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Outlook for the full 2013 financial year

In the current year we anticipate a very good overall result for the Hannover Re Group. Our non-life reinsurance business group is expected to deliver an increase of 3% to 5% in gross premium income at constant exchange rates.

In the life and health reinsurance business group we are aiming for further organic growth. An increase of 5% to 7% in gross premium is anticipated for 2013.

Based on constant exchange rates, we therefore expect to grow our total gross premium for the Hannover Re Group by around 5%.

The expected positive cash flow that we generate from the technical account and our investments should – subject to stable exchange rates – lead to further growth in our asset portfolio. We are targeting a return on investment of 3.4%.

Assuming that the burden of major losses does not significantly exceed the expected level of EUR 625 million and that there are no downturns on capital markets, Hannover Re expects to generate Group net income in the order of EUR 800 million for the 2013 financial year.

Matters of special significance arising after the closing date for the consolidated financial statements are discussed in Section 8.11 of the notes “Events after the balance sheet date”.

Profit and growth targets 2013
Business group Key data Strategic targets
1 Excluding inflation swaps and ModCo derivatives
2 750 basis points above the 5-year average return on 10-year German government bonds after tax
3 Growth in book value per share including dividends paid
4 Average over the reinsurance cycle
5 Including major loss budget of EUR 625 million
6 EBIT/net premium earned
7 Excess return on allocated economic capital
8 Organic growth only
Group Investment return1 ≥ 3.4%
  Return on equity ≥ 9.7%2
  Growth in earnings per share (year-on-year comparison) ≥ 10%
  Value creation per share3 ≥ 10%
Non-life reinsurance Gross premium growth4 3 – 5%
  Combined ratio5 ≤ 96%
  EBIT margin6 ≥ 10%
  xRoCA7 ≥ 2%
Life and health reinsurance Gross premium growth8 5 – 7%
  Value of New Business (VNB) growth ≥ 10%
  EBIT margin6 Financial Solutions/Longevity ≥ 2%
  EBIT margin6 Mortality/Morbidity ≥ 6%
  xRoCA7 ≥ 5%


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