Overall assessment of the business position

The Executive Board of the Hannover Re Group is satisfied with the development of business in 2013. The company surpassed its goals, such as those for Group net income, return on equity and combined ratio. Although investment income declined owing to the sustained low level of interest rates, it is pleasing to note that the targeted return on investment was achieved in the reporting period. Indeed, Group net income actually came in significantly higher than planned. This performance is particularly gratifying in view of the challenging business environment. Despite sharply lower valuation reserves in the investment portfolio and the distribution of an attractive dividend including a bonus, Hannover Re’s shareholders’ equity remains robust. At the time of preparing the management report, the company’s business position and its financial strength continue to be very good.