employees in dormant employment relationships to calculate the gender

pay gap. The calculation of the ratio of the annual total remuneration of the

highest paid individual to the median annual total remuneration of all

employees also includes the remuneration of the members of the Executive

Board. Significant fluctuations may arise from year to year in the ratio

between the highest-paid individual and the median total remuneration of all

employees. These are caused by the fact that the total remuneration of the

highest-paid individual includes variable components that can vary from

year to year.

Incidents, complaints and severe human rights

impacts [S1-17]

[S1-17_103a] Number of cases of discrimination within the meaning of the

legal definition pursuant to § 3 General Act on Equal Treatment (AGG)

including harassment reported in the reporting period: four.

[S1-17_103b] Number of complaints received in the reporting period

through channels in which the undertaking’s employees are able to express

concerns that are not already specified under [103a]: zero.

[S1-17_103c] Total amount of significant fines, sanctions and

compensation payments related to the incidents and complaints described

above: EUR 0.

[S1-17_103d] There were three incidents involving the harassment of an

employee by another employee, with necessary actions taken in all

instances; in one case the accused person has left the company. The fourth

case was closed without confirmation of the accusation. No financial

penalties were incurred.

[S1-17_104a] Number of severe human rights incidents reported in

connection with the workforce in the reporting period: zero.

[S1-17_104b] Total amount of significant fines, penalties and compensation

for damages in connection with the severe incidents described above:

EUR 0.

Business Conduct – ESRS G1

Impact, risk and opportunity

management

Business conduct policies and corporate culture

[G1-1]

Corporate culture

[G1-1_9, AR_1] The Hannover Re Group is one of the world’s leading

reinsurers. It transacts all lines of property & casualty and life & health

reinsurance and is present worldwide with more than 4,000 staff. The claim

“somewhat different” reflects a core element of the corporate culture

inasmuch as it refers to a particularly customer-centric and solution-driven

approach. This is a distinguishing strategic feature.

Similarly, the purpose and values elaborated in 2019 in a bottom-up

process reflect Hannover Re’s robust, partnership-based corporate culture.

The purpose is: Beyond risk-sharing - we team up to create opportunities.

The values are: Responsibility, We Spirit and Drive.

Hannover Re’s strategy cycle spans three years. The Group strategy 2024–

2026 “Staying Focused. Thinking Ahead.” aims for industry-leading

performance in relation to profitability and earnings growth, reliable

economic value creation and an attractive dividend. Another strategic target

relates to Hannover Re’s capital strength. In addition to these financial

targets, the ambition expressed in the Group strategy also extends to

strategic goals with respect to employee engagement and ecological

responsibility.

Hannover Re has a Code of Conduct applicable Group-wide that is based

on the undertaking’s purpose and reflects its values. The Code of Conduct

provides guidance on ethical behaviour and how the Hannover Re Group

conducts business. It is a central element of the corporate culture.

Training and development opportunities, which are aligned with the

strategy, the Hannover Re Group’s competence model and the purpose

and values, systematically foster the professional and personal upskilling of

employees. In addition, the Leadership Fundamentals reinforce a common

understanding of the leadership culture within the Hannover Re Group.

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The perception of the corporate culture within the workforce has been

explored since 2019 on the basis of a survey conducted annually Group-

wide. Since 2024, Hannover Re has focused on employee engagement

(“Employee Engagement Survey”). The survey is intended to reflect the

perspective of employees and consider their requirements for a motivating

and attractive work environment. Hannover Re’s compliance culture is

strengthened by activities such as the “Raise Awareness Campaign”,

training measures and the Speak Up system (whistleblower system), which

enables employees to raise grievances – anonymously, if they so desire.

Business conduct policies

Compliance, i.e. behaviour consistent with the rules, is essential for the

Hannover Re Group: a failure to comply with laws, rules and internal

guidelines poses not only a legal but also a reputational risk for the

Hannover Re Group that can lead to reduced demand and a loss of

customers (#29, #30).

[MDR-P_65a] Hannover Re has a governance and compliance

management system and adopts the “three lines of defence” approach.

This is designed to identify risks and avoid conscious and unconscious

violations. Hannover Re has installed Group-wide risk management

functions. The individual elements are closely interlinked and the roles,

responsibilities and reporting lines are clearly defined and documented in

accordance with the so-called three lines of defence. The first line of

defence consists of risk steering and the original risk responsibility on the

divisional and company level within the business groups of Property &

Casualty and Life & Health reinsurance, and Investments. The second line

of defence is made up of the key functions of risk management, actuarial

and compliance. These functions are responsible for process-integrated

monitoring and control. The third line of defence involves process-

independent auditing by the internal audit function. The procedure for

controlling all policies is defined in the “Internal Control Group Policy”.

[MDR-P_65a] The Code of Conduct contains mandatory requirements

relating to all relevant topics of the implemented compliance management

system and describes the framework for ensuring compliance with laws,

regulations and internal policies. In regard to social and ecological

responsibility, the Hannover Re Group has voluntarily committed to the Ten

Principles of the UN Global Compact, the Principles for Sustainable

Insurance and the Principles for Responsible Investment, as mentioned in

the Code of Conduct. [MDR-P_65b] The Code of Conduct applies

worldwide to the entire Hannover Re Group including its interaction with

upstream and downstream actors. [MDR-P_65c] The Code of Conduct is

assigned to the Compliance unit and was adopted by the Executive Board

and Supervisory Board.

[MDR-P_65a] The implemented compliance management system is

described in the Compliance Group Policy. This policy sets out the structure

and standards of the compliance function and regulates the responsibilities

and processes related to the compliance function. [MDR-P_65c] The Chief

Compliance Officer is responsible for implementation of the policy. [MDR-

P_65b] The Compliance Group Policy extends to all value chain activities,

including upstream and downstream actors.

Reputational risks may arise not only in connection with the undertaking’s

own violations but also in the event of violations of codes of conduct by

business partners. Revenue losses can result from restraints on

competition and blacklisting due to corruption and bribery (#29, #30). The

Hannover Re Group has therefore additionally adopted a Conflict of Interest

Group Policy and a Third Party Code of Conduct for vendors and suppliers.

[MDR-P_65a] The Hannover Re Group’s Conflict of Interest Group Policy

regulates the handling of situations in which an employee’s own interests

could compete with the interests of the Hannover Re Group. The policy

aims for a transparent approach if conflicts of interest occur so as to ensure

that they are dealt with in conformity with the law. To this end, the policy

defines appropriate behaviours in the event that conflicts of interest occur.

[MDR-P_65b] The policy applies to all employees of the Hannover Re

Group, irrespective of position and location. [MDR-P_65c] The Chief

Compliance Officer is responsible for implementation of the policy.

[MDR-P_65a] The Third Party Code of Conduct sets out the expectations of

the Hannover Re Group for the actions of its suppliers and entails a

commitment on the part of suppliers to comply with legal requirements, as

well as an undertaking to respect fair working conditions and global human

rights, and to take responsibility for the environment in supplier

management. [MDR-P_65d] In this context, explicit reference is also made

to the requirements of the International Labour Organization (ILO). The

higher-level goal of the Third Party Code of Conduct is to ensure that the

business partner’s conduct is consistent with the values and expectations

of the Hannover Re Group. The Code of Conduct applies to all suppliers

who participate in a business relationship with the Hannover Re Group.

Alternatively, large suppliers have the option to provide their own equivalent

Code of Conduct. [MDR-P_65b] The Hannover Re Group reviews this and

takes it as alternative orientation in the supplier relationship, provided it

covers the main points of content of Hannover Re Group’s Third Party Code

of Conduct. [MDR-P_65c] Responsibility for the Third Party Code of

Conduct rests with the Chief Compliance Officer.

Cyber security and data protection

[MDR-P_65a] The business conducted by the Hannover Re Group is

dependent on information. Consequently, Hannover Re must ensure the

confidentiality, integrity and availability of information and protect it against

unauthorised disclosure, manipulation, disruption, destruction or other

misuse. Hannover Re is subject to litigation risks in the event of data

breaches and inadequate safeguards that could facilitate illegal access. In

addition, cyber attacks or the loss of sensitive information may be

associated with considerable financial losses and reputational risks (#32).

In order to mitigate the risks and ensure that data of clients, suppliers,

business partners and its own employees is protected (#32), Hannover Re

has adopted an Information Security Policy and a Group Data Protection

Guideline along with the Code of Conduct and Compliance Group Policy.

The Information Security Policy defines the strategic objectives and

describes the Information Security Management System (ISMS) with its

organisational structure, processes, expectations for correct behaviour as

well as awareness-raising and training measures. The policy reflects

international regulatory requirements, as well as the external standards

ISO 27001 and NIST-500 and best practices in the field of information and

cyber security. Within the Operational Risk Management Framework of the

Hannover Re Group, it addresses in particular the risk area of information

security. [MDR-P_65b] The policy applies to all employees of the Hannover

Re Group, irrespective of position or location, who have access to

information of the Hannover Re Group that is not in the public domain. As

far as external third parties are concerned, consistency with this policy is

covered by corresponding contract clauses. [MDR-P_65c] Responsibility

for implementation of this policy rests with the Chief Information Security

Officer.

[MDR-P_65a] The Group Data Protection Guideline explains, among other

things, the principles applicable to the processing of personal data set out in

the General Data Protection Regulation (GDPR) as well as how they are

implemented in the structures of the Hannover Re Group. Furthermore, it

covers the rights of data subjects and compliance with these rights. [MDR-

P_65b] This guideline applies to all EU subsidiaries, service companies,

representative offices and branches of the Hannover Re Group as well as to

Hannover Re

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Hannover Rück SE itself. [MDR-P_65c] Subsidiaries, service companies,

representative offices and branches in non-EU countries implement the

requirements of this guideline unless they conflict with local legal and

regulatory requirements. Responsibility for this guideline rests with the

Group Data Protection Officer. The data protection management system

implemented on the basis of the Group Data Protection Guideline plays a

key part in preventing data breaches to the detriment of employees, clients,

suppliers and business partners (#32).

Corruption and bribery

The topic of corruption and bribery is enshrined in the Hannover Re Group’s

Code of Conduct, Third Party Code of Conduct, Compliance Group Policy

and Conflict of Interest Group Policy, among others. Group-wide

application of the Code of Conduct and the implementation of topic-based

training activities serve to prevent corruption and bribery within and beyond

corporate boundaries (#27).

[G1-1_10a, c] The Hannover Re Group has put in place mechanisms to

support the detection, reporting and investigation of unlawful conduct or

conduct that violates the Code of Conduct. The Hannover Re Group is

equipped with an established Speak Up system which is described in

greater detail in the Code of Conduct and the Compliance Group Policy.

Should employees or persons outside the undertaking (whistleblowers)

become aware of compliance breaches, harmful behaviours or risks, they

have the option to report such suspicions to the Chief Compliance Officer or

the Compliance unit in person, by phone, by e-mail or through an online

system, including anonymously if desired. A central call number and e-mail

address have been set up for this purpose. Furthermore, employees

throughout the Group are able to obtain advice on compliance matters

through an e-mail address linked to the Compliance unit within the division

Group Legal Services. [G1-1_10e] Every confirmed or potential breach

reported to the Chief Compliance Officer, the Compliance unit or a local

Compliance Officer is investigated, if necessary, with the additional

involvement of relevant specialist departments. When it comes to

conducting an investigation, unrestricted access is granted to the

information needed to establish the potential breach. Any tips and the

actions that were triggered are included in the annual compliance report.

The compliance report is submitted to the Executive Board, the Supervisory

Board and its Finance and Audit Committee.

[G1-1_10b] In addition, the Hannover Re Group has adopted compliance

standards consistent with the United Nations Convention against

Corruption.

[G1-1_10, 11] The hallmarks of the Hannover Re Group’s concept for

training in business conduct within the organisation, especially in

compliance matters, are as follows:

Target group: All employees of the undertaking, including new employees

upon joining the Group.

Frequency: Every employee receives compliance training at least every

three years. Focus training activities aimed at specific target groups

addressing various compliance topics are also held within the year as

needed.

[G1-1_10g] Scope: The training concept covers the subject area, content,

rotating cycle, type of training and target group. Traditional communication

channels such as the intranet portal are used to raise employee awareness

of compliance-related topics. The Compliance unit and the Chief

Compliance Officer also provide information about changes in legislation

that affect the employees’ work. [G1-1_10h] The Hannover Re Group has

identified all units, including all local offices, as at-risk functions. This also

includes the management bodies and executive staff.

Whistleblower protection

[G1-1_10c] The systematic implementation and communication of the

Speak Up system facilitates the detection of fraudulent or illegal conduct or

other wrongdoing, while at the same time ensuring that whistleblowers are

protected. In this way, the Hannover Re Group helps to ensure that the

detection of improper conduct is not impeded (#31). The Speak Up system

enables whistleblowers to report compliance breaches, harmful behaviours

or risks. Additional sources of information are used to ensure that all

employees are informed about the system. They include, among others, the

Code of Conduct, the Group-wide intranet and training activities. Various

internal and external reporting channels have been set up for submitting

tips. [G1-1_10e; 11] The Hannover Re Group has put in place a process to

ensure that, once a report has been received, an investigation is initiated

without delay by the designated reporting channel officer. Access to the

various reporting channels is strictly limited for the protection of

whistleblowers, and also to protect any accused employees, and only the

Chief Compliance Officer as well as two other members of the Compliance

team have access rights. By putting in place the Speak Up system, the

Hannover Re Group has implemented the requirements of the German

Whistleblower Protection Act (HinSchG).

Prevention and detection of corruption and bribery

[G1-3]

[G1-3_18a] The Hannover Re Group does not tolerate any form of

corruption, in particular active and passive bribery, and does not participate

in transactions with a potentially criminal background. The Hannover Re

Group has established a Group-wide compliance management system that

is described in the Compliance Group Policy. The Compliance

Management System, in the form permanently implemented in the

Hannover Re Group, is based on internationally recognised standards such

as ISO 37301 and IDW PS 980. The system is geared towards protecting

the undertaking against risks and breaches of laws and regulations. A

central element of this system is the compliance risk. The Compliance unit

uses a risk matrix to assess compliance risks based on factors such as

potential fines or reputational risks and their probability of occurrence. Risk-

mitigating measures such as process-embedded controls, implemented

work instructions or training activities, among others, are regularly reviewed

in respect to their adequacy and effectiveness; additional or optimising

actions are taken if necessary. If compliance incidents occur, actions are

defined based on an analysis of the causes to prevent future similar

incidents. The Hannover Re Group ensures that only independent

employees and managers are included in investigative activities.

[G1-3_18b] Compliance incidents are investigated independently of the

management levels involved in such incidents. This ensures the necessary

transparency and integrity. Overall responsibility for the topic of compliance

rests with the Executive Board, which also has a special function as role

model. In addition, operational responsibility is assigned to the Chief

Compliance Officer.

Tips, which may be reported inter alia in person, over the phone, by e-mail

or through the online Speak Up system, as well as actions taken by the

Compliance team, are summarised annually in a compliance report and

submitted to the management and supervisory bodies. The report compiled

by the Chief Compliance Officer is intended to inform the Executive Board

about observance of global legal requirements and internal guidelines

relevant to own business activities and draw attention to a potential need for

action in order to prepare decisions in the interests of lasting integrity and

legal compliance. In addition, regular meetings between the Executive

Hannover Re

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Board and Chief Compliance Officer are held to ensure timely reporting;

these meetings can also be scheduled on an ad hoc basis. [G1-3_18c] The

Chairman of the Supervisory Board maintains regular contact with the

Executive Board, in particular with the Chief Executive Officer, to discuss

strategic and operational topics such as the business development, risk

position and compliance.

The Code of Conduct of the Hannover Re Group, which also addresses the

topic of fighting corruption and bribery, can be viewed both publicly and in

the intranet. All employees have access to the intranet, where additional

information on compliance topics and internal guidelines are published.

Changes to internal guidelines are communicated monthly by e-mail to all

employees at the Hannover location. The employees at the other locations

are informed about relevant changes as needed. The undertaking also uses

direct communication with individual units for further awareness raising.

Managers are similarly required to highlight relevant actions and

information.

The Hannover Re Group’s Third Party Code of Conduct, which is published

on the Internet, defines expectations around the integrity and business

practices of third-party service providers and sets out the undertaking’s

position on bribery and corruption. [G1-3_20] Potential suppliers must

declare that they are in compliance with this code upon initiation of a

business relationship.

[G1-3_21a] All employees of the Hannover Re Group at the Hannover

location (the rhythm may vary at the local offices), including managers,

receive in-person training (also Web-based training [“WBT”] at the local

offices) in compliance topics every three years. The purpose of compliance

training is to explain the contents of the Code of Conduct and the

requirements of various policies to employees of the Hannover Re Group to

enable them to act in accordance with these requirements. The training also

covers the topic of “bribery and corruption”, which is enshrined in the Code

of Conduct. The training activities are based on a comprehensive concept

that caters to different hierarchical levels. The training measures cover the

Code of Conduct with the following points of emphasis: Speak Up system,

handling of invitations and gifts, fighting bribery and corruption, dealing with

conflicts of interest as well as insider information, sanctions and anti-money

laundering. Employees are also informed about and made aware of

compliance-related topics through the intranet portal.

[G1-3_21c] The Hannover Re Group does not tolerate bribery or corruption

and encourages its employees to report suspicions, including the possibility

to submit reports anonymously. The entire workforce including the

Executive Board is considered to be potentially at risk, with no distinction

made according to the potential exposure. The percentage of functions-at-

risk covered by training programmes is 100 % at the reporting date.

[G1-3_21b] This percentage reflects the training activities of the functions-

at-risk conducted in the first training cycle, which ended in July 2025. The

new training cycle began in August 2025. The training cycle, in which a

100 % training rate is targeted, considers a period of three calendar years.

The Executive Board and the Supervisory Board regularly review their

training needs and plan corresponding training activities, which can also

include the topic of anti-corruption. The frequency of training for the

Executive Board and Supervisory Board is therefore not tied to the three-

year cycle for other employees and managers. New members of the

Executive Board receive special training from the Compliance unit on taking

up their role, including raising their awareness to fraud prevention and

combating financial crime. The Executive Board received compliance

training in the year under review. The purpose of compliance trainings for

the Executive Board and the Supervisory Board is to specifically train this

group on complying with legal requirements.

Metrics

Incidents of corruption or bribery [G1-4]

[G1-4_24a] The number of convictions for violation of anti-corruption and

anti-bribery laws in the 2025 financial year is zero. The amount of fines for

violations of anti-corruption and anti-bribery laws is therefore also EUR 0.

The number of reported incidents of corruption and bribery is determined

from the reports submitted through the reporting system of the Hannover

Re Group, consisting of various reporting channels, insights gained from

audits performed by the Internal Audit function and monitoring activities

conducted by the Compliance function. [G1-4_24b] The relevance and

validity of reported incidents is verified by the Compliance function. Every

compliance incident is documented, categorised and assessed in

accordance with a defined review process. The figures may be examined at

any time by the Internal Audit function.

In the absence of reported incidents, Hannover Re did not see any need to

approve incident-related actions or action plans in the financial year above

and beyond the existing mechanisms for preventing corruption and fighting

bribery.

[MDR-M_77b] None of the metrics listed in ESRS G1 have been validated

by any external body other than the one responsible for quality assurance.

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Consolidated financial

statements

Consolidated statement of income

Consolidated statement of comprehensive income

Consolidated statement of changes in

shareholders’ equity

Consolidated cash flow statement

Notes to the consolidated financial statements

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Consolidated balance sheet


Assets
in EUR million	Notes	31.12.2024	31.12.2025
Financial investments – at fair value through OCI	6.1	56,140.0	57,316.6
Financial investments – at fair value through profit or loss	6.1	6,432.8	6,148.9
Investment property	6.1	2,605.2	2,671.8
Investments in associated companies and joint ventures	6.1	119.1	85.0
Other invested assets	6.1	591.1	116.9
Total investments		65,888.2	66,339.2
Recoverables on reinsurance contracts retroceded		1,501.5	1,107.2
Reinsurance contracts issued in an asset position	6.4	1,505.7	919.4
Goodwill	6.2	79.9	77.9
Deferred tax assets	7.5	501.5	373.5
Other assets	6.3	1,357.0	1,346.3
Cash and cash equivalents		1,253.1	1,051.5
Assets held for sale	4.6 / 6.1	40.4	112.2
Total assets		72,127.3	71,327.1


Liabilities
in EUR million	Notes	31.12.2024	31.12.2025
Liabilities from reinsurance contracts issued	6.4	48,917.6	47,425.8
Reinsurance contracts retroceded in a liability position	6.4	656.3	555.0
Provisions for pensions	6.5	155.4	144.1
Financing liabilities	6.7	4,669.0	4,142.3
Taxes	7.5	603.9	450.5
Deferred tax liabilities	7.5	1,797.4	2,001.4
Other liabilities	6.6	2,639.4	2,677.6
Total liabilities		59,439.0	57,396.6
Shareholders’ equity
Common shares	6.8	120.6	120.6
Nominal value: 120.6 Conditional capital: 24.1
Additional paid-in capital	6.8	724.6	724.6
Common shares and additional paid-in capital		845.2	845.2
Cumulative other comprehensive income
Unrealised gains and losses on investments		-1,997.4	-1,494.5
Cumulative foreign currency translation adjustment		667.5	-673.3
Cumulative reinsurance finance income and expenses		1,712.0	1,576.0
Other changes in cumulative other comprehensive income		-27.9	-25.0
Total other comprehensive income		354.2	-616.9
Retained earnings		10,595.1	12,700.4
Equity attributable to shareholders of Hannover Rück SE		11,794.5	12,928.7
Non-controlling interests	6.9	893.8	1,001.7
Total shareholders’ equity		12,688.3	13,930.5
Total liabilities		72,127.3	71,327.1

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Consolidated statement of income



in EUR million		2024	2025
	Notes	1.1.-31.12.	1.1.-31.12.
Reinsurance revenue (gross)	7.1	26,379.3	26,786.0
Reinsurance service expenses (gross)		21,698.2	21,561.3
Reinsurance service result (gross)		4,681.1	5,224.6
Reinsurance revenue (retroceded)		3,343.8	3,500.9
Reinsurance service expenses (retroceded)		1,681.2	1,772.3
Result from reinsurance contracts (retroceded)		-1,662.6	-1,728.5
Reinsurance service result (net)		3,018.5	3,496.1
Finance income or expenses from reinsurance contracts (gross)	7.3	-2,035.9	962.7
Finance income or expenses from reinsurance contracts (retroceded)	7.3	41.5	-96.6
Reinsurance finance result (net)		-1,994.4	866.2
thereof: Currency gains/losses from reinsurance finance result (net) ¹		-879.4	2,229.4
Reinsurance finance result (net) before currency gains/losses ¹		-1,115.0	-1,363.3
Ordinary investment income	7.2	2,353.2	2,544.1
Expected credit losses, impairment, depreciation and appreciation of investments	7.2	-98.3	-85.7
Change in fair value of financial instruments	7.2	2.7	22.4
Profit/loss from investments in associated companies and joint ventures	7.2	27.4	-33.2
Realised gains and losses on investments	7.2	-90.4	-564.2
Other investment expenses	7.2	189.6	210.5
Investment result		2,005.0	1,672.9
Currency gains/losses on investments		809.4	-1,987.6
Currency gains/losses from reinsurance finance result (net) ¹		-879.4	2,229.4
Other currency gains/losses		-38.0	1.4
Currency result ¹		-108.0	243.2
Other income	7.4	279.5	248.6
Other expenses	7.4	762.4	789.9
Other income/expenses		-482.9	-541.2
Operating profit/loss (EBIT)		3,317.6	3,507.7
Financing costs	6.7	104.3	94.9
Net income before taxes		3,213.3	3,412.8
Taxes	7.5	816.5	645.3
Net income		2,396.8	2,767.5
thereof non-controlling interest in profit and loss		68.1	126.0
Group net income		2,328.7	2,641.5
Basic earnings per share	9.5	19.31	21.90
Diluted earnings per share	9.5	19.31	21.90

¹ In order to clarify the matching currency coverage of the technical liabilities by investments, the currency

effects are initially eliminated from the reinsurance finance result within the meaning of IFRS 17 and

subsequently reported in the net currency result

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Consolidated statement of comprehensive income



in EUR million	2024	2025
	1.1.–31.12.	1.1.–31.12.
Net income	2,396.8	2,767.5
Not reclassifiable to the consolidated statement of income
Actuarial gains and losses	8.4	7.6
Investments in equity instruments	27.7	183.6
Currency translation	—	-11.0
Tax income (expense)	-3.0	-10.6
Total not reclassifiable to the consolidated statement of income	33.1	169.6
Reclassifiable to the consolidated statement of income
Unrealised gains and losses on investments
Gains (losses) recognised directly in equity	-178.6	682.7
Transferred to the consolidated statement of income	83.6	592.8
Currency translation
Gains (losses) recognised directly in equity	515.9	-1,404.4
Changes from insurance contracts
Gains (losses) recognised directly in equity	-533.6	-178.8
Changes from the measurement of associated companies and joint ventures
Gains (losses) recognised directly in equity	20.4	-0.1
Transferred to the consolidated statement of income	0.5	—
Changes from hedging instruments
Gains (losses) recognised directly in equity	12.2	2.4
Tax income (expense)	227.2	-256.2
Total reclassifiable income and expense recognised directly in equity	147.6	-561.7
Total income and expense recognised directly in equity	180.7	-392.1
Total recognised income and expense	2,577.5	2,375.4
thereof
Attributable to non-controlling interests	34.8	168.4
Attributable to shareholders of Hannover Rück SE	2,542.7	2,207.0

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Consolidated statement of changes in shareholder’s equity



in EUR million	Common shares	Additional paid-in capital	Other reserves (cumulative other comprehensive income)					Retained earnings	Equity attributable to shareholders of Hannover Rück SE	Non-controlling interests	Total shareholders’ equity
	Common shares	Additional paid-in capital	Unrealised gains/ losses	Currency translation	Insurance contracts	Hedging instruments	Actuarial gains/ losses	Retained earnings	Equity attributable to shareholders of Hannover Rück SE	Non-controlling interests	Total shareholders’ equity
Balance as at 1.1.2024	120.6	724.6	-1,985.1	160.5	2,026.3	1.2	-45.3	9,124.0	10,126.8	892.7	11,019.5
Net income	—	—	—	—	—	—	—	2,328.7	2,328.7	68.1	2,396.8
Total income and expense recognised directly in equity	—	—	5.1	507.0	-314.3	11.2	5.0	—	214.0	-33.3	180.7
Total recognised income and expense	—	—	5.1	507.0	-314.3	11.2	5.0	2,328.7	2,542.7	34.8	2,577.5
Dividends paid	—	—	—	—	—	—	—	-868.3	-868.3	-44.8	-913.1
Changes in ownership interest with no change of control status	—	—	—	—	—	—	—	-6.5	-6.5	-3.5	-10.0
Changes in the consolidated group	—	—	0.2	—	—	—	—	-0.2	—	—	—
Directly reclassified to retained earnings	—	—	-17.6	—	—	—	—	17.6	—	—	—
Capital increases/additions	—	—	—	—	—	—	—	—	—	16.3	16.3
Capital repayments	—	—	—	—	—	—	—	—	—	-1.7	-1.7
Acquisition/disposal of treasury shares	—	—	—	—	—	—	—	-0.2	-0.2	—	-0.2
Balance as at 31.12.2024	120.6	724.6	-1,997.4	667.5	1,712.0	12.4	-40.3	10,595.1	11,794.5	893.8	12,688.3

Balance as at 1.1.2025	120.6	724.6	-1,997.4	667.5	1,712.0	12.4	-40.3	10,595.1	11,794.5	893.8	12,688.3
Net income	—	—	—	—	—	—	—	2,641.5	2,641.5	126.0	2,767.5
Total income and expense recognised in equity	—	—	1,051.8	-1,353.2	-136.0	-0.2	3.0	—	-434.5	42.4	-392.1
Total recognised income and expense	—	—	1,051.8	-1,353.2	-136.0	-0.2	3.0	2,641.5	2,207.0	168.4	2,375.4
Dividends paid	—	—	—	—	—	—	—	-1,085.4	-1,085.4	-36.1	-1,121.5
Changes in ownership interest with no change of control status	—	—	—	—	—	—	—	0.5	0.5	-24.4	-23.9
Changes in the consolidated group	—	—	—	12.4	—	—	—	—	12.4	—	12.4
Directly reclassified to retained earnings	—	—	-549.0	—	—	—	—	549.0	—	—	—
Acquisition/disposal of treasury shares	—	—	—	—	—	—	—	-0.2	-0.2	—	-0.2
Balance as at 31.12.2025	120.6	724.6	-1,494.5	-673.3	1,576.0	12.2	-37.2	12,700.4	12,928.7	1,001.7	13,930.5

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Consolidated cash flow statement



in EUR million	2024	2025
	1.1.–31.12.	1.1.–31.12.
I. Cash flow from operating activities
Net income	2,396.8	2,767.5
Change in insurance contracts (gross)	2,856.7	2,503.9
Change in reinsurance contracts held (retroceded)	19.8	262.3
Change in other receivables/liabilities	855.0	-215.0
Other non-cash expenses and income	-446.4	368.1
Cash flow from operating activities	5,681.9	5,686.9
II. Cash flow from investing activities
Outflows for acquisition of investment property	-202.6	-452.2
Inflows from disposal of investment property	28.7	162.7
Outflows for acquisition of investments in affiliated companies and participating interests (not consolidated)	-128.6	-259.8
Inflows from disposal of investments in affiliated companies and participating interests (not consolidated)	161.8	831.4
In- / Outflows for acquisition of investments in affiliated companies and participating interests (consolidated)	90.4	—
Outflows for acquisition of investments valued at FV through OCI	-24,553.4	-37,329.4
Inflows from disposal of investments valued at FV through OCI	20,822.8	33,141.0
Outflows for acquisition of investments valued at FV through P&L	-3,547.4	-4,623.9
Inflows from disposal of investments valued at FV through P&L	2,742.4	4,256.8
Short-term Investments (net)	44.1	187.8
Outflows for acquisition of other invested assets	-3,457.5	-2,491.0
Inflows from disposal of other invested assets	3,627.2	2,530.1
Other changes	-40.0	16.3
Cash flow from investing activities	-4,412.1	-4,030.2
III. Cash flow from financing activities
Cash inflow from financing liabilities/financial/puttable instruments	—	102.9
Cash outflow from financing liabilities/financial/puttable instruments	-196.3	-703.7
Cash inflow from capital measures	16.3	—
Cash outflow from capital measures	-1.7	—
Changes in interests in a subsidiary that do not result in a loss of control	-10.0	-23.9
Cash outflow from dividends	-913.1	-1,121.5
Other changes	-0.2	-0.2
Cash flow from financing activities	-1,105.0	-1,746.3



in EUR million	2024	2025
	1.1.–31.12.	1.1.–31.12.
IV. Exchange rate differences on cash	33.5	-112.0
Cash and cash equivalents at the beginning of the period	1,054.8	1,253.1
Change in cash and cash equivalents (I. + II. + III. + IV.)	198.3	-201.7
Cash and cash equivalents at the end of the period	1,253.1	1,051.5
Supplementary information on the cash flow statement ¹
Income taxes paid (on balance)	-361.6	-973.4
Dividend receipts ²	152.6	220.3
Interest received	2,194.6	2,360.8
Interest paid – recognised in the cash flow from operating activities	-187.9	-281.9
Interest paid – recognised in the cash flow from financing activities	-114.8	-105.5

¹ The income taxes paid, dividend received as well as interest received are included entirely in the cash flow from operating activities.

² Including dividend-like profit participations from investment funds

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1. Company information

Notes to the

consolidated

financial

statements

2. Accounting principles

3. Accounting policies

3.1 Changes in accounting policies

3.3 Major discretionary decisions and estimates

4. Consolidation

4.1 Consolidation principles

4.2 Consolidated companies and complete list of

shareholders

4.3 Major acquisitions and new formations

4.4 Major disposals and retirements

4.5 Other corporate changes

4.6 Assets held for sale

5. Segment reporting

6. Notes on the individual items of the balance sheet

6.1 Investments

6.2 Goodwill

6.3 Other assets

6.4 Technical assets and liabilities

6.5 Provisions for pensions and other post-employment

benefit obligations

6.6 Other liabilities

6.7 Financing liabilities

6.8 Shareholders’ equity and treasury shares

6.9 Non-controlling interests

7. Notes on the individual items of the statement of

income

7.1 Reinsurance revenue

7.2 Investment result

7.3 Insurance finance income and expenses

7.4 Other income and expenses

7.5 Taxes on income

8. Segment disclosures on the technical account

8.1 Property and casualty reinsurance

8.2 Life and health reinsurance

9. Other notes

9.1 Derivative financial instruments and financial

guarantees

9.2 Related party disclosures

9.3 Share based payment

9.4 Staff and expenditures on personnel

9.5 Earnings per share and dividend proposal

9.6 Lawsuits

9.7 Contingent liabilities and commitments

9.8 Leases

9.9 Fee paid to the auditor

9.10 Events after the balance sheet date

Hannover Re

risks in property and casualty reinsurance / Underwriting risks in life

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1. Company

information

Hannover Rück SE and its subsidiaries (collectively referred to as the

“Hannover Re Group” or “Hannover Re”) transact all lines of property &

casualty and life & health reinsurance. Hannover Re is one of the world’s

leading reinsurance groups, with a network consisting of more than 180

subsidiaries, affiliates, branches and representative offices and a total

workforce of roughly 4,000. The Group’s German business is conducted by

the subsidiary E+S Rückversicherung AG. Hannover Rück SE is a

European Company, Societas Europaea (SE), which has its registered

office at Karl-Wiechert-Allee 50, 30625 Hannover, Germany, and is entered

in the commercial register of Hannover County Court under the number HR

Hannover B 6778. Hannover Re is 50.2% (rounded) owned by Talanx AG,

Hannover, and included in the latter’s consolidated financial statements.

Talanx AG is majority-owned by HDI Haftpflichtverband der Deutschen

Industrie V.a.G., Hannover (HDI).

Hannover Rück SE and its subsidiaries (collectively referred to as the “Hannover Re Group” or “Hannover Re”) transact all lines of property & casualty and life & health reinsurance. Hannover Re is one of the world’s leading reinsurance groups, with a network consisting of more than 180 subsidiaries, affiliates, branches and representative offices and a total workforce of roughly 3,900. The Group’s German business is conducted by the subsidiary E+S Rückversicherung AG. Hannover Rück SE is a European Company, Societas Europaea (SE), which has its registered office at Karl-Wiechert-Allee 50, 30625 Hannover, Germany, and is entered in the

commercial register of Hannover County Court under the number HR Hannover B 6778. Hannover Re is 50.2% (rounded) owned by Talanx AG, Hannover, and included in the latter’s consolidated financial statements. Talanx AG is majority-owned by HDI Haftpflichtverband der Deutschen Industrie V.a.G., Hannover (HDI).

2. Accounting

principles

Hannover Rück SE and its subsidiaries are required to prepare a

consolidated financial statement and group management report in

accordance with § 290 German Commercial Code (HGB).

Pursuant to EU Regulation (EC) No. 1606/2002, the present consolidated

financial statement and group management report of Hannover Re have

been drawn up in accordance with the International Financial Reporting

Standards (IFRS) that are to be applied within the European Union. In

addition, we have made allowance for the regulations that are also

applicable pursuant to § 315e Para. 1 German Commercial Code (HGB)

and the supplementary provisions of the Statute of Hannover Re.

Hannover Rück Beteiligung Verwaltungs-GmbH and FUNIS GmbH & Co.

KG, both subsidiaries of Hannover Rück SE, made use of the option to be

exempted from disclosure pursuant to § 264 Para. 3 German Commercial

Code (HGB) and § 264b German Commercial Code (HGB).

The consolidated financial statement reflects all IFRS in force as at 31

December 2025 as well as all interpretations issued by the International

Financial Reporting Standards Interpretations Committee (IFRS IC),

application of which was mandatory for the year under review. IFRS 17.121

et seq. “Insurance Contracts” requires disclosures on the nature and extent

of risks stemming from reinsurance contracts, while IFRS 7.31-42

“Financial Instruments: Disclosures” requires similar information on risks

from financial instruments. Furthermore, § 315 Para. 2 Number 1 German

Commercial Code (HGB) also contains requirements for insurance

undertakings with regard to information on the management of underwriting

and financial risks that is to be provided in the management report. The

disclosures resulting from these requirements are included in the risk

report. With regard to the disclosures required by IFRS 17 and IFRS 7, we

would refer in particular to our remarks in the subsection “Underwriting

and health reinsurance” and the subsection “Market risks” respectively.

We do not present identical disclosures in the notes. In order to obtain a

comprehensive overview of the risk situation to which Hannover Re is

exposed, it is therefore necessary to consider both the risk report and the

relevant information in the notes. For the sake of better orientation, we refer

the reader accordingly to the corresponding remarks in the risk report and

the notes.

The declaration of conformity required pursuant to § 161 Stock Corporation

Act (AktG) regarding compliance with the German Corporate Governance

Code has been submitted and, as described in the Declaration of the

Executive Board regarding the Corporate Governance of the Company,

made permanently available on the Hannover Re website.

The annual financial statements included in the consolidated financial

statement were for the most part drawn up as at 31 December. Pursuant to

IFRS 10 “Consolidated Financial Statements”, there was no requirement to

compile interim accounts for Group companies with diverging reporting

dates because their closing dates were no earlier than three months prior to

the closing date for the consolidated financial statement. Insofar as no

interim accounts were drawn up, allowance has been made for the effects of

significant transactions between the diverging reporting dates and the

closing date for the consolidated financial statement.

The annual financial statements of all companies were drawn up in

accordance with standard Group accounting and measurement rules

pursuant to IFRS.

The consolidated financial statement was drawn up in euros (EUR); the

amounts shown have been rounded to EUR millions. Unless otherwise

explicitly indicated, amounts in brackets refer to the previous year.

Hannover Re is publishing its consolidated financial statement as at

31 December 2025 in accordance with the provisions of the German ESEF

Implementation Act (ESEF = European Single Electronic Format).

The present consolidated financial statement was released for publication

by a resolution of the Executive Board on 9 March 2026.

New accounting standards or

accounting standards applied

for the first time

The following amendments to existing standards were applicable for the

first time in the reporting period:

– Amendments to IAS 21 The Effects of Changes in Foreign Exchange

Rates: Lack of Exchangeability

These narrowly defined amendments contain provisions regarding currency

translation that apply when one currency is not exchangeable into another.

The amendments did not have any significant implications for the

consolidated financial statement.

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Standards and changes in

standards that have not yet

entered into force or are not yet

applicable

In May 2024 the IASB issued “Amendments to the Classification and

Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS

7)”. These amendments address specific matters that were identified during

the post-implementation review of the classification and measurement

requirements of IFRS 9 “Financial Instruments”. The amendments are

effective retrospectively for reporting periods beginning on or after

1 January 2026 and were endorsed by the EU in May 2025.

In April 2024 the IASB issued IFRS 18 “Presentation and Disclosure in

Financial Statements”. The standard replaces the previous IAS 1

“Presentation of Financial Statements”. IFRS 18 requires adjustments to

the structure of the consolidated income statement, introduces categories

in the statement of income and sets out requirements to standardise the

aggregation or disaggregation of items presented in financial statements. In

the future, items presented in the consolidated income statement are to be

classified into the categories operating, investing and financing, which are

summarised by newly defined subtotals. Individual income and expense

items are allocated to different categories than previously: for example,

under the new provisions, shares of the profit or loss of associates and joint

ventures accounted for using the equity method will in future be allocated to

the investing category and hence no longer form part of the operating profit.

In addition, certain expenses are to be reclassified to the financing category.

Furthermore, requirements for new disclosures in the notes on

“management-defined performance measures” (MPMs) are formulated,

insofar as such performance measures are used in the financial reporting.

Additional disclosures required in the notes primarily relate to disclosures in

the consolidated income statement for expenses that are presented in the

operating result by function. For these items, the amounts for certain types

of expenses specified by IFRS 18 (e.g. depreciation, amortisation,

impairment losses and reversals of impairment losses) that are included

therein must be disclosed. The presentation of the consolidated cash flow

statement is also adjusted through targeted amendments to IAS 7

“Statement of Cash Flows”, essentially in that the calculation of the cash

flow from operating activities will in future begin with the newly defined

operating profit subtotal instead of with the Group net profit as was

previously the case. The standard is to be applied retrospectively for

financial years beginning on or after 1 January 2027 and was endorsed by

the EU in February 2026. Hannover Re is currently analysing the

implications of IFRS 18 and preparing for its implementation. As a

reinsurance company, Hannover Re will apply the rules for the specified

main business activities when reporting certain items in the consolidated

income statement. We will also introduce a note to the financial statements

regarding the above-mentioned expenses according to their type and adjust

the cash flow statement due to its new starting point. We do not expect

IFRS 18 to have any significant implications above and beyond this.

In addition to the rules described above, the IASB has issued the standards,

interpretations and amendments to existing standards listed below with

possible implications for the consolidated financial statement of Hannover

Re, application of which was not yet mandatory for the year under review

and which are not being applied early by Hannover Re. Initial application of

these new standards is not expected to have any significant implications for

Hannover Re’s net assets, financial position or results of operations:

Further IFRS Amendments and Interpretations


Publication	Title	Initial application to annual periods beginning on or after the following date:
May 2024	IFRS 19 Subsidiaries without Public Accountability: Disclosures	1 January 2027 (still to be endorsed by the EU)
July 2024	Annual Improvements Volume 11	1 January 2026 (endorsed by the EU on 9 July 2025)
December 2024	Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature- dependent Electricity	1 January 2026 (endorsed by the EU on 30 June 2025)
August 2025	Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures	1 January 2027 (still to be endorsed by the EU)
November 2025	Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency	1 January 2027 (still to be endorsed by the EU)

3. A ccounting policies

3.1 Changes in accounting

policies

The measurement rules of IFRS 17 require, among other things, that certain

amounts (“non-distinct investment components”) which are repayable to

the cedant under a reinsurance treaty irrespective of the occurrence of the

insured event be identified and deducted equally from the reported

reinsurance revenue and the reinsurance service expenses. The

determination of these amounts is based in part on estimates, in particular

with regard to the amount of premium payments and their development

over time. On the basis of improved data availability Hannover Re refined

the corresponding estimation method in the financial year to better account

for the interaction of various contract components and the timing of the

recognition of reinsurance revenue over the contract term.

This adjustment involves a change in an accounting estimate pursuant to

IAS 8.32 er seq. that is applicable prospectively to the consolidated

financial statement 2025 and subsequent consolidated financial

statements. The changed estimate led to an increase of altogether roughly

EUR 100 million in reinsurance revenue and reinsurance service expenses

for the financial year in the property and casualty as well as life and health

reinsurance segments, but had no effect on the reinsurance service result.

The implications of the adjustment for the reinsurance revenue and

reinsurance service expenses of future periods cannot be determined with

reasonable effort.

Furthermore, in the course of the financial year, Hannover Re modified the

method used to estimate the risk adjustment for non-financial risk for

groups of reinsurance contracts within the property and casualty

reinsurance segment. The estimation method now makes more detailed

allowance for the uncertainties around expected future cash flows and thus

results in a more reliable presentation of the risk adjustment over the term of

the reinsurance contracts.

The adjustment similarly involves a change in an accounting estimate

pursuant to IAS 8.32 et seq. that is applicable prospectively to the

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6.4 "Technical assets and liabilities".

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consolidated financial statement 2025 and subsequent consolidated annual

financial statements. The changed estimate resulted in a reduction in the

liabilities from reinsurance contracts issued and a corresponding increase

in the reinsurance service result (net) in the property and casualty

reinsurance segment. The effects of the changed estimate on the current

and future periods cannot be determined with reasonable effort.

Settlement items with cedants and retrocessionaires are allocated to the

liability for remaining coverage or the liability for incurred claims in

accordance with the cash flow-based valuation model for reinsurance

receivables and liabilities. Estimation and allocation procedures are used

inter alia in the event of partial, interim or collective settlement. Thanks to

improved data availability, Hannover Re was able to implement an

improvement to these procedures in the financial year, which overall leads

to a more reliable and robust allocation of settlement items to the

components of the technical receivables and liabilities.

This adjustment also involves a change in an accounting estimate pursuant

to IAS 8.32 et seq. that is applicable prospectively to the consolidated

financial statement 2025 and subsequent consolidated financial

statements. The implications of the changed estimate for the current and

future periods cannot be quantified with reasonable effort. There is no

impact on Group net income.

