Total result

The gross premium in our total business increased by 1.4% as at 31 December 2013 to EUR 14.0 billion (EUR 13.8 billion). At constant exchange rates the increase would have been 4.2%. The growth rate in a fiercely competitive environment was thus somewhat below our forecast, which had anticipated around 5%. The level of retained premium decreased slightly to 89.0% (89.8%). This resulted principally from increased reinsurance cessions for fronting business written for third parties. Net premium earned remained almost unchanged at EUR 12.2 billion (EUR 12.3 billion). At constant exchange rates growth would have come in at 2.3%.

We are exceptionally satisfied with the development of our results. Although the operating profit (EBIT) retreated by 11.8% following the elimination of positive effects from fair value changes in the ModCo derivatives and inflation swaps, it still reached a very good level at EUR 1,229.1 million (EUR 1,393.9 million). Despite a generally challenging environment in the reinsurance sector and faced with stubbornly low interest rates, we generated the highest Group net income in the history of Hannover Re at EUR 895.5 million. The crucial factors here were a thoroughly pleasing result in non-life reinsurance and the aforementioned special tax effects. Earnings per share amounted to EUR 7.43 (EUR 7.04).

The equity attributable to shareholders of Hannover Re also developed favourably in the year under review: while erosion of the valuation reserves due to rises in yields – especially on high-quality government bonds – and payment of an increased dividend in the second quarter led to a slight reduction in shareholders’ equity, the return on equity of 15.0% (15.4%) nevertheless comfortably surpassed our minimum target of 9.8% (750 basis points above the risk-free interest rate). The shareholders’ equity as at 31 December 2013 amounted to EUR 5.9 billion (EUR 6.0 billion). The book value per share was also positive at EUR 48.83 (EUR 50.02). The total policyholders’ surplus, consisting of shareholders equity, non-controlling interests and hybrid capital, amounted to EUR 8.8 billion (EUR 8.9 billion).