Hannover Re is one of the two largest providers of structured reinsurance solutions in the world. Such products are designed, among other things, to reduce and optimise the cost of capital for our ceding companies. Thanks to our many years of experience and our actuarial, balance sheet, accounting and underwriting expertise, we were once again a sought-after partner in 2012 for innovative and tailored reinsurance solutions.

Demand for alternative reinsurance covers remains lively. This is prompted by the more exacting requirements placed on the capital resources of insurers in Europe as part of the preparations for adoption of Solvency II as well as by the implementation of risk-based capital requirements in various countries around the world. This trend includes aggregate excess of loss covers, which protect the net retention of our clients against significant loss scenarios with a low probability of occurrence.

The 2012 financial year was another successful one for our company. We boosted our volume and enlarged our customer base. We pressed ahead with our strategy geared to further regional diversification of our portfolio.

There were no major losses with a significant impact on our portfolio. We are satisfied with the result achieved for our alternative solutions business in the year under review.