In conformity with IAS 1.45 as well as the minimum requirements for the

disclosure of technical items and general industry standards, Hannover Re

now reports the liability for remaining coverage and the liability for incurred

claims on an aggregate basis under the balance sheet items “Liabilities

from reinsurance contracts issued / Reinsurance contracts issued in an

asset position” and “Reinsurance contracts retroceded in a liability

position / Recoverables on reinsurance contracts retroceded" respectively.

A detailed presentation of the items can still be found in section

3.2 Summary of major

accounting policies

Classification of contracts: IFRS 17 “Insurance Contracts” establishes a

comprehensive accounting framework for the recognition, measurement

and disclosure of insurance contracts. In addition, IFRS 17 requires

extensive disclosures in the notes. The standard is to be applied to

insurance contracts written (“insurance contracts issued”, including

reinsurance contracts written/issued), reinsurance contracts held

(“insurance contracts ceded”) and reinsurance contracts retroceded

(“retrocession contracts held”, “retrocessions”) as well as investment

contracts with discretionary participation features. Unless otherwise

explicitly indicated, the term “insurance” includes reinsurance in the

following explanatory remarks.

A contract is to be classified as a reinsurance contract issued or as a

reinsurance contract held pursuant to FRS 17 if a significant insurance risk

is thereby assumed or transferred. These contract types are treated

according to the same rules, irrespective of whether the contracts were

issued, acquired in connection with a merger or acquired as part of a

transfer of contracts that do not constitute business operations. Contracts

that may take the legal form of an insurance contract but do not transfer any

significant insurance risk are classified as investment contracts. The

recognition and measurement of such contracts follows the rules for the

recognition of financial instruments according to IFRS 9 “Financial

Instruments”.

Before a contract is recognised pursuant to IFRS 17, we check whether the

contract contains components that are to be separated and recognised

separately according to the provisions applicable to them. Hannover Re’s

business largely contains two categories of such components:

– cash flows related to embedded derivatives to be recognised separately

under IFRS 9;

– cash flows related to distinct investment components that are similarly to

be recognised under IFRS 9.

Financial instruments are recognised and derecognised on acquisition or

sale at the fulfilment date pursuant to IFRS 9. Financial assets are

classified on acquisition according to the cash flow characteristics of the

financial instruments, on the one hand, and according to the business

model used to manage the financial instruments, on the other. On the basis

of these two criteria, financial instruments are allocated to one of three

measurement categories, namely in the business model “hold” at amortised

cost (AC), in the business model “hold and sell” at fair value through other

comprehensive income (FVOCI) or in the business model “trading” at fair

value through profit or loss (FVPL). In general, the business model “hold” is

not applicable to Hannover Re. In view of the nature of reinsurance

business, the bulk of our portfolio of debt instruments is allocated to the

business model “hold and sell”. A large part of the financial instruments

shown in the investments is therefore classified in the category “fair value

through other comprehensive income”.

Financial liabilities are classified either as financial instruments at fair value

through profit or loss or as financial instruments measured at amortised

cost. For further information we would refer to our separate explanatory

remarks in this section.

Debt instruments held are recognised at amortised cost (AC) and

measured in subsequent periods at amortised cost using the effective

interest rate method if the financial asset is held within a business model

whose objective is collecting cash flows and the contractual cash flows

consist of solely payments of principal and interest (SPPI). This business

model is applied only in exceptional cases in the Hannover Re Group.

Debt instruments are classified as financial instruments at fair value

through other comprehensive income (FVOCI) if the financial asset is held

within a business model whose objective is both collecting contractual cash

flows and selling the financial asset and the contractual cash flows meet the

SPPI criterion. Financial assets classified in the FVOCI category are

measured at fair value, with changes in fair value – making allowance for

accrued interest and deferred taxes – recognised mostly in OCI and

reported in shareholders' equity under other reserves. In a departure from

the above, changes in fair value relating to expenses and income from the

recognition of expected credit losses as well as currency gains and losses

from financial instruments measured at fair value through other

comprehensive income are recognised in profit or loss. Premiums and

discounts are spread across the maturity using the effective interest rate

method and similarly recorded in profit or loss. A large part of Hannover

Re's investments fall under the business model with the objective of

collecting cash flows and selling, because the investments are

predominantly used to cover underwriting risks and sales are therefore

influenced by the servicing of these obligations.

There is an option to designate equity instruments as FVOCI on initial

recognition, without recycling to profit and loss. In this case, changes in fair

value are recognised directly in OCI and not recycled to P&L even on

disposal. As a general principle, Hannover Re exercises this option for

equities and unconsolidated participations.

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The financial instruments measured at fair value through profit or loss

(FVPL) include all equity instruments that were not designated as FVOCI

without subsequent recycling to profit and loss as well as all debt

instruments whose cash flows do not meet the SPPI test based on their

cash flow characteristics or are not held within the business models whose

objective is collecting contractual cash flows or collecting cash flows and

selling the instrument.

This includes first and foremost complex structured products, units in

investment funds and private equity investments as well as short-term

investments. In addition, all derivative assets are measured at fair value

through profit or loss and, provided they have positive fair values,

recognised in this category. Derivatives with negative fair values are

recognised under the other liabilities. All securities measured at fair value

through profit or loss are carried at the fair value on the closing date. If

market prices that can be used as fair values are not available, the book

values of the relevant financial instruments are determined using

recognised measurement methods. All unrealised gains or losses from

measurements of this type are recognised in profit or loss just like realised

gains and losses and reported in the investment income.

Valuation models


Financial instrument	Parameter	Pricing Model
Fixed-income securities
Unlisted plain vanilla bonds, interest rate swaps	Yield curve	Present value method
Unlisted structured bonds	Yield curve, volatility surfaces	Hull-White, Black-Karasinski, LIBOR market model etc.
Unlisted ABS/MBS, CDO/CLO	Risk premiums, default rates, prepayment speed and recovery rates	Present value method
Other invested assets
Unlisted equities and equity investments	Acquisition cost, cash flows, EBIT multiples, as applicable book value	Capitalised earnings method, discounted cash flow method, multiple-based approaches
Other financial assets
Private equity funds, private equity real estate funds	Net asset values (NAV)	Net asset value method
Unlisted bond, equity and real estate funds	Net asset values (NAV)	Net asset value method
Inflation swaps	Inflation swap rates (Consumer Price Index), historical index fixings, interest rate curve	Present value method
Forward exchange transactions, foreign exchange swaps, non-deliverable forwards	Yield curves, spot and forward rates	Interest parity model
OTC stock options, OTC stock index options	Listing of the underlying share, implicit volatilities, money-market interest rate, dividend yield	Black-Scholes
Insurance derivatives	Fair values, actuarial parameters, yield curve	Present value method
Cross-currency swaps	Yield curve, currency spot rates	Present value method
Total return swaps	Listing of underlying, yield curve	Present value method

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Establishment of the fair value of financial instruments carried as assets

or liabilities: we establish the fair value of financial instruments carried as

assets or liabilities using the methods and models described below. The fair

value of a financial instrument corresponds to the amount that Hannover Re

would receive or pay if it were to sell or settle the said financial instrument

on the balance sheet date. Insofar as market prices are listed on markets for

financial assets, their bid price is used; financial liabilities are valued at ask

price. In other cases the fair values are established on the basis of the

market conditions prevailing on the balance sheet date for financial assets

with similar credit rating, duration and return characteristics or using

recognised models of mathematical finance. Hannover Re uses a number

of different valuation models for this purpose. The details are set out in the

table above. Financial assets for which no publicly available prices or

observable market data can be used as inputs (financial instruments

belonging to fair value hierarchy level 3) are for the most part measured on

the basis of proven valuations drawn up by knowledgeable, independent

experts, e. g. net asset value, the plausibility of which has previously been

subjected to systematic review. For further information please see our

explanatory remarks on the fair value hierarchy in section

6.1 “Investments”.

Impairments: The impairment rules set out in IFRS 9 apply to all debt

instruments recognised at amortised cost or at fair value through other

comprehensive income. Expected credit losses (ECL) as well as potential

impairments and those actually established at the measurement date are

calculated and presented in accordance with a three-stage model:

– Stage 1 consists of debt instruments in respect of which it is assumed

that the credit risk has not significantly increased since initial recognition.

The risk provision for such instruments is measured using, among other

things, the default probabilities for the next 12 months.

– Stage 2 consists of debt instruments that are not credit-impaired, but

whose credit risk has increased significantly since initial recognition. The

significant increase in the credit risk is established primarily on the basis

of the credit rating specific to the individual instrument or using

alternative quantitative and qualitative information, a credit risk

assessment and forward-looking information. The risk provision is

calculated using the default probabilities for the entre remaining

maturities of the instruments.

– Stage 3 consists of all debt instruments that are classified as credit-

impaired.

For all three stages, the risk provision to be made and its reversal are

determined at the reporting data and individually for each specific

instrument. The resulting expense and income are recognised in the

statement of income.

The determination of the risk provision to be made for Stages 1 and 2 is

based on the potential default amount weighted by the risk of default. The

following three parameters are primarily considered here:

– the probability of default (PD),

– the loss given default (LGD) and

– the exposure at default (EAD).

Year-specific probabilities of default are used for Stage 2 to establish the

ECL for the entire remaining maturities of the assets. These input factors

are regularly recalibrated to reflect the forecast development of

macroeconomic conditions in accordance with the requirements of IFRS 9

through the use of region- and period-specific point-in-time (PIT) factors. If

a debt instrument is classified as credit-impaired and hence carried in Stage

3, measurement of the risk provision is based on the fair value at the

balance sheet date.

Upon acquisition, all financial instruments are initially allocated to Stage 1.

In cases where the credit risk has significantly increased, they are

transferred to Stage 2. Given that allocation to a stage is dependent on the

rating at the time of acquisition, shares in a financial instrument acquired at

different times can be allocated to both Stage 1 and Stage 2. A significant

increase in the credit risk triggering the transfer from Stage 1 to Stage 2

exists if the financial instrument has a current issuer rating in the non-

investment-grade range and the rating of the instrument has been

downgraded at least twice since initial recognition. Hannover Re uses the

optional simplification under which financial instruments with a low credit

risk are not allocated to Stage 2 if they still have an investment-grade issuer

rating.

The allocation of financial instruments to Stage 3, on the other hand, is

made on the basis of the counterparty's default status.

If a significant increase in the credit risk exists but the financial instrument

was not classified as credit-impaired, the financial instrument in question

remains in Stage 2. If none of the aforementioned stage transfer criteria

applies any longer and the financial instrument is not credit-impaired, it is

allocated to Stage 1. In the event of credit impairment, it is allocated to

Stage 3. If a previously credit-impaired financial instrument is no longer

considered to be credit-impaired, it is reclassified to Stage 2 or Stage 1

depending on applicability of the stage-specific criteria.

An overview of the impairments on financial instruments can be found in

section 6.1 “Investments”.

Netting of financial instruments: financial assets and liabilities are only

netted and recognised in the appropriate net amount if a corresponding

legal claim (reciprocity, similarity and maturity) exists or is expressly agreed

by contract, in other words if the intention exists to offset such items on a

net basis or to effect this offsetting simultaneously.

Other invested assets: The other invested assets are participating interests

in entities over which we are unable to exercise a significant influence or

control. Subsidiaries that are not consolidated for reasons of materiality are

also included in this item. These interests are normally measured at fair

value in OCI.

Investments in associated companies and joint ventures are valued at

equity on the basis of the proportionate shareholders’ equity attributable to

the Group. Further information is provided in section 4.1 “Consolidation

principles”.

Investment property is valued at cost less depreciation and impairment.

Straight-line depreciation is taken over the expected useful life – at most

50 years. Under the impairment test the market value of investment

property (recoverable amount) is determined using accepted valuation

methods, compared with the book value and, where necessary,

impairments are recognised. Maintenance costs and repairs are expensed.

Value-enhancing expenditures are capitalised if they extend the useful life.

Cash and cash equivalents are carried at face value. In the case of cash

collateral that we have received for the hedging of positive fair values of

derivatives, other liabilities are recognised in the same amount.

Repurchase agreements (repo transactions): fully collateralised, term

repurchase agreements (repos) are entered into as a supplementary

liquidity management tool. In this context the Group sells securities and at

the same time commits to repurchase them at a later date for an agreed

price. Given that the material risks and opportunities associated with the

financial instruments remain within the Group, we continue to recognise

these assets. The repurchase commitment arising out of the payment

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received is accounted for under “sundry liabilities”; any difference between

the amount received for the transfer of the securities and the amount agreed

for their repurchase is spread across the term of the repo using the effective

interest rate method and shown in investment income.

Reinsurance recoverables on technical reserves: shares of our

retrocessionaires in the technical reserves are calculated according to the

contractual conditions on the basis of the gross technical reserves. An

appropriate impairment is taken to allow for objective substantial indications

of credit risks that are based on an event after initial recognition and suggest

impairment, insofar as this can be reliably measured. For further information

please refer to the subsection “Retrocession contracts” in this item of the

notes.

Intangible assets: in accordance with IFRS 3 “Business Combinations”

goodwill is not amortised; instead, impairments may be taken after an

annual impairment test or as indicated. For the purposes of the impairment

test, goodwill is to be allocated pursuant to IAS 36 “Impairment of Assets”

to so-called “cash generating units” (CGUs). Each CGU to which goodwill is

allocated should represent the lowest level on which goodwill is monitored

for internal management purposes and may not be larger than a segment.

Following allocation of the goodwill it is necessary to determine for each

CGU the recoverable amount, defined as the higher of the value in use and

the fair value less costs to sell. For impaired goodwill the recoverable

amount is to be stated. The recoverable amount is to be compared with the

book value of the CGU including goodwill. When the latter exceeds the

recoverable amount, an impairment expense is to be recognised. For

detailed information on the impairment method used and the goodwill

recognised as at the balance sheet date, please see section

6.2 “Goodwill”.

Purchased and proprietary software is recognised at acquisition or

production cost less depreciation. Intangible assets are regularly tested for

impairment and an impairment loss is recognised where necessary.

The other intangible assets include separately identifiable intangible assets

in connection with business combinations, such as customer base or

contractual / legal rights.

Deferred tax assets: IAS 12 “Income Taxes” requires that assets-side

deferred taxes be established if assets have to be recognised in a lower

amount or liabilities in a higher amount in the consolidated balance sheet

than in the tax balance sheet and if these temporary differences will lead to

reduced tax burdens in the future. In principle, temporary differences result

from the valuation differences between the tax balance sheets drawn up in

accordance with national standards and the IFRS balance sheets of the

companies included in the consolidated financial statement drawn up in

accordance with uniform group standards as well as from consolidation

processes. Deferred tax assets and liabilities are not established if they

arise out of assets or liabilities, the book value of which upon first-time

recognition diverges from their initial tax base.

Deferred tax assets are also recognised on tax loss carry-forwards and tax

credits. Insofar as the deferred taxes refer to items carried directly in equity,

the resulting deferred taxes are also recognised directly in equity. Value

adjustments are taken on deferred tax assets as soon as realisation of the

receivable no longer appears likely. Deferred taxes are measured according

to the tax regulations specific to the country concerned that are applicable

or have been adopted as at the closing date.

Deferred tax assets may only be netted with deferred tax liabilities if an

enforceable right exists to net actual tax refund claims with actual taxes

owing. A precondition here is that the deferred tax assets and deferred tax

liabilities refer to income taxes that are levied by the same revenue authority

either for (i) the same taxable entity or for (ii) different taxable entities,

provided that the latter intend to realise the corresponding assets and settle

the corresponding liabilities at the same time. In this regard, there must be

an intention – in every future period in which the discharge or realisation of

substantial amounts of deferred tax liabilities / deferred tax assets is to be

expected – either to bring about the settlement of the actual taxes owing

and refund claims on a net basis or to discharge the liabilities at the same

time as the claims are realised.

Own-use real estate: the portfolio of own-use real estate is measured at

cost less straight-line depreciation over a useful life of no more than

50 years. The fair values are determined for comparative purposes using

the discounted cash flow method.

Right-of-use assets from lease contracts are measured at amortised cost

in the amount of the initial measurement of the lease liability, adjusted for

prepaid lease payments, lease incentives received, initial direct costs

incurred and probable restoration costs (cf. here our comments on lease

liabilities in section 6.7 “Financing liabilities”). Right-of-use assets are

amortised on a straight-line basis over the term of the lease contract.

Other assets are accounted for at amortised cost.

Technical reserves, general measurement model – initial measurement:

The standard IFRS 17 includes three measurement models; the basis is the

“general measurement model” (GMM). The “variable fee approach” (VFA)

is a variant of the general measurement model for insurance contracts with

a direct surplus participation and is not applicable to reinsurance business.

The premium allocation approach (PAA) is a simplified method that can be

used by insurers and reinsurers when certain criteria are met. Hannover

Re’s portfolio contains both contracts that qualify for the premium allocation

approach and - predominantly - contracts for which the general

measurement model is to be applied. For operational reasons and in order

to achieve consistent and comparable presentation and measurement

within the portfolio of insurance and reinsurance contracts, Hannover Re is

applying the general measurement model to its entire business.

As a general principle, insurance and reinsurance contracts are grouped

together and measured on an aggregated level. For this purpose, we define

as a first step portfolios containing contracts with similar risks that are

managed together. In a second step, we split these portfolios into groups of

contracts according to profitability criteria and annual cohorts. With regard

to the profitability expected at the time of initial recognition, a distinction is

made between

– onerous contracts,

– contracts where there is no significant probability of them becoming

onerous in subsequent periods and

– the remaining contracts;

these are allocated to separate groups of contracts. Contracts issued within

a calendar year are combined into annual cohorts.

Under IFRS 17 there is a requirement to group contracts into such annual

cohorts. In the context of the EU endorsement, however, an option to build

annual cohorts was granted for certain types of cohorts. Hannover Re is not

using this EU exemption.

On initial recognition Hannover Re measures a group of reinsurance

contracts as the sum of

– the fulfilment value, which is comprised of estimates of expected future

cash flows, an adjustment that reflects the time value of money and the

associated financial risks as well as a risk adjustment for non-financial

risks, and

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– the contractual service margin (CSM).

In the recognition of the corresponding technical reserves a fundamental

distinction is made between a pre-claims phase (liability for remaining

coverage; LRC) and a claims phase after occurrence of the insured event

(liability for incurred claims; LIC).

Fulfilment value – cash flows: The fulfilment value constitutes the risk-

adjusted present value of the rights and obligations from a reinsurance

treaty and is comprised of the estimates of expected future cash flows, their

discounting and an explicit risk adjustment for non-financial risks.

Components of the cash flows to be included are, among others, premium

payments, payments to cedants, costs for acquisition and management of

the contracts as well as for settlement of incurred claims. In this context, the

cash flows included in the measurement model at each balance sheet date

always constitute Hannover Re's current estimate and expectation in

connection with the fulfilment of obligations.

Time value of money – discounting: Hannover Re discounts all cash flows

with currency-specific, risk-free yield curves that are adjusted to reflect the

respective characteristics of the cash flows and the liquidity of the

underlying insurance contracts (bottom-up approach). The illiquidity

premium used is based on risk-adjusted spreads of corporate and

government bonds. These adjustments, which take the form of a

supplementary illiquidity premium per currency, satisfy the following

requirements / assumptions:

– The illiquidity of the underlying insurance contracts is defined through

the predictability of the resulting cash flows, since the harder it is to

predict a cash flow, the less it lends itself to coverage with assets.

– All characteristics of an insurance contract (or a group of insurance

contracts) can be fully described and measured through the

characteristics of its resulting cash flows.

– The uncertainties in cash flows that may be caused by volatility in

financial market parameters are captured in the estimation of expected

future cash flows, instead of implicitly reflecting them through

adjustment of the risk-free and completely illiquid yield curve in the

illiquidity premium.

– The illiquidity premiums are estimated on the basis of liquidity premiums

for financial assets observable on the market that are adjusted to reflect

the illiquidity characteristics of the cash flows on the liabilities side. The

illiquidity premiums used in this context are based on risk-adjusted

spreads of corporate and government bonds.

The provisions of IFRS 17 open up the option of recognising discounting

effects within the non-financial risk adjustment not separately in the

reinsurance finance result but rather together with the release of the risk

adjustment within the technical result. This option is exercised in the

property and casualty reinsurance segment.

Risk adjustment for non-financial risk: The non-financial risk adjustment

for a group of insurance contracts reflects the amount of compensation

needed to carry the uncertainty surrounding the amount and timing of the

cash flows that arise out of non-financial risks – such as the insurance risk

itself, the cost risk and in particular the risk associated with policyholder

behaviour. Hannover Re uses a “pricing margin approach” to determine the

risk adjustment and regularly reviews the risk adjustment to ensure that it is

always consistent with the compensation required to carry the risk. The

approach refers to the fact that the question of the necessary compensation

for the uncertainty of the cash flows is already answered in connection with

the premium calculation. The loadings on the cash flows determined here

form the risk adjustment pursuant to IFRS 17. Applying this approach and

allowing for risk diversification among the companies belonging to the

Hannover Re Group, we establish a confidence level for our technical

reserves at the balance sheet date. Further explanatory remarks are

provided in section 6.4 “Technical assets and liabilities”.

Contractual service margin (CSM): The contractual service margin defers

a profit expected at the time of acquisition and spreads it according to

provision of the service across the coverage period. Specifically, this

means:

– If the present value of the expected cash inflows exceeds the present

value of the expected cash outflows plus the risk adjustment, an

expected profit exists that we recognise in the contractual service

margin. Initial balance sheet recognition of contracts expected to be

profitable thus has no effect on profit or loss.

– Subsequent measurement of the contractual service margin reflects the

rendering of a service in the form of insurance contract service. The

insurance contract service consists of the benefit paid in case of

occurrence of the insured event and the policyholder's participation in

income generated on the capital market through investment of paid

insurance premiums. An amount is released from the CSM to profit or

loss in the corresponding reporting periods as a service fee for rendering

of this service and recognised in the statement of income as part of the

insurance revenue. So-called “coverage units” are used to measure this

service in a reporting period.

– These coverage units are based on the quantities of benefits provided at

the end of the reporting period relative to those expected to be provided

over the entire contract duration in order to determine the service

rendered for the period. We select the coverage units for each insurance

transaction in such a way that they optimally reflect the service provided

in each case.

Loss component: For groups of contracts where the sum of the present

value of expected future cash outflows and the risk adjustment exceeds the

present value of the expected future cash inflows, we recognise the loss

expected at time of acquisition directly in profit or loss in the so-called “loss

component”.

General measurement model – subsequent measurement: The book

value of a group of insurance contracts at each closing date is the sum of

the liability for remaining coverage (LRC) and the liability for incurred claims

(LIC).

– The liability for remaining coverage consists of the fulfilment value

relating to future payments allocated to the group of contracts at this

time as well as the CSM for the group at the closing date.

– The liability for incurred claims consists of the fulfilment value for

incurred claims plus expenditures not yet paid, including claims already

incurred but not yet reported.

The fulfilment value plus the estimates of current assumptions made by

Hannover Re in earlier interim consolidated financial statements is updated

at the end of each reporting period based on current estimates of the

amount, timing and uncertainty of expected future cash flows and discount

rates. Hannover Re splits the insurance finance income and expenses

between P&L and OCI. Systematic allocation is ensured through use of the

discount rate on initial recognition.

Changes in cash flows: Changes in assumptions about future cash flows

that do not relate to interest rates or financial risks are not recognised

directly in the statement of income but are instead booked against the

contractual service margin and hence spread across the remaining

coverage period. Recognition in profit or loss is only immediate in the case

of those groups of reinsurance contracts that are expected to be loss-

making. If this adjustment to the contractual service margin exceeds its

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carrying amount, a loss component is established analogously to the initial

recognition of groups of contracts that are expected to be loss-making and

recognised directly in profit or loss. Conversely, it may happen that a

contractual service margin is established in the context of subsequent

measurement of a group of contracts originally classified as probably loss-

making.

Changes that relate to future payments and adjust the CSM include, among

others:

– Changes to estimates of the present value of expected future cash flows

in the LRC, with the exception of the changes described in the next

paragraph;

– Variances between an investment component that is expected to be

payable in the period and the investment component that is actually

payable in the period;

– Changes to the risk adjustment for non-financial risks that relate to future

services;

– Experience-based adjustments due to premiums booked in the period

that relate to future services, and associated cash flows such as

acquisition costs and premium-based taxes.

The following changes do not result in an adjustment of the CSM and are

therefore recognised directly in P&L:

– Changes in the fulfilment value due to the effects of the time value of

money, the financial risks and changes in this regard;

– Changes in the fulfilment value in connection with the LIC;

– Experience-based adjustments due to premiums booked in the period

that do not relate to future services, and associated cash flows such as

acquisition costs and premium-based taxes;

The CSM of each group of contracts is calculated on each closing date as

explained below. This means that the year-end results are not influenced by

the treatment of accounting-related estimates made in earlier interim

financial statements. The book value of the CSM at the closing date

corresponds to the book value at the start of the year, adjusted for:

– the CSM of new contracts added to the group in the financial year;

– the interest accretion on the book value of the CSM with the interest rate

determined on initial recognition (locked-in rate);

– changes in the fulfilment value connected with cash flows that relate to

the fulfilment of future services. These are recognised through

adjustment of the CSM for as long as the CSM is available. If an increase

in the fulfilment value exceeds the CSM, the excess amount is

recognised in insurance service expenses and a loss component is

recognised;

– the impact of any exchange rate differences;

– the release of the CSM through insurance revenue that was calculated

after allowance for all adjustments.

Retrocession contracts: The accounting policies described above are also

applied as a general principle to reinsurance contracts held. Retroceded

business is additionally subject to the special recognition and measurement

principles described below. As with business assumed, the rules refer in

each case to the aggregation level of a group of contracts:

Hannover Re reports reinsurance contracts held at the earlier of the

following points in time:

– At the beginning of the coverage period of the contracts held, or

– At the time when a group of onerous underlying assumed contracts is

recognised.

In the case of ceded reinsurance contracts with pro-rata coverage

(predominantly proportional reinsurance), recognition does not take place

until the date on which the underlying assumed contracts are recognised if

this date falls after the inception of the coverage period of the ceded

contracts.

On each balance sheet date Hannover Re estimates the future cash flows

and their discounting based on current assumptions. The assumptions are

consistent with the assumptions chosen for measurement of the underlying

issued reinsurance contracts.

The risk adjustment for non-financial risk with respect to business

retroceded is determined as the part of the risks effectively transferred to

the retrocessionaire. In this regard, Hannover Re always strives for the

greatest possible consistency with the determination of the risk adjustment

for non-financial risks for the underlying gross business.

In contrast to the recognition of issued reinsurance contracts, the

contractual service margin for ceded reinsurance contracts can be positive

or negative.

In the case of prospective retrocession contracts, both a net profit and net

costs are to be deferred on acquisition of the retrocession across the

coverage period. Changes in fulfilment values are offset against the

contractual service margin, insofar as these changes relate to future

services. If, however, the changes in estimates are attributable to

measurement adjustments to the underlying contracts recognised in profit

or loss, we recognise their effect on the measurement of the ceded

reinsurance contracts directly in profit or loss. This facilitates consistent

mapping of the gross business with the ceded insurance contracts. The

contractual service margin is spread across the remaining duration of the

coverage period in the context of subsequent measurement on the basis of

coverage units.

In contrast, in the case of retroactive retrocession contracts relating to

insured events that occurred prior to acquisition of the retrocession, the net

costs from acquisition of the retrocession are expensed in profit or loss.

Expected net profits, on the other hand, are spread across the run-off period

of the underlying contracts in a contractual service margin by selecting

appropriate coverage units.

Loss-recovery component: Hannover Re establishes a loss-recovery

component if a loss is reported for ceded gross business on account of

onerous contracts. The loss component to be expensed for the gross

business is thereby opposed with a loss-recovery component recognised in

income proportionate to the expected relief. In this way, allowance is also

made in the balance sheet for an effective retrocession and as a result only

a non-reinsured loss from the gross business remains in profit and loss in

the respective period. Reversals of the loss-recovery component cause the

contractual service margin to be adjusted, provided these reversals do not

involve changes in the fulfilment values of the group of ceded reinsurance

contracts. In the context of subsequent measurement, the loss-recovery

component is adjusted for changes in the loss component of the underlying

reinsurance contracts. All in all, the loss-recovery component is of minor

importance in Hannover Re's book of business.

Derecognition and contract modification: Contracts are derecognised

when they are extinguished or their terms and condition are changed in

such a way as to fundamentally impact the economic characteristics of the

contractual properties. If this is not the case, the contract modification

results in a change in the estimated fulfilment values.

Investment components: The investment component of an insurance

contract is defined as the amount that an entity must repay to the

policyholder even if the insured event does not occur. Investment

components are not included in the reinsurance revenue or in the insurance

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service expenses, but rather are recognised in accordance with IFRS 9.

Investment components include, for example, the inflows and outflows of

savings elements in life primary insurance and certain commissions paid to

cedants.

Provisions for pensions are established in accordance with IAS 19

“Employee Benefits” using the projected unit credit method. They are

calculated according to actuarial principles and are based upon the

commitments made by the Hannover Re Group for retirement, disability

and widows’ benefits. The amount of the commitments is determined

according to length of service and salary level. The pension plans are

defined benefit plans. The basis of the valuation is the estimated future

increase in the rate of compensation of the pension beneficiaries. The

benefit entitlements are discounted by applying the capital market rate for

highest-rated securities. All changes in valuation, especially actuarial gains

and losses, are captured immediately in cumulative other comprehensive

income. Service cost and interest cost are recognised in the statement of

income. Returns on plan assets are determined using the same interest rate

as that used in the calculation of the present value of the defined benefit

obligation.

Contributions to defined contribution plans are expensed when the

beneficiary of the commitment has performed the work that entitles them to

such contributions.

Deferred tax liabilities: in accordance with IAS 12 “Income Taxes” deferred

tax liabilities must be recognised if assets are to be recognised in a higher

amount or liabilities in a lower amount in the consolidated balance sheet

than in the tax balance sheet and if these temporary differences will lead to

additional tax loads in the future; please see our explanatory remarks on

deferred tax assets.

Under the balance sheet item Other liabilities, we recognise not only the

sundry non-technical provisions but also minority interests in partnerships.

Direct minority interests in partnerships, i. e. liabilities to holders of minority

shares in partnerships arising out of a long-term capital commitment which

are puttable by the holder of the interest, are recognised as debt pursuant to

IAS 32 and measured at amortised cost. In this balance sheet item and in

the balance sheet item “Other receivables”, Hannover Re also reports other

receivables and other liabilities in connection with accounting items that are

not allocated to positions in the technical account.

Sundry non-technical provisions are established according to a realistic

estimate of the amount required and shown under the balance sheet item

“Other liabilities”. Allocation to such provisions is conditional upon the

Group currently having a legal or actual obligation that results from a past

event and in respect of which utilisation is probable and the amount can be

reliably estimated.

Restructuring provisions are recognised if a detailed formal plan for

restructuring measures exists and steps to implement it have already begun

or if key details of the restructuring have been published. The provisions

cover only expenditures arising directly as a consequence of restructuring

that are not connected with the company’s regular activities.

Partial retirement obligations are carried at present value according to

actuarial principles. During the phase when the employee is still working a

provision is set aside to cover the liability amounting to the working hours

not yet compensated. Top-up payments are accumulated in instalments

until the end of the work phase. In periods when the employee is

remunerated according to the partial retirement arrangements without

performing any work, the provision is released.

Share-based payments: The share-based payment models existing within

the Hannover Re Group are remuneration plans with cash settlement. In

accordance with the requirements of IFRS 2 “Share-based Payments”, the

services rendered by the eligible beneficiaries and the resulting liability are

to be recognised at the fair value of the liability and expensed over the

vesting period. Until settlement of the liability the fair value of the liability is

remeasured at each closing date and at the settlement date. All changes in

fair value are recognised in profit or loss for the period.

Financing liabilities consist of liabilities from lease contracts and above all

long-term debt and notes payable. In some instances these involve

subordinated liabilities that can only be satisfied after the claims of other

creditors in the event of liquidation or bankruptcy. Both long-term debt and

notes payable are measured at amortised cost using the effective interest

rate method. The transaction costs as well as premiums / discounts arising

in connection with the issuance of bonds are amortised and recognised

together with the nominal interest as financing costs. Lease liabilities are

initially measured at the present value of essentially all lease payments that

are not variable or dependent on an index or (interest) rate. The discount

factor used is the implicit interest rate of the lease contract or the lessee’s

incremental borrowing rate.

Financial liabilities including long-term debt and notes payable, insofar as

they do not involve liabilities from derivatives and the financial obligations

from investment contracts measured at fair value through profit or loss, are

carried at amortised cost. The amortised cost is determined from the

historic cost after allowance for amounts repayable and the amortisation of

premiums and discounts recognised in profit and loss in accordance with

the effective interest rate method. Hannover Re measures liabilities from

derivatives at fair value. Interest accretion on these financial liabilities is

shown under the financing costs.

Shareholders' equity: the items “common shares” and “additional paid-in

capital” are comprised of the amounts paid in by the shareholders of

Hannover Rück SE on its shares. In addition to the statutory reserves of

Hannover Rück SE and the allocations from net income, the retained

earnings consist of reinvested profits generated by the Hannover Re Group

companies in previous periods. What is more, in the event of a retrospective

change of accounting policies, the adjustment for previous periods is

recognised in the opening balance sheet value of the retained earnings and

comparable items of the earliest reported period. Unrealised gains and

losses from the fair value measurement of financial instruments measured

at fair value through OCI are carried in cumulative other comprehensive

income under unrealised gains and losses on investments. Translation

differences resulting from the currency translation of separate financial

statements of foreign subsidiaries are similarly recognised in OCI under

cumulative foreign currency translation adjustments.

Non-controlling interests are shares in the equity of affiliated companies

not held by companies belonging to the Group. IAS 1 “Presentation of

Financial Statements” requires that non-controlling interests be recognised

separately within Group shareholders’ equity. The non-controlling interest

in profit or loss is shown separately following the net income. Further

information is provided in section 6.9 “Non-controlling interests”.

Disclosures about financial instruments: IFRS 7 “Financial Instruments:

Disclosures” requires more extensive disclosures according to classes of

financial instruments. In this context, the term “class” refers to the

classification of financial instruments according to their risk characteristics.

A minimum distinction is required here between measurement at amortised

cost or at fair value. A more extensive or divergent distinction should,

however, be geared to the purpose of the corresponding disclosures in the

notes. Essentially, the following classes of financial instruments are

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established, additionally broken down as appropriate into the underlying

valuation models:

– Debt instruments (directly held)

– Equity instruments (directly held)

– Fund investments and other callable financial instruments

– Derivatives

– Other invested assets

– Short-term investments

– Real estate investments (directly held)

– Certain financial instruments in the balance sheet item “Other assets”

– Certain financial instruments in the balance sheet item “Other liabilities”

– Long-term debt

– Notes payable

This grouping into classes is not, however, solely determinative for the type

and structure of each disclosure in the notes. Rather, guided by the

underlying business model of reinsurance, the disclosures are made on the

basis of the facts and circumstances existing in the financial year and in

light of the principle of materiality.

Currency translation: financial statements of Group subsidiaries were

drawn up in the currencies corresponding to the economic environment in

which each subsidiary primarily operates. These currencies are referred to

as functional currencies. The euro is the reporting currency in which the

consolidated financial statement is prepared.

Transactions in foreign currencies reported in Group companies’ individual

financial statements are converted into the functional currency at the

transaction rate. In accordance with IAS 21 “The Effects of Changes in

Foreign Exchange Rates” the recognition of exchange differences on

translation is guided by the nature of the underlying balance sheet item.

Exchange differences from the translation of monetary assets and liabilities

are recognised directly in the statement of income. Currency translation

differences from the translation of non-monetary assets measured at fair

value through the statement of income are recognised as profit or loss from

fair value changes. Exchange differences from non-monetary items – such

as equity securities – recognised at fair value through OCI are initially

recognised outside income in a separate item of shareholders’ equity and

only realised in profit or loss when such non-monetary items are settled.

The method of currency translation is also relevant for groups of

reinsurance contracts (GIC) formed pursuant to IFRS 17 for recognition and

measurement purposes that contain contracts in different currencies. In the

case of such multi-currency groups of contracts, the modelling currency of

which differs from the so-called GIC currency – which reflects the dominant

currency in the respective group of contracts – we use the latest exchange

rates at the reporting date for conversion to the GIC currency in order to

determine the effects on the CSM on the level of the group of contracts in

the CSM calculation. The date when a contract is initially recognised will,

however, continue to be used for future economic assumptions relating to

calculations of future cash flows (such as yield curves and inflation rates)

and for the discount rate itself.

The Individual companies’ statements of income prepared in the local

currencies are converted into euro at the average rates of exchange and

transferred to the consolidated financial statement. The conversion of

foreign currency items in the balance sheets of the individual companies

and the transfer of these items to the consolidated financial statement are

effected at the mean rates of exchange on the balance sheet date. In the

consolidated financial statement we show differences from the currency

translation of financial statements of foreign Group companies as a

separate item in shareholders’ equity.

Currency translation differences resulting from long-term loans or lendings

without specified maturity between Group companies are similarly

recognised outside the statement of income in a separate component of

shareholders’ equity.


Key exchange rates
1 EUR corresponds to:	31.12.2024	31.12.2025	2024	2025
	Mean rate of exchange on the balance sheet date		Average rate of exchange
AUD	1.6751	1.7551	1.6416	1.7481
BHD	0.3942	0.4436	0.4081	0.4242
CAD	1.5031	1.6118	1.4821	1.5751
CNY	7.6269	8.2247	7.7781	8.0729
GBP	0.8297	0.8715	0.8466	0.8544
HKD	8.1097	9.1550	8.4445	8.7680
INR	89.3828	105.6058	90.6159	98.1214
KRW	1,538.0500	1,697.9700	1,474.3423	1,603.7446
MYR	4.6673	4.7618	4.9385	4.8124
SEK	11.4988	10.8202	11.4212	11.0742
USD	1.0449	1.1762	1.0824	1.1249
ZAR	19.5834	19.5520	19.8664	20.1021

Reinsurance revenue: The Hannover Re Group books reinsurance

revenue when it renders services in connection with groups of reinsurance

contracts. In this context, the reinsurance revenue of the reporting period

represents the sum of the changes in the LRC resulting from the rendering

of services in this period for which the Hannover Re Group expects a

consideration. The reinsurance revenue is defined in such a way as to bring

about comparability with revenue reporting in other industries and derives

from the following revenue sources:

– Expenditures expected in the reporting period for reinsured losses and

other insurance services (excluding repayments of investment

components and amounts allocable to a potential loss component)

– Changes in the risk adjustment for non-financial risks in relation to

services in the current reporting period.

– CSM release, measured by the coverage units provided.

– Other amounts, including experience-based adjustments to premium

received for services in the current or in past periods.

Neither savings / investment components nor certain ceding commissions

can be recognised in the reinsurance revenue. Reinsurance revenue is

instead reported when it is earned by recognising in each period the change

in the liabilities for providing reinsurance coverage for which the reinsurance

entity receives compensation, including the pro rata recognition of the

contractual service margin in profit and loss, as well as the part of the

premiums that covers acquisition costs.

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No insurance revenue is recognised in the amount of the investment

components because this involves those parts of the premium that are

always paid back to the cedant, irrespective of whether or not the insured

event occurs. At Hannover Re, this particularly includes certain

commissions paid to cedants. The reduction of the revenue by the amount

of the investment components has no influence on the reinsurance service

result because the insurance service expenses are also correspondingly

reduced.

Reinsurance service result: The reinsurance service expenses include, in

particular, the incurred claims (excluding repayments of investment

components) as well as the management and acquisition expenses. The

acquisition expenses are allocated systematically to the respective periods

of the coverage duration and recognised in the same amount as

reinsurance revenue and as reinsurance service expenses. Within the

reinsurance service result, the profit components from contracts retroceded

are shown as separate items distinct from the gross reinsurance revenue

and gross reinsurance service expenses from issued business.

In the reinsurance finance result, the reinsurance finance income and

expenses include the effects from discounting of the present value of net

cash flows, the risk adjustment for non-financial risk and the contractual

service margin. The effects of changes in interest rates can be recognised

either entirely as profit or loss in the statement of income or to some extent

directly in equity. This “OCI option” can be exercised on the level of

individual portfolios and is utilised by Hannover Re for a large part of its

business.

IFRS 17.116 requires disclosures for groups of reinsurance contracts for

which the option to recognise components of reinsurance finance income or

expense directly in OCI on the date of transition was exercised and to which

a portfolio of assets is directly allocated, the fair value changes of which are

similarly recognised directly in OCI. There are no material circumstances

within the Hannover Re Group that meet these criteria.

In our consolidated statement of income we present the net reinsurance

finance result both before and after currency effects. We first present the

reinsurance finance result in accordance with IFRS 17 including currency

effects. In order to clarify the matching currency coverage of the technical

liabilities by investments, the currency effects are subsequently eliminated

from the reinsurance finance result pursuant to IFRS 17 and shown

separately in the net currency result.

Revenue from contracts with customers is realised when control of the

promised goods or services is transferred to the customer. The amount of

revenue realised corresponds to the consideration that Hannover Re

expects to receive in return for the transfer of goods or services to the

customer. Under its contracts that fall within the scope of application of

IFRS 15 Hannover Re generally acts as a principal, because it normally

controls the services or goods before transferring them to the customer.

Taxes: the taxes are comprised of the actual tax load on corporate profits of

the Group companies, to which the applicable local tax rates are applied, as

well as changes in deferred tax assets and liabilities. Income and expenses

arising out of interest or penalties payable to the revenue authorities are

shown under other income / expenses. The calculation of the deferred tax

assets and liabilities is based on tax loss carry-forwards, unused tax credits

and temporary differences between the book values of assets and liabilities

in the consolidated balance sheet of the Hannover Re Group and their

carrying amounts in the tax balance sheet. Further information on deferred

taxes is provided in our remarks on deferred tax assets and liabilities.

Non-current assets held for sale and discontinued operations: in

accordance with IFRS 5 “Non-current Assets Held for Sale and

Discontinued Operations”, non-current assets and disposal groups are

classified as held for sale if the relevant book value is realised largely

through sale rather than through continued use. Components of an entity

that can be clearly distinguished from the rest of the entity for operational

and accounting purposes and were classified as sold or for sale are

recognised as discontinued operations. Measurement is at the lower of

book value and fair value less costs to sell. Depreciation or amortisation is

not taken on non-current assets as long as they are classified as held for

sale. Impairment losses on fair value less costs to sell are recognised in

profit or loss; a gain for any subsequent increase in fair value less costs to

sell leads to the realisation of profit up to the amount of the cumulative

impairment. If the impairment loss to be taken on a disposal group exceeds

the book value of the corresponding non-current assets, the need to

establish a provision within the meaning of IAS 37 “Provisions, Contingent

Liabilities and Contingent Assets” is reviewed.

3.3 Major discretionary

decisions and estimates

In the consolidated financial statement, it is to some extent necessary to

make estimates and assumptions which affect the assets and liabilities

shown in the balance sheet, the information on contingent claims and

liabilities as at the balance sheet date and the disclosure of income and

expenses during the reporting period.

Discretionary decisions and assumptions influence in particular the

recognition of reinsurance contracts and financial instruments, the

consolidation method, goodwill, provisions for non-technical matters and

deferred taxes. We refer to our comments on the relevant items for further

information. Estimates are always based on realistic premises, but they are

of course subject to uncertainties that may be reflected accordingly in the

result.

Discretionary decisions, estimates and assumptions are of considerable

significance when it comes to the recognition of assets and liabilities from

reinsurance contracts issued or held: the classification, the aggregation

level and initial measurement of reinsurance and retrocession contracts

entail discretionary decisions. Depending on the assessment of whether

they transfer a significant insurance risk, contracts are classified either as

reinsurance or investment contracts. An appropriate aggregation level must

be found because it is necessary to differentiate between contract portfolios

by separating groups of contracts that are onerous upon initial recognition

from those that do not have a significant probability of subsequently

becoming onerous.

In addition, assumptions and discretionary decisions are made and

estimation uncertainties exist regarding the subsequent measurement of

reinsurance and retrocession contracts. In measuring such contracts, the

measurement method is to be defined that is used for estimating the risk

adjustments for non-financial risks and the quantity of services to be

rendered under a contract. Changes in material assumptions relating to

discount rates (including illiquidity premiums), loss experience or future

cash flows and differences between interest on credit balances and

discount rates could result in significant changes in fulfilment values in the

following financial year or in adjustment of the contractual service margin.

Hannover Re

9.7 "Contingent liabilities and commitments”.

Investor Relations

126

Annual Report 2025

Supplementary or complete estimates of the corresponding profit and loss

items, assets and liabilities including relevant retrocessions are made

where ceding company accounts with substantial premium income are

missing. Missing ceding company accounts with a low premium volume are

included in the following year.

In order to measure the ultimate liability in property and casualty

reinsurance the expected ultimate loss ratios are calculated for all lines.

Actuarial methods such as the “chain ladder” method provide the starting

point for these calculations. The realistically estimated future settlement

amount is recognised in the balance sheet. The development until

completion of the run-off is projected on the basis of claims triangles from

the original notifications of ceding companies. The more recent

underwriting years in actuarial projections are of course subject to greater

uncertainty, although this can be considerably reduced with the aid of a

variety of additional information on improvements in the rates and

conditions of the business written and on loss trends.

The amounts arrived at as the difference between the projected ultimate

losses and the reported losses are set aside either in the IBNR reserve for

losses that have been incurred but are not yet known or have still to be

reported or in the liability for remaining coverage.

In applying statistical methods, separate consideration is given to large

losses. By analysing a broad range of observable information it is possible

to classify losses as major individual loss events. Measurement of the

obligations existing in this connection is carried out using a separate

process, which is based largely on contract-specific estimates.

Physical risks such as extreme weather events and their consequences as

well as long-term changes in climatic and environmental conditions, such

as precipitation amounts, the rise in sea levels or the increase in average

temperatures, can also affect the value of our real estate holdings, the

measurement of securities in our investment portfolio, impairment testing

for non-financial assets including goodwill, the disclosure of contingent

liabilities and the establishment of reserves. Overall, risks connected with

the impacts of climate change are of great significance to our business

model.

Inflation is considered in our reserving process at least on the basis of

average historical inflation rates as well as scenarios for a future inflation

trend. Furthermore, premium calculations make allowance for realistic

inflation assumptions and additional provisions are established in the

reserving for individual underwriting years.

With regard to the war in Ukraine, we conducted probability-weighted

scenario analyses for all relevant lines of business, taking into consideration

the information available to us at the time, market insights and pertinent

court rulings, arriving at our own estimates of our reserves on this basis.

The estimation of occurrence probabilities and loss amounts for specified

risks is a major element of our risk management system as described in the

risk report, to which we also refer. For further particulars, including

information required by IFRS 17, the reader is similarly referred to our

remarks on the underwriting risks in property and casualty reinsurance in

the risk report – for example, with regard to the modelling of natural

catastrophe scenarios and the assumptions relating to asbestos and

pollution risks. We would further refer to our explanatory remarks on the

technical reserves in section 3.2 “Summary of major accounting

policies” and section 6.4 “Technical assets and liabilities”.

In life and health reinsurance, too, the calculation of reserves and assets is

crucially dependent on actuarial projections of the covered business.

Modelling is based on policy data or so-called model points are defined

according to the type of business covered. The main distinguishing criteria

include, among others, demographic factors associated with the insured,

tariff, policy period, period of premium payment and amount of insurance.

The portfolio development is simulated for each policy or each model point,

in which regard the key input parameters are either predefined by the tariff

(e. g. allowance for costs, amount of premium, actuarial interest rate) or

need to be estimated (e. g. mortality or disability rates, lapse rates). These

assumptions are heavily dependent on country-specific parameters, type of

reinsurance and other framework conditions of the reinsurance treaty.

Superimposition gives rise to a projection of the future cash flows of the

reinsurance treaty, which incorporates inter alia assumptions concerning

the portfolio composition and the commencement of covered policies within

the year. Such assumptions are defined at the inception of a reinsurance

treaty and subsequently adjusted to the actual development. In this context

we would refer the reader to our comments on technical assets and

provisions in section 3.2 “Summary of major accounting policies”.

In determining the carrying amounts of certain financial assets, it is

sometimes necessary to make assumptions in order to calculate fair values

and determine the risk provisioning for expected credit losses. Furthermore,

the measurement of our investment portfolio is also subject to transition

risks as a consequence of climate change that result from the shift towards

a low-carbon economy. Insofar as corresponding regulatory measures on

the part of policy makers affect, for example, issuers of shares or corporate

bonds in our asset portfolio, there are implications for the measurement of

these instruments. In this regard we additionally refer the reader to our

comments on financial instruments measured at fair value through profit or

loss and on impairments in section 3.2 “Summary of major accounting

policies” and section 7.2 “Investment result” as well as on investment

property in section 6.1 “Investments”.

Assumptions are made about the future availability of taxable income in

connection with the measurement of deferred tax assets. In particular, the

amount and nature of this income and the periods in which it is expected to

arise are taken into account. Deferred tax assets are impaired if it is

considered unlikely that sufficient taxable income will be available in the

future against which deductible temporary differences, tax loss carry-

forwards, and tax credits can be offset. We also refer to our comments on

deferred tax assets in section 3.2 ”Summary of major accounting

policies" and section 7.5 "Taxes on income”.

When assessing the disclosure requirement for a contingent liability,

discretionary decisions and estimates must be made as to whether a

present obligation exists, whether a future outflow of resources is

considered probable, and whether a sufficiently reliable measurement of the

obligation can be made. We refer in this regard to our comments on

contingent liabilities in section 9.6 "Lawsuits” and section

Hannover Re

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127

Annual Report 2025

4. Consolidation

4.1 Consolidation principles

Capital consolidation

The capital consolidation is carried out according to the requirements of

IFRS 10 “Consolidated Financial Statements” on the basis of a consistent

consolidation model for all entities that identifies control as the single basis

for verifying the consolidation requirement, irrespective of whether control is

substantiated in company law, contractually or economically. Group

companies are consolidated from the point in time when Hannover Re gains

control over them. Control exists if Hannover Re directly or indirectly has

decision-making power over a Group company on the basis of voting rights

or other rights, if it has exposure or rights to positive and negative variable

returns from its involvement with the Group company and if it can use its

power to influence these returns. All of these criteria must be met. Other

circumstances may also give rise to control, for example the existence of a

principal-agent relationship. In this case a party outside the Group with

decision-making powers (agent) acts for Hannover Re, but does not control

the company since it merely exercises decision-making powers that have

been delegated by Hannover Re (principal). These principles are also

applied to structured entities, on which further information is provided in

section 4.2 “Consolidated companies and complete list of

shareholdings”. Group companies are consolidated until the Hannover Re

Group loses control over them. If investments in subsidiaries are retained

and a loss of control exists, measurement effects recognised for these

subsidiaries in the other reserves in conformity with IFRS 10 are entirely

released to profit or loss rather than merely pro rata in the amount of the

interests disposed of. The accounting policies of Group companies are

adjusted, where necessary, in order to ensure consistent application of the

Hannover Re Group’s accounting policies.

The capital consolidation is based on the acquisition method. Goodwill

derives from the acquisition of subsidiaries and corresponds to the sum of

the consideration rendered, the amount of all non-controlling interests in the

acquired company and the fair value of the equity interests previously held

in the acquired company less the fair value of the acquired net assets.

Under IFRS 3 goodwill is not amortised, but instead impairment is taken

where necessary on the basis of annual impairment tests. Immaterial and

negative goodwill are recognised in the statement of income in the year of

their occurrence. Costs associated with acquisition are expensed.

Companies over which Hannover Re is able to exercise a significant

influence or whose relevant activities can only be decided with the

unanimous approval of the parties sharing control and in which we only

have rights to the net assets are included as associated companies or joint

ventures using the equity method of accounting. Under this method, we

measure investments in associated companies and joint ventures with the

proportion of the equity attributable to the Group. In accordance with the

equity method of accounting required by IAS 28 ”Investments in Associates

and Joint Ventures”, the goodwill attributable to associated companies and

joint ventures is recognised together the carrying amount of the

investments in associated companies and joint ventures. The share of the

year-end result of an associated company or joint venture relating to the

Group is included in the investment income and recognised separately in

the consolidated statement of income. The equity and result are taken from

the last available financial statement of the associated company or joint

venture.

A significant influence is presumed to exist if a company belonging to the

Hannover Re Group directly or indirectly holds at least 20% – but no more

than 50% – of the voting rights. We also derive evidence of significant

influence over an associated company from representation on a governing

body of such entity, participation in its policy-making processes – e. g. with

respect to dividends or other distributions –, the existence of material inter-

company transactions, the possibility of interchanging managerial

personnel or the provision of key technical information for the entity. Further

particulars on companies consolidated using the equity method of

accounting are provided in the subsection “Associated companies and

joint ventures” in section 6.1 “Investments”.

Only subsidiaries which are of minor importance – both individually and as a

whole – for the net assets, financial position and results of operations of the

Hannover Re Group are exempted from consolidation. Hannover Re

assesses whether a subsidiary is of minor importance on the basis of the

company’s total assets and net income relative to the corresponding values

for the Group as a whole on average over the last three years. For this

reason, 15 (15) companies at home and abroad were not consolidated in

the year under review. A further 5 (4) individual companies were not

included at equity in the consolidated financial statement for the same

reason. The business object of these altogether 20 (19) companies is for

the most part the rendering of services for reinsurance companies within the

Group.

Consolidation of business transactions

within the Group

Receivables and liabilities between the companies included in the

consolidated financial statement were offset against each other. Profits and

expenses from business transactions within the Group were also

eliminated. Transactions between a disposal group and the continuing

operations of the Group were similarly eliminated in accordance with

IFRS 10.

4.2 Consolidated companies

and complete list of

shareholdings

In addition to Hannover Rück SE as the parent company of the Group, the

scope of consolidation of the Hannover Re Group encompasses the

companies listed in the table below:

Information on subsidiaries


Scope of consolidation
Number of companies	2024	2025
Consolidated companies (Group companies)
Germany	23	17
Abroad	120	118
Total	143	135
Companies included at equity
Germany	2	2
Abroad	2	2
Total	4	4

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Annual Report 2025

Altogether 9 companies were newly added to the scope of consolidation in

the financial year just ended, while 17 companies were removed from the

scope of consolidation. Of these, 8 companies were merged into other

Group companies.

Information on the non-controlling interests in shareholders’ equity and

profit or loss as well as on the major non-controlling interests is provided in

section 6.9 “Non-controlling interests”. On the balance sheet date there

were no significant restrictions on access to or the use of Group assets due

to protective rights in favour of non-controlling interests.

The sale or transfer of shares of E+S Rückversicherung AG takes place by

way of an endorsement and is permissible only with the approval of the

company’s Supervisory Board. The Supervisory Board enjoys the right to

grant or deny approval unconditionally, without being obliged to state

reasons in the event of denial.

National provisions of company law or requirements of supervisory law may

in certain countries limit the ability of the Hannover Re Group to transfer

assets between companies belonging to the Group. These limitations result

principally from local minimum capital and solvency requirements as well as

to a lesser extent from foreign exchange restrictions.

List of shareholdings

The following information is the list of shareholdings in accordance with

§ 313 Para. 2 German Commercial Code (HGB). We make use of the

exemptions pursuant to § 313 Para. 3 German Commercial Code (HGB).

The stipulations of IFRS 12.10 and IFRS 12.21 have also been observed.

With regard to the major acquisitions and disposals in the year under

review, please see our remarks in the following subsections of this section.

List of shareholdings



Name and registered office of the company		Proportion ally calculated participati on in %
Domestic companies
Affiliated consolidated companies
Hannover Rück Beteiligung Verwaltungs-GmbH, Hannover, Germany		100.00
FUNIS GmbH & Co. KG, Hannover, Germany		100.00
HAPEP II Holding GmbH, Hannover, Germany		98.24


Hannover America Private Equity Partners II GmbH & Co. KG, Hannover, Germany		98.24
Hannover Re Global Alternatives GmbH & Co. KG, Hannover, Germany		94.72
Hannover Re Euro PE Holdings GmbH & Co. KG, Hannover, Germany		89.44
Hannover Re Euro RE Holdings GmbH, Hannover, Germany		87.68
cor F 25. GmbH & Co.KG, Cologne, Germany		87.68
ZG Zenit Grundstücksgesellschaft mbH, Cologne, Germany		87.68
Zenit BV GmbH, Cologne, Germany		87.68
HR Core Europe Real Estate GmbH, Cologne, Germany		87.68
WARTO 7 GmbH, Munich, Germany		87.67
HR GLL Central Europe GmbH & Co. KG, Munich, Germany		87.67
HR GLL Central Europe Holding GmbH, Munich, Germany		87.67
HAPEP II Komplementär GmbH, Hannover, Germany		82.40
E+S Rückversicherung AG, Hannover, Germany		64.79
Sustainable Timber Asia GmbH, Cologne, Germany		47.01
Affiliated non-consolidated companies
HILSP Komplementär GmbH, Hannover, Germany		100.00
mertus 313. GmbH, Frankfurt am Main, Germany		87.68
Associated companies and joint ventures
WeHaCo Unternehmensbeteiligungs-GmbH, Hannover, Germany		32.96
HANNOVER Finanz GmbH, Hannover, Germany		27.78
Other participations
PT Beteiligungs GmbH, Hannover, Germany		26.31
Neue SEBA Beteiligungsgesellschaft mbH, Nuremberg, Germany		15.85
Internationale Schule Hannover Region GmbH, Hannover, Germany		9.17
FinLeap GmbH, Berlin, Germany		8.41
VST Gesellschaft für Versicherungsstatistik mit beschränkter Haftung, Hannover, Germany ¹		5.89
M 31 Beteiligungsgesellschaft mbH & Co. Energie KG, Düsseldorf, Germany		0.54
ELEMENT Insurance AG, Berlin, Germany ²		0.08
Foreign companies
Affiliated consolidated companies
Hannover Life Re of Australasia Ltd, Sydney, Australia		100.00
Hannover Re (Ireland) Designated Activity Company, Dublin, Ireland		100.00
Hannover ReTakaful B.S.C. (c), Manama, Bahrain		100.00
Hannover Re Holdings (UK) Limited, London, United Kingdom		100.00
Hannover Re (Bermuda) Ltd., Hamilton, Bermuda		100.00
Hannover Finance, Inc., Wilmington, USA		100.00
Glencar Insurance Company, Orlando, USA		100.00
Glencar Underwriting Managers, Inc., Chicago, USA		100.00
Hannover Life Reassurance Company of America (Bermuda) Ltd., Hamilton, Bermuda		100.00
Hannover Life Reassurance Company of America, Orlando, USA		100.00
Sand Lake Re, Inc., Burlington, USA		100.00


Hannover Finance (Luxembourg) S.A., Röser, Luxembourg		100.00
Hannover Services (UK) Limited, London, United Kingdom		100.00
Inter Hannover (No. 1) Limited, London, United Kingdom		100.00
Argenta Holdings Limited, London, United Kingdom		100.00
Argenta Private Capital Limited, London, United Kingdom		100.00
APCL Corporate Director No.1 Limited, London, United Kingdom		100.00
APCL Corporate Director No.2 Limited, London, United Kingdom		100.00
Fountain Continuity Limited, Edinburgh, United Kingdom		100.00
Names Taxation Service Limited, London, United Kingdom		100.00
Argenta Secretariat Limited, London, United Kingdom		100.00
Argenta Continuity Limited, London, United Kingdom		100.00
Argenta General Partner Limited, Edinburgh, United Kingdom		100.00
Argenta General Partner II LLP, Edinburgh, United Kingdom		100.00
Argenta LLP Services Limited, London, United Kingdom		100.00
Argenta SLP Continuity Limited, Edinburgh, United Kingdom		100.00
Argenta International Limited, London, United Kingdom		100.00
Argenta Syndicate Management Limited, London, United Kingdom		100.00
Argenta Underwriting (Europe) Limited, Dublin, Ireland ¹		100.00
Argenta Underwriting Asia Pte. Ltd., Singapore, Singapore		100.00
Argenta Underwriting No.2 Limited, London, United Kingdom		100.00
Argenta Underwriting No.3 Limited, London, United Kingdom		100.00
Argenta Underwriting No.9 Limited, London, United Kingdom		100.00
Argenta Underwriting No.10 Limited, London, United Kingdom		100.00
Argenta Underwriting No.11 Limited, London, United Kingdom		100.00
Argenta No.16 Limited, London, United Kingdom		100.00
Argenta No.17 Limited, London, United Kingdom		100.00
Residual Services Limited, London, United Kingdom ³		100.00
Residual Services Corporate Director Limited, London, United Kingdom		100.00
Hannover Reinsurance Group Africa (Pty) Ltd., Johannesburg, South Africa		100.00
Hannover Africa Limited, Johannesburg, South Africa ¹		100.00
Hannover Re South Africa Limited, Johannesburg, South Africa		100.00
Compass Insurance Company Limited, Johannesburg, South Africa		100.00
Lireas Holdings (Pty) Ltd., Johannesburg, South Africa		100.00
Film & Entertainment Underwriters SA (Pty) Ltd., Johannesburg, South Africa ¹		100.00
Integra Insurance Solutions Limited, Leeds, United Kingdom		100.00
Kubera Insurance (SAC) Ltd, Hamilton, Bermuda		100.00
Annuity Reinsurance Cell A1, Hamilton, Bermuda		100.00
Leine Investment General Partner S.à r.l., Luxembourg, Luxembourg		100.00
Leine Investment SICAV-SIF, Luxembourg, Luxembourg		100.00
LI RE, Hamilton, Bermuda		100.00
Fracom FCP, Paris, France ⁴		100.00
Kaith Re Ltd., Hamilton, Bermuda		100.00
Firedart Engineering Underwriting Managers (Pty) Ltd., Johannesburg, South Africa		99.99

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Annual Report 2025


Hannover Re Real Estate Holdings, Inc., Orlando, USA		95.25
HR US Infra Equity LP, Wilmington, USA		95.24
GLL HRE CORE Properties, L.P., Wilmington, USA		95.15
111ORD LLC, Wilmington, USA		95.15
11809AUS LLC, Wilmington, USA		95.15
1375MCO LLC, Wilmington, USA		95.15
PLC Elite Mexico Logistics, S. de R.L. de C.V., Mexico City, Mexico		95.15
140EWR LLC, Wilmington, USA		95.15
1600FLL LLC, Wilmington, USA		95.15
17440IAH LLC, Wilmington, USA		95.15
2530AUS LLC, Wilmington, USA		95.15
3290ATL LLC, Wilmington, USA		95.15
402 Santa Monica Blvd, LLC, Wilmington, USA		95.15
405SFO LLC, Wilmington, USA		95.15
590ATL LLC, Wilmington, USA		95.15
7550BWI LLC, Wilmington, USA		95.15
7550IAD LLC, Wilmington, USA		95.15
7659BWI LLC, Wilmington, USA		95.15
975 Carroll Square, LLC, Wilmington, USA		95.15
Broadway 101, LLC, Wilmington, USA		95.15
Nashville West, LLC, Wilmington, USA		95.15
River Terrace Parking, LLC, Wilmington, USA		95.15
HRE Core Properties Chile Holding SpA, Santiago, Chile		95.15
Apoquindo CL SpA, Santiago, Chile		95.15
Apoquindo 5400 Chile Holding S.A., Santiago, Chile		95.15
Magdalena CL SpA, Santiago, Chile		95.15
Magdalena Chile Holding S.A., Santiago, Chile		95.15
Ombú CL SpA, Santiago, Chile		95.15
Ombú Chile Holding S.A., Santiago, Chile		95.15
17440IAH LP, Wilmington, USA		95.06
PAG Real Estate Asia Select Fund Limited, George Town, Cayman Islands		94.72
ASF Spectrum Limited, George Town, Cayman Islands		94.72
Ubitech Hub Pte. Ltd., Singapore, Singapore		94.72
CC Aeolus Pte. Ltd., Singapore, Singapore		94.72
CC Anchor Pte. Ltd., Singapore, Singapore		94.72
M8 Property Trust , Sydney, Australia		94.72
Markham Real Estate Partners (KSW) Pty Limited, Sydney, Australia		94.72
Bowen Investment Limited Partnership, Auckland, New Zealand		94.72
HR US Infra Debt LP, George Town, Cayman islands		94.71
Koramco No.170 General Real Estate Private Investment Company, Seoul, South Korea		94.38
Morea Limited Liability Company, Tokyo, Japan		93.77
Peace G.K., Tokyo, Japan		93.77
Rocky G.K., Tokyo, Japan		93.77


Garagesure Consultants and Acceptances (Pty) Ltd., Johannesburg, South Africa		90.00
MUA Insurance Acceptances (Pty) Ltd., Cape Town, South Africa		90.00
Transit Underwriting Managers (Pty) Ltd., Durban, South Africa		90.00
HR Core Real Estate France 1 SAS , Paris, France		87.68
HR Core Real Estate Belgium I, Brussels, Belgium		87.68
Star Grafton One S.à r.l., Luxembourg, Luxembourg		87.68
HR GLL Europe Holding S.à r.l., Luxembourg, Luxembourg		87.67
193 BCN, S.L., Madrid, Spain		87.67
3541 PRG s.r.o., Prague, Czech Republic		87.67
Akvamarín Beta s.r.o., Prague, Czech Republic		87.67
Callisto, Milan, Italy		87.67
Highgate sp. z o.o., Warsaw, Poland		87.67
HR GLL CDG Plaza S.r.l., Bucharest, Romania		87.67
HR GLL Griffin House SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, Warsaw, Poland		87.67
HR GLL Liberty Corner SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, Warsaw, Poland		87.67
Commercial & Industrial Acceptances (Pty) Ltd., Johannesburg, South Africa		85.00
Hospitality Industrial and Commercial Underwriting Managers (Pty) Ltd., Johannesburg, South Africa		85.00
Landmark Underwriting Agency (Pty) Ltd., Bloemfontein, South Africa		82.00
Construction Damage Assessors (Pty) Ltd, Centurion, South Africa		43.35
Real Assist (Pty) Ltd., Centurion, South Africa		43.35
Real Assist Coastal (Pty) Ltd, Centurion, South Africa		43.35
Affiliated non-consolidated companies
Hannover Re Capital Partners Limited, Hamilton, Bermuda		100.00
Dynastic Underwriting Limited, London, United Kingdom		100.00
Inter Hannover (No.2) Limited, London, United Kingdom		100.00
Hannover Re Risk Management Services India Private Limited, Mumbai, India		100.00
Hannover Re Services Italy S.r.l., Milan, Italy		100.00
Hannover Re Services Japan, Tokyo, Japan		100.00
Hannover Re Services USA, Inc., Itasca, USA		100.00
Hannover Rück SE Escritório de Representação no Brasil Ltda., Rio de Janeiro, Brazil		100.00
Hannover Services (México) S.A. de C.V., Mexico City, Mexico		100.00
HR Hannover Re, Correduría de Reaseguros, S.A., Madrid, Spain		100.00
Edwards Insurance Group Limited, Coventry, United Kingdom		90.00
David Edwards Insurance Brokers Limited, Coventry, United Kingdom		90.00
Sustainable Forestry New Zealand Limited, Waverley, New Zealand		87.68
Associated companies and joint ventures
Clarendon Transport Underwriting Managers (Pty) Ltd., Johannesburg, South Africa		25.11
Monument Insurance Group Limited, Hamilton, Bermuda ⁵		24.63


Other participations
Investsure Technologies Proprietary Limited, Johannesburg, South Africa ¹		32.26
Reaseguradora del Ecuador S.A., Guayaquil, Ecuador		30.00
Kopano Ventures (Pty) Ltd, Johannesburg, South Africa ¹		29.05
FLS Group AG, Baar, Switzerland		19.99
Slate Mobility Holding SARL, Luxembourg, Luxembourg		19.82
Trinity Underwriting Managers Ltd., Toronto, Canada		19.04
Merica Holdings Pte. Ltd., Singapore, Singapore		16.14
YOUPLUS Holding AG, Freienbach, Switzerland		15.00
Mosaic Insurance Holdings Limited, Hamilton, Bermuda		14.18
Different Technology (Pty) Ltd, Johannesburg, South Africa		11.10
Inqaku FC (Pty) Ltd, Port Elizabeth, South Africa		10.00
Sureify Labs, Inc., Wilmington, USA		9.99
Acte Vie S.A., Schiltigheim, France		9.38
SESOM Holding AB, Stockholm, Sweden		8.94
BriteCo Inc., Dover, USA		8.14
Centaur Animal Health, Inc., Olathe, USA		6.90
Liberty Life Insurance Public Company Ltd, Nicosia, Cyprus		3.30
LifeQ Global Limited, Dublin, Ireland		1.71
Stone Ridge Holding Group, Wilmington, USA		0.18

¹The company is in liquidation.

²The company is in insolvency proceedings.

³The company holds 20 dormant subsidiaries with capital and reserves of altogether EUR 0.2 million.

⁴Investment fund

⁵ The company is included in measurement at equity through a consolidated financial statement.

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Material branches within the Group

Hannover Rück SE maintains branches that are listed below according to

the amount of reinsurance revenue in the current financial year.


Material branches within the Group
in EUR million	Reinsurance revenue ¹		Net income ¹
	2024	2025	2024	2025
Hannover Rück SE
Hannover Rück SE Shanghai Branch, Shanghai, China	1212.2	1061.9	-12.0	-61.8
Hannover Rueck SE Malaysian Branch, Kuala Lumpur, Malaysia	693.8	599.4	30.2	85.0
Hannover Rück SE Canadian Branch, Toronto, Canada	564.7	587.0	31.9	99.4
Hannover Rueck SE Australian Branch, Sydney, Australia	724.7	583.0	136.8	87.0
Hannover Rück SE Succursale Française, Paris, France	551.4	581.2	56.8	52.3
Hannover Re UK Life Branch, London, United Kingdom	408.8	399.6	-21.3	0.0
Hannover Rück SE Tyskland Filial, Stockholm, Sweden	272.6	277.6	-16.2	-51.1
Hannover Rück SE Hong Kong Branch, Wanchai, Hong Kong	193.3	233.7	-50.2	-43.5
Hannover Rück SE India Branch, Mumbai, India	193.6	155.2	20.9	11.7
Hannover Rueck SE Bahrain Branch, Manama, Bahrain	121.6	108.8	-36.7	23.7
Hannover Rück SE Korea Branch, Seoul, South Korea	15.4	13.0	3.7	0.3

¹ IFRS figures before consolidation

In addition, other companies belonging to the Hannover Re Group maintain

further branches that both individually and collectively are to be classified as

immaterial to the Group.

Structured entities

Business relations with structured entities are to be examined in

accordance with IFRS 10 with an eye to their implications for consolidation.

In the context of their operational activities some companies belonging to

the Hannover Re Group enter into business relations with structured

entities that are to be analysed and accounted for according to these

provisions.

Structured entities are entities designed in such a way that voting or similar

rights are not the dominant factor in deciding who controls the entity, such

as when any voting rights relate to administrative tasks only and the

relevant activities are directed by means of contractual arrangements. A

structured entity frequently has some or all of the following features or

attributes:

– restricted activities;

– a narrow and well-defined business objective;

– insufficient equity to allow it to finance its activities without subordinated

financial support;

– financing in the form of multiple contractually linked instruments issued

to investors that create concentrations of credit or other risks (tranches)

In accordance with the consistent consolidation model, a structured entity –

just like a subsidiary – must be consolidated if Hannover Re gains control

over the said entity. With regard to the criteria for control please see also

section 4.1 “Consolidation principles”. Within the Hannover Re Group

the requirement to consolidate structured entities is examined as part of an

analysis that encompasses both transactions in which a structured entity is

initiated by us with or without the involvement of third parties and those in

which we enter into contractual relations with an already existing structured

entity with or without the involvement of third parties. Consolidation

decisions are reviewed as necessary and at least once a year. The list of all

consolidated structured entities forms part of the list of shareholdings.

Consolidation of structured entities

The following structured entities were consolidated as at the balance sheet

date:

– Kaith Re Ltd., Hamilton, Bermuda

– Kubera Insurance (SAC) Ltd, Hamilton, Bermuda

– LI RE, Hamilton, Bermuda

Kaith Re Ltd. is a so-called segregated accounts company (SAC), the sole

object of which is the securitisation of reinsurance risks in the form of

investment products. Under this transformation a complete underwriting

risk transfer always takes place to the investor in question. In a SAC further

segregated accounts exist under a general account; it is in these

segregated accounts, which for liability purposes are entirely separate from

one another and from the general account, that the aforementioned

securitisations take place for the investors.

Kubera Insurance (SAC) Ltd is similarly a segregated accounts company,

the object of which is to establish segregated accounts that are made

available to non-Group companies for structured finance transactions.

Pursuant to IFRS 10 we consider the general account and the segregated

accounts to be separate units to which the principles of so-called “silo

accounting” are applied. In accordance with this concept, Hannover Re is

required to consolidate the general account of Kaith Re Ltd. and Kubera

Insurance (SAC) Ltd and is contractually responsible for the fees due to

external service providers that are to be covered from the general account’s

own funds. Each individual segregated account is to be examined

separately with an eye to a consolidation requirement and consolidated

according to the particular contractual arrangements in each case.

LI RE is a segregated account of Kaith Re Ltd., the purpose of which – as

with all segregated accounts under Kaith Re Ltd. – is the securitisation of

underwriting risks. In contrast to the other segregated accounts, the sole

investor and hence the risk carrier of LI RE is the Hannover Re Group

through its subsidiary Leine Investment SICAV-SIF, Luxembourg.

As at the balance sheet date Hannover Re had not rendered any financial or

other support for a consolidated structured entity. Hannover Re does not

intend to render financial or other support for one or more of such entities

without being contractually required to do so.

Unconsolidated structured entities

The business relations of Hannover Re Group companies with structured

entities set out below do not give rise to consolidation because the criteria

for control pursuant to IFRS 10 contained in our consolidation principles are

not met.

Investing activities and investments in catastrophe

bonds (ILS)

Within the scope of its investment activities Hannover Re participates inter

alia in numerous structured entities. These are predominantly special

purpose entities in the form of funds, which for their part transact certain

types of equity and debt capital investments. These investments

encompass private equity funds, fixed income funds, collateralised debt

obligations, real estate funds, index funds and other public funds. The

volume of these transactions is derived from the book values of the

respective investments and amounted to EUR 6,018.1 million

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(EUR 5,636.0 million) as at the balance sheet date. The maximum risk of

loss corresponds to the book values.

Hannover Re participates through its subsidiary Leine Investment SICAV-

SIF, Luxembourg, in a number of structured entities that issue catastrophe

bonds for the securitisation of catastrophe risks by investing in such bonds.

Leine Investment General Partner S.à.r.l. is the managing partner of the

asset management company Leine Investment SICAV-SIF, the business

object of which is to build, hold and manage a portfolio of insurance-linked

securities (catastrophe bonds) – including for third-party investors outside

the Group. The volume of these transactions is derived from the book

values of the respective investments and amounted to EUR 100.2 million

(EUR 183.5 million) as at the balance sheet date. The maximum risk of loss

corresponds to the book values.

Retrocession and securitisation of reinsurance risks

The securitisation of reinsurance risks takes place largely through the use of

structured entities.

By way of its “K” transactions Hannover Re has raised underwriting

capacity for catastrophe risks on the capital market. The “K Cession”, which

was placed with globally based investors, involves a quota share cession on

worldwide natural catastrophe business as well as aviation and marine

risks. Of the total volume of the “K Cession”, a large part equivalent to EUR

425.8 million (EUR 503.5 million) was securitised via structured entities as

at the balance sheet date. The transaction has an indefinite term and can be

cancelled annually by the investors. Segregated accounts of Kaith Re Ltd.

are used for transformer purposes for part of this transaction.

Hannover Re also uses further segregated accounts of Kaith Re Ltd. and

other structured entities outside the Group for various retrocessions of both

its traditional and ILS covers, which in each case are passed on to

institutional investors in securitised form. The volume of these transactions

is measured by the ceded exposure limit of the underlying retrocession

agreements and amounted to altogether EUR 9,323.9 million

(EUR 7,686.9 million) as at the balance sheet date.

The structured entities are in all cases fully funded by contractually defined

investments in the form of cash and equivalent liquid assets. Given that the

entire exposure limit of the structured entities is therefore wholly

collateralised in each case, there is no risk of loss for Hannover Re.

Collateralised fronting (ILS)

As part of its extended insurance-linked securities (ILS) activities,

Hannover Re has concluded so-called collateralised fronting arrangements

under which risks assumed from ceding companies are passed on to

institutional investors outside the Group using structured entities. The

purpose of such transactions is to directly transfer clients’ business. The

volume of the transactions is derived from the ceded exposure limit of the

underlying retrocession agreements and amounted to EUR 5,372.5 million

(EUR 5,402.5 million) as at the balance sheet date. Part of the ceded

exposure limit is funded and collateralised by contractually defined

investments in the form of cash and equivalent liquid assets; a further part

remains uncollateralised or is collateralised by less liquid assets. The

maximum risk of loss from the uncollateralised exposure limit amounted to

EUR 658.5 million (EUR 673.1 million) as at the balance sheet date. This

does not, however, correspond to the economic risk of loss, which is

established using recognised actuarial methods. The expected loss on a

modelled basis in a worst-case scenario of 10,000 years amounts to at

most EUR 17.4 million (EUR 31.9 million).

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The book values of the assets and liabilities from the specified transactions

with unconsolidated structured entities were as follows as at the balance

sheet date:


Book values from business relations with unconsolidated structured entities
in EUR million	31.12.2024			31.12.2025
	General investing activities	Investment in catastrophe bonds (ILS)	Retrocession incl. securitisations and ILS transactions	General investing activities	Investment in catastrophe bonds (ILS)	Retrocession incl. securitisations and ILS transactions
Assets
Financial investments – at fair value through OCI	1,963.8			1,991.1
Financial investments – at fair value through profit or loss	3,672.2	183.5		4,027.0	100.2
Other invested assets	—
Reinsurance recoverables on liability for incurred claims			645.5			468.0
Reinsurance recoverables on liability for remaining coverage			-292.0			-257.8
Total assets	5,636.0	183.5	353.5	6,018.1	100.2	210.2

Liabilities
Reinsurance contracts ceded in a liability position			-0.1			2.9
Total liabilities	—	—	-0.1	—	—	2.9

The income and expenses from business relations with unconsolidated

structured entities are shown in investment income insofar as they result

from general investment activities or investments in catastrophe bonds and

are recognised in the technical account insofar as they are attributable to

retrocessions and securitisations.

As at the balance sheet date Hannover Re had not rendered any financial or

other support for an unconsolidated structured entity. Hannover Re does

not intend to render financial or other support for one or more of such

entities without being contractually required to do so.

Kubera Insurance (SAC) Ltd established a segregated account that

gathered investor capital by means of issued bonds and was made

available to an Australian intermediary of insurance business under a swap

agreement for the financing of the latter’s business. Repayment of the

bonds is contingent on the development of the intermediary’s business.

Hannover Re is an investor in this bond through one of its subsidiaries along

with other external parties. The segregated account can be used flexibly for

additional rounds of financing. Hannover Re is not the owner of the

segregated account.

With regard to commitments and obligations that we do not consider to be

support, particularly outstanding capital commitments from special

investments, please see our remarks in section 9.7 “Contingent liabilities

and commitments”.

4.3 Major acquisitions and new

formations

In June 2025, HR Core Europe Real Estate GmbH was established with

registered office in Cologne, Germany, and included in the consolidated

financial statement with effect from the third quarter of 2025 after

commencing active operations. All shares in the company are held by

FUNIS GmbH & Co. KG, Hannover, Germany. The business object of the

company is to build, hold, manage and sell investments in the form of real

estate or corresponding participations in Germany and abroad.

4.4 Major disposals and

retirements

In December 2025, Hannover Finance (UK) Limited, London, United

Kingdom, was deleted from the companies register. A loss of EUR 12.4

million arose in the context of deconsolidation, comprised largely of the

cumulative currency translation differences previously recognised in the

currency translation reserve under OCI, which was reclassified to the

statement of income in accordance with IAS 21. The loss on

deconsolidation was recognised in other income and expenses.

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4.5 Other corporate changes

In May 2025, PAG Real Estate Asia Select Fund Limited, George Town,

Cayman Islands, indirectly acquired the remaining 20% of the shares in

Bowen Investment Limited Partnership, Auckland, New Zealand, by way of

a successive acquisition of shares. The non-controlling interest in retained

earnings was reduced by EUR 24.4 million in the context of this equity

transaction.

4.6 Assets held for sale

As at the balance sheet date, the participating interest in Neue SEBA

Beteiligungsgesellschaft mbH, Nuremberg, (Neue SEBA) in a calculated

proportionate amount of 15.85% was to be reported as a non-current asset

held for sale in accordance with the requirements of IFRS 5. Previously, the

participating interest had been presented within the other invested assets.

Neue SEBA, as an intermediate company, holds shares in Nürnberger

Beteiligungs-AG. Under a purchase agreement dated 4 November 2025,

E+S Rückversicherung sold all shares in Neue SEBA

Beteiligungsgesellschaft, although the transaction had still to be completed

as at the balance sheet date. The transaction is expected to close in 2026.

The book value of the shares in Neue SEBA amounted to EUR 63.7 million

as at the balance sheet date. The cumulative changes in fair value recorded

in OCI amounted to EUR 26.5 million as at the balance sheet date and are

shown in the unrealised gains and losses on investments. The shares in

Neue SEBA are allocated to the property and casualty reinsurance segment

in the segment reporting.

Effective 1 August 2025 all shares in Meribel Mottaret Limited, St. Helier,

Jersey, and effective 30 September 2025 all shares in the Luxembourg fund

which in turn had acquired shares in Meribel Mottaret Limited through an

intermediate company were sold. The sold participations were reported

within the year in accordance with the requirements of IFRS 5 and allocated

to the life and health reinsurance segment in the segment reporting. Meribel

Mottaret Limited, as an intermediate company, held shares in Viridium

Group, a portfolio specialist for life insurance. The book value of the Meribel

Mottaret shares amounted to EUR 544.9 million at the time of sale. The

cumulative changes in fair value recorded in OCI at the time of sale

amounted to EUR 543.2 million before tax and – together with the preferred

shares in Meribel Mottaret Limited in an amount of EUR 13.9 million already

returned at the beginning of 2025 – have been reclassified from the

unrealised gains and losses on investments recognised in equity to retained

earnings.

Real estate which is classified as held for sale as defined by IFRS 5 is

recognised separately in the consolidated balance sheet. Intentions to sell

are substantiated by individual real estate market conditions and specific

property circumstances, taking into consideration current and future

opportunity / risk profiles. In the year under review, one property was

reclassified to assets held for sale. Another property reported in the

previous year’s consolidated financial statement as an asset held for sale

was sold in the first quarter of the year under review. Further information is

provided in our remarks on real estate in section 6.1 “Investments”

5. Segment reporting

Based on the “management approach” of IFRS 8, which requires segment

information to be presented as it is reported internally to management and

normally used by the chief operating decision maker to decide upon the

allocation of resources to a segment and evaluate its performance,

Hannover Re has identified the reportable segments of property & casualty

reinsurance and life & health reinsurance. With regard to the object of

business operations within the two segments please see our explanatory

remarks on Hannover Re’s business model in the management report. The

report on economic position contains remarks on the economic

environment in which the Group operates.

The segment information shown follows the system used for internal

reporting purposes, on the basis of which the full Executive Board regularly

evaluates the performance of segments and decides on the allocation of

resources to them.

The “Consolidation” column includes not only the elimination of cross-

segment transactions but also, more significantly, companies whose

business operations cannot be unambiguously allocated to property and

casualty reinsurance or life and health reinsurance. These are principally

the service and financing companies belonging to the Group.

HR Core Europe Real Estate GmbH, which was established in June 2025

with registered office in Cologne, Germany, has been allocated to the

property and casualty reinsurance segment since commencing business

operations. In its function as a holding company, Hannover Finance (UK)

Limited, London, United Kingdom, which was dissolved in December 2025,

was included in the “Consolidation” column in the segment reporting.

Above and beyond this, no material changes occurred during the financial

year in the organisational structure that could have influenced the

composition of the segments. Since the performance indicators used to

steer the segments correspond to the system according to which the

consolidated financial statement is prepared, a separate reconciliation of

the segment results with the Group result is not provided.

There is no cross-segment gross reinsurance revenue between the

segments of property & casualty reinsurance and life & health reinsurance.

To this extent, the reinsurance revenue shown involves exclusively

amounts from business with external third parties.

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Consolidated segment report



	Property and casualty reinsurance		Life and health reinsurance		Consolidation		Total
in EUR million	31.12.2024	31.12.2025	31.12.2024	31.12.2025	31.12.2024	31.12.2025	31.12.2024	31.12.2025
Segmentation of assets
Financial investments – at fair value through OCI	45,072.6	46,373.5	11,035.4	10,928.2	32.0	14.9	56,140.0	57,316.6
Financial investments – at fair value through profit or loss	5,523.6	5,642.6	907.9	497.4	1.3	8.9	6,432.8	6,148.9
Investment property	2,605.2	2,671.8	—	—	—	—	2,605.2	2,671.8
Investments in associated companies and joint ventures	72.4	74.1	46.7	11.0	—	—	119.1	85.0
Other invested assets	154.2	104.7	436.9	12.3	—	—	591.1	116.9
Total investments	53,428.0	54,866.6	12,426.9	11,448.8	33.3	23.8	65,888.2	66,339.2
Recoverables on reinsurance contracts retroceded	1,281.4	792.1	220.1	315.1	—	—	1,501.5	1,107.2
Reinsurance contracts issued in an asset position	631.7	46.5	874.0	872.9	—	—	1,505.7	919.4
Cash and cash equivalents	938.5	753.0	308.8	294.0	5.8	4.4	1,253.1	1,051.5
Other segment assets	2,883.5	2,116.1	281.0	383.2	-1,916.7	-1,423.8	1,247.8	1,075.5
Assets held for sale	40.4	112.2	—	—	—	—	40.4	112.2
Total segment assets	59,203.4	58,686.4	14,110.9	13,314.1	-1,877.6	-1,395.6	71,436.7	70,604.9


in EUR million
Segmentation of liabilities
Liabilities from reinsurance contracts issued	39,618.3	38,318.5	9,299.3	9,107.3	—	—	48,917.6	47,425.8
Reinsurance contracts retroceded in a liability position	448.5	398.2	207.8	156.7	—	—	656.3	555.0
Financing liabilities	642.3	620.3	27.8	22.8	3,998.8	3,499.2	4,669.0	4,142.3
Other segment liabilities	1,976.6	2,024.9	2,712.8	2,204.3	-1,894.5	-1,407.4	2,794.9	2,821.7
Total segment liabilities	42,685.6	41,361.8	12,247.7	11,491.1	2,104.3	2,091.8	57,037.7	54,944.8

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Consolidated segment report
Segment statement of income	Property and casualty reinsurance		Life and health reinsurance		Consolidation		Total
in EUR million	31.12.2024	31.12.2025	31.12.2024	31.12.2025	31.12.2024	31.12.2025	31.12.2024	31.12.2025
Reinsurance revenue (gross)	18,664.7	18,770.5	7,714.5	8,015.5	—	—	26,379.3	26,786.0
Reinsurance service expenses (gross)	14,893.3	14,468.3	6,804.9	7,093.1	—	—	21,698.2	21,561.3
Reinsurance service result (gross)	3,771.5	4,302.2	909.7	922.4	—	—	4,681.1	5,224.6
Reinsurance revenue (retroceded)	2,778.4	2,598.1	565.3	902.8	—	—	3,343.8	3,500.9
Reinsurance service expenses (retroceded)	1,142.6	889.0	538.6	883.4	—	—	1,681.2	1,772.3
Result from reinsurance contracts (retroceded)	-1,635.9	-1,709.1	-26.7	-19.4	—	—	-1,662.6	-1,728.5
Reinsurance service result (net)	2,135.6	2,593.0	882.9	903.0	—	—	3,018.5	3,496.1
Reinsurance finance result (net) before currency gains/losses	-944.7	-1,173.3	-170.3	-190.0	—	—	-1,115.0	-1,363.3
Investment result	1,607.3	1,301.0	396.1	370.5	1.6	1.4	2,005.0	1,672.9
thereof
Expected credit losses, impairment, depreciation and appreciation of investments	-101.5	-86.6	3.4	0.8	-0.2	0.1	-98.3	-85.7
Change in fair value of financial instruments	-38.5	-16.1	41.3	38.5	—	—	2.7	22.4
Profit/loss from investments in associated companies and joint ventures	63.8	2.4	-36.4	-35.6	—	—	27.4	-33.2
Currency result	-143.0	232.8	35.0	10.4	—	—	-108.0	243.2
Other income/expenses	-268.0	-318.2	-209.8	-207.9	-5.1	-15.1	-482.9	-541.2
Operating profit/loss (EBIT)	2,387.3	2,635.3	933.9	886.1	-3.6	-13.7	3,317.6	3,507.7
Financing costs	2.2	2.1	0.9	0.8	101.2	92.0	104.3	94.9
Net income before taxes	2,385.0	2,633.3	933.0	885.3	-104.8	-105.8	3,213.3	3,412.8
Taxes							816.5	645.3
Net income							2,396.8	2,767.5
thereof non-controlling interest in profit and loss							68.1	126.0
Group net income							2,328.7	2,641.5

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6. N otes on the

individual items of the

balance sheet

6.1 Investments

Investments are classified and measured in accordance with IFRS 9

“Financial Instruments”. Hannover Re classifies investments according to

the categories at fair value through OCI and at fair value through profit or

loss, while measurement at amortised cost is applied only in exceptional

cases. The allocation and measurement of investments is guided by the

respective investment intent (business model) and the type of cash flows.

The investments also include investment property, investments in

associated companies and joint ventures as well as other invested assets.

Investments for which an intention to sell exists in accordance with IFRS 5

are shown separately in the consolidated balance sheet if appropriate facts

and circumstances apply.

The following table shows the regional origin of the investments.

Investments by regional origin



in EUR million	2024	2025
Germany	10,423.7	7,238.4
United Kingdom	4,287.5	4,254.2
France	2,356.4	2,704.6
Other	9,273.3	10,800.0
Europe	26,340.9	24,997.2
USA	21,809.2	20,832.6
Other	5,336.6	5,273.4
North America	27,145.8	26,106.0
Asia	6,545.6	8,424.1
Australia	4,171.1	4,345.9
Australasia	10,716.7	12,770.1
Other	1,684.8	2,466.0
Total	65,888.2	66,339.2

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Maturities of fixed-income and variable-yield debt instruments



in EUR million	2024		2025
	Amortised cost ¹	Fair value	Amortised cost ¹	Fair value
Financial investments – at fair value through OCI
due in one year	10,022.3	10,010.1	12,525.7	12,520.8
due after one through two years	7,303.9	7,221.7	4,725.3	4,721.7
due after two through three years	4,366.0	4,295.4	5,545.2	5,527.1
due after three through four years	4,705.0	4,607.9	4,939.5	4,901.2
due after four through five years	4,799.8	4,629.4	6,773.0	6,593.0
due after five through ten years	15,840.4	14,859.6	13,342.9	13,020.4
due after more than ten years	12,340.1	10,388.0	11,055.3	9,522.7
no maturity	—	—	—	—
Total	59,377.5	56,012.2	58,907.0	56,806.7

Financial investments – at fair value through profit or loss
due in one year	1,511.6	1,511.6	996.5	996.5
due after one through two years	179.7	179.7	144.9	144.9
due after two through three years	76.2	76.2	64.7	64.7
due after three through four years	36.3	36.3	31.6	31.6
due after four through five years	15.0	15.0	50.0	50.0
due after five through ten years	70.3	70.3	30.5	30.5
due after more than ten years	246.2	246.2	285.4	285.4
no maturity	4,297.6	4,297.6	4,468.8	4,468.8
Total	6,432.8	6,432.8	6,072.3	6,072.3

¹ Including accrued interest

The stated maturities may in individual cases diverge from the contractual

maturities because borrowers may have the right to call or prepay

obligations with or without penalty.

Variable-rate bonds (so-called “floaters”) are shown under the maturities

due in one year and constitute an interest-related, within-the-year

reinvestment risk.

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Amortised cost, unrealised gains and losses and accrued interest on financial instruments at fair value through OCI as well as their fair value
in EUR million	2024					2025
	Cost or amortised cost incl. accrued interest	thereof accrued interest	Unrealised gains	Unrealised losses	Fair value	Cost or amortised cost incl. accrued interest	thereof accrued interest	Unrealised gains	Unrealised losses	Fair value
Debt instruments
Government debt securities of EU member states	6,308.3	29.9	6.3	694.3	5,620.3	6,259.2	29.9	7.4	652.7	5,613.9
US Treasury notes	11,403.7	64.6	4.6	893.6	10,514.7	9,080.0	53.4	23.0	482.6	8,620.4
Other foreign government debt securities	6,054.3	49.9	83.4	241.8	5,895.9	6,518.2	56.3	81.2	186.7	6,412.7
Debt securities issued by semi-governmental entities	10,218.8	106.0	67.8	528.2	9,758.4	11,390.4	125.1	61.8	428.0	11,024.3
Corporate securities	20,567.7	206.5	146.6	1,108.7	19,605.6	21,083.5	249.0	193.4	542.6	20,734.4
Covered bonds/asset-backed securities	4,471.8	51.8	26.2	167.2	4,330.8	4,265.7	47.6	11.8	138.6	4,139.0
Other	352.8	3.5	1.5	67.9	286.4	309.9	6.0	0.4	48.3	262.1
Total	59,377.5	512.3	336.4	3,701.7	56,012.2	58,907.0	567.3	379.1	2,479.4	56,806.7

Equity instruments
Shares	1.2	—	0.7	1.2	0.7	206.0	—	29.7	15.1	220.6
Participating interests – other	132.3	—	2.7	7.7	127.2	306.1	—	3.7	20.6	289.2
Total	133.4	—	3.3	8.9	127.9	512.1	—	33.4	35.7	509.8

Total	59,510.9	512.3	339.7	3,710.6	56,140.0	59,419.1	567.3	412.5	2,515.1	57,316.6

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The carrying amount of the debt instruments is arrived at from the

amortised cost including accrued interest as well as the unrealised gains

and losses.


Fair values before and after accrued interest as well as accrued interest from financial instruments at fair value through profit or loss
in EUR million	2024	2025	2024	2025	2024	2025
	Fair value before accrued interest		Accrued interest		Fair value after accrued interest
Debt instruments
Other foreign government debt securities	1.3	1.1	—	—	1.3	1.1
Debt securities issued by semi-governmental entities	12.5	21.6	0.3	0.4	12.7	22.0
Corporate securities	442.1	436.8	4.6	9.6	446.8	446.4
Covered bonds/asset-backed securities	1.3	0.9	—	—	1.3	0.9
Other	48.3	34.5	—	—	48.3	34.5
	505.4	494.9	4.9	10.0	510.4	504.9
Equity instruments
Participating interests – other (financial investments)	—	76.6	—	—	—	76.6

Derivative instruments	231.9	166.8	-1.5	-1.6	230.4	165.2
Investment funds measured at fair value through profit or loss	5,136.6	5,024.4	—	—	5,136.6	5,024.4
Short-term investments	536.2	365.7	6.1	3.8	542.3	369.5
Other financial instruments at fair value through profit and loss	13.1	8.3	—	—	13.1	8.3
	5,917.8	5,565.2	4.6	2.2	5,922.4	5,567.4
Total	6,423.3	6,136.8	9.6	12.2	6,432.8	6,148.9

The carrying amounts of the financial instruments at fair value through profit

or loss correspond to their fair values including accrued interest.

Hannover Re recognised in this category as at the balance sheet date

primarily debt instruments and investment funds that do not meet the SPPI

(“solely payment of principal and interest”) test due to the characteristics of

their cash flows.

Short-term investments include investments with a maturity of up to one

year at the time of investment. This includes both overnight and time

deposits as well as shares in investment funds that invest in such securities.

For further information please see the explanatory remarks in section

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Changes in ECL
in EUR million	2024									2025
	Opening balance	Transfer to Stage 1	Transfer to Stage 2	Transfer to Stage 3	Additions	Disposals	Utilisation	Other ¹	Closing balance	Opening balance	Transfer to Stage 1	Transfer to Stage 2	Transfer to Stage 3	Additions	Disposals	Utilisation	Other ¹	Closing balance
Stage 1	46.7	2.3	-1.2	—	24.3	13.4	—	-12.5	46.3	46.3	0.8	-2.0	—	31.5	21.5	—	-5.9	49.2
Stage 2	16.4	-2.3	1.2	-0.3	—	6.6	—	4.4	12.8	12.8	-0.8	2.0	—	—	9.4	—	2.0	6.7
Stage 3	122.9	—	—	0.3	—	3.4	59.2	19.8	80.4	80.4	—	—	—	—	—	50.5	-7.8	22.1
Simplified impairment model	0.7	—	—	—	—	—	—	0.3	1.1	1.1	—	—	—	-0.1	—	—	-0.1	0.9
Total	186.7	—	—	—	24.4	23.4	59.2	12.1	140.6	140.6	—	—	—	31.4	30.8	50.5	-11.7	78.9

¹ Including changes in underlying risk parameters, including probability of default, point-in-time adjustment factor

An amount of EUR 50.5 million was utilised through the disposal of fixed-

income securities recognised in Stage 3 of the three-stage model for

recognition of expected credit losses (ECL). Utilisation was recognised in

OCI in conformity with the requirements of IFRS 9.

For further explanatory remarks on the impairment criteria please see

section 3.2 “Summary of major accounting policies”.


Rating structure of fixed-income securities
in EUR million	2024									2025
	AAA	AA	A	BBB	BB	B	C	Other	Total	AAA	AA	A	BBB	BB	B	C	Other	Total
Financial investments – at fair value through OCI	13,509.8	17,216.3	11,877.9	9,642.1	1,557.5	294.7	48.7	1,865.1	56,012.2	15,743.9	15,765.2	12,520.4	9,648.1	1,488.6	314.0	32.0	1,294.6	56,806.7
Financial investments – at fair value through profit or loss	40.8	13.9	56.1	157.9	51.7	0.2	1.4	188.4	510.4	31.6	13.3	47.6	184.1	63.6	6.7	1.4	156.6	504.9
Total	13,550.6	17,230.2	11,934.0	9,800.0	1,609.2	294.9	50.1	2,053.5	56,522.6	15,775.5	15,778.5	12,567.9	9,832.3	1,552.1	320.8	33.4	1,451.2	57,311.6

The maximum credit risk of the items shown here corresponds to their

carrying amounts.


Breakdown of investments by currencies
in EUR million	2024								2025
	AUD	CAD	CNY	EUR	GBP	USD	Other	Total	AUD	CAD	CNY	EUR	GBP	USD	Other	Total
Financial investments – at fair value through OCI	4,048.0	2,515.2	2,812.7	14,061.1	2,903.4	26,173.5	3,626.3	56,140.0	4,008.2	2,170.4	2,450.5	14,685.1	2,916.9	26,885.5	4,200.1	57,316.6
Financial investments – at fair value through profit or loss	-480.8	-658.6	19.9	2,078.1	135.5	4,998.7	340.1	6,432.8	-122.9	-379.3	103.8	3,604.3	315.1	2,385.7	242.4	6,148.9
Investment property	78.9	—	—	1,045.3	—	890.8	590.3	2,605.2	84.1	—	—	1,202.3	—	736.2	649.2	2,671.8
Investments in associated companies	—	—	—	118.4	—	—	0.7	119.0	—	—	—	84.4	—	—	0.7	85.0
Other invested assets	—	—	—	543.6	9.3	35.0	3.2	591.1	—	—	—	52.0	8.8	55.7	0.5	116.9
Total	3,646.1	1,856.6	2,832.6	17,846.5	3,048.2	32,098.0	4,560.6	65,888.1	3,969.4	1,791.1	2,554.3	19,628.1	3,240.8	30,063.1	5,092.9	66,339.2

The maximum credit risk of the items shown here corresponds to their

carrying amounts.

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Associated companies and joint

ventures

Investments in material joint ventures

The joint venture “Joint HR MR Private Equity GmbH” held by

Hannover Rück SE (roughly 41.3%) and E+S Rückversicherung AG

(roughly 8.7%) together with Münchener Rückversicherungs-Gesellschaft

Aktiengesellschaft was split up by mutual agreement effective 1 July 2024.

For detailed information on the demerger we refer to the previous year’s

annual report.


Joint HR MR Private Equity GmbH – reconciliation to book values
in EUR million	2024	2025
Equity as at 1.1.	4,127.5	—
Net income	131.7	—
Income and expense recognised directly in equity	47.6	—
Changes in the consolidated group	-4,306.8	—
Equity as at 31.12.	—	—


Joint HR MR Private Equity GmbH – condensed statement of comprehensive income
in EUR million	2024	2025
Net income from investments	132.4	—
Interest income	3.2	—
Other income and expenses	16.2	—
Tax expense	20.1	—
Net income	131.7	—
Income and expense recognised directly in equity	47.6	—
Comprehensive income	179.3	—
thereof non-controlling interests	14.7	—

Group share of net income	62.0	—

Investments in associated companies

The associated companies included at equity in the consolidated financial

statement that both on an individual basis and in their entirety are not

material for the Hannover Re Group pursuant to IFRS 12 are comprised of

– WeHaCo Unternehmensbeteiligungs-GmbH, Hannover, Germany,

– HANNOVER Finanz GmbH, Hannover, Germany,

as well as the following company included at equity within the subgroup

Hannover Reinsurance Group Africa (Pty) Ltd., Johannesburg, South

Africa:

– Clarendon Transport Underwriting Managers (Pty) Ltd., Johannesburg,

South Africa,

The following table shows combined financial information on the

Hannover Re Group’s individually non-material investments in associated

companies.


Financial information on investments in non-material associated companies
in EUR million	2024	2025
Group share of net income from continuing operations	1.9	2.4
Group share of total recognised income and expense	1.9	2.4

The carrying amount of the investments in non-material associated

companies changed as follows in the year under review:


Investments in non-material associated companies
in EUR million	2024	2025
Net book value at 31 December of the previous year	72.0	72.4
Currency translation at 1 January	—	—
Net book value after currency translation	72.0	72.4
Disposals	0.6	—
Profit or loss on investments in associated companies	1.9	2.4
Dividend payments	0.9	0.7
Net book value at 31 December of the year under review	72.4	74.1

Investments in material associated companies

FUNIS GmbH & Co. KG, Hannover, a wholly owned subsidiary of Hannover

Rück SE, holds 24.6% of the common shares in Monument Insurance

Group Limited, Hamilton, Bermuda (MIGL). The participation is identical to

the share of voting rights held and – with a seat on the Board of Directors –

establishes a significant influence over MIGL. In addition, a subsidiary of

MIGL issued non-voting, non-callable preference shares in which FUNIS

does not hold an interest. MIGL is a life insurance group that specialises in

acquiring and operating life insurance portfolios and companies in Europe,

primarily those in run-off. Measurement at equity is based on a consolidated

financial statement drawn up by the company as at 30 September in

accordance with UK GAAP, which is reconciled to IFRS and restated if

significant transactions or other events occur.


MIGL – condensed balance sheet
in EUR million	2024	2025
Current assets	1,520.8	1,098.1
Non-current assets	13,641.3	10,975.9
Current liabilities	174.0	163.2
Non-current liabilities	14,531.5	11,588.8
Equity at 30 September	456.6	322.0
Updated equity at 31 December	456.6	322.0
thereof non-controlling interests	6.2	6.0


MIGL – reconciliation to book values
in EUR million	2024	2025
Updated equity at 1 January	589.7	456.6
Capital increases	198.1	—
Capital repayments	183.6	—
Net income	-127.7	-97.3
Income and expense recognised directly in equity	—	-0.4
Changes in ownership interest with no change of control status	-10.6	—
Dividends	9.3	36.8
Updated equity at 31 December	456.6	322.0
thereof non-controlling interests	6.2	6.0

Group interest in equity	5.0%	-3.4%
Proportionate attributable equity	22.5	-10.6
Hidden reserves	24.2	21.6
Book value of Group share	46.7	11.0


MIGL – condensed statement of comprehensive income
in EUR million	2024	2025
Earned premium	651.9	-36.5
Net income from continuing operations	-127.7	-97.3
Net income	-127.7	-97.3
Total income and expense recognised directly in equity	—	-0.4
Total recognised income and expense	-127.7	-97.7
thereof non-controlling interests	-13.7	-0.2

Proportionate attributable net income	-36.4	-35.6

Information on the percentage share held by the Hannover Re Group in the

capital of associated companies and joint ventures is provided in the list of

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shareholdings in section 4.2 “Consolidated companies and complete list

of shareholdings”.

Insofar as there are commitments from contingent liabilities of associated

companies and joint ventures, the Hannover Re Group shares in such

commitments in proportion to its respective shareholding. Public price

listings are not available for companies valued at equity. The net book value

of associated companies and joint ventures includes goodwill in the amount

of EUR 10.9 million (EUR 11.8 million). For further details please see

section 4. “Consolidation”.

Real estate

Real estate is divided into real estate for own use and investment property.

Own-use real estate is recognised under other assets.

The investment property in the portfolio which is used to generate income is

shown under the investments. Income and expenses from rental

agreements are included in the investment income.

Real estate is valued at cost of acquisition less depreciation with useful lives

of at most 50 years as well as impairments in the event of permanent

impairment.

In the year under review one property was reclassified to assets held for

sale. At the time of reclassification and at the end of the reporting period, the

gross book value of the property, which is allocated to the property and

casualty reinsurance segment in the segment reporting, amounted to EUR

68.9 million (EUR 41.5 million) and the cumulative depreciation amounted

to EUR 18.9 million (EUR 2.5 million). Measurement of the property in

connection with classification as a non-current asset held for sale did not

result in any impairment.

Another property reported in the previous year’s consolidated financial

statement as an asset held for sale was sold in the first quarter of the year

under review. The property, which was allocated to the property and

casualty reinsurance segment in the segment reporting, was carried at

amortised cost until disposal. The book value of the property at the time of

disposal was EUR 40.4 million and the gain on disposal amounted to EUR

10.4 million.


Development of investment property
in EUR million	2024	2025
Gross book value at 31 December of the previous year	2,978.9	3,129.9
Currency translation at 1 January	58.1	-187.8
Gross book value after currency translation	3,037.0	2,942.1
Additions	202.6	452.1
Disposals	52.1	170.8
Reclassification to assets held for sale	41.5	68.9
Currency translation at 31 December	-16.2	-1.4
Gross book value at 31 December of the year under review	3,129.9	3,153.0
Cumulative depreciation at 31 December of the previous year	442.4	524.7
Currency translation at 1 January	15.3	-34.4
Cumulative depreciation after currency translation	457.7	490.3
Disposals	25.4	74.3
Depreciation	60.5	62.0
Impairments	37.5	26.1
Appreciation	2.7	4.4
Reclassification to assets held for sale	2.5	18.9
Currency translation at 31 December	-0.5	0.2
Cumulative depreciation at 31 December of the year under review	524.7	481.2
Net book value at 31 December of the previous year	2,536.5	2,605.2
Net book value at 1 January of the year under review	2,579.3	2,451.8
Net book value at 31 December of the year under review	2,605.2	2,671.8

With regard to the right-of-use assets included as part of the accounting of

leases, please see section 9.8 “Leases”.

The fair value of investment property excluding capitalised right-of-use

assets amounted to EUR 3,137.2 million (EUR 3,099.6 million) as at the

balance sheet date.

In terms of diversification across various real estate sectors, the focus is

primarily on office buildings (61%), complemented by logistics properties

(26%) and retail (11%). In geographical terms, exposures are spread

across the United States (35%), Europe (excluding Germany; 23%) as well

as Germany (21%) and Asia (21%).

Changes in this item are attributable to investment activities at the relevant

real estate companies belonging to the Hannover Re Group. The real estate

in the investment portfolio is normally subject to internal or external

valuation by an appraiser as at the balance sheet date. The two analyses do

not differ from one another in the methodology used, which means that the

findings are comparable at all times and on a continuous basis. Generally

speaking, the fair value of the real estate is determined using the German

income approach, with rental income capitalised in consideration of the

associated management costs. The valuation result is also influenced by

increases and reductions based on specific property circumstances

(upkeep, vacancies, rent divergences from the market level, etc.). The

evaluation of international real estate also draws primarily on the

discounted cash flow (DCF) method. The main feature of this method is the

present value estimation of projected annual free cash flows.

In addition, we held indirect real estate / infrastructure investments

measured at fair values in an amount of EUR 1,273.8 million (EUR 1,221.2

million) in the year under review, which are recognised in the item “Financial

investments – at fair value through profit or loss”.

Other invested assets

The other invested assets consisted of participating interests measured at

fair value in an amount of EUR 116.9 million (EUR 591.1 million), the

amortised cost of which amounted to EUR 174.7 million

(EUR 232.8 million). The decrease in this item is mainly attributable to the

reclassification of participating interests to assets held for sale. We refer to

our comments in section 4.6 “Assets held for sale”. The differences

between the carrying amounts and the amortised costs were recognised as

unrealised gains of EUR 0.1 million (EUR 407.6 million) and unrealised

losses of EUR 57.8 million (EUR 49.3 million) under cumulative other

comprehensive income.

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Fair value hierarchy

For the purposes of the disclosure requirements pursuant to IFRS 13 “Fair

Value Measurement”, financial assets and liabilities are to be assigned to a

three-level fair value hierarchy.

The fair value hierarchy, which reflects characteristics of the price data and

inputs used for measurement purposes, is structured as follows:

– Level 1: Assets or liabilities measured at (unadjusted) prices quoted

directly in active and liquid markets.

– Level 2: Assets or liabilities which are measured using observable

market data and are not allocable to level 1. Measurement is based, in

particular, on prices for comparable assets and liabilities that are traded

on active markets, prices on markets that are not considered active as

well as inputs derived from such prices or market data.

– Level 3: Assets or liabilities that cannot be measured or can only be

partially measured using observable market inputs. The measurement of

such instruments draws principally on valuation models and methods.

If input factors from different levels are used to measure a financial

instrument, the level of the lowest input factor material to measurement is

determinative.

The operational units responsible for coordinating and documenting

measurement are organisationally separate from the operational units that

enter into investment risks. All relevant valuation processes and valuation

methods are documented. Decisions on fundamental valuation issues are

taken by a valuation committee that meets monthly.

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The following table shows the breakdown of financial assets and liabilities

recognised at fair value into the fair value hierarchy.


Fair value hierarchy of financial assets and liabilities recognised at fair value
in EUR million	2024				2025
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Debt instruments	—	55,025.1	987.1	56,012.2	—	56,270.8	536.0	56,806.7
Equity instruments	—	—	127.9	127.9	218.2	—	291.6	509.8
Financial investments – at fair value through OCI	—	55,025.1	1,114.9	56,140.0	218.2	56,270.8	827.6	57,316.6
Debt instruments	—	430.0	93.4	523.4	—	429.0	84.2	513.2
Equity instruments	—	—	—	—	—	—	76.6	76.6
Derivative instruments	—	91.5	138.8	230.4	—	75.8	89.4	165.2
Investment funds	849.6	191.9	4,095.2	5,136.6	784.3	88.4	4,151.8	5,024.4
Short–term investments	542.3	—	—	542.3	369.5	—	—	369.5
Financial investments – at fair value through profit or loss	1,392.0	713.4	4,327.5	6,432.8	1,153.8	593.2	4,402.0	6,148.9
Other invested assets	—	—	591.1	591.1	—	—	116.9	116.9
Negative market values from derivative instruments	—	93.0	4.7	97.6	—	79.9	21.6	101.5
Financial liabilities (at fair value)	—	93.0	4.7	97.6	—	79.9	21.6	101.5

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The following table provides a reconciliation of the fair values of financial

assets and liabilities included in level 3 during the financial year.


Movements in level 3 financial assets and liabilities
in EUR million	2024								2025
	Financial investments – at fair value through OCI		Financial investments – at fair value through profit or loss				Other invested assets	Financial liabilities (at fair value)	Financial investments – at fair value through OCI		Financial investments – at fair value through profit or loss				Other invested assets	Financial liabilities (at fair value)
	Debt instruments	Equity instruments	Debt instruments	Equity instruments	Derivative instruments	Investment funds	Other invested assets	Negative fair values from derivative instruments	Debt instruments	Equity instruments	Debt instruments	Equity instruments	Derivative instruments	Investment funds	Other invested assets	Negative fair values from derivative instruments
Net book value at 31 December of the previous year	684.1	—	64.2	—	154.7	1,744.4	963.0	8.9	987.1	127.9	93.4	—	138.8	4,095.2	591.1	4.7
Currency translation at 1 January	26.4	—	3.7	—	8.9	58.5	15.3	0.5	-85.5	-12.2	-10.3	—	-15.5	-287.0	-1.9	-0.5
Net book value after currency translation	710.5	—	67.9	—	163.6	1,803.0	978.3	9.4	901.6	115.7	83.1	—	123.3	3,808.2	589.2	4.1
Income and expenses recognised in the statement of income	2.2	—	-1.7	—	70.3	-46.8	23.4	0.4	-1.5	—	5.0	—	39.7	-62.2	-2.3	0.2
Income and expenses recognised directly in shareholders’ equity	-1.0	-2.7	—	—	—	—	2.9	—	11.1	-5.8	—	—	—	—	171.5	—
Purchases	272.6	68.6	48.3	—	—	629.8	51.7	—	128.5	195.3	23.5	75.0	—	700.7	259.8	20.2
Sales	53.7	3.2	21.0	—	92.8	376.5	68.0	4.7	38.5	12.7	25.8	—	82.6	277.4	831.3	2.5
Settlements	38.0	—	0.3	—	—	—	—	—	61.7	—	1.4	—	—	—	—	—
Transfers from level 3	—	—	—	—	—	—	—	—	422.8	—	—	—	—	—	—	—
Transfers to level 3	88.0	—	—	—	—	—	—	—	—	1.0	—	—	—	—	—	—
Change in consolidation	2.4	—	—	—	—	2,034.2	-329.0	—	—	—	—	—	—	—	—	—
Reclassification	—	61.4	—	—	—	—	-61.4	—	—	5.2	—	—	—	—	-5.2	—
Reclassification to assets held for sale	—	—	—	—	—	—	—	—	—	—	—	—	—	—	63.7	—
Currency translation at 31 December of the year under review	4.2	3.8	0.2	—	-2.2	51.4	-6.8	-0.4	19.3	-6.9	-0.2	1.6	8.9	-17.6	-1.1	-0.5
Net book value at 31 December of the year under review	987.1	127.9	93.4	—	138.8	4,095.2	591.1	4.7	536.0	291.6	84.2	76.6	89.4	4,151.8	116.9	21.6

In the 2025 financial year, the classification of certain financial assets

and liabilities within the fair value hierarchy was adjusted in accordance

with IFRS 13. Specifically, borrower’s notes with a volume of EUR 422.8

million were reclassified from Level 3 to Level 2. The reclassification had

no implications for the fair value of the instruments or for the statement of

income.

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The breakdown of income and expenses recognised in the statement of

income in the financial year in connection with financial assets and liabilities

included in level 3 is as follows:


Income and expenses from level 3 financial assets and liabilities
in EUR million	2024						2025
	Financial investments – at fair value through OCI	Financial investments – at fair value through profit or loss			Other invested assets	Financial liabilities (at fair value)	Financial investments – at fair value through OCI		Financial investments – at fair value through profit or loss			Other invested assets	Financial liabilities (at fair value)
	Debt instruments	Debt instruments	Derivative instruments	Investment funds		Negative fair values from derivative financial instruments	Debt instruments		Debt instruments	Derivative instruments	Investment funds		Negative fair values from derivative financial instruments
Total in the financial year
Ordinary investment income	2.1	0.3	—	—	—	—	—		4.0	—	—	—	—
Realised gains and losses on investments	0.1	—	—	—	—	—	-0.9	—	—	—	—	—	—
Change in fair value of financial instruments	—	-1.9	70.3	-46.8	23.4	-0.4	—		1.0	39.7	-62.2	-2.3	-0.2
Thereof attributable to financial instruments included in the portfolio at 31 December
Ordinary investment income	0.5	0.7	—	—	—	—	—		0.5	—	—	—	—
Change in fair value of financial instruments	—	-2.2	70.3	-46.8	23.4	-0.4	—	—	1.0	7.9	-62.2	-2.3	0.7

If models are used to measure financial assets and liabilities included in

level 3 under which the adoption of alternative inputs leads to a material

change in fair value, IFRS 13 requires disclosure of the effects of these

alternative assumptions. Of the financial assets included in level 3 with fair

values of altogether EUR 5,346.5 million (EUR 6,033.5 million) as at the

balance sheet date, Hannover Re measures financial assets with a volume

of EUR 4,636.9 million (EUR 4,814.2 million) using the net asset value

method. These items consist principally of shares in private equity and real

estate funds. Assuming that the present values of the assets and liabilities

contained in the funds would be 10% lower than used for measurement as

at the balance sheet date, the fair values for these items would amount to

EUR 4,173.2 million. The remaining financial assets included in level 3 with

a volume of EUR 709.6 million (EUR 1,219.3 million) relate to financial

instruments, the valuation of which is based inter alia on technical

parameters. Derivative financial instruments in connection with the

reinsurance business were recognised under the financial liabilities

included in level 3 in the year under review. Their performance is dependent

upon lapse rates within an underlying primary insurance portfolio. The

application of alternative inputs and assumptions has no material effect on

the consolidated financial statement.

6.2 Goodwill

In accordance with IFRS 3 “Business Combinations” amortisation is not

taken on goodwill. Goodwill was subject to an impairment test.


Development of goodwill
in EUR million	2024	2025
Net book value at 31 December of the previous year	78.0	79.9
Currency translation at 1 January	2.0	-2.0
Net book value at 31 December of the year under review	79.9	77.9

This item principally includes the goodwill from the acquisitions of E+S

Rückversicherung AG in an amount of EUR 36.1 million (36.1 million),

Integra Insurance Solutions Limited at EUR 11.0 million (EUR 11.5 million)

and Argenta Holdings Limited at EUR 29.0 million (EUR 30.5 million).

For the purposes of the impairment test, the goodwill was allocated to the

cash-generating units (CGUs) that represent the lowest level on which

goodwill is monitored for internal management purposes. In the instances of

goodwill recognised as at the balance sheet date, the CGUs are the

respective legal entities. The recoverable amount is established on the

basis of the value in use, which is calculated using the discounted cash flow

method. In this context, the detailed planning phase draws on the planning

calculations of the CGUs / companies covering the next four or five years.

These planning calculations represent the outcome of a detailed planning

process in which all responsible members of management are involved and

where allowance is made for the latest market developments affecting the

relevant entity (in relation to the sector and the economy as a whole). The

profit margins that management believes can be sustainably generated are

used for the subsequent perpetuity phase, with zero growth consistently

assumed. The capitalisation rate is based on the Capital Asset Pricing

Model (CAPM). The risk-free basic interest rate is determined, where

possible, using corresponding yield curve data from the respective national

banks. If this data cannot be obtained or can only be obtained with a

disproportionately high effort, reference is made to the yields of the

respective 30-year government bonds. Both the yield curves and the

government bonds reflect the current interest rate trend on financial

markets. The selection of the market risk premium is guided by the ranges

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currently recommended by the Institute of Public Auditors in Germany

(IDW). The beta factor is calculated for Hannover Rück SE on the basis of

publicly accessible capital market data. The foreign exchange rates used for

currency translation correspond to the situation on the balance sheet date.

The following capitalisation rates and growth rates were recognised for the

individual cash-generating units:

Capitalisation rates



	2024	2025
	Capitalisation rate
Argenta Holdings Limited	10.16%	10.65%
E+S Rückversicherung AG	8.00%	8.79%
Integra Insurance Solutions Limited	10.30%	10.74%

The capitalisation rates as well as material / value-influencing items of the

respective planning calculations (inter alia reinsurance revenue, premium

volumes, investment income or loss ratios) were varied as part of sensitivity

analyses. In this context, individual parameters were changed within

appropriate bands that can be expected in light of the current market

situations and developments. It was established that where changes were

made to parameters in areas that could reasonably occur, the values in use

were above the corresponding book values. We would also refer to our

basic remarks in section 3.2 “Summary of major accounting policies”.

6.3 Other assets


Other assets
in EUR million	2024	2025
Other intangible assets	131.7	118.4
Insurance for pension commitments	110.1	110.8
Own-use real estate	109.8	105.7
Tax refund claims	189.2	348.7
Fixtures, fittings and equipment	40.6	25.9
Receivables from advance payments and services	213.3	180.8
Sundry	562.3	455.9
Total	1,357.0	1,346.3

With regard to the right-of-use assets from lease contracts included in the

items “Own-use real estate”, “Fixtures, fittings and equipment” and

“Sundry”, please see section 9.8 “Leases”.

Insurance for pension commitments

In the past Hannover Rück SE took out insurance covers for pension

commitments. The commitments involve, firstly, deferred annuities with

regular premium payment under a group insurance policy and, secondly,

the funding of direct commitments from deferred compensation for lump-

sum payments in the event of death or on reaching retirement age. The

insurance covers were carried as a separate asset at fair value in an amount

of EUR 110.8 million (EUR 110.1 million).

Fixtures, fittings and equipment


Fixtures, fittings and equipment
in EUR million	2024	2025
Gross book value at 31 December of the previous year	179.3	177.1
Currency translation at 1 January	3.5	-6.0
Gross book value after currency translation	182.8	171.1
Additions	17.4	7.0
Disposals	23.0	30.6
Reclassifications	—	-26.9
Currency translation at 31 December	-0.1	1.0
Gross book value at 31 December of the year under review	177.1	121.6
Cumulative depreciation at 31 December of the previous year	142.6	136.5
Currency translation at 1 January	2.7	-4.8
Cumulative depreciation after currency translation	145.3	131.7
Disposals	22.2	29.4
Depreciation	13.6	13.0
Reclassifications	—	-20.4
Currency translation at 31 December	-0.3	0.9
Cumulative depreciation at 31 December of the year under review	136.5	95.8
Net book value at 31 December of the previous year	36.7	40.6
Net book value at 31 December of the year under review	40.6	25.9

With regard to the measurement of fixtures, fittings and equipment, the

reader is referred to our explanatory notes on the other assets in

With regard to the leased assets contained in this table we would refer to

section 9.8 “Leases”.

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Other intangible assets


Development of other intangible assets
in EUR million	2024	2025
Gross book value at 31 December of the previous year	394.6	405.8
Currency translation at 1 January	4.9	-5.1
Gross book value after currency translation	399.5	400.7
Transfer	—	14.7
Additions	14.9	12.5
Disposals	8.5	1.8
Currency translation at 31 December	-0.1	-1.6
Gross book value at 31 December of the year under review	405.8	424.6
Cumulative depreciation at 31 December of the previous year	259.8	274.0
Currency translation at 1 January	1.2	-1.0
Cumulative depreciation after currency translation	261.0	273.0
Transfer	—	14.7
Disposals	8.2	1.7
Depreciation	21.0	21.5
Currency translation at 31 December	0.2	-1.3
Cumulative depreciation at 31 December of the year under review	274.0	306.2
Net book value at 31 December of the previous year	134.7	131.7
Net book value at 31 December of the year under review	131.7	118.4

This item includes EUR 34.0 million (EUR 41.1 million) for purchased

software as at the balance sheet date, on which depreciation is taken over

useful lives of three to ten years. Of the additions, an amount of EUR 2.4

million (EUR 3.9 million) is attributable to purchased software. Among other

things, the amortised cost of the intangible assets identified in connection

with the acquisition of Argenta Holdings Limited in an amount of EUR 72.9

million (EUR 78.0 million) is also recognised under other intangible assets.

Credit risks may result from other financial assets that were not overdue or

adjusted as at the balance sheet date. In this regard, the reader is referred in

general to our comments on the credit risk within the risk report as well as to

the ECL development in section 6.1 “Investments”.

6.4 Technical assets and

liabilities

The reinsurance recoverables on the liability for incurred claims and the

liability for remaining coverage are based on the contractual arrangements

of the underlying reinsurance treaties. We would additionally refer to the

explanatory remarks in the risk report regarding the type and scope of risks

arising out of insurance contracts.

In order to show the net technical liabilities remaining in the retention, the

following table presents a summary comparison of the gross liabilities with

the corresponding reinsurance recoverables, which are shown as assets in

the balance sheet.

Technical liabilities



in EUR million		Liability for incurred claims (LIC)	Liability for remaining coverage (LRC)	Total
2024	Issued	50,486.9	-1,569.3	48,917.5
	Retroceded	2,566.1	-1,064.6	1,501.5
	Net	47,920.8	-504.8	47,416.0
2025	Issued	51,801.3	-4,375.5	47,425.8
	Retroceded	1,897.3	-790.1	1,107.2
	Net	49,904.0	-3,585.4	46,318.6

In addition, we recognised assets from reinsurance contracts issued of

EUR 919.4 million (EUR 1,505.7 million) and liabilities from reinsurance

contracts held of EUR 555.0 million (EUR 656.3 million) as at the balance

sheet date.

The liability for incurred claims is in principle calculated on the basis of the

information supplied by ceding companies. Additional IBNR reserves are

established for losses that have already been incurred but not yet reported.

The movement in the liability for remaining coverage is shown in the

following tables. The presentation differentiates in each case between

reinsurance contracts issued and held.

Confidence level of the technical

reserves

Applying our “pricing margin approach”(cf. explanatory remarks on the risk

adjustment for non-financial risk in section 3.2 “Summary of major

accounting policies”) and allowing for risk diversification between the

companies belonging to the Hannover Re Group, the confidence level for

our technical reserves as at the balance sheet date is 81.5% (82.8%).

In contrast to the calculation of risk capital under Solvency II, the

determination of the confidence level is based not on consideration of the

one-year horizon but rather an ultimate perspective. Presentation based on

the one-year horizon would result in a higher confidence level.

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Movement in carrying amount of liabilities for remaining coverage and for incurred claims – reinsurance contracts issued
in EUR million	2024				2025
	LRC excluding loss component	Loss component	LIC	Total	LRC excluding loss component	Loss component	LIC	Total
Opening balance – assets	1,394.4	-2.3	-372.3	1,019.8	1,416.6	-19.1	108.2	1,505.7
Opening balance – liabilities	-2,480.3	505.6	46,214.1	44,239.4	-2,385.7	816.4	50,486.9	48,917.5
Opening balance – net	-3,874.8	507.9	46,586.5	43,219.6	-3,802.3	835.5	50,378.7	47,411.8
Contracts under the modified retrospective approach	-2,273.6	—	—	-2,273.6	-2,117.8	—	—	-2,117.8
Contracts under the fair value approach	-4,861.0	—	—	-4,861.0	-4,242.7	—	—	-4,242.7
Other contracts	-19,244.5	—	—	-19,244.5	-20,425.5	—	—	-20,425.5
Reinsurance revenue	-26,379.2	—	—	-26,379.2	-26,786.0	—	—	-26,786.0
Incurred claims and other reinsurance service expenses	-0.2	-183.7	20,449.3	20,265.4	0.3	-205.1	19,784.7	19,579.9
Amortisation of insurance acquisition cash flows	1,006.7	—	—	1,006.7	1,009.0	—	—	1,009.0
Losses and reversal of losses on onerous contracts	0.1	480.8	—	480.9	—	478.4	—	478.5
Adjustments to liabilities for incurred claims	—	—	-54.8	-54.8	—	—	494.0	494.0
Reinsurance service expenses	1,006.6	297.1	20,394.5	21,698.2	1,009.4	273.3	20,278.7	21,561.3
Investment component	-5,949.1	—	5,949.1	—	-6,581.1	—	6,581.1	—
Reinsurance finance result before currency gains/losses plus changes through OCI	929.4	16.7	827.1	1,773.2	834.4	20.4	721.3	1,576.1
Currency gains/losses	-28.6	13.8	1,350.3	1,335.6	123.8	-55.1	-3,478.1	-3,409.4
Reinsurance finance result	900.9	30.5	2,177.4	3,108.8	958.2	-34.7	-2,756.8	-1,833.3
Premiums received	31,398.0	—	—	31,398.0	32,723.8	—	—	32,723.8
Claims and other reinsurance service expenses paid, including investment components	—	—	-24,728.8	-24,728.8	—	—	-21,807.0	-21,807.0
Insurance acquisition cash flows paid	-904.8	—	—	-904.8	-4,764.3	—	—	-4,764.3
Cash flows	30,493.2	—	-24,728.8	5,764.5	27,959.5	—	-21,807.0	6,152.5
Closing balance – assets	1,416.6	-19.1	108.2	1,505.7	1,802.1	-9.5	-873.3	919.4
Closing balance – liabilities	-2,385.7	816.4	50,486.9	48,917.5	-5,440.2	1,064.6	51,801.3	47,425.8
Closing balance – net	-3,802.3	835.5	50,378.7	47,411.8	-7,242.3	1,074.1	52,674.6	46,506.4

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Movement in carrying amount by measurement components – reinsurance contracts issued
in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	2,322.9	-113.4	-320.5	-385.3	-483.9	1,019.8	2,424.1	-50.7	-107.5	-242.9	-517.3	1,505.7
Opening balance – liabilities	33,564.3	3,822.2	2,085.4	2,455.3	2,312.3	44,239.4	36,670.3	4,134.2	2,494.7	2,661.9	2,956.4	48,917.5
Opening balance	31,241.3	3,935.6	2,405.9	2,840.6	2,796.2	43,219.6	34,246.3	4,184.9	2,602.2	2,904.8	3,473.7	47,411.8
CSM recognised in the profit or loss for services provided	—	—	-232.0	-612.0	-4,279.5	-5,123.5	—	—	-203.8	-336.1	-4,658.5	-5,198.4
Change in risk adjustment for non-financial risk expired	—	-308.8	—	—	—	-308.8	—	-322.1	—	—	—	-322.1
Experience adjustments	324.8	—	—	—	—	324.8	-677.0	—	—	—	—	-677.0
Reinsurance service result – changes relate to current service	324.8	-308.8	-232.0	-612.0	-4,279.5	-5,107.5	-677.0	-322.1	-203.8	-336.1	-4,658.5	-6,197.4
Contracts initially recognised in the year	-4,594.9	333.0	—	—	4,310.2	48.3	-4,902.2	362.9	—	—	4,588.9	49.5
Changes in estimates that adjust the CSM	-1,226.4	136.2	268.4	488.7	332.9	-0.1	-476.7	-229.7	223.9	136.5	346.3	0.4
Changes in estimates that result in losses and reversal of losses on onerous contracts	339.5	93.6	—	—	—	433.1	-27.0	455.9	—	—	—	428.9
Reinsurance service result – changes relate to future service	-5,481.7	562.8	268.4	488.7	4,643.0	481.2	-5,405.9	589.1	223.9	136.5	4,935.2	478.8
Reinsurance service result – changes that relate to past service	92.8	-147.5	—	—	—	-54.8	730.1	-236.1	—	—	—	494.0
Reinsurance finance result before currency gains/losses plus changes through OCI	1,427.7	1.1	82.5	62.9	199.0	1,773.2	1,102.4	118.1	85.1	59.6	210.8	1,576.1
Currency gains/losses	876.9	141.7	77.3	124.6	115.0	1,335.6	-2,411.4	-320.4	-107.0	-263.0	-307.6	-3,409.4
Reinsurance finance result	2,304.6	142.8	159.8	187.5	314.0	3,108.8	-1,308.9	-202.3	-21.9	-203.4	-96.7	-1,833.3
Premiums received	31,398.0	—	—	—	—	31,398.0	32,723.8	—	—	—	—	32,723.8
Claims and other reinsurance service expenses paid, including investment components	-24,728.8	—	—	—	—	-24,728.8	-21,807.0	—	—	—	—	-21,807.0
Insurance acquisition cash flows paid	-904.8	—	—	—	—	-904.8	-4,764.3	—	—	—	—	-4,764.3
Cash flows	5,764.5	—	—	—	—	5,764.5	6,152.5	—	—	—	—	6,152.5
Closing balance – assets	2,424.1	-50.7	-107.5	-242.9	-517.3	1,505.7	2,260.3	-78.4	-106.5	-197.5	-958.4	919.4
Closing balance – liabilities	36,670.3	4,134.2	2,494.7	2,661.9	2,956.4	48,917.5	35,997.3	3,935.0	2,493.9	2,304.2	2,695.4	47,425.8
Closing balance – net	34,246.3	4,184.9	2,602.2	2,904.8	3,473.7	47,411.8	33,737.1	4,013.4	2,600.4	2,501.8	3,653.8	46,506.4

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Movement in carrying amount of liabilities for remaining coverage and for incurred claims – reinsurance contracts held
in EUR million	2024				2025
	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total
Opening balance – assets	-711.0	5.5	2,231.4	1,525.9	-1,102.4	37.9	2,566.1	1,501.5
Opening balance – liabilities	1,734.8	-21.4	-1,014.5	698.9	1,630.0	14.7	-988.5	656.3
Opening balance – net	-2,445.9	26.9	3,245.9	827.0	-2,732.4	23.1	3,554.5	845.2
Reinsurance revenue (ceded)	-3,343.8	—	—	-3,343.8	-3,500.9	—	—	-3,500.9
Incurred claims and other reinsurance service expenses	—	-0.8	1,702.5	1,701.7	0.1	-0.5	1,874.9	1,874.4
Amortisation of insurance acquisition cash flows	32.6	—	—	32.6	79.4	—	—	79.4
Losses and reversal of losses on onerous contracts	—	-4.6	—	-4.6	—	-13.5	—	-13.5
Adjustments to liabilities for incurred claims	—	—	-48.5	-48.5	—	—	-168.0	-168.0
Reinsurance service result – net expenses from reinsurance contracts retroceded	-3,311.2	-5.5	1,654.1	-1,662.6	-3,421.3	-14.1	1,706.8	-1,728.5
thereof changes in non-performance risk of reinsurers	0.1	—	3.8	3.9	13.5	—	—	13.5
Investment component	-424.4	—	424.4	—	-421.3	—	421.3	—
Reinsurance finance result before currency gains/losses plus changes through OCI	23.1	1.0	64.7	88.8	94.0	0.5	53.4	147.9
Currency gains/losses	-114.6	0.7	152.0	38.0	232.3	-2.1	-260.8	-30.7
Reinsurance finance result	-91.5	1.7	216.7	126.8	326.3	-1.6	-207.4	117.2
Premiums paid	3,535.6	—	—	3,535.6	3,938.6	—	—	3,938.6
Claims and other reinsurance service expenses received, including investment components	—	—	-1,986.6	-1,986.6	—	—	-2,617.1	-2,617.1
Insurance acquisition cash flows	4.9	—	—	4.9	-3.2	—	—	-3.2
Cash flows	3,540.5	—	-1,986.6	1,554.0	3,935.4	—	-2,617.1	1,318.3
Closing balance – assets	-1,102.4	37.9	2,566.1	1,501.5	-802.6	12.5	1,897.3	1,107.2
Closing balance – liabilities	1,630.0	14.7	-988.5	656.3	1,510.7	5.0	-960.8	555.0
Closing balance – net	-2,732.4	23.1	3,554.5	845.2	-2,313.3	7.5	2,858.1	552.2

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Movement in carrying amount by measurement components – reinsurance contracts held
in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	1,043.3	140.8	52.9	46.8	242.1	1,525.9	739.0	124.5	75.0	47.9	515.1	1,501.5
Opening balance – liabilities	766.8	-66.2	-5.7	29.5	-25.6	698.9	892.8	-56.3	3.1	18.5	-201.8	656.3
Opening balance – net	276.5	207.0	58.7	17.2	267.7	827.0	-153.9	180.8	72.0	29.4	716.9	845.2
CSM recognised in the profit or loss for services provided	—	—	-7.0	-3.8	-957.9	-968.6	—	—	-19.1	-3.8	-1,080.3	-1,103.2
Change in risk adjustment for non-financial risk expired	—	-39.6	—	—	—	-39.6	—	-31.4	—	—	—	-31.4
Experience adjustments	-605.2	—	—	—	—	-605.2	-426.0	—	—	—	—	-426.0
Reinsurance service result – changes relate to current service	-605.2	-39.6	-7.0	-3.8	-957.9	-1,613.4	-426.0	-31.4	-19.1	-3.8	-1,080.3	-1,560.6
Contracts initially recognised in the year	-1,291.9	31.0	—	—	1,260.9	—	-1,160.7	122.3	—	—	1,038.4	—
Changes in recoveries of losses on onerous underlying contracts	—	—	—	—	—	—	4.4	2.8	—	—	-3.0	4.2
Changes in estimates that adjust the CSM	-120.0	3.8	10.5	14.7	91.0	—	-250.0	132.2	24.6	101.2	-7.8	0.1
Changes in estimates that result in losses and reversal of losses on onerous contracts	-7.5	2.8	—	—	—	-4.6	117.2	-134.9	—	—	—	-17.7
Reinsurance service result – changes relate to future service	-1,419.3	37.6	10.5	14.7	1,351.8	-4.6	-1,289.1	122.4	24.6	101.2	1,027.6	-13.4
Reinsurance service result – changes that relate to past service	-14.1	-34.4	—	—	—	-48.5	-180.0	12.0	—	—	—	-168.0
Reinsurance service result – Changes in non- performance risk of reinsurers	3.9	—	—	—	—	3.9	13.5	—	—	—	—	13.5
Reinsurance finance result before currency gains/ losses plus changes through OCI	48.8	2.6	8.6	0.5	28.2	88.8	95.9	5.4	9.1	0.4	37.1	147.9
Currency gains/losses	1.5	7.6	1.1	0.8	27.1	38.0	52.5	-16.3	7.9	-4.3	-70.4	-30.7
Reinsurance finance result	50.3	10.2	9.8	1.3	55.3	126.8	148.3	-10.9	17.0	-3.9	-33.3	117.2
Premiums paid	3,535.6	—	—	—	—	3,535.6	3,938.6	—	—	—	—	3,938.6
Claims and other reinsurance service expenses received, including investment components	-1,986.6	—	—	—	—	-1,986.6	-2,617.1	—	—	—	—	-2,617.1
Insurance acquisition cash flows	4.9	—	—	—	—	4.9	-3.2	—	—	—	—	-3.2
Cash flows	1,554.0	—	—	—	—	1,554.0	1,318.3	—	—	—	—	1,318.3
Closing balance – assets	739.0	124.5	75.0	47.9	515.1	1,501.5	384.3	196.1	93.1	70.7	363.0	1,107.2
Closing balance – liabilities	892.8	-56.3	3.1	18.5	—	656.3	953.1	-76.7	-1.4	-52.2	-267.9	555.0
Closing balance – net	-153.9	180.8	72.0	29.4	716.9	845.2	-568.8	272.8	94.5	122.9	630.9	552.2

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Contracts initially recognised – reinsurance contracts issued



in EUR million	2024		2025
	Profitable contracts issued ¹	Onerous contracts issued	Profitable contracts acquired ¹	Onerous contracts acquired
Expected present value of cash outflows	19,786.8	410.4	21,796.0	736.3
Insurance acquisition cash flows	943.9	8.8	1,012.5	15.4
Expected present value of cash inflows	-25,370.1	-374.4	-27,754.0	-708.5
Risk adjustment for non-financial risk	329.3	3.7	356.6	6.3
Contractual service margin	4,310.1	—	4,588.9	—
Loss component	—	48.4	—	49.5

¹ Profitable contract includes the buckets profitable and remaining

Contracts initially recognised – reinsurance contracts held



in EUR million	2024		2025
	Contracts retroceded without loss recovery component	Contracts retroceded with loss recovery component	Contracts acquired without loss recovery component	Contracts acquired with loss recovery component
Expected present value of cash inflows	1,939.1	0.1	3,625.8	1,107.4
Insurance acquisition cash flows	16.2	—	58.9	—
Expected present value of cash outflows	-3,247.1	-0.1	-4,845.4	-1,103.0
Risk adjustment	31.0	—	122.3	2.8
Contractual service margin	1,260.9	—	1,038.4	-3.0
Loss recovery amount	—	—	—	4.2

No significant portfolios were acquired in the reporting period. Separate

disclosure of the measurement components would be required for such

portfolios on initial recognition.

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Maturities of the technical cash flows

IFRS 17 “Insurance Contracts” requires information which helps to clarify

the amount and timing of cash flows expected from reinsurance contracts.

In the following tables we have shown these cash flows broken down by the

expected remaining times to maturity. As part of the maturity analysis, we

have differentiated between the cash flows of reinsurance contracts issued

and those of reinsurance contracts held. For further explanation of the

recognition and measurement of the liabilities, please see section

The average maturity of the liability for incurred claims was 4.6 years (4.5

years), or 4.6 years (4.5 years) after allowance for the corresponding

reinsurance recoverables. The liability for remaining coverage had an

average maturity of 18.3 years (17.8 years) – or 18.1 years (17.9 years) on a

net basis.

The average maturity of the liabilities is determined using actuarial

projections of the expected future payments. A payment pattern is

calculated for each homogenous category of our portfolio – making

allowance for the business sector, geographical considerations, contract

type and type of reinsurance – and applied to the outstanding liabilities for

each underwriting year and run-off status.

Maturities of the remaining contractual undiscounted net cash flows



in EUR million	2024		2025
	Remaining contractual undiscounted net cash flows		Remaining contractual undiscounted net cash flows
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	5,126.3	-1,321.0	3,720.8	-1,439.4
Due after one through two years	10,132.9	431.1	10,088.1	388.3
Due after two through three years	6,439.7	309.4	6,946.9	204.4
Due after three through four years	4,332.0	205.7	4,392.0	182.6
Due after four through five years	3,132.6	150.2	3,368.6	130.6
Due after five through ten years	7,352.0	308.6	7,618.2	219.7
Due after ten through twenty years	2,512.8	-49.6	2,213.3	-182.4
Due after twenty years	1,320.8	-161.3	1,284.9	-144.7
	40,349.0	-126.9	39,632.7	-640.8
Discounting	-6,102.8	-27.0	-5,895.6	72.0
Total	34,246.2	-153.9	33,737.1	-568.8

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Maturities of the contractual service

margin

The following table shows the future development of the CSM from our

reinsurance contracts held and issued. For further explanation of the

recognition and measurement of the liabilities, please see section

Maturities of the contractual service margin



in EUR million	2024		2025
	Contractual service margin		Contractual service margin
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	2,620.8	544.6	2,418.1	429.9
Due after one through two years	765.6	17.8	742.2	34.6
Due after two through three years	517.4	18.0	553.1	28.4
Due after three through four years	475.0	18.7	500.7	29.6
Due after four through five years	446.4	19.0	452.9	29.9
Due after five through ten years	1,855.5	97.0	1,868.2	145.9
Due after ten through twenty years	2,362.7	163.9	2,399.2	218.8
Due after twenty years	3,680.0	86.6	3,498.6	139.1
	12,723.4	965.7	12,433.1	1,056.1
Discounting	-3,742.6	-147.4	-3,677.2	-207.8
Total	8,980.7	818.3	8,755.9	848.3

6.5 Provisions for pensions

and other post-employment

benefit obligations

Pension commitments are given in accordance with the relevant version of

the pension plan as amended. The 1968 pension plan provides for

retirement, disability, widows’ and orphans’ benefits. The pension

entitlement is dependent on length of service; entitlements under the

statutory pension insurance scheme are taken into account. The pension

plan was closed to new participants with effect from 31 January 1981.

On 1 April 1993 (1 June 1993 in the case of senior executives) the 1993

pension plan came into effect. This pension plan provides for retirement,

disability and surviving dependants’ pensions. The scheme is based upon

annual determination of partial pension contributions, which are calculated

according to the pensionable earnings, the contribution assessment ceiling

for statutory pension insurance and the company’s performance. The

pension plan was closed to new participants with effect from 31 March

1999.

Insurance coverage has been taken out for both the aforementioned

pension plans (direct commitments). These reimbursement claims are

recognised as separate assets.

From 1997 onwards it has been possible to obtain pension commitments

through deferred compensation. The employee-funded commitments

included in the provisions for accrued pension rights are protected by an

insurance contract with HDI Lebensversicherung AG, Cologne.

As at 1 July 2000 the 2000 pension plan came into force for the entire

Group. Under this plan, new employees included in the group of

beneficiaries are granted an indirect commitment from HDI

Unterstützungskasse e. V. This pension plan provides for retirement,

disability and surviving dependants’ benefits. The provident fund takes out

insurance coverage with HDI Lebensversicherung AG that maps the entire

spectrum of benefits (matching coverage). These pension commitments

are considered to be contribution-based pension benefits under German

employment law, and for economic purposes the pension scheme is

classified as a defined benefit plan. The relevant assets of the provident

fund are recognised as plan assets.

Employees also have the option to accumulate additional, insurance-type

retirement provision by way of deferred compensation. Pension provisions

are not recognised in this regard, insofar as retirement provision through

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deferred compensation is implemented by indirect means (direct

insurance).

Employee-funded commitments for which a direct commitment was

granted are insured under an insurance contract with HDI

Lebensversicherung AG, Cologne. These are commitments to pay a lump

sum on reaching retirement age and in the event of death. Provisions are

established for these commitments if the benefits are not covered by the

insurance.

In addition to these pension plans, senior executives and members of the

Executive Board, in particular, enjoy individual commitments as well as

commitments given under the benefits plan of the Bochumer Verband.

The commitments to employees in Germany predominantly comprise

benefit obligations financed by Hannover Rück SE and E+S

Rückversicherung AG. The provisions for pensions in Germany and abroad

were calculated on the basis of uniform standards according to prevailing

economic circumstances.

Provisions for pensions are established in accordance with actuarial

principles and are based upon the commitments made by the Hannover Re

Group for retirement, disability and widows’ benefits. The Heubeck “2018 G

standard tables”, enhanced as in the previous year according to the

observable risk experience in the portfolio. were used as the biometric

actuarial basis for pension commitments in Germany. The amount of the

commitments is determined according to length of service and salary level.

The defined benefit plans expose Hannover Re to the following actuarial

risks:

– longevity

– interest rate

– disablement

– pension progression

– rate of compensation increase

Longevity entails the risk that the mortality contained in the actuarial bases

does not correspond to the actual mortality and that pension payments

have to be rendered and funded for a longer duration than had been

assumed.

Disablement entails the risk that the assumed number of retirements from

the subportfolio of eligible beneficiaries on grounds of disability does not

correspond to the actual experience and for this reason increased benefit

obligations have to be met.

The pension progression entails the risk that the anticipated development of

the consumer price index factored into the trend assumptions was too low

and that increased benefit obligations arise on account of pension

indexation required by law.

The rate of compensation increase entails the risk that the increases in

pensionable salaries factored into the trend assumptions on a parallel basis

do not adequately reflect the actual developments. In addition, in the case

of plans under which the determinative income components above and

below the income threshold for contributions to the statutory pension

insurance scheme are differently weighted for the purpose of calculating the

benefit, there is a risk of a diverging trend in the future with respect to salary

and income threshold.

Measures to reduce these risks consist of pension insurance taken out for

virtually all pension commitments (for new additions defined contribution

plans with matching insurance coverage) as well as enhanced biometric

actuarial bases. The assumptions for the pension progression and for the

expected rate of compensation increase and career trend are regularly

reviewed and if necessary adjusted with an eye to current expectations for

the inflation trend. No unusual risks or risk concentrations can be identified.

The calculation of the provisions for pensions is based upon the following

assumptions:


Measurement assumptions
in %	2024	2025
Discount rate for defined benefit obligation	3.43	3.95
Discount rate for net interest component	3.35	3.37
Discount rate for current service costs	3.12	3.54
Rate of compensation increase	3.42	3.19
Pension progression	2.26	2.20

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The movements in the net pension liability for the Group’s various defined

benefit plans were as follows:


Movements in net liability from defined benefit pension plans
in EUR million	2024	2025	2024	2025	2024	2025
	Defined benefit obligation		Fair value of plan assets		Effect of minimum funding requirement on asset ceiling
Position at 1 January of the financial year	219.1	213.3	60.1	65.5	3.3	5.5
Recognised in profit or loss
Current service costs	5.9	5.8	—	—	—	—
Past service cost, plan curtailments and settlements	0.2	—	—	—	—	—
Net interest component	7.2	7.1	2.2	2.5	0.1	0.2
	13.3	12.9	2.2	2.5	0.1	0.2
Recognised in cumulative other comprehensive income
Actuarial gain (-)/loss (+) from change in financial assumptions	-12.4	-16.4	—	—	—	—
Experience gains (-) / losses (+)	-0.1	1.6	—	—	—	—
Return on plan assets, excluding amounts included in interest income	—	—	-2.2	-3.2	—	—
Change in asset ceiling	—	—	—	—	2.1	3.4
Exchange differences	0.3	-0.5	0.3	-0.6	—	—
	-12.2	-15.3	-1.9	-3.8	2.1	3.4
Other changes
Employer contributions	—	—	6.7	7.3	—	—
Employer contributions and deferred compensation	—	—	-0.5	-0.3	—	—
Benefit payments	-7.1	-7.5	-1.1	-1.6	—	—
Additions and disposals	—	0.4	0.1	0.4	—	—
	-7.0	-7.1	5.1	5.8	—	—
Position at 31 December of the financial year	213.3	203.7	65.5	70.0	5.5	9.1

The plan assets contain assets held by a long-term employee benefit fund

and qualifying insurance policies as defined by IAS 19 in amount of EUR

65.4 million (EUR 51.8 million). The plan assets are attributable in an

amount of EUR 4.1 million (EUR 4.6 million) to assets with quoted market

prices.

The reconciliation of the projected benefit obligations with the recognised

provisions for pensions is as follows:


Provisions for pensions
in EUR million	2024	2025
Projected benefit obligations at 31 December of the financial year	213.3	203.7
Fair value of plan assets at 31 December of the financial year	65.5	70.0
Effect of minimum funding requirement on asset ceiling	5.5	9.1
Recognised pension obligations at 31 December of the financial year	153.3	142.9
thereof: capitalised assets	2.1	1.3
Provisions for pensions	155.4	144.1

Of the total provisions for pensions, an amount of EUR 141.7 million

(EUR 152.7 million) is attributable to employer-funded obligations and

EUR 2.4 million (EUR 2.7 million) to employee-funded obligations.

In the current financial year Hannover Re anticipates contribution payments

of EUR 7.8 million under the plans set out above. The weighted average

duration of the defined benefit obligation is 13.7 (14.5) years.

With effect from 1 January 2024 the assets from the pension insurance are

shown as reimbursement rights. The reconciliation of the fair value of the

reimbursement rights breaks down as follows:

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Reimbursement rights
in EUR million	2024	2025
Position at 1 January of the financial year	104.8	107.4
Benefit payments	-3.3	-3.3
Interest	3.4	3.4
Return due to remeasurement	0.4	-0.6
Employer contributions	2.1	1.6
Position at 31 December of the financial year	107.4	108.6

Sensitivity analysis

An increase or decrease in the key actuarial assumptions would have the

following effect on the present value of the defined benefit obligation as at

the balance sheet date:


Effect on the defined benefit obligations
in EUR million		Parameter increase	Parameter decrease
Discount rate	(+/- 0,5 %)	-12.5	13.8
Rate of compensation increase	(+/- 0,25 %)	1.0	-1.0
Pension indexation	(+/- 0,25 %)	4.9	-4.8

Furthermore, a change is possible with respect to the assumed mortality

rates and lifespans. The underlying mortality tables were adjusted by

reducing the mortalities by 10% in order to determine the longevity risk.

Extending the lifespans in this way would have produced a EUR 5.5 million

(EUR 6.9 million) higher pension commitment at the end of the financial

year.

Defined contribution plans

In addition to the defined benefit plans, some Group companies have

defined contribution plans that are based on length of service and the

employee’s income or level of contributions. The expense recognised for

these obligations in the financial year in accordance with IAS 19 “Employee

Benefits” was EUR 30.7 million (EUR 27.9 million). Of the expense for

defined contribution plans, an amount of EUR 17.8 million

(EUR 16.3 million) relates to state pension schemes, thereof

EUR 14.4 million (EUR 12.8 million) to contributions to the statutory

pension insurance scheme in Germany.

6.6 Other liabilities


Other liabilities
in EUR million	2024	2025
Liabilities from derivatives	97.6	101.5
Interest	45.0	35.6
Deferred income and prepayments received	61.2	72.0
Sundry non-technical provisions	266.6	259.1
Sundry liabilities	2,169.1	2,209.6
Total	2,639.5	2,677.6

With regard to the liabilities from derivatives in an amount of

EUR 101.5 million (EUR 97.6 million), please see our explanatory remarks

on derivative financial instruments in section 9.1 “Derivative financial

We enter into term repurchase agreements (repos) as a supplementary

liquidity management tool. The asset portfolios exchanged in this context

are fully collateralised. As at the balance sheet date the liabilities from repos

recognised in the sundry liabilities amounted to EUR 211.2 million

(EUR 116.5 million). In addition, cash collateral received in connection with

the market performance of derivatives was recognised in the sundry

liabilities in an amount of EUR 23.5 million (EUR 61.0 million). The sundry

liabilities further include accounts payable of EUR 1,100.1 million

(EUR 920.8 million) that were not allocated to underwriting items.

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Development of sundry non-technical provisions
in EUR million	Balance at 31 December 2024	Currency translation at 1 January	Balance at 1 January of the year under review	Additions	Utilisation	Release	Currency translation at 31 December	Balance at 31 December 2025
Provisions for
Audits and costs of publishing the annual financial statements	11.6	-0.4	11.2	8.4	8.8	0.2	—	10.6
Consultancy fees	3.3	-0.1	3.2	1.5	2.2	0.2	—	2.3
Suppliers’ invoices	16.9	-1.1	15.9	3.7	9.0	0.8	0.2	9.9
Partial retirement arrangements and early retirement obligations	4.0	—	4.0	—	0.7	—	—	3.3
Holiday entitlements and overtime	15.8	-0.3	15.5	9.4	9.1	—	—	15.9
Anniversary bonuses	6.4	-0.2	6.2	0.3	0.1	—	—	6.4
Management and staff bonuses	140.0	-4.6	135.4	72.3	55.3	2.0	—	150.4
Other	68.5	-1.3	67.3	19.9	26.1	0.8	0.1	60.4
Total	266.6	-8.0	258.6	115.5	111.4	4.0	0.4	259.1

The maturities of the sundry non-technical provisions as at the balance

sheet date are shown in the following table.


Maturities of the sundry non-technical provisions
in EUR million	2024	2025
Due in one year	156.0	145.8
Due after one through five years	104.0	106.6
Due after five years	6.2	6.3
No maturity	0.4	0.4
Total	266.6	259.1

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6.7 Financing liabilities

On 14 November 2022 Hannover Rück SE placed subordinated unsecured

debt in the amount of EUR 750.0 million on the European capital market.

The bond has a total maturity of around 21 years and a first scheduled call

option on 26 February 2033. It carries a fixed coupon of 5.875% p. a. in the

first roughly eleven years, after which the interest rate basis changes to a

floating rate of 3-month EURIBOR +375 basis points.

On 22 March 2021 Hannover Rück SE placed subordinated unsecured debt

in the amount of EUR 750.0 million on the European capital market. The

bond has a total maturity of around 21 years and a first scheduled call option

on 30 December 2031. It carries a fixed coupon of 1.375% p. a. in the first

roughly eleven years, after which the interest rate basis changes to a

floating rate of 3-month EURIBOR +233 basis points.

On 8 July 2020 Hannover Rück SE placed subordinated unsecured debt in

the amount of EUR 500.0 million on the European capital market. The bond

has a total maturity of around 20 years with a first scheduled call option on

8 July 2030. It carries a fixed coupon of 1.75% p. a. in the first roughly ten

years, after which the interest rate basis changes to a floating rate of 3-

month EURIBOR +300 basis points.

On 9 October 2019 Hannover Rück SE placed subordinated unsecured

debt in the amount of EUR 750.0 million on the European capital market.

The bond has a total maturity of 20 years with a first scheduled call option

on 9 July 2029. It carries a fixed coupon of 1.125% p. a. in the first ten years,

after which the interest rate basis changes to a floating rate of 3-month

EURIBOR +238 basis points.

On 18 April 2018 Hannover Rück SE placed senior unsecured debt in the

amount of EUR 750.0 million on the European capital market. The bond has

a maturity date of 18 April 2028 and may be redeemed at any time from

18 January 2028 onwards, although not later than 18 April 2028. It carries a

fixed coupon of 1.125% p. a..

The subordinated debt issued by Hannover Rück SE in 2014 in an amount

of EUR 500.0 million was called in the year under review.

In total, five (six) bonds were recognised as at the balance sheet date with

an amortised cost of EUR 3,484.5 million (EUR 3,980.8 million). The

aggregate fair value of the bonds issued is based on quoted, active market

prices. If such price information was not available, the fair values were

calculated on the basis of the recognised effective interest method or

estimated using other financial instruments with the same credit rating,

maturity and yield characteristics. The effective interest rate method is

always based on the current market interest rate levels in the relevant fixed-

interest periods.

Long-term debt and notes payable



in EUR million	Coupon	Maturity	Currency	2024				2025
	Coupon	Maturity	Currency	Amortised cost	Fair value measurement	Accrued interest	Fair value	Amortised cost	Fair value measurement	Accrued interest	Fair value
Hannover Rück SE, 2022	5.875	2043	EUR	746.3	103.6	15.5	865.3	746.6	93.2	15.5	855.2
Hannover Rück SE, 2021	1.375	2042	EUR	745.2	-105.0	5.2	645.4	745.8	-93.9	5.2	657.2
Hannover Rück SE, 2020	1.750	2040	EUR	497.0	-41.5	2.0	457.5	497.5	-34.1	2.0	465.5
Hannover Rück SE, 2019	1.125	2039	EUR	745.1	-70.3	1.9	676.7	746.2	-52.9	1.9	695.2
Hannover Rück SE, 2018	1.125	2028	EUR	747.7	-32.3	5.9	721.3	748.5	-16.0	5.9	738.4
Hannover Rück SE, 2014	3.375	n/a	EUR	499.6	-2.0	8.7	506.3	—	—	—	—
Notes payable				3,980.8	-147.5	39.3	3,872.5	3,484.5	-103.7	30.6	3,411.4
Long-term debt				581.5	-4.8	2.4	579.1	565.7	—	2.0	567.7
Total				4,562.3	-152.3	41.6	4,451.7	4,050.2	-103.7	32.6	3,979.1

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Net gains and losses from long-term debt and notes payable



in EUR million	2024	2025	2024	2025	2024	2025
	Ordinary income/expenses		Amortisation		Net result
Long-term debt	-48.0	-39.0	-0.8	-1.7	-48.8	-40.7
Notes payable	-97.0	-80.0	-3.9	-3.7	-100.2	-83.7
Total	-145.0	-119.0	-4.7	-5.4	-149.0	-124.4

The ordinary expenses principally include interest expenses of nominally

EUR 80.0 million (EUR 97.0 million) resulting from the issued subordinated

and senior bonds.

Maturities of financial liabilities



in EUR million	2024						2025
	Due within up to 1 year	One to five years	Five to ten years	Ten to twenty years	More than twenty years	No maturity	Due within up to 1 year	One to five years	Five to ten years	Ten to twenty years	More than twenty years	No maturity
Other financial liabilities ¹	429.2	15.2	36.4	3.3	—	1.2	485.3	30.6	18.5	3.9	—	33.5
Long-term debt	84.6	432.4	64.5	—	—	—	170.9	374.2	20.6	—	—	—
Notes payable	—	747.7	—	2,733.5	—	499.6	—	748.5	—	2,736.0	—	—
Lease liabilities	14.9	29.3	23.9	—	38.5	—	10.8	39.4	6.7	—	35.2	—
Total	528.7	1,224.6	124.8	2,736.7	38.5	500.8	666.9	1,192.7	45.8	2,740.0	35.2	33.5
¹ Excluding sundry non-technical provisions, for which the maturities are broken down separately, and other various liabilities

The following table shows the movements in long-term debt, notes payable

and other long-term liabilities with respect to cash and non-cash changes.

Reconciliation of financing liabilities



in EUR million	Balance at 31 December 2023	Cash flow	Change in consolidation	Non-cash items		Balance at 31 December 2024	Cash flow	Change in consolidation	Non-cash items		Balance at 31 December 2025
	Balance at 31 December 2023	Cash flow	Change in consolidation	Exchange rate difference	Other changes	Balance at 31 December 2024	Cash flow	Change in consolidation	Exchange rate difference	Other changes	Balance at 31 December 2025
Long-term debt	797.7	-66.8	-168.0	17.9	0.8	581.5	20.3	—	-37.9	1.7	565.7
Notes payable	3,976.9	—	—	—	3.9	3,980.8	-500.0	—	—	3.7	3,484.5
Lease liabilities	100.8	-14.7	—	3.4	17.1	106.6	-15.6	—	-7.1	8.2	92.1
Total	4,875.4	-81.4	-168.0	21.3	21.8	4,669.0	-495.3	—	-45.0	13.6	4,142.3

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6.8 Shareholders’ equity and

treasury shares

Shareholders’ equity is shown as a separate component of the consolidated

financial statement in accordance with IAS 1 “Presentation of Financial

Statements” and subject to IAS 32 “Financial Instruments: Presentation” in

conjunction with IFRS 9 “Financial Instruments”. The change in

shareholders’ equity comprises not only the net income deriving from the

statement of income but also the changes in the value of asset and liability

items not recognised in the statement of income.

The common shares (share capital of Hannover Rück SE) amount to EUR

120,597,134.00. They are divided into 120,597,134 voting and dividend-

bearing registered ordinary shares in the form of no-par-value shares. The

shares are paid in full. Each share carries an equal voting right and an equal

dividend entitlement.

Conditional capital of up to EUR 24.1 million (EUR 24.1 million) is available.

It can be used to grant shares to holders of bonds and / or profit-sharing

rights with conversion rights and warrants and has a time limit of

4 May 2026. In addition, authorised capital is available in an amount of up to

EUR 24.1 million (EUR 24.1 million), which similarly has a time limit of

4 May 2026. The subscription right of shareholders may be excluded with

the consent of the Supervisory Board under certain conditions. The

Executive Board is authorised, with the consent of the Supervisory Board,

to use an amount of up to EUR 1.0 million (EUR 1.0 million) of the existing

authorised capital to issue employee shares.

The Executive Board is further authorised, with the consent of the

Supervisory Board, to acquire treasury shares – including through the use

of derivatives – up to an amount of 10% of the share capital. The

authorisation has a time limit of 6 May 2030.

The Annual General Meeting of Hannover Rück SE resolved on 7 May 2025

that a gross dividend of EUR 9.00 per share should be paid for the 2024

financial year, corresponding to a total distribution of EUR 1,085.4 million

(EUR 868.3 million). The distribution is comprised of an ordinary dividend of

EUR 7.00 and a special dividend of EUR 2.00 per share.

The decrease in the other reserves arising out of currency translation, which

is recognised in equity, was attributable in a net amount of

EUR 119.6 million (previous year: increase of EUR 8.1 million) to the

translation of long-term debt or loans with no maturity date extended to

Group companies and branches abroad.

IAS 1 requires disclosures on the objectives, policies and processes for

managing capital. A major strategic objective of Hannover Re is sustainable

protection of our capital. We have issued debt as an equity substitute to

keep the cost of capital low. Hannover Re uses intrinsic value creation (IVC)

as a central tool of value-based management. As part of this methodology,

we are guided by the principles of economical allocation of equity and

efficient use of debt as an equity substitute in order to achieve an attractive

weighted cost of capital. The concept and the objectives and principles

according to which we manage our capital are described in greater detail in

our comments on value-based management in the management report

(section “Management system”). The further disclosures on capital

management arising out of IAS 1.134-136 are provided in the “Financial

position and net assets” subsection of the management report, to which

the reader is referred. This includes both a presentation of our capital

management policies and processes and a summary of the diverse external

capital requirements to which we are subject (cf. subsections “Analysis of

and Group debt”). The Solvency II regulatory framework, in particular,

gives rise to capital requirements and consequences for capital

management, which we discuss more closely in the risk report.

Treasury shares

IAS 1 requires separate disclosure of treasury shares in shareholders’

equity. As part of this year’s employee share option plan Hannover Rück SE

acquired altogether 15,719 (14,799) treasury shares during the second

quarter of 2025 on the legal basis of § 71 Para. 1 No. 2 Stock Corporation

Act (AktG) and delivered them to eligible employees at preferential

conditions. These shares are blocked until 31 May 2029. This transaction

resulted in an expense of EUR 1.0 million (EUR 0.9 million), which was

recognised under personnel expenditure, as well as a negligible change in

retained earnings recognised in equity. The company was no longer in

possession of treasury shares as at the balance sheet date.

6.9 Non controlling interests

Non-controlling interests in the shareholders’ equity of subsidiaries are

reported separately within Group shareholders’ equity in accordance with

IAS 1 “Presentation of Financial Statements”. They amounted to

EUR 1,001.7 million (EUR 893.8 million) as at the balance sheet date.

Non-controlling interests in partnerships are reported in accordance with

IAS 32 “Financial Instruments: Presentation” under long-term liabilities. The

non-controlling interest in profit or loss, which forms part of net income and

is shown separately after net income as a “thereof” note, amounted to

EUR 126.0 million (EUR 68.1 million) in the year under review.

Subsidiaries with material non-controlling interests



in EUR million	2024	2025
	E+S Rückversicherung AG, Hannover, Germany
Participation of non-controlling interests	35.21%	35.21%
Voting rights of non-controlling interests	35.21%	35.21%
Net income	171.2	438.9
thereof attributable to non-controlling interests	60.3	154.5
Income/expense recognised directly in equity	-111.4	170.8
Total recognised income and expense	59.8	609.7
Shareholder's equity	2,244.7	2,757.1
thereof attributable to non-controlling interests	790.3	970.7
Dividends paid	125.0	100.0
thereof attributable to non-controlling interests	44.0	35.2
Assets	10,362.4	10,611.4
Liabilities	8,117.7	7,854.3
Cash flow from operating activities	571.5	786.9
Cash flow from investing activities	490.9	-627.6
Cash flow from financing activities	-74.6	-180.8

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7. Notes on the

individual items of the

statement of income

7.1 Reinsurance revenue

The following tables show the breakdown of the gross reinsurance revenue

into geographical origin and categories.

Reinsurance revenue (gross) by region



in EUR million	2024	2025
Regional origin
Germany	1,574.3	1,504.0
United Kingdom	4,314.5	3,800.2
France	876.3	817.8
Other	2,350.9	2,104.2
Europe	9,116.0	8,226.2
USA	9,622.9	11,091.1
Other	1,404.9	1,436.3
North America	11,027.8	12,527.4
Asia	3,076.0	2,882.8
Australia	1,513.0	1,467.6
Australasia	4,589.1	4,350.5
Africa	482.3	531.2
Other	1,164.1	1,150.8
Total	26,379.3	26,786.0

Components of the reinsurance revenue (gross)



in EUR million	2024	2025
Components
Expected incurred claims and other insurance expenses	17,922.5	19,928.7
CSM recognised for services provided	5,123.9	5,198.4
Release of risk adjustment for non-financial risk	560.3	552.6
Experience adjustments for past or current services	1,765.9	97.3
Recovery of insurance acquisition cash flows	1,006.7	1,009.0
Total	26,379.3	26,786.0

7.2 Investment result

Investment result



in EUR million	2023	2025
Income from real estate and infrastructure investments	249.2	272.1
Dividends	89.1	157.2
Interest income on debt instruments	1,722.6	1,783.0
Other income and amortisation	292.3	331.8
Ordinary investment income	2,353.2	2,544.1
Expected credit losses	-2.9	-1.8
Impairments/Depreciation on real estate	98.0	88.2
Appreciation of investments	2.7	4.4
Change in fair value of financial instruments	2.7	22.4
Profit/loss from investments in associated companies and joint ventures	27.3	-33.2
Realised gains on investments	67.7	108.1
Realised losses on investments	158.1	672.3
Other investment expenses	189.6	210.5
Investment result	2,005.1	1,672.9

We recorded a net charge of EUR 1.8 million (EUR 2.9 million) from the

change in provision for expected credit losses (ECL) recognised in profit or

loss. Changes from additions and disposals and changes in the risk profiles

of individual securities balanced each other out here despite an increased

portfolio of financial instruments.

We carried fixed-income securities with a total fair value of EUR 22.1 million

(EUR 80.4 million) in Stage 3 of our risk provisioning model as at the

balance sheet date. Impairments for investments not covered by the stage

model for expected credit losses were incurred on directly held real estate

investments in an amount of EUR 26.1 million (EUR 37.5 million). We took

into consideration increased pressure on market values here by recognising

impairments on a number of directly held properties in the US and

European office and retail real estate market.

The portfolio did not contain any overdue, unadjusted investments as at the

balance sheet date.

Interest income on investments



in EUR million	2023	2025
Financial investments – at fair value through OCI	1,561.6	1,624.7
Financial investments – at fair value through profit or loss	159.5	158.1
Other	1.5	0.2
Total	1,722.6	1,783.0

The net gains and losses on investments held to maturity, loans and

receivables and the available-for-sale portfolio shown in the following table

are composed of interest income, realised gains and losses as well as

impairments and appreciation. In the case of the fixed-income securities at

fair value through profit or loss designated in this category and the other

financial assets, which include the technical derivatives, income and

expenses from changes in fair value are also recognised.

Making allowance for the other investment expenses of EUR 210.5 million

(EUR 189.6 million), net income from investments of altogether

EUR 1,672.9 million (EUR 2,005.1 million) was recognised in the year under

review.

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Net gains and losses on investments



in EUR million	2024					2025
	Ordinary investment income ¹	Expected credit losses, impairment, depreciation and appreciation of investments	Change in fair value of financial instruments	Realised gains and losses on investments	Net income from investments ²	Ordinary investment income ¹	Expected credit losses, impairment, depreciation and appreciation of investments	Change in fair value of financial instruments	Realised gains and losses on investments	Net income from investments ²
Financial investments – at fair value through OCI	1,842.3	-2.9	—	-93.6	1,745.8	1,952.9	-1.9	—	-592.7	1,358.3
Financial investments – at fair value through profit or loss	289.7	—	-6.2	2.0	285.4	356.9	—	42.3	—	399.2
Investment property	212.9	-95.4	—	1.9	119.5	230.7	-83.8	—	28.5	175.3
Investments in associated companies and joint ventures	27.7	—	4.4	-0.6	31.5	-33.1	—	-7.0	—	-40.1
Other invested assets	5.2	—	19.0	—	24.1	2.6	—	4.6	—	7.2
Other	2.9	—	-14.4	-0.1	-11.7	1.0	0.1	-17.6	—	-16.6
Total	2,380.6	-98.3	2.7	-90.4	2,194.7	2,510.9	-85.7	22.4	-564.2	1,883.4

¹ Including income from associated companies and joint ventures, for reconciliation with the consolidated statement of income

² Excluding other investment expenses

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7.3 Insurance finance income

and expenses

In the following table we compare the reinsurance finance result with the

investment return. Both earnings components include income and

expenses from currency translation and the amounts recognised directly in

OCI. The reinsurance finance result is comprised primarily of the effects

from interest accretion and changes in the discounting assumptions and

other financial measurement assumptions relating to our technical

provisions.

Insurance finance income and expenses



in EUR million	2024	2025
Investment income	2,749.5	3,002.3
Investment expenses	-744.4	-1,329.4
Investment result	2,005.1	1,672.9
Currency gains/losses on investments	809.4	-1,987.6
Amounts recognised in OCI	-67.2	1,459.1
Total investment return	2,747.2	1,144.3
Interest accreted	-1,200.3	-1,485.2
Changes in interest rates and other financial assumptions	-541.8	-198.0
Currency gains/losses	-913.0	2,406.5
Total finance income or expenses from reinsurance contract (gross)	-2,655.1	723.3
thereof recognised in profit or loss	-2,035.9	962.7
thereof recognised in other comprehensive income	-619.2	-239.4
Interest accreted	28.9	85.1
Changes in interest rates and other financial assumptions	64.5	56.0
Currency gains/losses	33.6	-177.1
Total finance income or expenses from reinsurance contracts (retroceded)	127.1	-36.0
thereof recognised in profit or loss	41.5	-96.6
thereof recognised in other comprehensive income	85.6	60.6
Total reinsurance finance income and expenses	-2,528.0	687.3
thereof recognised in profit or loss	-1,994.4	866.2
thereof recognised in other comprehensive income	-533.6	-178.8
Currency gains/losses from reinsurance finance result (net)	-879.4	2,229.4
Total Insurance finance income and expenses before currency gains or losses	-1,648.6	-1,542.1
thereof recognised in profit or loss	-1,115.0	-1,363.3
thereof recognised in other comprehensive income	-533.6	-178.8

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7.4 Other income and

expenses

Other income



in EUR million	2024	2025
Income from services	177.1	183.5
Other interest income	43.0	41.4
Income from releases of other provisions	4.0	3.6
Sundry income	55.4	32.6
Other income	279.5	261.0
Expenses for services	126.7	142.6
Other interest expenses	47.8	38.7
Deconsolidation	—	12.4
Expenses for the company as a whole	524.3	526.4
Sundry expenses	63.7	82.0
Other expenses	762.4	802.2
Total	-482.9	-541.2

The other income includes revenues from contracts with customers set out

below in accordance with IFRS 15. With regard to the fundamental

approach adopted for application of IFRS 15 we would refer to the remarks

in section 3.2 “Summary of major accounting policies”.

Revenue categories



in EUR million	2024	2025
Revenue realised at a point in time
Brokerage commissions, performance fees and similar forms of remuneration	91.5	95.8
Other insurance-related services	6.9	6.3
Revenue realised over time
Other insurance-related services	78.1	80.9
Total	176.4	183.0

The brokerage commissions, performance fees and similar forms of

remuneration in an amount of EUR 95.8 million (EUR 91.5 million) were

realised at a point in time. Of this amount, EUR 94.5 million

(EUR 91.0 million) is attributable to brokerage commissions earned by

Group-internal insurance companies and insurance intermediaries.

An amount of EUR 80.9 million (EUR 78.1 million) was realised over time in

the current financial year in connection with other insurance-related

services. This primarily involves income from the assumption of

administrative and management services as well as income connected with

IT-related agreements for transfer of use. The transaction prices for the

administrative and management services are essentially calculated on the

basis of the underlying general fee scales as well as a percentage share of

the gross premium and are earned in accordance with the contractual term

and realised pro rata temporis. The contract prices that are fixed by

agreement for the transfer of use are used as transaction prices and

realised pro rata temporis with the customer’s use.

In addition, revenues of EUR 6.3 million (EUR 6.9 million) were realised at a

point in time in the year under review from other insurance-related services.

This primarily involves income connected with commission-based

business. The transaction price is arrived at as a percentage of the

underlying gross premium share. The performance obligation is deemed to

be fulfilled at a point in time upon issuance of the insurance certificate for

the end customer.

7.5 Taxes on income

Actual taxes on income at the domestic companies, comparable actual

taxes on income at foreign subsidiaries as well as deferred taxes in

accordance with IAS 12 “Income Taxes” are recognised under this item.

The reader is referred to the remarks in section 3.2 “Summary of major

accounting policies” regarding the basic approach to the recognition and

measurement of deferred taxes.

Deferred taxes are calculated on the basis of the tax provisions applicable

at the balance sheet date. For domestic matters, a tax rate range of 27% -

30% (previous year: 32.63%) was taken as a basis owing to the change in

tax rates. This encompasses corporation tax, including the solidarity

surcharge, and trade tax.

The tax rate change is largely due to the gradual reduction of the

corporation tax rate approved under the tax investment programme

effective 1 January 2028 from the current 15% in five steps by one

percentage point per year to 10% from 2032 onwards

Tax-relevant bookings on the Group level are made using the Group tax

rate unless they refer specifically to individual companies.

Deferred tax liabilities on profit distributions of significant affiliated

companies are established in the year when they are received.

Breakdown of taxes on income

The breakdown of actual and deferred income taxes was as follows:

Income tax



in EUR million	2024	2025
Actual tax for the year under review	733.9	688.1
Actual tax for other periods	8.3	-93.9
Deferred taxes due to temporary differences	55.4	242.6
Deferred taxes from loss carry-forwards	6.4	-0.5
Change in deferred taxes due to changes in tax rates	-21.7	-219.7
Value adjustments on deferred taxes	34.1	28.7
Total	816.5	645.3

Domestic/foreign breakdown of recognised tax expenditure / income



in EUR million	2024	2025
Current taxes
Germany	502.2	297.1
Abroad	240.1	297.1
Deferred taxes
Germany	11.7	35.2
Abroad	62.6	15.9
Total	816.5	645.3

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The following table presents a breakdown of the deferred tax assets and

liabilities into the balance sheet items from which they are derived.

Deferred tax assets and deferred tax liabilities of all Group companies



in EUR million	2024	2025
Deferred tax assets
Tax loss carry-forwards	173.8	169.6
Technical provisions	7,840.9	7,274.5
Investments	686.7	433.2
Other valuation differences	899.2	1,044.0
Value adjustments ¹	-363.3	-349.6
Total	9,237.3	8,571.7
Deferred tax liabilities
Technical provisions	8,642.9	8,354.0
Equalisation reserve	1,480.3	1,124.7
Investments	148.2	238.9
Other valuation differences	261.9	482.1
Total	10,533.3	10,199.6
Deferred tax liabilities	1,296.0	1,627.9

¹ Thereof on tax loss carry-forwards: EUR -114.0 million (EUR (-122.4 million)

The deferred tax assets and deferred tax liabilities are shown according to

their origin in the above table. Deferred taxes resulting from a single

transaction and with respect to which the corresponding temporary

valuation differences are simultaneously reversed were already netted on

recognition. Further netting was made based on the timing of the reversal of

temporary differences and other offsetting possibilities, ultimately resulting

in the following disclosure of deferred tax assets and deferred tax liabilities

in the balance sheet:

Netting of deferred tax assets and deferred tax liabilities



in EUR million		2024	2025
Deferred tax assets	3 , 4	501.5	373.5
Deferred tax liabilities		1,797.4	2,001.4
Net deferred tax liabilities	4 1 , 3	1,296.0	1,627.9

In view of the unrealised components of profit and loss recognised directly

in equity in the financial year, actual and deferred tax expenditure –

including amounts attributable to non-controlling interests – of

EUR 266.6 million (tax income of EUR 224.1 million) was also recognised

directly in equity. The following table presents a reconciliation of the

expected expense for income taxes with the actual expense for income

taxes reported in the statement of income. The pre-tax result is multiplied by

the Group tax rate in order to calculate the Group’s expected expense for

income taxes.

Reconciliation of the expected expense for income taxes with the actual

expense



in EUR million	2024	2025
Profit before taxes on income	3,213.3	3,412.8
Group tax rate	32.7%	32.7%
Expected expense for income taxes	1,050.7	1,116.0
Change in tax rates	78.1	-219.7
Differences in tax rates affecting subsidiaries	-349.5	-313.5
Non-deductible expenses	181.7	382.8
Tax-exempt income	-221.9	-230.1
Tax expense/income not attributable to the reporting period	62.4	-99.4
Value adjustments on deferred taxes/loss carry-forwards	34.1	28.7
Trade tax modifications	-19.8	-18.1
Other	0.7	-1.4
Actual expense for income taxes	816.5	645.3

The expense for income taxes in the financial year decreased by

EUR 171.2 million year-on-year to EUR 645.3 million (EUR 816.5 million).

This development was driven largely by the revaluation of deferred tax

assets and liabilities due to the gradual reduction of the German corporation

tax rate with effect from 1 January 2028. The effective tax rate in the

financial year was 18.9% (25.4%).

Availability of non-capitalised loss

carry-forwards and other temporary

differences

Unused tax loss carry-forwards of EUR 710.2 million (EUR 764.3 million)

existed as at the balance sheet date. Of existing tax loss carry-forwards and

other temporary differences, EUR 1,711.1 million (EUR 1,892.2 million) was

not capitalised in consideration of local tax rates because their realisation is

not sufficiently certain.

The assets-side unadjusted deferred taxes on loss carry-forwards

amounting to EUR 55.6 million (EUR 51.4 million) will probably be realised

in an amount of EUR 20.8 million (EUR 17.4 million) within one year and in

an amount of EUR 34.8 million (EUR 34.0 million) in subsequent years.

In the year under review the actual taxes on income were reduced by

EUR 19.2 million (EUR 15.7 million) because loss carry-forward were used

for which no deferred tax assets were established.

The write-down of deferred tax assets recognised in previous years resulted

in a deferred tax expense in the year under review of EUR 2.4 million

(EUR 36.1 million). This is opposed by deferred tax income of

EUR 1.1 million (EUR 2.9 million) from the reassessment of earlier write-

downs.

Excess deferred tax assets are recognised with respect to losses in the year

under review or in the previous year only to the extent that, based on strong

evidence, it is likely that the company concerned will generate sufficiently

positive taxable results in the future. This evidence was provided for

deferred tax assets in the amount of EUR 67.0 million (EUR 86.0 million).

No deferred taxes were established on liabilities-side taxable temporary

differences amounting to EUR 105.3 million (EUR 92.9 million) in

connection with interests in Group companies because the Hannover Re

Group can control their reversal and will not reverse them in the foreseeable

future.

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Expiry of non-capitalised loss carry-forwards and other temporary differences



in EUR million	One to five years	Six to ten years	More than ten years	Unlimited	Total
Other temporary differences	—	—	—	1,262.0	1,262.0
Loss carry-forwards	153.3	—	14.2	281.6	449.1
Total	153.3	—	14.2	1,543.6	1,711.1

Global minimum taxation

Following publication of the OECD's proposed Pillar Two Global Anti-Base

Erosion (GloBE) Model Rules as part of global minimum taxation for

multinational enterprise groups and domestic companies with combined

annual revenues of at least EUR 750 million, IAS 12 “Income Taxes” was

amended. The amendments include a temporary, mandatory exemption

from the requirement to recognise deferred taxes resulting from

implementation of the Pillar Two model rules as well as certain disclosure

requirements. Hannover Re is exercising the temporary exemption

provided by IAS 12 for the accounting of deferred tax assets and liabilities

and the disclosure requirements in connection with the implementation of

global minimum taxation.

In the year under review, Hannover Re was established in 32 (31)

jurisdictions with entities relevant to the minimum tax rules and was subject

to an effective tax burden of more than 15% in most of these jurisdictions.

The application of the minimum tax rules resulted in a top-up tax charge of

EUR 16.6 million (EUR 109.4 million). In addition, aperiodic top-up tax

income of EUR 30.1 million (EUR 0.0 million) was recorded. Overall, this led

to a decrease of 0.4 percentage points in Hannover Re's effective tax rate

(previous year: increase of 3.4 percentage points).

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8. Segment disclosures on the technical account

8.1 Property and casualty reinsurance

Movement in carrying amounts of the liability for remaining coverage and for incurred claims – reinsurance contracts issued in the property and casualty reinsurance segment



in EUR million	2024				2025
	LRC excluding loss component	Loss component	LIC	Total	LRC excluding loss component	Loss component	LIC	Total
Opening balance – assets	111.8	4.5	37.5	153.8	204.7	-6.2	433.1	631.7
Opening balance – liabilities	-2,220.7	65.2	37,421.0	35,265.4	-2,158.9	29.9	41,747.3	39,618.3
Opening balance – net	-2,332.5	60.6	37,383.5	35,111.6	-2,363.6	36.0	41,314.2	38,986.6
Contracts under the modified retrospective approach	-197.7	—	—	-197.7	-46.5	—	—	-46.5
Contracts under the fair value approach	-137.9	—	—	-137.9	-23.0	—	—	-23.0
Other contracts	-18,329.0	—	—	-18,329.0	-18,701.0	—	—	-18,701.0
Reinsurance revenue	-18,664.6	—	—	-18,664.6	-18,770.5	—	—	-18,770.5
Incurred claims and other reinsurance service expenses	-0.1	-76.6	14,041.3	13,964.7	0.3	-98.4	12,984.5	12,886.5
Amortisation of insurance acquisition cash flows	984.3	—	—	984.3	980.6	—	—	980.6
Losses and reversal of losses on onerous contracts	-0.1	46.0	—	45.9	—	156.9	—	156.9
Adjustments to liabilities for incurred claims	—	—	-101.6	-101.6	—	—	444.3	444.3
Reinsurance service expenses	984.1	-30.6	13,939.7	14,893.3	981.0	58.5	13,428.8	14,468.3
Investment component	-4,307.0	—	4,307.0	—	-5,076.4	—	5,076.4	—
Reinsurance finance result before currency gains/losses plus changes through OCI	707.2	5.3	786.8	1,499.2	696.7	2.0	630.1	1,328.8
Currency gains/losses	-10.8	0.8	1,163.3	1,153.2	32.5	-1.5	-2,938.0	-2,907.0
Reinsurance finance result	696.3	6.0	1,950.0	2,652.4	729.2	0.4	-2,307.9	-1,578.2
Premiums received	22,130.4	—	—	22,130.4	23,942.5	—	—	23,942.5
Claims and other reinsurance service expenses paid, including investment components	—	—	-16,266.1	-16,266.1	—	—	-14,059.9	-14,059.9
Insurance acquisition cash flows paid	-870.4	—	—	-870.4	-4,716.7	—	—	-4,716.7
Cash flows	21,260.0	—	-16,266.1	4,993.9	19,225.7	—	-14,059.9	5,165.8
Closing balance – assets	204.7	-6.2	433.1	631.7	637.8	—	-591.3	46.5
Closing balance – liabilities	-2,158.9	29.9	41,747.3	39,618.3	-4,636.7	95.0	42,860.2	38,318.5
Closing balance – net	-2,363.6	36.0	41,314.2	38,986.6	-5,274.6	95.0	43,451.6	38,272.0

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Movement in carrying amounts by measurement components – reinsurance contracts issued in the property and casualty reinsurance segment



in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	164.9	-5.8	—	—	-5.4	153.8	613.9	-1.3	-0.5	-1.0	20.7	631.7
Opening balance – liabilities	32,546.8	902.8	22.0	54.3	1,739.4	35,265.4	36,409.2	1,032.6	12.6	54.6	2,109.2	39,618.3
Opening balance – net	32,381.9	908.6	22.0	54.3	1,744.8	35,111.6	35,795.3	1,033.9	13.2	55.6	2,088.5	38,986.6
CSM recognised in the profit or loss for services provided	—	—	-51.6	-283.2	-3,881.2	-4,215.9	—	—	-14.7	-52.1	-4,175.6	-4,242.4
Change in risk adjustment for non-financial risk expired	—	-65.3	—	—	—	-65.3	—	-81.4	—	—	—	-81.4
Experience adjustments	565.1	—	—	—	—	565.1	-580.0	—	—	—	—	-580.0
Reinsurance service result – changes relate to current service	565.1	-65.3	-51.6	-283.2	-3,881.2	-3,716.2	-580.0	-81.4	-14.7	-52.1	-4,175.6	-4,903.8
Contracts initially recognised in the year	-4,211.1	266.1	—	—	3,987.0	42.0	-4,315.1	280.4	—	—	4,067.4	32.7
Changes in estimates that adjust the CSM	-357.0	20.2	42.5	283.4	10.8	-0.1	-99.5	13.0	12.2	2.3	72.4	0.4
Changes in estimates that result in losses and reversal of losses on onerous contracts	-7.3	11.9	—	—	—	4.6	119.8	4.4	—	—	—	124.2
Reinsurance service result – changes relate to future service	-4,575.5	298.2	42.5	283.4	3,997.8	46.4	-4,294.8	297.8	12.2	2.3	4,139.8	157.3
Reinsurance service result – changes that relate to past service	38.4	-140.0	—	—	—	-101.6	693.5	-249.2	—	—	—	444.3
Reinsurance finance result before currency gains/losses plus changes through OCI	1,340.3	—	0.2	1.0	157.7	1,499.2	1,169.5	—	0.1	0.1	159.1	1,328.8
Currency gains/losses	1,051.2	32.5	0.1	0.1	69.4	1,153.2	-2,629.3	-80.4	-0.3	-0.1	-196.8	-2,907.0
Reinsurance finance result	2,391.5	32.5	0.2	1.1	227.1	2,652.4	-1,459.8	-80.4	-0.3	—	-37.8	-1,578.2
Premiums received	22,130.4	—	—	—	—	22,130.4	23,942.5	—	—	—	—	23,942.5
Claims and other reinsurance service expenses paid, including investment components	-16,266.1	—	—	—	—	-16,266.1	-14,059.9	—	—	—	—	-14,059.9
Insurance acquisition cash flows paid	-870.4	—	—	—	—	-870.4	-4,716.7	—	—	—	—	-4,716.7
Cash flows	4,993.9	—	—	—	—	4,993.9	5,165.8	—	—	—	—	5,165.8
Closing balance – assets	613.9	-1.3	-0.5	-1.0	20.7	631.7	334.3	-6.5	—	—	-281.3	46.5
Closing balance – liabilities	36,409.2	1,032.6	12.6	54.6	2,109.2	39,618.3	35,654.3	914.3	10.3	5.9	1,733.6	38,318.5
Closing balance – net	35,795.3	1,033.9	13.2	55.6	2,088.5	38,986.6	35,320.0	920.8	10.3	5.9	2,015.0	38,272.0

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Movement in carrying amounts of the liability for remaining coverage and liability for incurred claims – reinsurance contracts held in the property and casualty reinsurance segment



in EUR million	2024				2025
	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total
Opening balance – assets	-554.3	-0.7	1,890.4	1,335.3	-804.0	-0.8	2,086.1	1,281.4
Opening balance – liabilities	995.9	—	-578.7	417.2	1,113.4	—	-664.9	448.5
Opening balance – net	-1,550.2	-0.7	2,469.1	918.1	-1,917.4	-0.8	2,751.0	832.9
Reinsurance revenue (ceded)	-2,778.4	—	—	-2,778.4	-2,598.1	—	—	-2,598.1
Incurred claims and other reinsurance service expenses	—	—	1,154.3	1,154.3	0.1	—	968.2	968.3
Amortisation of insurance acquisition cash flows	32.6	—	—	32.6	79.6	—	—	79.6
Losses and reversal of losses on onerous contracts	—	—	—	—	—	—	—	—
Adjustments to liabilities for incurred claims	—	—	-44.3	-44.3	—	—	-158.9	-158.9
Reinsurance service result – net expenses from reinsurance contracts retroceded	-2,745.9	—	1,110.0	-1,635.9	-2,518.4	—	809.3	-1,709.1
thereof changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—
Investment component	-12.3	—	12.3	—	-23.4	—	23.4	—
Reinsurance finance result before currency gains/losses plus changes through OCI	-38.9	—	64.1	25.2	49.5	—	52.8	102.3
Currency gains/losses	-86.6	—	122.1	35.4	185.0	—	-203.7	-18.7
Reinsurance finance result	-125.5	—	186.2	60.6	234.5	—	-150.9	83.6
Premiums paid	2,511.6	—	—	2,511.6	2,811.6	—	—	2,811.6
Claims and other reinsurance service expenses received, including investment components	—	—	-1,026.5	-1,026.5	—	—	-1,621.8	-1,621.8
Insurance acquisition cash flows	4.9	—	—	4.9	-3.2	—	—	-3.2
Cash flows	2,516.5	—	-1,026.5	1,490.0	2,808.4	—	-1,621.8	1,186.6
Closing balance – assets	-804.0	-0.8	2,086.1	1,281.4	-262.3	-0.8	1,055.2	792.1
Closing balance – liabilities	1,113.4	—	-664.9	448.5	1,154.0	—	-755.7	398.2
Closing balance – net	-1,917.4	-0.8	2,751.0	832.9	-1,416.3	-0.8	1,810.9	393.9

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Movement in carrying amounts by measurement components – reinsurance contracts held in the property and casualty reinsurance segment



in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	1,222.6	60.8	-179.5	2.3	229.1	1,335.3	931.5	38.5	-187.4	2.3	496.4	1,281.4
Opening balance – liabilities	441.8	-4.2	—	—	-20.4	417.2	657.5	-8.6	—	—	-200.5	448.5
Opening balance – net	780.8	65.0	-179.5	2.3	249.5	918.1	274.0	47.1	-187.4	2.3	696.8	832.9
CSM recognised in the profit or loss for services provided	—	—	-2.4	1.5	-942.8	-943.8	—	—	-2.1	2.3	-1,064.2	-1,064.1
Change in risk adjustment for non-financial risk expired	—	-24.5	—	—	—	-24.5	—	-20.6	—	—	—	-20.6
Experience adjustments	-623.3	—	—	—	—	-623.3	-465.7	—	—	—	—	-465.7
Reinsurance service result – changes relate to current service	-623.3	-24.5	-2.4	1.5	-942.8	-1,591.6	-465.7	-20.6	-2.1	2.3	-1,064.2	-1,550.4
Contracts initially recognised in the year	-1,285.3	30.9	—	—	1,254.4	—	-1,036.1	31.8	—	—	1,004.3	—
Changes in recoveries of losses on onerous underlying contracts	—	—	—	—	—	—	—	—	—	—	—	—
Changes in estimates that adjust the CSM	-93.0	7.8	4.8	-1.6	81.9	—	34.3	6.9	—	-2.2	-38.9	0.1
Changes in estimates that result in losses and reversal of losses on onerous contracts	—	—	—	—	—	—	—	—	—	—	—	—
Reinsurance service result – changes relate to future service	-1,378.3	38.8	4.8	-1.6	1,336.3	—	-1,001.9	38.7	—	-2.2	965.4	0.1
Reinsurance service result – changes that relate to past service	-9.9	-34.3	—	—	—	-44.3	-170.9	12.0	—	—	—	-158.9
Reinsurance service result – Changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—	—	—	—	—
Reinsurance finance result before currency gains/losses plus changes through OCI	-2.3	—	—	—	27.5	25.2	66.4	—	—	—	36.0	102.3
Currency gains/losses	17.0	2.2	-10.3	0.1	26.4	35.4	34.6	-5.2	20.6	—	-68.6	-18.7
Reinsurance finance result	14.7	2.2	-10.3	0.1	53.9	60.6	100.9	-5.2	20.6	—	-32.6	83.6
Premiums paid	2,511.6	—	—	—	—	2,511.6	2,811.6	—	—	—	—	2,811.6
Claims and other reinsurance service expenses received, including investment components	-1,026.5	—	—	—	—	-1,026.5	-1,621.8	—	—	—	—	-1,621.8
Insurance acquisition cash flows	4.9	—	—	—	—	4.9	-3.2	—	—	—	—	-3.2
Cash flows	1,490.0	—	—	—	—	1,490.0	1,186.6	—	—	—	—	1,186.6
Closing balance – assets	931.5	38.5	-187.4	2.3	496.4	1,281.4	638.9	22.1	-168.9	2.4	297.6	792.1
Closing balance – liabilities	657.5	-8.6	—	—	-200.5	448.5	715.9	-49.8	—	—	-267.8	398.2
Closing balance – net	274.0	47.1	-187.4	2.3	696.8	832.9	-77.0	72.0	-168.9	2.4	565.4	393.9

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Contracts initially recognised – reinsurance contracts issued in the property

and casualty reinsurance segment



in EUR million	2024		2025
	Profitable contracts issued ¹	Onerous contracts issued	Profitable contracts issued ¹	Onerous contracts issued
Expected present value of cash outflows	17,065.0	393.6	16,812.7	691.3
Insurance acquisition cash flows	921.8	8.5	980.5	14.5
Expected present value of cash inflows	-22,236.7	-363.2	-22,135.4	-678.8
Risk adjustment for non-financial risk	263.0	3.2	274.7	5.7
Contractual service margin	3,986.9	—	4,067.4	—
Loss component	—	42.0	—	32.7
¹ Profitable contract includes the buckets profitable and remaining

Contracts initially recognised – reinsurance contracts held in the property and

casualty reinsurance segment



in EUR million	2024		2025
	Contracts retroceded without loss recovery component	Contracts retroceded with loss recovery component	Contracts retroceded without loss recovery component	Contracts retroceded with loss recovery component
Expected present value of cash inflows	1,591.6	—	1,572.6	—
Insurance acquisition cash flows	16.2	—	58.9	—
Expected present value of cash outflows	-2,893.1	—	-2,667.6	—
Risk adjustment for non-financial risk	30.9	—	31.8	—
Contractual service margin	1,254.4	—	1,004.3	—
Loss recovery amount	—	—	—	—

Development of claims in the property and casualty

reinsurance segment

The loss and loss adjustment expense reserves are inevitably based to

some extent on estimations that entail an element of uncertainty. The run-

off result is defined as the adjustment of the liability for incurred claims of

prior periods. In this regard, given that the period of some reinsurance

contracts does not correspond to the calendar year or because they are

concluded on an underwriting-year basis, it is frequently impossible to make

an exact allocation of claims expenditures to the current financial year or the

previous year.

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Development of gross claims

The following tables show the claims development for the current reporting

year and for the previous 10 accident years in a gross analysis. The change

in the estimate of the undiscounted amounts of expected claims is shown

as a so-called loss triangle. In addition, the actual claims payments are

compared with the estimates of the undiscounted amounts of the expected

claims.

Development of gross claims in the property and casualty reinsurance segment



in EUR million	2015	2016	2017	2018	2019	2020	2021 ¹	2022	2023	2024	2025	Total
Nominal incurred claims (gross)
Current Year	6,167.1	6,482.8	8,487.7	9,218.4	10,034.6	11,526.8	13,664.3	15,467.5	15,009.3	15,159.6	14,294.2
One year later	6,157.5	6,525.6	8,626.8	9,920.6	10,686.3	12,177.3	14,095.7	15,518.4	15,095.0	15,260.8
Two years later	6,014.0	6,499.7	8,432.5	9,804.0	10,454.4	11,780.0	14,113.2	15,596.0	14,802.0
Three years later	5,841.7	6,386.3	8,340.5	9,553.4	10,369.5	11,663.9	14,085.5	16,164.7
Four years later	5,686.6	6,307.8	8,296.9	9,631.6	10,402.6	11,538.8	14,234.9
Five years later	5,661.2	6,239.6	8,238.4	9,759.4	10,421.3	11,658.2
Six years later	5,570.3	6,147.1	8,263.8	9,835.4	10,473.7
Seven years later	5,492.3	6,093.6	8,200.5	9,913.0
Eight years later	5,428.4	6,118.4	8,284.4
Nine years later	5,415.5	6,173.7
Ten years later	5,379.2

Run-off nominal incurred claims past service (gross)	36.3	-55.3	-83.9	-77.5	-52.4	-119.4	-149.4	-568.7	293.0	-101.1		-878.5
Run-off nominal incurred claims past service older than 2015 (gross)												99.7
Total run-off nominal incurred claims past service (gross)												-778.8
Total run-off discounted incurred claims past service (gross)												-703.4
Changes risk adjustment for non-financial risk past service discounted (gross)												249.2
Reinsurance contract related cash flows other than claims past service discounted (gross)												10.0
Discounted run-off result (gross)												-444.3
Beginning of period gross liability for incurred claims 01.01.2025 (gross)												41,314.2
Nominal incurred claims - accident years from 2015 to 2025 (gross)	-36.3	55.3	83.9	77.5	52.4	119.4	149.4	568.7	-293.0	101.1	14,294.2	15,172.7
Claims payments - accident years from 2015 to 2025 (gross)	-72.5	-88.0	-155.1	-205.2	-349.1	-539.4	-846.3	-1,246.7	-1,422.9	-3,791.3	-6,518.6	-15,235.1
Nominal incurred claims and claims payments for accident years prior 2015 (gross)												-332.8
Effect of discounting												-1,081.8
Investment component												5,076.4
Currency effects												-2,938.0
Changes accounts payable / receivable												1,472.5
Changes risk adjustment for non-financial risk												-24.4
Remaining changes												27.9
End of period liability for incurred claims 31.12.2025 (gross)												43,451.6
¹ Values transformed from IFRS 4 up to and including the 2021 reporting year.

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Development of net claims

The following tables show the claims development for the current reporting

year and for the previous 10 accident years in a net analysis. The change in

the estimate of the undiscounted amounts of expected claims is shown as

a so-called loss triangle. In addition, the actual claims payments are

compared with the estimates of the undiscounted amounts of the expected

claims.

Development of net claims in the property and casualty reinsurance segment



in EUR million	2015	2016	2017	2018	2019	2020	2021 ¹	2022	2023	2024	2025	Total
Nominal incurred claims (net)
Current Year	5,884.2	6,018.4	7,653.5	8,221.7	9,344.3	10,791.8	12,120.5	13,993.5	14,164.5	13,889.1	13,209.5
One year later	6,043.4	6,132.8	7,654.0	8,787.0	9,732.7	11,199.4	12,623.8	14,039.4	14,279.6	14,200.1
Two years later	5,704.7	6,132.5	7,444.6	8,658.3	9,470.6	10,736.0	12,656.1	14,035.3	14,136.9
Three years later	5,556.2	6,035.6	7,437.1	8,477.9	9,371.5	10,675.0	12,646.0	14,458.8
Four years later	5,419.0	5,955.4	7,391.6	8,569.1	9,411.2	10,596.7	12,801.9
Five years later	5,391.4	5,890.4	7,323.3	8,681.8	9,440.5	10,729.9
Six years later	5,296.3	5,782.5	7,346.5	8,773.2	9,493.2
Seven years later	5,205.4	5,725.7	7,252.6	8,835.4
Eight years later	5,136.8	5,751.3	7,327.7
Nine years later	5,123.2	5,800.8
Ten years later	5,086.2

Run-off nominal incurred claims past service (net)	36.9	-49.5	-75.0	-62.3	-52.7	-133.2	-155.9	-423.5	142.7	-311.0		-1,083.3
Run-off nominal incurred claims past service older than 2015 (net)												114.2
Total run-off nominal incurred claims past service (net)												-969.2
Total run-off discounted incurred claims past service (net)												-863.2
Changes risk adjustment for non-financial risk past service discounted (net)												261.2
Reinsurance contract related cash flows other than claims past service discounted (net)												-1.1
Discounted run-off result (net)												-603.2
Beginning of period liability for incurred claims 01.01.2025 (net)												38,563.2
Nominal incurred claims - accident years from 2015 to 2025 (net)	-36.9	49.5	75.0	62.3	52.7	133.2	155.9	423.5	-142.7	311.0	13,209.5	14,292.9
Claims payments - accident years from 2015 to 2025 (net)	-71.3	-82.0	-146.1	-203.7	-280.3	-445.7	-709.4	-1,057.4	-1,283.6	-3,596.5	-6,222.9	-14,099.0
Nominal incurred claims and claims payments for accident years prior 2015 (net)												-336.0
Effect of discounting												-1,038.0
Investment component												5,053.0
Currency effects												-2,734.3
Changes accounts payable / receivable												1,968.3
Changes risk adjustment for non-financial risk												-57.4
Remaining changes												27.9
End of period liability for incurred claims 31.12.2025 (net)												41,640.6
¹ Values transformed from IFRS 4 up to and including the 2021 reporting year.

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The discounted net run-off result in the current reporting year amounted to

EUR -603.2 million (EUR 57.3 million).

Maturities of the contractual cash flows in the property and casualty reinsurance segment



in EUR million	2024		2025
	Remaining contractual undiscounted net cash flows		Remaining contractual undiscounted net cash flows
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	4,491.4	-1,320.5	3,321.5	-1,487.7
Due after one through two years	9,838.1	516.6	9,687.0	414.6
Due after two through three years	6,242.0	329.4	6,633.7	294.2
Due after three through four years	4,632.9	228.2	4,657.5	210.1
Due after four through five years	3,476.8	174.0	3,555.8	160.5
Due after five through ten years	8,719.3	438.0	8,828.7	392.3
Due after ten through twenty years	4,325.8	212.8	4,330.9	187.2
Due after twenty years	1,239.9	60.0	1,380.7	59.3
	42,966.1	638.4	42,396.0	230.4
Discounting	-7,170.9	-364.5	-7,075.9	-307.5
Total	35,795.3	274.0	35,320.0	-77.0

Maturities of the contractual service margin in the property and casualty reinsurance segment



in EUR million	2024		2025
	Contractual service margin		Contractual service margin
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	1,905.9	527.6	1,683.2	405.1
Due after one through two years	216.7	0.6	241.9	8.1
Due after two through three years	46.3	—	76.7	—
Due after three through four years	25.2	—	45.9	—
Due after four through five years	13.4	—	24.2	—
Due after five through ten years	26.3	—	46.6	—
Due after ten through twenty years	7.6	—	22.1	—
Due after twenty years	0.1	—	7.4	—
	2,241.5	528.2	2,147.9	413.2
Discounting	-84.1	-16.5	-116.7	-14.3
Total	2,157.4	511.7	2,031.2	399.0

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Reinsurance revenue (gross) by region in the property and casualty reinsurance

segment



in EUR million	2024	2025
Regional origin
Germany	1,483.8	1,418.7
United Kingdom	2,310.7	1,765.8
France	576.7	497.3
Other	2,066.2	1,798.8
Europe	6,437.5	5,480.6
USA	7,324.0	8,516.2
Other	1,276.7	1,342.5
North America	8,600.7	9,858.7
Asia	1,963.5	1,799.1
Australia	741.0	720.1
Australasia	2,704.5	2,519.2
Africa	225.8	235.9
Other	696.2	676.0
Total	18,664.7	18,770.5

Components of the reinsurance revenue (gross) in the property and casualty

reinsurance segment



in EUR million	2024	2025
Components
Expected incurred claims and other insurance expenses	11,691.7	13,541.5
CSM recognised for services provided	4,216.3	4,242.4
Change in risk adjustment for non-financial risk for risk expired	309.3	306.1
Experience adjustments for past or current services	1,463.1	-300.1
Recovery of insurance acquisition cash flows	984.3	980.6
Total	18,664.7	18,770.5

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8.2 Life and health insurance

Movement in carrying amounts of the liability for remaining coverage and for incurred claims – reinsurance contracts issued in the life and health segment



in EUR million	2024				2025
	LRC excluding loss component	Loss component	LIC	Total	LRC excluding loss component	Loss component	LIC	Total
Opening balance – assets	1,282.6	-6.8	-409.8	866.0	1,211.8	-12.9	-324.9	874.0
Opening balance – liabilities	-259.6	440.5	8,793.1	8,974.0	-226.8	786.5	8,739.6	9,299.3
Opening balance – net	-1,542.2	447.3	9,202.9	8,108.0	-1,438.7	799.4	9,064.5	8,425.3
Contracts under the modified retrospective approach	-2,075.9	—	—	-2,075.9	-2,071.3	—	—	-2,071.3
Contracts under the fair value approach	-4,723.1	—	—	-4,723.1	-4,219.7	—	—	-4,219.7
Other contracts	-915.6	—	—	-915.6	-1,724.5	—	—	-1,724.5
Reinsurance revenue	-7,714.5	—	—	-7,714.5	-8,015.5	—	—	-8,015.5
Incurred claims and other reinsurance service expenses	-0.1	-107.1	6,407.9	6,300.7	—	-106.8	6,800.2	6,693.4
Amortisation of insurance acquisition cash flows	22.4	—	—	22.4	28.4	—	—	28.4
Losses and reversal of losses on onerous contracts	0.1	434.8	—	435.0	—	321.5	—	321.5
Adjustments to liabilities for incurred claims	—	—	46.8	46.8	—	—	49.7	49.7
Reinsurance service expenses	22.4	327.7	6,454.7	6,804.9	28.4	214.8	6,849.9	7,093.1
Investment component	-1,642.1	—	1,642.1	—	-1,504.7	—	1,504.7	—
Reinsurance finance result before currency gains/losses plus changes through OCI	222.2	11.4	40.4	274.0	137.7	18.4	91.2	247.4
Currency gains/losses	-17.7	13.1	187.0	182.4	91.3	-53.5	-540.2	-502.4
Reinsurance finance result	204.5	24.5	227.4	456.4	229.0	-35.1	-449.0	-255.1
Premiums received	9,267.6	—	—	9,267.6	8,781.3	—	—	8,781.3
Claims and other reinsurance service expenses paid, including investment components	—	—	-8,462.7	-8,462.7	—	—	-7,747.1	-7,747.1
Insurance acquisition cash flows paid	-34.3	—	—	-34.3	-47.5	—	—	-47.5
Cash flows	9,233.2	—	-8,462.7	770.5	8,733.8	—	-7,747.1	986.6
Closing balance – assets	1,211.8	-12.9	-324.9	874.0	1,164.3	-9.5	-281.9	872.9
Closing balance – liabilities	-226.8	786.5	8,739.6	9,299.3	-803.4	969.6	8,941.1	9,107.3
Closing balance – net	-1,438.7	799.4	9,064.5	8,425.3	-1,967.7	979.1	9,223.0	8,234.4

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Movement in carrying amounts by measurement components – reinsurance contracts issued in the life and health reinsurance segment



in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	2,158.0	-107.6	-320.5	-385.3	-478.5	866.0	1,810.2	-49.4	-106.9	-241.8	-538.0	874.0
Opening balance – liabilities	1,017.4	2,919.4	2,063.3	2,401.0	572.9	8,974.0	261.1	3,101.6	2,482.1	2,607.3	847.2	9,299.3
Opening balance – net	-1,140.6	3,027.0	2,383.9	2,786.2	1,051.4	8,108.0	-1,549.0	3,150.9	2,589.0	2,849.1	1,385.2	8,425.3
CSM recognised in the profit or loss for services provided	—	—	-180.4	-328.8	-398.3	-907.6	—	—	-189.1	-284.0	-482.8	-956.0
Change in risk adjustment for non-financial risk expired	—	-243.5	—	—	—	-243.5	—	-240.7	—	—	—	-240.7
Experience adjustments	-240.2	—	—	—	—	-240.2	-97.0	—	—	—	—	-97.0
Reinsurance service result – changes relate to current service	-240.2	-243.5	-180.4	-328.8	-398.3	-1,391.3	-97.0	-240.7	-189.1	-284.0	-482.8	-1,293.7
Contracts initially recognised in the year	-383.7	66.8	—	—	323.2	6.3	-587.1	82.5	—	—	521.5	16.8
Changes in estimates that adjust the CSM	-869.4	116.1	225.9	205.3	322.1	—	-377.1	-242.7	211.8	134.2	273.9	—
Changes in estimates that result in losses and reversal of losses on onerous contracts	346.9	81.7	—	—	—	428.5	-146.8	451.5	—	—	—	304.7
Reinsurance service result – changes relate to future service	-906.2	264.6	225.9	205.3	645.2	434.8	-1,111.1	291.3	211.8	134.2	795.4	321.5
Reinsurance service result – changes that relate to past service	54.4	-7.5	—	—	—	46.8	36.7	13.0	—	—	—	49.7
Reinsurance finance result before currency gains/losses plus changes through OCI	87.4	1.1	82.3	61.9	41.3	274.0	-67.1	118.1	85.1	59.5	51.7	247.4
Currency gains/losses	-174.3	109.2	77.3	124.5	45.6	182.4	217.9	-240.0	-106.7	-262.9	-110.7	-502.4
Reinsurance finance result	-86.9	110.3	159.6	186.4	86.9	456.4	150.8	-121.9	-21.6	-203.4	-59.0	-255.1
Premiums received	9,267.6	—	—	—	—	9,267.6	8,781.3	—	—	—	—	8,781.3
Claims and other reinsurance service expenses paid, including investment components	-8,462.7	—	—	—	—	-8,462.7	-7,747.1	—	—	—	—	-7,747.1
Insurance acquisition cash flows paid	-34.3	—	—	—	—	-34.3	-47.5	—	—	—	—	-47.5
Cash flows	770.5	—	—	—	—	770.5	986.6	—	—	—	—	986.6
Closing balance – assets	1,810.2	-49.4	-106.9	-241.8	-538.0	874.0	1,926.0	-71.9	-106.5	-197.5	-677.1	872.9
Closing balance – liabilities	261.1	3,101.6	2,482.1	2,607.3	847.2	9,299.3	343.0	3,020.7	2,483.5	2,298.3	961.7	9,107.3
Closing balance – net	-1,549.0	3,150.9	2,589.0	2,849.1	1,385.2	8,425.3	-1,582.9	3,092.6	2,590.0	2,495.9	1,638.8	8,234.4

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Movement in carrying amounts of the liability for remaining coverage and for incurred claims – reinsurance contracts held in the life and health reinsurance segment



in EUR million	2024				2025
	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total	Reinsurance recoverables on LRC without loss recovery component	Loss recovery component	Reinsurance recoverables on LIC	Total
Opening balance – assets	-156.8	6.3	341.0	190.6	-298.4	38.6	479.9	220.1
Opening balance – liabilities	738.9	-21.4	-435.8	281.7	516.6	14.7	-323.6	207.8
Opening balance – net	-895.6	27.7	776.9	-91.1	-815.1	23.9	803.6	12.4
Reinsurance revenue (ceded)	-565.3	—	—	-565.3	-902.8	—	—	-902.8
Incurred claims and other reinsurance service expenses	—	-0.8	548.3	547.4	—	-0.5	906.7	906.2
Amortisation of insurance acquisition cash flows	—	—	—	—	-0.1	—	—	-0.1
Losses and reversal of losses on onerous contracts	—	-4.6	—	-4.6	—	-13.5	—	-13.5
Adjustments to liabilities for incurred claims	—	—	-4.2	-4.2	—	—	-9.2	-9.2
Reinsurance service result – net expenses from reinsurance contracts retroceded	-565.3	-5.5	544.1	-26.7	-902.9	-14.1	897.5	-19.4
thereof changes in non-performance risk of reinsurers	0.1	—	3.8	3.9	13.5	—	—	13.5
Investment component	-412.2	—	412.2	—	-397.9	—	397.9	—
Reinsurance finance result before currency gains/losses plus changes through OCI	62.0	1.0	0.6	63.6	44.5	0.5	0.5	45.6
Currency gains/losses	-28.0	0.7	29.9	2.6	47.3	-2.1	-57.1	-12.0
Reinsurance finance result	34.0	1.7	30.5	66.2	91.8	-1.6	-56.6	33.6
Premiums paid	1,024.0	—	—	1,024.0	1,127.0	—	—	1,127.0
Claims and other reinsurance service expenses received, including investment components	—	—	-960.0	-960.0	—	—	-995.2	-995.2
Insurance acquisition cash flows	—	—	—	—	—	—	—	—
Cash flows	1,024.0	—	-960.0	64.0	1,127.0	—	-995.2	131.8
Closing balance – assets	-298.4	38.6	479.9	220.1	-540.3	13.2	842.1	315.1
Closing balance – liabilities	516.6	14.7	-323.6	207.8	356.8	5.0	-205.0	156.7
Closing balance – net	-815.1	23.9	803.6	12.4	-897.1	8.2	1,047.2	158.3

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Movement in carrying amounts by measurement components – reinsurance contracts held in the life and health reinsurance segment



in EUR million	2024						2025
	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total	EPV of future cash flows	Risk adjustment for non-financial risk	CSM			Total
	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total	EPV of future cash flows	Risk adjustment for non-financial risk	Contracts under modified retrospective approach	Contracts under fair value approach	Other contracts	Total
Opening balance – assets	-179.3	80.0	232.4	44.5	13.0	190.6	-192.6	85.9	262.4	45.6	18.7	220.1
Opening balance – liabilities	325.0	-61.9	-5.7	29.5	-5.2	281.7	235.3	-47.7	3.1	18.5	-1.3	207.8
Opening balance – net	-504.3	142.0	238.2	14.9	18.2	-91.1	-427.9	133.7	259.4	27.1	20.1	12.4
CSM recognised in the profit or loss for services provided	—	—	-4.5	-5.2	-15.1	-24.8	—	—	-16.9	-6.1	-16.1	-39.1
Change in risk adjustment for non-financial risk expired	—	-15.1	—	—	—	-15.1	—	-10.8	—	—	—	-10.8
Experience adjustments	18.1	—	—	—	—	18.1	39.7	—	—	—	—	39.7
Reinsurance service result – changes relate to current service	18.1	-15.1	-4.5	-5.2	-15.1	-21.8	39.7	-10.8	-16.9	-6.1	-16.1	-10.2
Contracts initially recognised in the year	-6.5	—	—	—	6.5	—	-124.6	90.5	—	—	34.1	—
Changes in recoveries of losses on onerous underlying contracts	—	—	—	—	—	—	4.4	2.8	—	—	-3.0	4.2
Changes in estimates that adjust the CSM	-27.0	-4.0	5.7	16.3	9.1	—	-284.3	125.3	24.5	103.4	31.0	—
Changes in estimates that result in losses and reversal of losses on onerous contracts	-7.5	2.8	—	—	—	-4.6	117.2	-134.9	—	—	—	-17.7
Reinsurance service result – changes relate to future service	-41.0	-1.1	5.7	16.3	15.5	-4.6	-287.3	83.7	24.5	103.4	62.1	-13.5
Reinsurance service result – changes that relate to past service	-4.2	—	—	—	—	-4.2	-9.1	—	—	—	—	-9.2
Reinsurance service result – Changes in non-performance risk of reinsurers	3.9	—	—	—	—	3.9	13.5	—	—	—	—	13.5
Reinsurance finance result before currency gains/losses plus changes through OCI	51.1	2.6	8.6	0.5	0.7	63.6	29.5	5.4	9.1	0.4	1.1	45.6
Currency gains/losses	-15.6	5.4	11.4	0.7	0.7	2.6	17.9	-11.1	-12.7	-4.3	-1.8	-12.0
Reinsurance finance result	35.6	8.0	20.0	1.2	1.5	66.2	47.4	-5.7	-3.6	-3.9	-0.7	33.6
Premiums paid	1,024.0	—	—	—	—	1,024.0	1,127.0	—	—	—	—	1,127.0
Claims and other reinsurance service expenses received, including investment components	-960.0	—	—	—	—	-960.0	-995.2	—	—	—	—	-995.2
Insurance acquisition cash flows	—	—	—	—	—	—	—	—	—	—	—	—
Cash flows	64.0	—	—	—	—	64.0	131.8	—	—	—	—	131.8
Closing balance – assets	-192.6	85.9	262.4	45.6	18.7	220.1	-254.6	174.0	262.0	68.3	65.4	315.1
Closing balance – liabilities	235.3	-47.7	3.1	18.5	-1.3	207.8	237.3	-26.9	-1.4	-52.2	—	156.7
Closing balance – net	-427.9	133.7	259.4	27.1	20.1	12.4	-491.8	200.9	263.4	120.5	65.4	158.3

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Contracts initially recognised – reinsurance contracts issued in the life and health reinsurance segment



in EUR million	2024		2025
	Profitable contracts issued ¹	Onerous contracts issued	Profitable contracts issued ¹	Onerous contracts issued
Expected present value of cash outflows	2,721.8	16.8	4,983.3	45.0
Insurance acquisition cash flows	22.0	0.3	32.0	0.8
Expected present value of cash inflows	-3,133.3	-11.2	-5,618.7	-29.7
Risk adjustment for non-financial risk	66.3	0.5	81.9	0.6
Contractual service margin	323.2	—	521.5	—
Loss component	—	6.4	—	16.8
¹ Profitable contract includes the buckets profitable and remaining

Contracts initially recognised – reinsurance contracts held in the life and health reinsurance segment



in EUR million	2024		2025
	Contracts retroceded without loss recovery component	Contracts retroceded with loss recovery component	Contracts retroceded without loss recovery component	Contracts retroceded with loss recovery component
Expected present value of cash inflows	347.5	0.1	2,053.2	1,107.4
Insurance acquisition cash flows	—	—	—	—
Expected present value of cash outflows	-354.1	-0.1	-2,177.8	-1,103.0
Risk adjustment for non-financial risk	—	—	90.5	2.8
Contractual service margin	6.5	—	34.1	-3.0
Loss recovery amount	—	—	—	4.2

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Maturities of the contractual cash flows in the life and health reinsurance segment



in EUR million	2024		2025
	Remaining contractual undiscounted net cash flows		Remaining contractual undiscounted net cash flows
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	634.9	-0.5	399.2	48.3
Due after one through two years	294.8	-85.6	401.1	-26.3
Due after two through three years	197.6	-20.0	313.2	-89.8
Due after three through four years	-300.9	-22.5	-265.6	-27.5
Due after four through five years	-344.1	-23.8	-187.3	-29.9
Due after five through ten years	-1,367.3	-129.3	-1,210.6	-172.6
Due after ten through twenty years	-1,813.0	-262.4	-2,117.6	-369.6
Due after twenty years	80.9	-221.2	-95.8	-204.0
	-2,617.1	-765.3	-2,763.3	-871.3
Discounting	1,068.1	337.5	1,180.3	379.5
Total	-1,549.0	-427.9	-1,582.9	-491.8

Maturities of the contractual service margin in the life and health reinsurance segment



in EUR million	2024		2025
	Contractual service margin		Contractual service margin
	Reinsurance contracts issued	Reinsurance contracts retroceded	Reinsurance contracts issued	Reinsurance contracts retroceded
Due in one year	714.9	17.0	735.0	24.8
Due after one through two years	548.9	17.3	500.3	26.5
Due after two through three years	471.1	18.0	476.4	28.4
Due after three through four years	449.7	18.7	454.8	29.6
Due after four through five years	432.9	19.0	428.8	29.9
Due after five through ten years	1,829.3	97.0	1,821.7	145.9
Due after ten through twenty years	2,355.1	163.9	2,377.2	218.8
Due after twenty years	3,679.9	86.6	3,491.2	139.1
	10,481.8	437.5	10,285.3	642.9
Discounting	-3,658.5	-130.9	-3,560.6	-193.6
Total	6,823.4	306.6	6,724.7	449.3

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Reinsurance revenue (gross) by region in the life and health reinsurance

segment



in EUR million	2024	2025
Germany	90.5	85.3
United Kingdom	2,003.8	2,034.4
France	299.5	320.5
Other	284.7	305.4
Europe	2,678.6	2,745.6
USA	2,298.8	2,574.8
Other	128.2	93.8
North America	2,427.1	2,668.6
Asia	1,112.5	1,083.7
Australia	772.0	747.6
Australasia	1,884.5	1,831.2
Africa	256.5	295.2
Other	467.9	474.8
Total	7,714.5	8,015.5

Components of the reinsurance revenue (gross) in the life and health

reinsurance segment



in EUR million	2024	2025
Expected incurred claims and other insurance expenses	6,230.8	6,387.2
CSM recognised for services provided	907.6	956.0
Change in risk adjustment for non-financial risk for risk expired	250.9	246.5
Experience adjustments for past or current services	302.8	397.4
Recovery of insurance acquisition cash flows	22.4	28.4
Total	7,714.5	8,015.5

9. Other notes

9.1 Derivative financial

instruments and financial

guarantees

Derivatives are financial instruments, the fair value of which is derived from

an underlying trading instrument such as equities, bonds, indices or

currencies. We use derivative financial instruments in order to hedge parts

of our portfolio against interest rate and market price risks, optimise returns

or realise intentions to buy / sell. In this context we take special care to limit

the risks, select first-class counterparties and adhere strictly to the

standards defined by investment guidelines.

The fair values of the derivative financial instruments were determined on

the basis of the market information available at the balance sheet date.

Please see section 3.2 “Summary of major accounting policies” with

regard to the measurement models used.

Hannover Re holds derivative financial instruments to hedge interest rate

risks from loans connected with the financing of real estate; these gave rise

to recognition of other liabilities in an amount of EUR 0.5 million

(EUR 0.8 million).

For the purpose of structuring the asset/liability management of non-current

liabilities in certain currencies, Hannover Re has used with effect from the

2023 financial year onwards derivatives for interest rate hedging – in

addition to those mentioned above and for other scenarios – that result in

the recognition of financial assets at fair value through profit or loss in an

amount of EUR 0.0 million (EUR 6.3 ,million) and other liabilities in an

amount of EUR 18.3 million (EUR 15.0 million).

Hannover Re’s portfolio contained derivative financial instruments as at the

balance sheet date in the form of forward exchange transactions taken out

to hedge currency risks. These transactions gave rise to recognition of other

liabilities in an amount of EUR 57.5 million (EUR 73.5 million) and financial

assets at fair value through profit or loss in an amount of EUR 43.5 million

(EUR 71.2 million).

The increase in equity from hedging instruments recognised in OCI in the

context of hedge accounting pursuant to IFRS 9 in an amount of

EUR 3.2 million (EUR 14.4 million) derived from the forward exchange

transactions taken out to hedge currency risks from long-term investments

in foreign operations. These hedging instruments resulted in the recognition

of financial assets at fair value through profit or loss of EUR 19.6 million

(EUR 4.8 million) and other liabilities in an amount of EUR 0.9 million

(EUR 0.0 million).

The accounting of forward exchange transactions used to hedge currency

risks from long-term investments in foreign operations follows the

accounting treatment of cash flow hedges in accordance with IFRS 9. The

effective portion of changes in the value of the hedging instrument is

recognised as a change in equity in OCI (cash flow hedge reserve). The

ineffective portion of the changes in the value of the hedging instrument is

recognised in profit or loss within the changes in the fair values of financial

assets and liabilities. The effectiveness of the hedging relationship is tested

using the critical terms match method.

Inflation swaps are taken out in the form of cash flow hedges to minimise

the inflation risk associated with payments under a morbidity loss reserve

portfolio. These serve primarily to hedge volatility in reinsurance payments

due. The structuring is such that separate inflation swaps are taken out for

the loss payments incurred in each year. These financial instruments result

in disclosure of financial assets at fair value through profit or loss in an

amount of EUR 2.2 million (EUR 1.6 million) and other liabilities in an

amount of EUR 0.3 million (EUR 0,0 million). The hedge gave rise to an

increase in equity from hedging instruments recognised in OCI in an

amount of EUR 0.5 million (decrease of EUR 2.8 million recognised in OCI).

In order to hedge the risk of share price changes in connection with the

stock appreciation rights granted under the share award plan, Hannover Re

has taken out hedges since 2014 in the form of so-called equity swaps. The

fair value of these instruments was recognised in an amount of

EUR 2.3 million under other other liabilities (EUR 2.6 million) as at the

balance sheet date. The hedge gave rise to a decrease in equity from

hedging instruments recognised in OCI in an amount of EUR 1.4 million

(increase of EUR 0.5 million recognised in OCI).

The maturities of the fair values and notional values of the hedging

instruments described above can be broken down as follows:

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Maturity structure of derivative financial instruments



in EUR million	2024					2025
	Less than one year	One to five years	Five to ten years	More than ten years	31.12.2024	Less than one year	One to five years	Five to ten years	More than ten years	31.12.2025
Interest rate hedges
Fair values	—	-2.3	-5.1	-2.2	-9.5	—	-3.4	-11.7	-3.7	-18.8
Notional values	—	95.0	343.5	37.0	475.5	—	126.8	324.3	53.6	504.6
Currency and other risk hedges
Fair values	-13.7	29.9	-13.8	—	2.4	-10.3	12.4	2.8	-0.2	4.6
Notional values	2,416.0	858.7	372.4	—	3,647.1	4,938.7	1,329.2	279.4	28.9	6,576.3
Inflation hedges
Fair values	0.2	0.7	0.5	—	1.5	0.4	1.3	0.2	—	2.0
Notional values	65.7	183.9	107.5	—	357.0	53.6	238.2	169.8	—	461.5
Share price hedges
Fair values	-2.6	—	—	—	-2.6	-2.3	—	—	—	-2.3
Notional values	47.7	—	—	—	47.7	61.3	—	—	—	61.3
Total hedging instruments
Fair values	-16.0	28.3	-18.3	-2.2	-8.2	-12.2	10.2	-8.7	-3.9	-14.6
Notional values	2,529.4	1,137.6	823.3	37.0	4,527.3	5,053.6	1,694.1	773.5	82.5	7,603.7

The net changes in the fair value of these instruments decreased the result

of the financial year by EUR 35.0 million (67.1 million).

Hannover Re enters into derivative transactions on the basis of

standardised master agreements that contain global netting agreements.

The netting agreements set out below normally do not meet the criteria for

netting in the balance sheet, since Hannover Re has no legal right

whatsoever at the present moment in time to netting of the recognised

amounts. The right to netting can, as a matter of principle, only be enforced

upon occurrence of certain future defined events. Collateral furnished or

received is recognised per counterparty up to at most the amount of the

respective net liability or net asset.

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Netting agreements



in EUR million	2024					2025
	Fair value	Netting agreement	Cash collateral received/furnished	Other collateral received/furnished	Net amount	Fair value	Netting agreement	Cash collateral received/furnished	Other collateral received/furnished	Net amount
Derivative receivables	72.9	33.4	39.1	0.3	0.1	63.1	37.6	25.2	—	0.3
Derivative liabilities	90.5	33.4	11.8	36.4	8.9	76.5	37.6	8.6	27.1	3.2

Derivative financial instruments in

connection with reinsurance

A number of treaties in life and health reinsurance meet criteria which

require application of the stipulations contained in IFRS 17 “Insurance

Contracts” governing embedded derivatives. These accounting regulations

require that certain derivatives embedded in reinsurance contracts be

separated from the underlying insurance contract (“host contract”),

reported separately at fair value in accordance with IFRS 9 “Financial

Instruments” and recognised under investments. Fluctuations in the fair

value of the derivative components are to be recognised through profit and

loss in subsequent periods.

A number of transactions concluded in the Life & Health reinsurance

business group in previous years, under which Hannover Re companies

offer their contracting parties coverage for risks from possible future

payment obligations arising out of hedging instruments, are also to be

classified as derivative financial instruments. The payment obligations

result from contractually defined events and relate to the development of an

underlying group of primary insurance contracts with statutory reserving

requirements. The contracts are to be categorised and recognised as

stand-alone credit derivatives pursuant to IFRS 9. These derivative financial

instruments were carried in equity on initial recognition. Please see section

6.3 “Other assets”. The fair value of these instruments was

EUR 19.3 million on the balance sheet date and was recognised under

other liabilities (EUR 14.2 million recognised under financial assets at fair

value through profit or loss). The change in value in subsequent periods is

dependent upon the risk experience and led to an improvement in the result

of EUR 32.9 million (EUR 56.5 million) in the financial year.

The portfolio contains a hedge against an extreme increase in mortality that

protects the Hannover Re Group against a rise in mortality rates, for

example due to pandemics, natural catastrophes or terrorist attacks. The

risk swap is indexed against a weighted combination of US, UK and

Australian population mortality. Payment under the cover is triggered

proportionately between 110% and 120% of the mortality index. The

derivative was recognised with a fair value of EUR 0.0 million as at the

balance sheet date (EUR 1.0 million recognised under other liabilities). The

change in the fair value of the derivative gave rise to income of

EUR 1.0 million (EUR 0.8 million) in the course of the year.

In the area of life and health reinsurance a reinsurance treaty with a

financing component was also written in the past under which the amount

and timing of the return flows are dependent on lapse rates within an

underlying primary insurance portfolio. This treaty and a corresponding

retrocession agreement, which are classified as financial instruments

pursuant to IFRS 9, resulted in the recognition of other liabilities of

EUR 2.2 million (EUR 4.7 million) and financial assets at fair value through

profit or loss in an amount of EUR 89.4 million (EUR 124.7 million).

Altogether, these arrangements gave rise to an improvement in the result of

EUR 6.6 million (EUR 12.9 million) in the year under review.

At the end of the 2017 financial year an index-linked cover was written for

longevity risks. The resulting derivative was recognised as at the balance

sheet date with a positive fair value of EUR 10.5 million (EUR 7.7 million)

under financial assets at fair value through profit or loss. The change in the

fair value of the derivative gave rise to income of EUR 5.6 million

(EUR 3.4 million) in the course of the year.

In the 2022 financial year a cover containing a financing component was

taken out for biometric risks in life and health reinsurance. IFRS 9 requires

that an embedded derivative be separated from this arrangement. The

derivative has been derecognised and gave rise to income of

EUR 0.4 million for the last time in the previous year.

All in all, application of the standards governing the accounting for

derivatives in connection with the technical account led to recognition of

assets totalling EUR 99.8 million (EUR 146.6 million) as well as recognition

of liabilities in an amount of EUR 21.6 million (EUR 5.7 million) from the

derivatives resulting from technical items as at the balance sheet date.

Improvements in the result amounting to EUR 46.0 million

(EUR 74.1 million) and no charges were recognised in the year under review

from all separately measured derivatives in connection with the technical

account.

Financial guarantees

Structured transactions were entered into in the life and health reinsurance

business group in order to finance statutory reserves (so-called Triple-X or

AXXX reserves) of US ceding companies. In each case such structures

necessitated the involvement of a special purpose entity. The special

purpose entities carry extreme mortality risks securitised by the cedants

above a contractually defined retention and transfer these risks by way of a

fixed / floating swap to a member company of the Hannover Re Group. The

total amount of the contractually agreed capacities of the transactions is

equivalent to EUR 3,119.4 million (EUR 3,192.5 million); an amount

equivalent to EUR 2,520.7 million (EUR 2,629.2 million) had been taken up

as at the balance sheet date. The variable payments to the special purpose

entities that are guaranteed by the Hannover Re Group cover their payment

obligations. Under some of the transactions the payments resulting from

the swaps in the event of a claim are reimbursed by the parent companies of

the cedants by way of compensation agreements. In this case the

reimbursement claims from the compensation agreements are to be

capitalised separately from and up to the amount of the provision.

Under IFRS 9 these transactions are to be recognised at fair value as

financial guarantees. To this end Hannover Re uses the net method,

according to which the present value of the agreed fixed swap premiums is

netted with the present value of the guarantee commitment. The fair value

on initial recognition therefore amounted to zero. The higher of the fair value

and the amount carried as a provision on the liabilities side pursuant to IAS

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37 is recognised at the point in time when utilisation is considered probable.

This was not the case as at the balance sheet date.

9.2 Related party disclosures

IAS 24 “Related Party Disclosures” defines related parties as group entities

of a common parent, associated entities and joint ventures, legal entities

under the influence of key management personnel and the key

management personnel of the entity itself. Transactions between Hannover

Rück SE and its subsidiaries, which are to be regarded as related parties,

were eliminated through consolidation and are therefore not discussed in

the notes to the consolidated financial statement. In the year under review

the significant business relations described below existed with related

parties.

Talanx AG holds an unchanged majority interest of 50.2% in Hannover

Rück SE. For its part, Haftpflichtverband der Deutschen Industrie

Versicherungsverein auf Gegenseitigkeit (HDI), Hannover, holds a majority

interest in Talanx AG.

The business relationship between Hannover Rück SE and its subsidiary

E+S Rückversicherung AG is based on a cooperation agreement. A

retrocession by Hannover Rück SE to E+S Rückversicherung AG exists in

property and casualty reinsurance. The German life and health reinsurance

business of E+S Rückversicherung AG was transferred to Hannover Rück

SE in the year under review.

Companies belonging to the Talanx Group granted the Hannover Re Group

insurance protection inter alia in the areas of motor, public liability, building,

contractors all risks, group accident and business travel insurance.

Divisions of Talanx AG also performed services for the Hannover Re Group

in the areas of taxes and general administration. Divisions of Hannover

Rück SE performed services in connection with the insurance and

reinsurance business of HDI Global Specialty SE, a participation of

HDI Global SE.

Talanx Reinsurance Broker GmbH and Talanx AG grant Hannover Rück SE

and E+S Rückversicherung AG a preferential position as reinsurers of

cedants within the Talanx Group. In addition, Hannover Rück SE and

E+S Rückversicherung AG are able to participate in the protection covers

on the retention of Group cedants and share in the protection afforded by

them. In certain circumstances Hannover Rück SE and

E+S Rückversicherung AG are obliged to assume unplaced shares of the

reinsurance of Group cedants from Talanx Reinsurance Broker GmbH or

Talanx AG.

The Hannover Re Group provides reinsurance protection for the

HDI Group. To this extent, numerous underwriting business relations exist

with related parties in Germany and abroad that are not included in the

Hannover Re Group’s consolidation. This includes business both assumed

and ceded at usual market conditions.

The reinsurance relationships with related parties in the year under review

and the previous year are shown with their total amounts in the following

table.

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Business assumed and ceded in Germany and abroad



in EUR million	2024			2025
	Property and casualty reinsurance	Life and health reinsurance	Total	Property and casualty reinsurance	Life and health reinsurance	Total
Material items in the statement of income
Business assumed
Reinsurance revenue	999.0	41.8	1,040.8	828.8	38.5	867.2
Reinsurance service expenses	-855.8	-19.2	-875.0	-1,013.9	-16.7	-1,030.6
Reinsurance service result	143.2	22.6	165.8	-185.2	21.8	-163.4
Business ceded
Reinsurance expenses	1.1	-26.7	-25.6	-5.3	-30.9	-36.2
Income from reinsurance contracts held	2.1	18.4	20.5	-1.0	22.7	21.7
Net result from reinsurance contracts held	3.2	-8.3	-5.1	-6.3	-8.2	-14.5
Reinsurance service result (net)	146.4	14.3	160.7	-191.5	13.6	-177.8

Material items in the balance sheet
Assets
Reinsurance recoverables on liability for incurred claims	12.1	—	12.1	11.0	—	11.0
Reinsurance recoverables on liability for remaining coverage	9.1	—	9.1	0.8	—	0.8
Recoverables on reinsurance contracts ceded	21.2	—	21.2	11.8	—	11.8
Reinsurance contracts issued in an asset position	-9.1	44.1	35.1	0.7	37.9	38.7
Liabilities
Liability for incurred claims LIC	3,024.9	13.7	3,038.6	2,915.7	33.8	2,949.5
Liability for remaining coverage LRC	-76.7	8.9	-67.7	-110.1	-12.5	-122.7
Liabilities from reinsurance contracts issued	2,948.3	22.7	2,970.9	2,805.6	21.2	2,826.8
Reinsurance contracts ceded in a liability position	0.8	7.5	8.2	—	7.5	7.5

In addition, other assets of EUR 2.6 million (EUR 156.5 million) as well as

other liabilities of EUR -8.9 million (EUR 204.6 million) exist with respect to

Talanx AG and its subsidiaries, which are not part of the scope of

consolidation of Hannover Re.

HDI Lebensversicherung AG, Cologne, participated in a nominal amount of

EUR 50.0 million in the subordinated debt issued by Hannover Rück SE in

September 2014 with a coupon of 3.375% until 26 June 2025. On 26 June

2025 all bonds issued were redeemed by Hannover Rück SE.

Within the contractually agreed framework Ampega Asset Management

GmbH performs real estate management as well as investment and asset

management services for Hannover Rück SE and the vast majority of its

subsidiaries. A total amount of EUR 72.6 million (EUR 63.9 million) was

expensed for the rendering of these services in the financial year just ended.

Corresponding services are also performed for existing investment

vehicles.

Hannover Rück SE has concluded agreements with Ampega Asset

Management GmbH, HDI Global Specialty SE and Talanx Reinsurance

Broker GmbH that enable these companies to use software for screening

sanctions lists.

IT and management services were performed for Talanx Reinsurance

Broker GmbH, Hannover, under service contracts.

Actuarial opinions with respect to the pension commitments given to staff

are drawn up for Hannover Rück SE and E+S Rückversicherung AG by

HDI Pensionsmanagement AG under an actuarial service contract.

Talanx AG performs various services in the area of taxes for a number of

investment vehicles of the Hannover Re Group in the asset classes of

private equity and real estate. In this regard corresponding agreements

have been concluded with Hannover Re companies.

Since 2012 a service agreement has existed between Hannover Rück SE

and Talanx AG regarding the use of data acquisition software for Group

accounting purposes.

Hannover Rück SE performs IT services for HDI Global Specialty SE and

for Talanx AG. In addition, since May 2024 Hannover Rück SE has used

data centre space leased from a provider together with HDI AG. In this

connection HDI AG holds the lease agreement with the provider, while

Hannover Rück SE is the sublessee.

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Hannover Rück SE has concluded a contract with Talanx Service AG

regarding the reciprocal provision of business continuity management

services.

Since 2004 a service agreement has existed between Hannover Rück SE,

E+S Rückversicherung AG and Talanx Reinsurance Broker GmbH

regarding the use of market security services and access to the business

partner information system of Hannover Rück SE.

Remuneration and shareholdings of

the members of the governing bodies

of the parent company

The remuneration of the active members of the Executive Board of

Hannover Re amounted to altogether EUR 14.9 million (EUR 16.2 million).

In the event of 100% target attainment, the remuneration of the Executive

Board consists of a 40% short-term fixed component and a 60% variable

component. Each member of the Executive Board receives a contractual

commitment to customary target remuneration which is aligned with their

scope of responsibility and their expertise and experience of relevance to

the position. This long-term incentive (LTI) is paid out at the end of the four-

year performance period in the 2030 financial year.

With effect from 1 January 2021 the variable component of the Executive

Board remuneration is split into a short-term incentive (STI) (40%) and a

long-term incentive (60%) (HR performance share awards). For a detailed

explanation of the LTI we refer to section 9.3 “Share-based payment”. For

the 2025 financial year, the target amount for the LTI (share-based

payment) is EUR 4.4 million (EUR 4.6 million). The STI is geared to

Hannover Re's commercial success in the respective financial year. The

basis for payment under the STI is the contractually defined STI target

amount, which is based on overall target attainment of 100%. The overall

target attainment (including the individual premium or deduction) can range

from 0% to 200%. The amount paid out under the STI is thus limited to

200% of the target amount. In addition to the return on equity as a financial

performance criterion, an individual premium or deduction is also

determinative for the STI. The latter encompasses both financial and non-

financial performance criteria, particularly including sustainability targets.

The amount of the premium or deduction, which can range from

-25 percentage points to +25 percentage points, is determined by the

Supervisory Board at its reasonable discretion. The criteria and key

performance indicators used to establish the individual premium or

deduction are defined by the Supervisory Board in advance for the coming

financial year and communicated to the members of the Executive Board.

The STI for the 2025 financial year amounts to EUR 5.6 million

(EUR 5.8 million).

The fixed remuneration is granted in three components, namely fixed

remuneration, fringe benefits and retirement provision. The fixed

remuneration is aligned with the scope of duties and the professional

experience of the individual member of the Executive Board. In addition,

each member of the Executive Board receives certain, non-performance-

based fringe benefits in the customary scope, for example a company car

and insurance coverage. These amounted to EUR 0.1 million

(EUR 0.1 million).

The benefits after termination of the employment relationship for the most

part consist of a defined contribution retirement plan. Altogether, a pension

expense for the active members of the Executive Board amounting to

EUR 0.8 million (EUR 1.0 million) was recognised for 2025.

The total remuneration of former members of the Executive Board and their

surviving dependants amounts to EUR 4.0 million (EUR 2.7 million).

Altogether, a provision of EUR 27.5 million (EUR 25.0 million) has been set

aside for pension commitments for this group of persons.

The exclusively short-term total remuneration of the Supervisory Board of

Hannover Re amounted to EUR 1.6 million (EUR 1.2 million). Around

EUR 1.1 million (EUR 0.8 million) was attributable to remuneration for work

on the Supervisory Board. In addition, remuneration of EUR 0.3 million

(EUR 0.2 million) was paid for committee work together with

EUR 0.1 million (EUR 0.1 million) for attendance allowances. A further

EUR 0.1 million (EUR 0.1 million) arose in connection with supervisory

board remuneration at Group companies. There are no pension

commitments for former members of the Supervisory Board or their

surviving dependants.

Remuneration of the active members of the Executive Board



in EUR million	2024	2025
Short-term benefits (basic remuneration, fringe benefits, one-time payments, STI)	11.6	10.6
Other long-term benefits (performance share awards)	14.8	8.2
Benefits after termination of the employment relationship	1.0	0.8

Members of the Supervisory Board and Executive Board of Hannover Rück

SE as well as their spouses or registered partners and first-degree relatives

hold less than 1.0% of the issued shares. For further information on the

shareholdings of the Executive Board, we refer to the remuneration report

at Remuneration reportä. Our disclosures regarding directors’ dealings

can be viewed at Investors/Directors' Dealingsä.

The members of the governing bodies did not receive any advances or

loans in the year under review. Nor were there any other material reportable

circumstances or contractual relationships as defined by IAS 24 between

companies of the Hannover Re Group and the members of the governing

bodies or their related parties in the year under review. Furthermore, above

and beyond the aforementioned remuneration as supervisory board

members at Group companies, the members of the Supervisory Board

were not granted any remuneration or benefits for personally rendered

services.

All other information regarding the remuneration system and the

remuneration report of the Executive Board and Supervisory Board can be

accessed online: Remuneration reportä.

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9.3 Share -based payment

Since 2011 Hannover Re has had a share-based payment plan with cash

settlement (Share Award Plan).

Share Award Plan

With effect from the 2011 financial year the Supervisory Board of Hannover

Rück SE implemented a Share Award Plan for the members of the

Executive Board of Hannover Re; this provides for the granting of stock

participation rights in the form of virtual shares (referred to as “share

awards”).

The Executive Board of Hannover Re decided to adopt a Share Award Plan

for certain management levels at Hannover Re as well with effect from the

2012 financial year. The Share Award Plan for the Executive Board was

modified and expanded with effect from the 2021 financial year

(“performance shares”) by a resolution of the Annual General Meeting.

The share awards do not establish any claim against Hannover Re to the

delivery of stock, but merely to payment of a cash amount in accordance

with the conditions set out below.

The members of the Executive Board and management of Hannover Re

who are eligible recipients under the Share Award Plan are those who have

been allowed a contractual claim to the granting of share awards and whose

service / employment relationship exists at the time when the share awards

are granted and does not end through cancellation or a termination

agreement on an effective date prior to expiry of the vesting period.

Share awards were granted separately for the first time for the 2011 financial

year and then for each financial year (allocation year) thereafter. The first

payout of share awards took place in the 2016 financial year for those share

awards that had been allocated in the 2011 financial year to the eligible

members of the Executive Board. In the 2017 financial year the first payout

was also made to the participating senior executives.

The total number of share awards granted is based on the value per share of

Hannover Rück SE. The value per share is established according to the

unweighted arithmetic mean of the Xetra closing prices of the Hannover Re

share. In the conditions applicable to members of the Executive Board a

period of 15 trading days before to 15 trading days after the meeting of the

Supervisory Board that approves the consolidated financial statement for

the financial year just ended is envisaged for the calculation. For senior

executives a period of 20 trading days before to ten trading days after the

meeting of the Supervisory Board that approves the consolidated financial

statement for the financial year just ended has been agreed. The prices

calculated in this way also determine the payout value of the share awards

that have become payable. The total number of share awards granted is

established by dividing the amount available for the granting of share

awards to the respective eligible recipients by the value per share, rounded

up to the next full share. For members of the Executive Board 60% and for

senior executives 40% or 35% – depending on management level – of the

defined variable remuneration shall be granted in the form of share awards.

Since the 2021 financial year the calculation of share awards for the

Executive Board has been based on the target amount, which – depending

on the entrepreneurial and personal target achievement – produces an

allocation value that is at most 200% of the target amount.

The share awards are granted automatically without any requirement for a

declaration. Following expiry of a vesting period of four years the value of

one Hannover Re share calculated at the disbursement date is paid out for

each share award. This value is calculated according to the provisions of

the preceding paragraph. The amount paid out for the performance shares

is additionally influenced by the development of the Total Shareholder

Return (TSR). The TSR captures the share price performance as well as the

dividends during the vesting period. The TSR of Hannover Re is considered

in relation to the unweighted average TSR of a peer group, comprised of

Munich Re, Swiss Re, Everest Re, RGA and SCOR, and produces the

relative TSR. The base amount paid out derived from the share price and

dividends is multiplied by this TSR, producing the final amount paid out –

which is at most 200% of the base amount paid out.

The eligible recipient shall be paid an amount that corresponds to the sum

total of the values of the share awards calculated at the disbursement date

for which the vesting period of four years has expired. The amount is to be

paid in the month after expiry of the determinative period for calculating the

value per share according to the preceding paragraphs.

In addition, upon payment of the value of the share awards, a sum shall be

paid out in the amount of the dividend insofar as dividends were distributed

to shareholders. The amount of the dividend is the sum total of all dividends

per share paid out during the term of the share awards multiplied by the

number of share awards due for disbursement to the eligible recipient at the

disbursement date. In the event of early disbursement of the share awards,

the value of the dividends shall only be paid out for the period until

occurrence of the event that triggers early disbursement. No pro rata

allowance shall be made for dividends that have not yet been distributed.

In the event that the Board mandate or service relationship with the member

of the Executive Board or the employment relationship with the manager

ends, the eligible recipient shall retain his claims to payment of the value of

already granted share awards after expiry of the applicable vesting period,

unless such termination is based on resignation of office / voluntary

termination on the part of the member of the Executive Board or voluntary

termination on the part of the manager or dismissal by Hannover Re for a

compelling reason. In the event of death the claims arising out of the already

granted and / or still to be granted share awards pass to the heirs.

Any entitlement to the granting of share awards after leaving the company is

excluded. This shall not apply with respect to claims to variable

remuneration acquired (pro rata) in the last year of service of the eligible

recipient in the event of exit from the company on account of non-

reappointment, occurrence of the pensionable event or death.

The Share Award Plan of Hannover Rück SE gives rise to the amounts

shown in the following table.

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Share awards of Hannover Rück SE



	Allocation year
	2021		2022		2023		2024		2025
	Anticipated allocation	Final allocation 2022 for 2021	Anticipated allocation	Final allocation 2023 for 2022	Anticipated allocation	Final allocation 2024 for 2023	Anticipated allocation	Final allocation 2025 for 2024	Anticipated allocation
Valuation date
Executive Board	30.12.2021	15.3.2022	30.12.2022	15.3.2023	11.12.2023	9.4.2024	10.12.2024	2.4.2025	10.12.2025
Senior Executives	30.12.2021	22.3.2022	30.12.2022	22.3.2023	11.12.2023	2.4.2024	10.12.2024	26.3.2025	10.12.2025
Valuation per share award in EUR
Executive Board	167.15	148.86	185.50	176.66	220.40	242.71	253.70	266.41	256.40
Senior Executives	167.15	159.54	185.50	177.58	220.40	241.26	253.70	262.76	256.40
Number of allocated share awards in the allocation year
Executive Board	25,130	27,977	27,658	29,705	31,306	29,531	35,479	32,702	36,278
Senior Executives	44,477	40,954	44,567	51,425	52,042	46,710	48,311	45,419	45,873
Other adjustments¹		-4,201		-4,233		-1,886		-289
Total	69,607	64,730	72,225	76,897	83,348	74,355	83,790	77,832	82,151

¹ This figure results from originally granted share awards that have since lapsed.

Development of the provision for share awards of Hannover Rück SE



in EUR million	Allocation year
	2019	2020	2021	2022	2023	2024	2025	Total
Provision at 31 December 2022	10.9	9.3	9.6	7.9	4.4	—	—	42.1
Allocation 2023	1.4	4.3	5.9	6.4	5.8	7.3	—	31.0
Utilisation 2023	12.3	—	—	—	—	—	—	12.3
Release 2023	—	0.3	0.4	0.3	0.2	—	—	1.2
Provision at 31 December 2023	—	13.3	15.1	14.0	10.0	7.3	—	59.6
Allocation 2024	—	0.9	4.0	4.3	3.9	3.8	6.0	22.9
Utilisation 2024	—	14.2	—	—	—	—	—	14.2
Release 2024	—	—	0.3	0.4	0.2	0.1	—	1.0
Provision at 31 December 2024	—	—	18.8	17.9	13.7	11.0	6.0	67.3

The aggregate provision – recognised under the sundry non-technical

provisions – amounted to EUR 67.3 million (EUR 59.6 million) as at the

balance sheet date.

The personnel expense for share awards in the case of members of the

Executive Board is spread on an accrual basis across the relevant term of

the share awards or the shorter term of the service contracts; in the case of

senior executives the personnel expense is spread across the relevant term

of the share awards. The allocation of the financial year recognised in the

expenditures on personnel totalled altogether EUR 22.9 million

(EUR 31.0 million). This consists of the expense for share awards of the

2025 financial year as well as the dividend claim and the additionally earned

portion of the share awards granted in earlier financial years. The value of

the share awards finally granted is also influenced by movements in the

share price. The sum total of the dividends included in the expenditures on

personnel for earlier financial years amounted to EUR 2.6 million

(EUR 1.9 million). The distributed dividend is recognised, with no allowance

made for expected dividend payments. Dividend claims are recognised in

the discounted amounts.

In the year under review, the 7,851 (7,993) share awards of the Executive

Board finally allocated in 2020 with a value of EUR 270.38 (EUR 245.19)

each plus the dividend entitlement of EUR 23.45 (EUR 21.75) were paid out

to the eligible members of the Executive Board. The 41,642 (38,692) share

awards of the senior executives for the 2020 financial year were paid out in

2025 with a value of EUR 262.76 (EUR 241.26) each plus the dividend

entitlement of EUR 23.45 (EUR 21.75). The allocation to the provision for

share awards granted in 2020 derives from the difference between the

share price at the last balance sheet date, i.e. EUR 253.70, and the price for

Hannover Re

instruments and financial guarantees“.

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payment of the share awards from March 2025, i.e. EUR 270.38 /

EUR 262.76.

With regard to the effects of the equity swaps taken out to hedge price risks,

please see our explanatory remarks in section 9.1 “Derivative financial

9.4 Staff and expenditures on

personnel

Staff

The average number of staff at the companies included in the consolidated

financial statement of the Hannover Re Group during the reporting period

was 3,991 (3,840). As at the balance sheet date altogether 4,078 (3,895)

staff were employed by the Hannover Re Group, with 1,866 (1,754)

employed in Germany and 2,212 (2,141) working for the consolidated

Group companies abroad.

Personnel information



		Number of employees (excluding members of the Executive Board)
2024	31.12.	3,895
2024	Average	3,840
2025	31.3.	3,963
	30.6.	4,013
	30.9.	4,007
	31.12.	4,078
	Average	3,991

Expenditures on personnel

The expenditures on insurance business, claims expenses (claims

settlement) and expenditures on the administration of investments include

the following personnel expenditures:

Personnel expenditures



in EUR million	2024	2025
a) Wages and salaries	425.7	449.7
b) Social security contributions and expenditure on provisions and assistance	71.7	81.5
ba) Social security contributions	34.8	41.2
bb) Expenditures for pension provision	30.4	33.8
bc) Expenditures for assistance	6.4	6.5
Total	497.4	531.1

9.5 Earnings per share and

dividend proposal

Calculation of the earnings per share



	2024	2025
Group net income in EUR million	2,328.7	2,641.5
Weighted average of issued shares	120,597,011	120,597,003
Basic earnings per share in EUR	19.31	21.90
Diluted earnings per share in EUR	19.31	21.90

The earnings per share is calculated by dividing the net income attributable

to the shareholders of Hannover Rück SE by the weighted average number

of shares outstanding within the period under review.

Neither in the year under review nor in the previous reporting period were

there any dilutive effects. The weighted average of the issued shares was,

as in the previous year, slightly lower than the value of the shares in

circulation on the balance sheet date. In the context of the employee share

option plan Hannover Re acquires treasury shares and sells them at a later

date to eligible employees. The weighted average number of shares does

not include 15,719 (14,799) treasury shares pro rata temporis for the

duration of the holding period. For further details please see our comments

in section 6.8 “Shareholders' equity and treasury shares”.

There were no other extraordinary components of income which should

have been recognised or disclosed separately in the calculation of the

earnings per share.

The earnings per share could potentially be diluted in future through the

issue of shares or subscription rights from the authorised or conditional

capital.

Dividend per share

A total dividend of EUR 1,085.4 million (EUR 868.3 million) was paid in the

year under review for the 2024 financial year.

It will be proposed to the Annual General Meeting on 6 May 2026 that a

dividend of EUR 12.5 per share should be paid for the 2025 financial year.

This corresponds to a total distribution of EUR 1,507.5 million. The dividend

proposal does not form part of this consolidated financial statement.

9.6 Lawsuits

Member companies of the Hannover Re Group are involved in judicial and

supervisory procedures as well as in arbitration proceedings as part of the

conduct of insurance and reinsurance business. Depending upon the

subject matter of the procedure, the Hannover Re Group sets aside

provisions for the amount in dispute in such proceedings – for the most part

in the technical account and in exceptional cases as a charge to other

income / expenses – if and to the extent that the resulting commitments are

likely to materialise and their amount can be estimated with sufficient

accuracy. The provision established in each case covers the expense that

can be expected in our assessment as at the balance sheet date.

Neither the outcome nor the duration of pending procedures can be

definitively foreseen at the time when provisions are established. The final

liabilities of Hannover Re may diverge considerably from the constituted

provisions because the assessment of probability and the quantification of

these uncertain liabilities in large measure require estimates that may prove

not to be accurate as the proceedings in question continue to progress. This

is also true of procedures for which no provisions were established. Insofar

as a commitment exists under such procedures as at the balance sheet

date that may possibly but will probably not result in a loss, the Hannover

Re Group estimates this potential loss – where practicable – and reports a

contingent liability. For estimation purposes Hannover Re takes into

account a number of factors. These include, among others, the nature of the

claim, the status of the procedure concerned, decision of courts and

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arbitration bodies, prior settlement discussions, experience from

comparable cases as well as expert opinions and the assessments of legal

advisers and other experts. If a provision has been established for a

particular procedure, a contingent liability is not recognised.

The other lawsuits concluded and still pending in the year under review and

as at the balance sheet date were not material for the Hannover Re Group

either individually or combined. Furthermore, there were no contingent

liabilities from lawsuits to report as at the balance sheet date.

9.7 Contingent liabilities and

commitments

As security for technical liabilities to our US clients, we have established two

trust accounts (master trust and supplemental trust) in the United States.

They amounted to EUR 3,117.5 million (EUR 4,440.5 million) and

EUR 306.7 million (EUR 501.3 million) respectively as at the balance sheet

date. The securities held in the trust accounts are shown as investments at

fair value through OCI. In addition, we furnished further collateral to ceding

companies in an amount of EUR 7,805.6 million (EUR 7,660.8 million) in

the form of so-called “single trust funds”. This amount includes a sum

equivalent to EUR 7,399.2 million (EUR 7,186.8 million) which was

furnished by investors as security for potential reinsurance obligations from

ILS transactions.

As part of our business activities we hold collateral available outside the

United States in various blocked custody accounts and trust accounts, the

total amount of which in relation to the Group’s major companies was

EUR 3,410.9 million (EUR 3,530.9 million) as at the balance sheet date.

The securities held in the blocked custody accounts and trust accounts are

recognised predominantly as investments at fair value through OCI.

Facility agreements for letters of credit (LoC) existed with a number of

banks as at the balance sheet date in a total volume equivalent to

EUR 3,426.0 million (EUR 3,204.7 million) and with various terms maturing

at the latest in 2030.

Various financial institutions have furnished sureties as collateral for

technical liabilities in the form of letters of credit. The total amount as at the

balance sheet date was EUR 1,887.1 million (EUR 1,650.5 million).

A number of LoC lines include standard market contractual clauses that

allow the banks rights of cancellation in the event of material changes in our

shareholding structure or trigger a requirement on the part of Hannover Re

to furnish collateral upon materialisation of major events, for example if our

rating is significantly downgraded. Please see also our explanatory remarks

in the “Financial position and net assets” subsection of the management

report on the information pursuant to § 315a Sentence 1 German

Commercial Code (HGB).

We put up own investments with a book value of EUR 39.8 million

(EUR 57.6 million) as collateral for existing derivative transactions. We

received collateral with a fair value of EUR 27.9 million (EUR 43.7 million)

for existing derivative transactions.

As security for liabilities in connection with participating interests in real

estate companies and real estate transactions the usual collateral under

such transactions has been furnished to various banks, the amount of

which totalled EUR 970.2 million (EUR 1,128.7 million) as at the balance

sheet date.

Outstanding capital commitments with respect to alternative investments

exist on the part of the Group in an amount of EUR 3,416.6 million

(EUR 2,628.0 million). These primarily involve as yet unfulfilled payment

obligations from investment commitments given to private equity funds and

venture capital firms.

Hannover Rück SE has provided an open-ended guarantee limited to

GBP 10.0 million (equivalent to EUR 11.5 million) in favour of the pension

fund “The Congregational & General Insurance Plc Pension and Life

Assurance Scheme” of the defunct Congregational & General Insurance

Plc, Bradford, UK, at usual market conditions.

Group companies are members of the association for the reinsurance of

pharmaceutical risks and several atomic and nuclear pools. The failure of

one of the other pool members to meet its liabilities would result in an

additional call according to the quota participation.

The application of tax regulations may not have been resolved at the time

when tax items are brought to account. The calculation of tax refund claims

and tax liabilities is based on what we consider to be the regulations most

likely to be applied in each case. The revenue authorities may, however,

take a differing view, as a consequence of which additional tax liabilities

could arise in the future.

Hannover Re enters into contingent liabilities as part of its normal business

operations. A number of reinsurance treaties concluded by Group

companies with outside third parties include letters of comfort, guarantees

or novation agreements under which Hannover Rück SE guarantees the

liabilities of the subsidiary in question or enters into the rights and

obligations of the subsidiary under the treaties if particular constellations

materialise.

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9.8 Leases

Leased properties

Hannover Re leases various office premises, technical facilities, office

equipment and vehicles. A long-term land lease agreement also exists in

connection with investment property.

Leases were recognised in the following items of the balance sheet in the

amounts stated below:

Leases in the balance sheet



in EUR million	2024	2025
Investment property	34.8	30.5
Own-use property	55.3	46.5
Fixtures, fittings and equipment	0.1	—
Sundry assets	1.9	0.7
Lease liabilities	106.6	92.1

The allocation to the right-of-use assets amounted to EUR 5.3 million

(EUR 21.6 million) in the financial year. Long-term property leases result in

potential future variable lease payments of EUR 36.8 million

(EUR 38.1 million). These have not been taken into account in the

measurement of the lease liability. The following amounts were recognised

in the statement of income in connection with leases:

Amortisation of right-of-use assets in connection with leases



in EUR million	2024	2025
Investment property	0.5	0.4
Own-use real estate	6.4	9.9
Sundry assets	1.1	1.2
Total	8.0	11.6

The interest expenses for lease liabilities totalled EUR 2.9 million

(EUR 3.5 million). Expenses in connection with short-term leases were

recognised in an amount of EUR 0.0 million (EUR 0.9 million). The total

amounts payable for leases came to EUR 15.6 million (EUR 14.7 million).

Rented properties

Future minimum lease payments receivable



in EUR million		Amounts receivable
2026		203.1
2027		186.1
2028		168.0
2029		135.9
2030		112.0
Subsequent years		268.7

The rental payments receivable result from the long-term renting out of

properties by the Group’s real estate companies. The leases in question are

operating leases. The rental income received in the financial year amounted

to EUR 231.1 million (EUR 213.4 million).

9.9 Fee paid to the auditor

On the recommendation of the Supervisory Board, the Annual General

Meeting selected PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft (PwC GmbH) on 7 May 2025 as the

statutory auditor of the annual financial statements. The expense

recognised for the fees paid to PwC GmbH and worldwide member firms of

PwC International Limited (PwC) in the year under review can be broken

down as follows:

Fee paid to the auditor



in EUR million	2024		2025
	PwC worldwide	thereof PwC GmbH	PwC worldwide	thereof PwC GmbH
Services relating to auditing of the financial statements	18.6	7.3	15.1	4.8
Other assurance services	0.4	0.3	1.4	0.5
Other services	—	—	0.1	—
Total	19.0	7.6	16.6	5.3

The fee for services relating to auditing of the financial statements

performed by PwC GmbH includes above all the fees for auditing of the

consolidated financial statements as well as for audits of annual financial

statements and audits of the Solvency II balance sheets of the German

subsidiaries included in the consolidated financial statements.

The fees for other assurance services relate to all other typical professional

assurance services outside the auditing of annual financial statements. In

the current financial year, for example, the auditor performed other

assurance services in connection with the remuneration report and the

combined non-financial statement.

The auditor responsible for performance of the audit engagement as

defined by § 38 Para. 2 of the Professional Charter for Accountants /

Certified Auditors (Berufssatzung WP / vBP) as amended on 21 June 2016

is Ms. Janna Reineke. She is serving as the engagement partner

responsible for the audit of the annual and consolidated financial

statements effective 31 December 2025.

Hannover Re

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9.10 Events after the balance

sheet date

Large loss events have already occurred in the early weeks of 2026. These

include, among others, flooding across the Iberian Peninsula and in the

Maghreb caused by winter storms and extreme rainfall. In addition, the

severe Winter Storm Fern and the blizzard associated with Winter Storm

Hernando, in particular, caused extensive damage across large parts of

North America and in the Northeastern United States respectively. The

extent of the insured losses for Hannover Re cannot be definitively

estimated at the current point in time. Nevertheless, we anticipate overall

large loss expenditure in the low triple-digit millions from the

aforementioned events, which will likely not exceed our expectation for

such events in the first quarter of 2026.

The implications of the warlike hostilities that broke out in the Middle East at

the end of February cannot be assessed at this point in time. Although

direct consequences of war are excluded in many reinsurance treaties, the

possibility cannot be ruled out that losses may arise in specialty lines written

by the Hannover Re Group.

Hannover, 9 March 2026

Executive Board


Clemens Jungsthöfel	Sven Althoff	Claude Chèvre
Dr. Christian Hermelingmeier	Brona Magee	Sharon Ooi
Silke Sehm	Thorsten Steinmann

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Responsibility

statement

To the best of our knowledge, and in accordance with the applicable

reporting principles, the consolidated financial statements give a true and

fair view of the assets, liabilities, financial position and profit or loss of the

Group, and the Group management report includes a fair review of the

development and performance of the business and the position of the

Group, together with a description of the principal opportunities and risks

associated with the expected development of the Group.

Hannover, 9 March 2026

Executive Board


Clemens Jungsthöfel	Sven Althoff	Claude Chèvre
Dr. Christian Hermelingmeier	Brona Magee	Sharon Ooi
Silke Sehm	Thorsten Steinmann

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Independent Auditor’s

Report

To Hannover Rück SE, Hannover

Report on the audit of the

consolidated financial

statements and of the group

management report

Audit opinions

We have audited the consolidated financial statements of Hannover Rück

SE, Hanover, and its subsidiaries (the Group), which comprise the

consolidated statement of financial position as at 31 December 2025, and

the consolidated statement of comprehensive income, consolidated

statement of profit or loss, consolidated statement of changes in equity and

consolidated statement of cash flows for the financial year from 1 January

to 31 December 2025 and notes to the consolidated financial statements,

including material accounting policy information. In addition, we have

audited the group management report of Hannover Rück SE, which is

combined with the Company’s management report, for the financial year

from 1 January to 31 December 2025. In accordance with the German legal

requirements, we have not audited the content of those parts of the group

management report listed in the “Other Information” section of our auditor’s

report.

In our opinion, on the basis of the knowledge obtained in the audit,

– the accompanying consolidated financial statements comply, in all

material respects, with the IFRS Accounting Standards issued by the

International Accounting Standards Board (IASB) (the IFRS Accounting

Standards) as adopted by the EU and the additional requirements of

German commercial law pursuant to § [Article] 315e Abs. [paragraph] 1

HGB [Handelsgesetzbuch: German Commercial Code] and, in

compliance with these requirements, give a true and fair view of the

assets, liabilities, and financial position of the Group as at 31 December

2025, and of its financial performance for the financial year from 1

January to 31 December 2025 and

– the accompanying group management report as a whole provides an

appropriate view of the Group’s position. In all material respects, this

group management report is consistent with the consolidated financial

statements, complies with German legal requirements and appropriately

presents the opportunities and risks of future development. Our audit

opinion on the group management report does not cover the content of

those parts of the group management report listed in the “Other

Information” section of our auditor’s report.

Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that our audit

has not led to any reservations relating to the legal compliance of the

consolidated financial statements and of the group management report.

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the

group management report in accordance with § 317 HGB and the EU Audit

Regulation (No. 537/2014, referred to subsequently as “EU Audit

Regulation”) in compliance with German Generally Accepted Standards for

Financial Statement Audits promulgated by the Institut der

Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our

responsibilities under those requirements and principles are further

described in the “Auditor’s Responsibilities for the Audit of the Consolidated

Financial Statements and of the Group Management Report” section of our

auditor’s report. We are independent of the group entities in accordance

with the requirements of European law and German commercial and

professional law, and we have fulfilled our other German professional

responsibilities in accordance with these requirements. In addition, in

accordance with Article 10 (2) point (f) of the EU Audit Regulation, we

declare that we have not provided non-audit services prohibited under

Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence

we have obtained is sufficient and appropriate to provide a basis for our

audit opinions on the consolidated financial statements and on the group

management report.

Key Audit Matters in the Audit of the

Consolidated Financial Statements

Key audit matters are those matters that, in our professional judgment, were

of most significance in our audit of the consolidated financial statements for

the financial year from 1. January to 31. December 2025 These matters

were addressed in the context of our audit of the consolidated financial

statements as a whole, and in forming our audit opinion thereon; we do not

provide a separate audit opinion on these matters.

In our view, the matters of most significance in our audit were as follows:

1. Measurement of investments using parameters not observable

on the market and forward-looking information

2. Measurement of certain liabilities from insurance contracts

Our presentation of these key audit matters has been structured in each

case as follows:

(1) Matter and issue

(2) Audit approach and findings

(3) Reference to further information

Hereinafter we present the key audit matters:

1. Measurement of investments using

parameters not observable on the market

and forward-looking information

(1) Investments of € 66,339.2 million (93.0 % of the consolidated

total assets) are reported in the consolidated financial statements.

Of these investments, financial assets totalling € 63,582.4 million

are measured at fair value, of which in turn fair values of

€ 5,346.5 million are calculated using valuation models or based

on third-party value indicators. These investments in particular

relate to unlisted securities, asset backed securities, other

structured and illiquid bonds and investments in private equity.

Of the investments reported in the consolidated financial

statements, financial assets in the amount of € 57,316.6 million

are measured at fair value through other comprehensive income.

These are attributable in the amount of € 56,806.7 million in full to

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debt instruments for which a risk provision totaling € 78.9 million

was recognised as at the reporting date to take account of

impairments for expected credit losses in accordance with the

requirements of IFRS 9 (Expected Credit Loss).

The measurement of investments whose fair value must be

determined using valuation models or value indicators from third

parties is subject to uncertainty, as input parameters that are not

observable in an active market are used for the measurement or

comparative values are not always available and therefore

estimated values are also used. Forward-looking macroeconomic

forecasts are also included in the model valuation to take account

of impairments for expected credit losses.

Model-measured investments are subject to an increased

measurement risk due to the reduced objectivity and the

underlying judgements, estimates and assumptions made by the

executive directors. As the estimates and assumptions used, in

particular those relating to interest rates and cash flows, and the

valuation methods applied may have a material impact on the

valuation of these investments and on the Group’s assets,

liabilities and financial performance, and extensive disclosures on

valuation methods and judgements are also required in the notes,

this matter was of particular significance in the context of our

audit.

(2) As part of our audit, we assessed the appropriateness and

effectiveness of the controls for the valuation of model-measured

investments and investments measured on the basis of third-party

indicators. In addition, we assessed, among other things, the

integrity of the underlying data and the process for determining

the assumptions, estimates and forward-looking information used

in the valuation.

With the support of our internal valuation specialists, we also

assessed the appropriateness of the methods applied by the

executive directors to determine the fair values and the

parameters used. We compared the methods and assumptions

used to calculate valuation adjustments in the financial year with

recognised practices and industry standards and examined the

extent to which they are suitable for proper accounting. To assess

the inclusion of forward-looking information in the model-based

calculation of impairment for expected credit losses, we involved

internal specialists with particular expertise in the field of credit

risk modelling. We also evaluated the disclosures on valuation

methods and judgements contained in the notes to the

consolidated financial statements.

On the basis of the audit procedures performed, we were able to

satisfy ourselves that the methods and assumptions used by the

executive directors to measure certain investments (modelled

and measured based on third-party indicators) and the

consideration of forward-looking information in determining the

impairment for expected credit losses are appropriate overall and

that the explanations and disclosures presented in the notes to

the consolidated financial statements are appropriate.

(3) The Group’s disclosures on the measurement of investments are

contained in Notes 6.1 to the consolidated financial statements.

2. Measurement of certain liabilities from

insurance contracts

(1) In the consolidated financial statements, liabilities amounting to

€ 47,425.8 million (66.5 % of the consolidated total assets) are

reported under the balance sheet item “liabilities from reinsurance

contracts issued”. Of the “liabilities from reinsurance contracts

issued”, € 51,801.3 million is attributable to the “Liability for

incurred claims”, which recognises the expectations regarding

insurance claims that have been incurred but not yet settled, and

€ -4,375.5 million to the “liability for remaining coverage”.

The liability for incurred claims represent the Group’s expectation

of future payments for known and unknown claims and benefits as

well as the associated expenses. The Group uses various

methods to estimate these obligations. In addition, the

measurement of this liability requires a high degree of judgement

by the executive directors of the Group regarding the assumptions

to be made, such as the impact of changing inflation rates, loss

developments and regulatory changes. In addition, there is a

significant judgement of the executive directors regarding the

determination of the discount rate for calculating the liability. In

particular, product lines with a low claims frequency, high

individual claims or long claims settlement periods are usually

subject to increased estimation uncertainties.

The liability for remaining coverage represent the present value of

the future cash flows estimated by the Group. The measurement

is based on complex actuarial methods (hereinafter referred to as

the “measurement methods”) on the basis of comprehensive

processes for determining assumptions about future

developments of the insurance portfolios to be valued. Within the

measurement of the liabilities, the present values of the estimated

future cash flows in particular are affected by possible material

uncertainties. This uncertainty stems in particular from the risk of

chance, change and error associated with the estimation of the

present value of cash flows and the methods and financial and

non-financial assumptions used for this purpose. In particular, the

assumptions in connection with interest rates, investment

income, mortality, disability, longevity, costs and policyholder

behaviour have a significant impact on the measurement.

The general measurement model (GMM) is used to measure

liabilities from insurance contracts.

Against this background and due to the complexity of determining

the underlying assumptions and estimates made by the executive

directors, the measurement of these liabilities was of particular

significance in the context of our audit.

(2) As part of our audit, we assessed the appropriateness of selected

controls of the Group for selecting the valuation methods applied

as well as for determining assumptions and making estimates for

the measurement of certain liabilities from insurance contracts

issued.

With the involvement of our internal valuation specialists, we have

compared the valuation methods and key assumptions with

generally recognised actuarial methods and industry standards

and examined to what extent these are suitable for measuring the

liabilities.

Our audit also included an evaluation of the appropriateness and

integrity of the data and assumptions, including the assessment of

the executive directors regarding the impact of changing inflation

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rates, used in the valuation and a reconstruction of the claims

settlement process. Furthermore, we recalculated the amount of

the liability for selected lines of product, in particular lines of

product with large liability amounts or increased estimation

uncertainties. For these lines of product, we compared the

amounts calculated by us with the values determined by the

Group for the liabilities and evaluated any differences. We also

examined whether any adjustments to estimates in the loss

reserves were adequately documented and substantiated. A

further focus was the assessment of the cash flows used by the IT

systems used as well as the appropriate derivation and use of

assumptions for the measurement of selected liabilities.

Based on our audit procedures, we were able to satisfy ourselves

that the methods, estimates and assumptions used by the

executive directors are appropriate overall for measuring the

technical liabilities in property and casualty insurance.

(3) The company's disclosures on the measurement of certain

liabilities from insurance contracts in property, casualty and life

insurance are contained in Notes 6.4 to the consolidated financial

statements.

Other Information

The executive directors are responsible for the other information. The other

information comprises the following non-audited parts of the group

management report:

– the statement on corporate governance pursuant to § 289f HGB and

§ 315d HGB included in section „Enterprise management“ of the group

management report

– the non-financial statement to comply with §§ 289b to 289e HGB and

with §§ 315b to 315c HGB included in section „Combined non-financial

statement“ of the group management report

– the disclosures contained in the group management report and marked

as unaudited

The other information comprises further all remaining parts of the annual

report – excluding cross-references to external information – with the

exception of the audited consolidated financial statements, the audited

group management report and our auditor’s report.

Our audit opinions on the consolidated financial statements and on the

group management report do not cover the other information, and

consequently we do not express an audit opinion or any other form of

assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other

information mentioned above and, in so doing, to consider whether the

other information

– is materially inconsistent with the consolidated financial statements, with

the group management report disclosures audited in terms of content or

with our knowledge obtained in the audit, or

– otherwise appears to be materially misstated.

Responsibilities of the Executive

Directors and the Supervisory Board

for the Consolidated Financial

Statements and the Group

Management Report

The executive directors are responsible for the preparation of the

consolidated financial statements that comply, in all material respects, with

IFRS Accounting Standards as adopted by the EU and the additional

requirements of German commercial law pursuant to § 315e Abs. 1 HGB,

and that the consolidated financial statements, in compliance with these

requirements, give a true and fair view of the assets, liabilities, financial

position and financial performance of the Group. In addition, the executive

directors are responsible for such internal control as they have determined

necessary to enable the preparation of consolidated financial statements

that are free from material misstatement, whether due to fraud (i.e.,

fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive directors

are responsible for assessing the Group’s ability to continue as a going

concern. They also have the responsibility for disclosing, as applicable,

matters related to going concern. In addition, they are responsible for

financial reporting based on the going concern basis of accounting unless

there is an intention to liquidate the Group or to cease operations, or there is

no realistic alternative but to do so.

Furthermore, the executive directors are responsible for the preparation of

the group management report that, as a whole, provides an appropriate

view of the Group’s position and is, in all material respects, consistent with

the consolidated financial statements, complies with German legal

requirements, and appropriately presents the opportunities and risks of

future development. In addition, the executive directors are responsible for

such arrangements and measures (systems) as they have considered

necessary to enable the preparation of a group management report that is in

accordance with the applicable German legal requirements, and to be able

to provide sufficient appropriate evidence for the assertions in the group

management report.

The supervisory board is responsible for overseeing the Group’s financial

reporting process for the preparation of the consolidated financial

statements and of the group management report.

Auditor’s Responsibilities for the Audit

of the Consolidated Financial

Statements and of the Group

Management Report

Our objectives are to obtain reasonable assurance about whether the

consolidated financial statements as a whole are free from material

misstatement, whether due to fraud or error, and whether the group

management report as a whole provides an appropriate view of the Group’s

position and, in all material respects, is consistent with the consolidated

financial statements and the knowledge obtained in the audit, complies with

the German legal requirements and appropriately presents the

opportunities and risks of future development, as well as to issue an

auditor’s report that includes our audit opinions on the consolidated

financial statements and on the group management report.

Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with § 317 HGB and the EU Audit

Regulation and in compliance with German Generally Accepted Standards

for Financial Statement Audits promulgated by the Institut der

Wirtschaftsprüfer (IDW) will always detect a material misstatement.

Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to

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influence the economic decisions of users taken on the basis of these

consolidated financial statements and this group management report.

We exercise professional judgment and maintain professional skepticism

throughout the audit. We also:

– Identify and assess the risks of material misstatement of the

consolidated financial statements and of the group management report,

whether due to fraud or error, design and perform audit procedures

responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our audit opinions. The risk of not

detecting a material misstatement resulting from fraud is higher than for

one resulting from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal

controls.

– Obtain an understanding of internal control relevant to the audit of the

consolidated financial statements and of arrangements and measures

(systems) relevant to the audit of the group management report in order

to design audit procedures that are appropriate in the circumstances, but

not for the purpose of expressing an audit opinion on the effectiveness of

the internal control and these arrangements and measures (systems),

respectively.

– Evaluate the appropriateness of accounting policies used by the

executive directors and the reasonableness of estimates made by the

executive directors and related disclosures.

– Conclude on the appropriateness of the executive directors’ use of the

going concern basis of accounting and, based on the audit evidence

obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Group’s ability to

continue as a going concern. If we conclude that a material uncertainty

exists, we are required to draw attention in the auditor’s report to the

related disclosures in the consolidated financial statements and in the

group management report or, if such disclosures are inadequate, to

modify our respective audit opinions. Our conclusions are based on the

audit evidence obtained up to the date of our auditor’s report. However,

future events or conditions may cause the Group to cease to be able to

continue as a going concern.

– Evaluate the overall presentation, structure and content of the

consolidated financial statements, including the disclosures, and

whether the consolidated financial statements present the underlying

transactions and events in a manner that the consolidated financial

statements give a true and fair view of the assets, liabilities, financial

position and financial performance of the Group in compliance with IFRS

Accounting Standards as adopted by the EU and the additional

requirements of German commercial law pursuant to § 315e Abs. 1

HGB.

– Plan and perform the group audit to obtain sufficient appropriate audit

evidence regarding the financial information of the entities or business

units within the Group as a basis for forming audit opinions on the

consolidated financial statements and on the group management report.

We are responsible for the direction, supervision and review of the audit

work performed for purposes of the group audit. We remain solely

responsible for our audit opinions.

– Evaluate the consistency of the group management report with the

consolidated financial statements, its conformity with German law, and

the view of the Group’s position it provides.

– Perform audit procedures on the prospective information presented by

the executive directors in the group management report. On the basis of

sufficient appropriate audit evidence we evaluate, in particular, the

significant assumptions used by the executive directors as a basis for

the prospective information, and evaluate the proper derivation of the

prospective information from these assumptions. We do not express a

separate audit opinion on the prospective information and on the

assumptions used as a basis. There is a substantial unavoidable risk that

future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among

other matters, the planned scope and timing of the audit and significant

audit findings, including any significant deficiencies in internal control that

we identify during our audit.

We also provide those charged with governance with a statement that we

have complied with the relevant independence requirements, and

communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable,

actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we

determine those matters that were of most significance in the audit of the

consolidated financial statements of the current period and are therefore the

key audit matters. We describe these matters in our auditor’s report unless

law or regulation precludes public disclosure about the matter.

Other legal and regulatory

requirements

Report on the Assurance on the

Electronic Rendering of the

Consolidated Financial Statements

and the Group Management Report

Prepared for Publication Purposes in

Accordance with § 317 Abs. 3a HGB

Assurance opinion

We have performed assurance work in accordance with § 317 Abs. 3a HGB

to obtain reasonable assurance as to whether the rendering of the

consolidated financial statements and the group management report

(hereinafter the “ESEF documents”) contained in the electronic file

HannoverRueckSE_KA_KLB-2025-12-31-1-de.xbri and prepared for

publication purposes complies in all material respects with the

requirements of § 328 Abs. 1 HGB for the electronic reporting format

(“ESEF format”). In accordance with German legal requirements, this

assurance work extends only to the conversion of the information contained

in the consolidated financial statements and the group management report

into the ESEF format and therefore relates neither to the information

contained within these renderings nor to any other information contained in

the electronic file identified above.

In our opinion, the rendering of the consolidated financial statements and

the group management report contained in the electronic file identified

above and prepared for publication purposes complies in all material

respects with the requirements of § 328 Abs. 1 HGB for the electronic

reporting format. Beyond this assurance opinion and our audit opinion on

the accompanying consolidated financial statements and the

accompanying group management report for the financial year from 1

January to 31 December 2025 contained in the “Report on the Audit of the

Consolidated Financial Statements and on the Group Management Report”

above, we do not express any assurance opinion on the information

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contained within these renderings or on the other information contained in

the electronic file identified above.

Basis for the Assurance Opinion

We conducted our assurance work on the rendering of the consolidated

financial statements and the group management report contained in the

electronic file identified above in accordance with § 317 Abs. 3a HGB and

the IDW Assurance Standard: Assurance Work on the Electronic Rendering

of Financial Statements and Management Reports, Prepared for

Publication Purposes in Accordance with § 317 Abs. 3a HGB ( IDW AsS

410 (06.2022)) and the International Standard on Assurance Engagements

3000 (Revised). Our responsibility in accordance therewith is further

described in the “Group Auditor’s Responsibilities for the Assurance Work

on the ESEF Documents” section. Our audit firm applies the IDW Standard

on Quality Management: Requirements for Quality Management in the

Audit Firm (IDW QMS 1 (09.2022)).

Responsibilities of the Executive Directors and the

Supervisory Board for the ESEF Documents

The executive directors of the Company are responsible for the preparation

of the ESEF documents including the electronic rendering of the

consolidated financial statements and the group management report in

accordance with § 328 Abs. 1 Satz 4 Nr. [number] 1 HGB and for the

tagging of the consolidated financial statements in accordance with § 328

Abs. 1 Satz 4 Nr. 2 HGB.

In addition, the executive directors of the Company are responsible for such

internal control as they have considered necessary to enable the

preparation of ESEF documents that are free from material non-compliance

with the requirements of § 328 Abs. 1 HGB for the electronic reporting

format, whether due to fraud or error.

The supervisory board is responsible for overseeing the process for

preparing the ESEF documents as part of the financial reporting process.

Group Auditor’s Responsibilities for the Assurance

Work on the ESEF Documents

Our objective is to obtain reasonable assurance about whether the ESEF

documents are free from material non-compliance with the requirements of

§ 328 Abs. 1 HGB, whether due to fraud or error. We exercise professional

judgment and maintain professional skepticism throughout the assurance

work. We also:

– Identify and assess the risks of material non-compliance with the

requirements of § 328 Abs. 1 HGB, whether due to fraud or error, design

and perform assurance procedures responsive to those risks, and obtain

assurance evidence that is sufficient and appropriate to provide a basis

for our assurance opinion.

– Obtain an understanding of internal control relevant to the assurance

work on the ESEF documents in order to design assurance procedures

that are appropriate in the circumstances, but not for the purpose of

expressing an assurance opinion on the effectiveness of these controls.

– Evaluate the technical validity of the ESEF documents, i.e., whether the

electronic file containing the ESEF documents meets the requirements

of the Delegated Regulation (EU) 2019/815 in the version in force at the

date of the consolidated financial statements on the technical

specification for this electronic file.

– Evaluate whether the ESEF documents provide an XHTML rendering

with content equivalent to the audited consolidated financial statements

and to the audited group management report.

– Evaluate whether the tagging of the ESEF documents with Inline XBRL

technology (iXBRL) in accordance with the requirements of Articles 4

and 6 of the Delegated Regulation (EU) 2019/815, in the version in force

at the date of the consolidated financial statements, enables an

appropriate and complete machine-readable XBRL copy of the XHTML

rendering.

Further Information pursuant to Article

10 of the EU Audit Regulation

We were elected as group auditor by the annual general meeting on 7 May

2025. We were engaged by the supervisory board on 12 December 2025.

We have been the group auditor of the Hannover Rück SE, Hanover,

without interruption since the financial year 2018.

We declare that the audit opinions expressed in this auditor’s report are

consistent with the additional report to the audit committee pursuant to

Article 11 of the EU Audit Regulation (long-form audit report).

Reference to an Other Matter - use of

the Auditor’s Report

Our auditor’s report must always be read together with the audited

consolidated financial statements and the audited group management

report as well as the assured ESEF documents. The consolidated financial

statements and the group management report converted to the ESEF

format – including the versions to be filed in the company register – are

merely electronic renderings of the audited consolidated financial

statements and the audited group management report and do not take their

place. In particular, the “Report on the Assurance on the Electronic

Rendering of the Consolidated Financial Statements and the Group

Management Report Prepared for Publication Purposes in Accordance with

§ 317 Abs. 3a HGB” and our assurance opinion contained therein are to be

used solely together with the assured ESEF documents made available in

electronic form.

German public auditor responsible for

the engagement

The German Public Auditor responsible for the engagement is Janna

Reineke.

Hannover, 10 March 2026

PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft

sgd. Martin Eibl sgd. Janna Reineke

Wirtschaftsprüfer Wirtschaftsprüferin

(German Public auditor) (German Public auditor)

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Assurance Report of the

Independent German Public

Auditor on a Limited Assurance

Engagement in Relation to the

Group Sustainability Statement

To Hannover Rück SE, Hannover

Assurance Conclusion

We have conducted a limited assurance engagement on the group

sustainability statement of Hannover Rück SE, Hannover, (hereinafter the

„Company“) included in section "Sustainability statement, that also fulfils

the requirements for the group non-financial statement prepared in

accordance with sections 315b to 315c HGB" of the group management

report, which is combined with the Company's management report, for the

financial year from 1 January to 31 December 2025 (hereinafter the "Group

Sustainability Statement"). The Group Sustainability Statement has been

prepared to fulfil the requirements of Directive (EU) 2022/2464 of the

European Parliament and of the Council of 14 December 2022 (Corporate

Sustainability Reporting Directive, CSRD) and Article 8 of Regulation (EU)

2020/852 as well as §§ [Articles] 289b to 289e HGB [Handelsgesetzbuch:

German Commercial Code] and §§ 315b to 315c HGB to prepare a

combined non-financial statement.

Based on the procedures performed and the evidence obtained, nothing

has come to our attention that causes us to believe that the accompanying

Group Sustainability Statement is not prepared, in all material respects, in

accordance with the requirements of the CSRD and Article 8 of Regulation

(EU) 2020/852, § 315c in conjunction with §§ 289c to 289e HGB to prepare

a combined non-financial statement as well as with the supplementary

criteria presented by the executive directors of the Company. This

assurance conclusion includes that no matters have come to our attention

that cause us to believe:

– that the accompanying Group Sustainability Statement does not comply,

in all material respects, with the European Sustainability Reporting

Standards (ESRS), including that the process carried out by the

Company to identify the information to be included in the Group

Sustainability Statement (hereinafter the “materiality assessment”) is

not, in all material respects, in accordance with the description set out in

section "Disclosures regarding the process for materiality assessment"

of the Group Sustainability Statement, or

– that the disclosures set out in section "Disclosures in accordance with

Article 8 of the EU Taxonomy Regulation" of the Group Sustainability

Statement do not comply, in all material respects, with Article 8 of

Regulation (EU) 2020/852.

Basis for the Assurance Conclusion

We conducted our limited assurance engagement in accordance with the

International Standard on Assurance Engagements (ISAE) 3000 (Revised):

Assurance Engagements Other Than Audits or Reviews of Historical

Financial Information, issued by the International Auditing and Assurance

Standards Board (IAASB).

The procedures in a limited assurance engagement vary in nature and

timing from, and are less in extent than for, a reasonable assurance

engagement. Consequently, the level of assurance obtained is substantially

lower than the assurance that would have been obtained had a reasonable

assurance engagement been performed.

Our responsibilities under ISAE 3000 (Revised) are further described in the

"German Public Auditor's Responsibilities for the Assurance Engagement

on the Group Sustainability Statement" section.

We are independent of the Company in accordance with the requirements

of European law and German commercial and professional law, and we

have fulfilled our other German professional responsibilities in accordance

with these requirements. Our audit firm has complied with the quality

management system requirements of the IDW Standard on Quality

Management: Requirements for Quality Management in the Audit Firm

(IDW QMS 1 (09.2022)) issued by the Institut der Wirtschaftsprüfer

(Institute of Public Auditors in Germany; IDW). We believe that the evidence

we have obtained is sufficient and appropriate to provide a basis for our

assurance conclusion.

Responsibility of the Executive

Directors and the Supervisory Board

for the Group Sustainability Statement

The executive directors are responsible for the preparation of the Group

Sustainability Statement in accordance with the requirements of the CSRD

and the relevant German legal and other European regulations as well as

with the supplementary criteria presented by the executive directors of the

Company. They are also responsible for the design, implementation and

maintenance of such internal controls that they have considered necessary

to enable the preparation of a Group Sustainability Statement in

accordance with these regulations that is free from material misstatement,

whether due to fraud (i.e., manipulation of the Group Sustainability

Statement) or error.

This responsibility of the executive directors includes establishing and

maintaining the materiality assessment process, selecting and applying

appropriate reporting policies for preparing the Group Sustainability

Statement, as well as making assumptions and estimates and ascertaining

forward-looking information for individual sustainability-related disclosures.

The supervisory board is responsible for overseeing the process for the

preparation of the Group Sustainability Statement.

Inherent Limitations in the Preparation

of the Group Sustainability Statement

The CSRD and the relevant German statutory and other European

regulations contain wording and terms that are still subject to considerable

interpretation uncertainties and for which no authoritative, comprehensive

interpretations have yet been published. Therefore, the executive directors

have disclosed their interpretations of such wording and terms in section

"Basis for preparation" and "Strategy and Business Model" of the Group

Sustainability Statement. The executive directors are responsible for the

defensibility of these interpretations. As such wording and terms may be

interpreted differently by regulators or courts, the legal conformity of

measurements or evaluations of sustainability matters based on these

interpretations is uncertain.

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These inherent limitations also affect the assurance engagement on the

Group Sustainability Statement.

German Public Auditor's

Responsibilities for the Assurance

Engagement on the Group

Sustainability Statement

Our objective is to express a limited assurance conclusion, based on the

assurance engagement we have conducted, on whether any matters have

come to our attention that cause us to believe that the Group Sustainability

Statement has not been prepared, in all material respects, in accordance

with the CSRD and the relevant German legal and other European

regulations as well as with the supplementary criteria presented by the

executive directors of the Company, and to issue an assurance report that

includes our assurance conclusion on the Group Sustainability Statement.

As part of a limited assurance engagement in accordance with ISAE 3000

(Revised), we exercise professional judgment and maintain professional

skepticism. We also:

– obtain an understanding of the process to prepare the Group

Sustainability Statement, including the materiality assessment process

carried out by the Company to identify the information to be included in

the Group Sustainability Statement.

– identify disclosures where a material misstatement due to fraud or error

is likely to arise, design and perform procedures to address these

disclosures and obtain limited assurance to support the assurance

conclusion. The risk of not detecting a material misstatement resulting

from fraud is higher than the risk of not detecting a material

misstatement resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misleading representations, or the

override of internal controls. In addition, the risk of not detecting a

material misstatement within value chain information from sources not

under the control of the company (value chain information) is generally

higher than the risk of not detecting a material misstatement of value

chain information from sources under the control of the company, as

both the executive directors of the Company and we, as assurance

practitioners, are ordinarily subject to limitations on direct access to the

sources of value chain information.

– consider the forward-looking information, including the appropriateness

of the underlying assumptions. There is a substantial unavoidable risk

that future events will differ materially from the forward-looking

information.

Summary of the Procedures Performed

by the German Public Auditor

A limited assurance engagement involves the performance of procedures to

obtain evidence about the sustainability information. The nature, timing and

extent of the selected procedures are subject to our professional

judgement.

In conducting our limited assurance engagement, we have, amongst other

things:

– evaluated the suitability of the criteria as a whole presented by the

executive directors in the Group Sustainability Statement.

– inquired of the executive directors and relevant employees involved in

the preparation of the Group Sustainability Statement about the

preparation process, including the materiality assessment process

carried out by the company to identify the information to be included in

the Group Sustainability Statement, and about the internal controls

relating to this process.

– evaluated the reporting policies used by the executive directors to

prepare the Group Sustainability Statement.

– evaluated the reasonableness of the estimates and the related

disclosures provided by the executive directors. If, in accordance with

the ESRS, the executive directors estimate the value chain information

to be reported for a case in which the executive directors are unable to

obtain the information from the value chain despite making reasonable

efforts, our assurance engagement is limited to evaluating whether the

executive directors have undertaken these estimates in accordance with

the ESRS and assessing the reasonableness of these estimates, but

does not include identifying information in the value chain that the

executive directors have been unable to obtain.

– performed analytical procedures and made inquiries in relation to

selected information in the Group Sustainability Statement.

– considered the presentation of the information in the Group

Sustainability Statement.

– considered the process for identifying taxonomy-eligible and taxonomy-

aligned economic activities and the corresponding disclosures in the

Group Sustainability Statement.

Restriction of Use

We draw attention to the fact that the assurance engagement was

conducted for the Company’s purposes and that the report is intended

solely to inform the Company about the result of the assurance

engagement. Accordingly, the report is not intended to be used by third

parties for making (financial) decisions based on it. Our responsibility is

solely towards the Company. We do not accept any responsibility, duty of

care or liability towards third parties.

Hannover, 10 March 2026

PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft


sgd. Janna Reineke Wirtschaftsprüferin [German public auditor]	sgd. Kristina Stiefel Wirtschaftsprüferin [German public auditor]

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Supervisory Board

Report of the Supervisory

Board of Hannover Rück SE

Performance of duties

In the 2025 financial year, the Supervisory Board performed its duties

according to the law and the company’s Statute with due diligence. The

management of business was monitored on the basis of regular,

comprehensive and timely reporting by the Executive Board. The Executive

Board kept the Supervisory Board continuously informed about all material

aspects of corporate governance, most notably the strategy, planning,

development of business, risk position, risk management and compliance.

The Chairman of the Supervisory Board stayed in close contact with the

Chairman of the Executive Board between meetings to discuss strategic

and operational issues. The Chairwoman of the Finance and Audit

Committee kept up a regular dialogue with the Chief Financial Officer and

the independent auditor on matters of accounting and the internal control

system.

Meetings and attendance

Four in-person meetings of the Supervisory Board were held in the year

under review, at which all members were physically present. At each

meeting, the Executive Board reported at length on the development of

business and described divergences from the planning. The annual and

consolidated financial statements as well as the audit reports of the

independent auditor were core sources of information. Representatives of

the Federal Financial Supervisory Authority took part in one meeting on a

routine basis.


	Participation rate
	Number of meetings	in %
Participation in full meetings of the Supervisory Board
Torsten Leue (Chairman)	4/4	100
Herbert K. Haas (Deputy Chairman)	4/4	100
Sibylle Kempff	4/4	100
Timo Kaufmann	4/4	100
Ilka Hundeshagen	4/4	100
Dr. Ursula Lipowsky	4/4	100
Dr. Michael Ollmann	4/4	100
Dr. Alena Kouba	4/4	100
Harald Kayser	4/4	100
Participation in meetings of the Finance and Audit Committee
Dr. Ursula Lipowsky (Chairwoman)	4/4	100
Herbert K. Haas	4/4	100
Torsten Leue	4/4	100
Participation in meetings of the Standing Committee
Torsten Leue (Chairman)	4/4	100
Herbert K. Haas	4/4	100
Dr. Michael Ollmann	4/4	100
Ilka Hundeshagen	4/4	100

Key points of deliberation in the full

meetings of the Supervisory Board

In 2025, the Supervisory Board regularly engaged in intensive discussions

with the Executive Board on key issues such as geopolitical developments,

climate change and societal challenges. The company’s resilience and

future-readiness were consistently at the heart of these deliberations. The

meetings were characterised by a wide-ranging agenda and an open,

constructive dialogue between the Executive Board and Supervisory Board.

The Supervisory Board also met regularly without the presence of the

Executive Board.

Meeting on 12 March 2025

– Annual and consolidated financial statements, appropriation of the

disposable profit

– Risk management, compliance and internal auditing

– Remuneration report and determination of the variable remuneration for

the Executive Board

At the meeting held on 12 March 2025, the Supervisory Board approved the

audited annual and consolidated financial statements and supported the

Executive Board’s proposal for the appropriation of the disposable profit for

the 2024 financial year. In this regard, the Executive Board described all key

metrics from the technical and non-technical accounts as well as aspects of

the investments. The independent auditor reported on the scope,

concentrations and major findings of their audit and elaborated in particular

on the key audit matters and the audit procedures undertaken. No

significant weaknesses in the internal control system and the risk

management system were reported. In addition, the Supervisory Board

examined and approved the Group’s non-financial statement. The report by

the Executive Board on relations with affiliated companies was also duly

noted and approved by the Supervisory Board.

A further point of emphasis at the meeting was the annual reporting on risk

management, compliance and internal auditing. The respective key

function holders attended the meeting in person and were available to

answer questions. The Supervisory Board also approved updates to the

investment guidelines, the Executive Board’s rules of procedure and the

information rules governing reporting by the Executive Board to the

Supervisory Board. The variable remuneration of the members of the

Executive Board was determined according to the attainment of targets.

The Executive Board reported on the renewals in property and casualty

reinsurance as at 1 January 2025 and provided an outlook for the current

financial year. The Supervisory Board also considered the agenda and

proposed resolutions for the General Meeting on 7 May 2025 and approved

holding it as a virtual General Meeting. The Supervisory Board examined

the remuneration report and released it for presentation to the General

Meeting. Details of the remuneration system can be found in the declaration

on corporate governance and the 2025 remuneration report. At the

recommendation of the Finance and Audit Committee, the Supervisory

Board proposed to the General Meeting that PricewaterhouseCoopers

GmbH Wirtschaftsprüfungsgesellschaft, Hannover, should be appointed as

the auditor of the financial statements.

Meeting on 12 May 2025

– Risk management, capitalisation and Solvency II

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– Self-assessment, skills matrix and efficiency review

At the meeting held on 12 May 2025, the Executive Board provided the

Supervisory Board with detailed information about the first quarter of 2025.

A particular focus was on the in-depth analysis of the quality and adequacy

of the loss reserves in property and casualty reinsurance. Both internal and

external experts were available to advise on this topic. In addition to the

outlook for the current financial year, which was again crucially shaped by

geopolitical developments and weather events, the examination of the Own

Risk and Solvency Assessment (ORSA) report for the previous year, the

Regular Supervisory Reports (RSR) and the capitalisation under Solvency

II constituted further key points of deliberation. The Supervisory Board

additionally took note of the audit report on the Solvency II balance sheet

and discussed major participating interests of the company. After

preparation by the Standing Committee, the Supervisory Board considered

extensions of the terms of office on the level of the Executive Board.

The self-assessment of the Supervisory Board and the skills matrix were

also discussed and updated at this meeting. The results confirmed that the

Supervisory Board as a whole has the knowledge, skills and experience

needed to monitor the Executive Board. In the 2025 financial year, the

members of the Supervisory Board again participated in (further) education

and instruction opportunities and attended corresponding training

measures at their own responsibility; the associated costs are paid by the

company. In addition, a joint training activity was held for the Supervisory

Board exploring the topic of artificial intelligence. Finally, the results of the

Supervisory Board’s regularly conducted efficiency check were discussed.

They confirm the high effectiveness of the committee work; potential areas

for improvement are continuously addressed.

Meeting on 7 August 2025

– Half-yearly report

– Development of individual business groups

– Updating of the IT strategy

On 7 August 2025, the Executive Board reported on the first half of the year,

describing the most important metrics from the technical and non-technical

account and the progress made towards achieving the strategic targets.

The Chief Risk Officer also provided extensive information about the

company’s current risk position. An account of related party transactions

was routinely provided. There were no transactions in the reporting period

that fell under the legal requirements governing mandatory approval or

compulsory disclosure. In addition, the Supervisory Board discussed the

strategic cooperation with E+S Rückversicherung AG. In matters of

corporate governance, the guideline on the suitability of Supervisory Board

members, Executive Board members and key function holders was

updated. Furthermore, an update to the IT strategy was approved. The IT

strategy also covers the issue of information security.

Meeting on 7 November 2025

– Business development and planning

– Adequacy of the remuneration system

– ESG: regulatory developments and materiality assessment

– Corporate governance: Declaration of Conformity pursuant to the

German Corporate Governance Code

– Digitalisation, artificial intelligence

At the last meeting of the year held on 7 November 2025, the Executive

Board first reported on the results of the third quarter and provided an

outlook for the current financial year. Following this, the Executive Board

presented the operational planning for 2026 as well as the medium-term

corporate planning, both of which were approved by the Supervisory Board.

The members of the Executive Board responsible for property and casualty

reinsurance reported at length on the development of business in Europe,

Asia and the United States as well as on facultative business. The Chief

Risk Officer shared another overview of the company’s current risk position.

In the context of the non-financial reporting, the Supervisory Board took

note of the materiality assessment and regulatory developments with

regard to ESG matters. The Executive Board further informed the

Supervisory Board about the status of major pending legal proceedings and

the design of the remuneration system for senior executives.

After preparation by the Standing Committee, the Supervisory Board

reviewed the remuneration system for the Executive Board and confirmed

its appropriateness. The strategic target return and the goals for 2026 were

defined in this regard.

The Supervisory Board subsequently approved the Declaration of

Conformityä pursuant to § 161 Stock Corporation Act (AktG) regarding

compliance with the German Corporate Governance Code and updated the

rules of procedure for the Supervisory Board.

A training session in the topic of artificial intelligence was conducted by in-

house experts as part of the meeting. The digital transformation and the use

of artificial intelligence are central elements of the company’s strategy. The

Supervisory Board monitors the implementation of major digital projects.

Committees of the Supervisory Board

The Supervisory Board has formed various committees in order to perform

its tasks efficiently and effectively. They prepare deliberations and the

adoption of resolutions by the full Supervisory Board or take on certain

tasks at their own responsibility. The respective committee chairpersons

report regularly to the Supervisory Board on the activities of their

committees. The general advisory and oversight duties of the Supervisory

Board remain unchanged. When preparing resolutions, care is taken to

ensure that the Supervisory Board can discuss and decide on all

submissions with the necessary diligence.

The Nomination Committee is responsible for proposing to the Supervisory

Board suitable candidates for election to the Supervisory Board, who are

presented to the General Meeting. The committee did not meet in 2025.

The Finance and Audit Committee came together four times in the year

under review. All committee members took part in all meetings in person.

The committee focused on the oversight of the accounting process, the

effectiveness of the internal control system, risk management, internal

auditing and the audit of the financial statements. Special attention was paid

to the selection and independence of the auditor, the quality of the audit and

the additional services performed. The committee defined the audit

concentrations for the financial year and examined the audit plan and

approach in depth. The assessment of the audit risk and the resulting scope

of the audit were discussed with the auditors; the dialogue was conducted

in part without the involvement of the Executive Board. The Finance and

Audit Committee gave preparatory consideration to the IFRS consolidated

financial statements and the non-financial statement, among other things,

and it discussed the reports of the independent auditors. The ESG expert

on the Supervisory Board, Mr. Kayser, also took part in the March meeting

to review the non-financial statement. As in previous years, the committee

received and considered an expert opinion on the adequacy of the loss

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Annual Report 2025

reserves in property and casualty reinsurance, the retrocession structure of

the Hannover Re Group and the reports of the key functions. In addition, the

Executive Board reported on the capital adequacy in accordance with

Solvency II. Capital planning and possible capital measures were also

considered by the committee on a preparatory basis.

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft was

once again mandated to perform the external review of the non-financial

statement and the remuneration report. In the context of monitoring

execution of the strategy, the committee focused in particular on the key

financial metrics. At each meeting, the Chief Risk Officer provided updates

on the latest developments in risk management and answered questions on

the risk report. Special topics, such as climate change and geopolitical

developments, were also considered. Furthermore, the committee regularly

engaged with the latest developments in the run-off of losses and

exchanged views with the Executive Board and the Actuarial Function

Holder on reserving in life and health reinsurance. The committee

additionally approved the procedure for selecting a new auditor for the 2028

financial year.

The Standing Committee met four times in the reporting period, with each

meeting attended in person by all members. As in previous years, the

committee reviewed the adequacy of the remuneration system for the

members of the Executive Board, discussed the variable remuneration for

the 2025 financial year based on target achievement and examined the

remuneration of the members of the Executive Board. Recommendations

were drawn up for the Supervisory Board with regard to all these matters. In

addition, the individual targets of the Executive Board were defined for 2026

and submitted to the Supervisory Board for adoption of a resolution.

Investor communication

In the 2025 financial year, the Chairman of the Supervisory Board

communicated with investors within appropriate bounds on topics of

specific relevance to the Supervisory Board. The discussions focused in

particular on matters of governance and the remuneration system.

Audit of the annual financial statements

and consolidated financial statements

The accounting, annual financial statements, consolidated financial

statements and the combined management report were audited by

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. The

auditor was chosen by the General Meeting following the recommendation

of the Supervisory Board; the audit mandate was awarded by the Chairman

of the Supervisory Board. The combined non-financial statement, which

includes the Group sustainability statement in accordance with ESRS, was

subjected to a separate limited assurance review, similarly conducted by

PwC. The auditor’s independence declaration was received. The audit

concentrations defined by the European Securities and Markets Authority

and the Federal Financial Supervisory Authority were taken into account.

The mandates for the review report on the Half-Yearly Financial Report and

the audit of the Solvency II balance sheet were also awarded again. The

special requirements associated with the international aspects of the audits

were satisfied in full.

Since the audits did not give rise to any objections,

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft issued

unqualified audit certificates. It was also confirmed that the annual financial

statement contains the information pursuant to § 289 f German Commercial

Code (HGB). The Finance and Audit Committee discussed the financial

statements and the combined management report with the participation of

the auditors and in light of the audit reports, and it informed the Supervisory

Board of the outcome of its reviews. The audit reports were provided to all

the members of the Supervisory Board and explored in detail with the

auditors at the Supervisory Board meeting held in March 2026 to consider

the annual results. The auditors will also attend the Annual General Meeting

in 2026, at which the financial statements for 2025 will be presented. The

report on the company’s relations with affiliated companies drawn up by the

Executive Board was likewise audited by PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft and given an unqualified audit certificate.

The Supervisory Board concurred with the opinion of the auditors and

approved the annual financial statements and the consolidated financial

statements; the annual financial statements are thereby adopted. The

Supervisory Board endorsed the Executive Board’s proposal regarding the

appropriation of the disposable profit for 2025.

Changes on the Supervisory Board and

the Executive Board

There were no changes in the composition of the Supervisory Board and its

committees in the year under review. Mr. Jean-Jacques Henchoz stepped

down from the Executive Board of Hannover Re on 31 March 2025. Mr.

Clemens Jungsthöfel took over the position of Chief Executive Officer

effective 1 April 2025. Dr. Christian Hermelingmeier succeeded Mr.

Jungsthöfel in the role of Chief Financial Officer on the Executive Board on

the same date.

Word of thanks to the Executive Board

and members of staff

Thanks to the extraordinary performance of all members of staff and the

prudent leadership of the company by the Executive Board in this and past

years, Hannover Rück SE achieved another very good result. The

Supervisory Board would like to express its recognition to the Executive

Board and all the Group’s employees for their dedication and considerable

flexibility.

Hannover, 11 March 2026

For the Supervisory Board

Torsten Leue

Chairman of the Supervisory Board of Hannover Rück SE

Hannover Re