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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 the corresponding remarks in the management report.

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.

During the financial year no material changes occurred 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.

Both Hannover Life Reassurance Company of America (Bermuda) Ltd., which was consolidated for the first time with effect from the first quarter of 2014, and the financial interest in Meribel TopCo Limited are allocable to the life and health reinsurance segment. Glencar Underwriting Managers Inc., which has been included at equity in the consolidated financial statement since the first quarter of 2014 as an associated company, and the special purpose property company Mustela s.r.o., which was consolidated for the first time in the period under review, are allocable to the property and casualty reinsurance segment.

Table as Excel file: download (28 KB)

Consolidated segment report as at 31 December 2014
Segmentation of assets Property and casualty reinsurance Life and health reinsuranceConsolidationTotal
in EUR thousand 31.12.2014 31.12.2013 31.12.201431.12.201331.12.201431.12.201331.12.201431.12.2013
Assets
Fixed-income securities – held to maturity 1,841,982 2,351,409 179,209197,857118,551117,5212,139,7422,666,787
Fixed-income securities – loans and receivables 2,912,110 3,111,351 76,07771,71426,0352,988,1873,209,100
Fixed-income securities – available for sale 19,822,832 16,227,978 6,639,1865,768,474355,505413,44026,817,52322,409,892
Equity securities – available for sale 32,804 28,980 32,80428,980
Financial assets at fair value through profit or loss 63,648 18,157 54,26268,70612,97819,280130,888106,143
Other invested assets 2,644,817 2,155,774 123,922105,2321,9451,2602,770,6842,262,266
Short-term investments 242,463 267,682 332,262190,89857590,558575,300549,138
Cash 580,490 430,552 186,224208,6416,1683,743772,882642,936
Total investments and cash under own management 28,141,146 24,591,883 7,591,1426,611,522495,722671,83736,228,01031,875,242
Funds withheld 1,123,858 888,118 14,702,62213,379,71315,826,48014,267,831
Contract deposits 1,717 92,06973,82492,06975,541
Total investments 29,265,004 25,481,718 22,385,83320,065,059495,722671,83752,146,55946,218,614
Reinsurance recoverables on unpaid claims 1,052,357 1,168,791 325,534236,532(1,459)(1,519)1,376,4321,403,804
Reinsurance recoverables on benefit reserve 676,219344,154676,219344,154
Prepaid reinsurance premium 147,846 137,670 1,4701,434(59)(65)149,257139,039
Reinsurance recoverables on other reserves 421 439 5,0256,4545,4466,893
Deferred acquisition costs 597,299 491,354 1,317,2951,181,040441,914,5981,672,398
Accounts receivable 1,493,908 1,702,357 1,620,2371,243,469(167)(141)3,113,9782,945,685
Other assets in the segment 1,416,187 1,508,210 680,215551,240(1,021,307)(885,719)1,075,0951,173,731
Assets held for sale 11,226 11,226
Total assets 33,973,022 30,501,765 27,011,82823,629,382(527,266)(215,603)60,457,58453,915,544
            
Segmentation of liabilities
in EUR thousand
Liabilities
Loss and loss adjustment expense reserve 20,797,820 18,847,749 3,315,6942,820,702(1,458)(1,519)24,112,05621,666,932
Benefit reserve 11,757,18810,631,512(56)(61)11,757,13210,631,451
Unearned premium reserve 2,626,890 2,297,054 121,704108,4432,748,5942,405,497
Provisions for contingent commissions 158,410 129,343 165,830140,228324,240269,571
Funds withheld 442,211 429,168 374,926218,858817,137648,026
Contract deposits 4,285 11,098 6,068,0535,558,8346,072,3385,569,932
Reinsurance payable 358,836 674,469 742,649397,326(168)(141)1,101,3171,071,654
Long-term liabilities 283,855 227,130 1,986,4922,237,8302,270,3472,464,960
Other liabilities in the segment 2,042,408 1,822,435 1,982,8211,690,822(1,023,766)(855,763)3,001,4632,657,494
Total liabilities 26,714,715 24,438,446 24,528,86521,566,725961,0441,380,34652,204,62447,385,517
Consolidated segment report as at 31 December 2014
Segmentation of assets Property and casualty reinsurance Life and health reinsuranceConsolidationTotal
in EUR thousand 31.12.2014 31.12.2013 31.12.201431.12.201331.12.201431.12.201331.12.201431.12.2013
Assets
Fixed-income securities – held to maturity 1,841,982 2,351,409 179,209197,857118,551117,5212,139,7422,666,787
Fixed-income securities – loans and receivables 2,912,110 3,111,351 76,07771,71426,0352,988,1873,209,100
Fixed-income securities – available for sale 19,822,832 16,227,978 6,639,1865,768,474355,505413,44026,817,52322,409,892
Equity securities – available for sale 32,804 28,980 32,80428,980
Financial assets at fair value through profit or loss 63,648 18,157 54,26268,70612,97819,280130,888106,143
Other invested assets 2,644,817 2,155,774 123,922105,2321,9451,2602,770,6842,262,266
Short-term investments 242,463 267,682 332,262190,89857590,558575,300549,138
Cash 580,490 430,552 186,224208,6416,1683,743772,882642,936
Total investments and cash under own management 28,141,146 24,591,883 7,591,1426,611,522495,722671,83736,228,01031,875,242
Funds withheld 1,123,858 888,118 14,702,62213,379,71315,826,48014,267,831
Contract deposits 1,717 92,06973,82492,06975,541
Total investments 29,265,004 25,481,718 22,385,83320,065,059495,722671,83752,146,55946,218,614
Reinsurance recoverables on unpaid claims 1,052,357 1,168,791 325,534236,532(1,459)(1,519)1,376,4321,403,804
Reinsurance recoverables on benefit reserve 676,219344,154676,219344,154
Prepaid reinsurance premium 147,846 137,670 1,4701,434(59)(65)149,257139,039
Reinsurance recoverables on other reserves 421 439 5,0256,4545,4466,893
Deferred acquisition costs 597,299 491,354 1,317,2951,181,040441,914,5981,672,398
Accounts receivable 1,493,908 1,702,357 1,620,2371,243,469(167)(141)3,113,9782,945,685
Other assets in the segment 1,416,187 1,508,210 680,215551,240(1,021,307)(885,719)1,075,0951,173,731
Assets held for sale 11,226 11,226
Total assets 33,973,022 30,501,765 27,011,82823,629,382(527,266)(215,603)60,457,58453,915,544
            
Segmentation of liabilities
in EUR thousand
Liabilities
Loss and loss adjustment expense reserve 20,797,820 18,847,749 3,315,6942,820,702(1,458)(1,519)24,112,05621,666,932
Benefit reserve 11,757,18810,631,512(56)(61)11,757,13210,631,451
Unearned premium reserve 2,626,890 2,297,054 121,704108,4432,748,5942,405,497
Provisions for contingent commissions 158,410 129,343 165,830140,228324,240269,571
Funds withheld 442,211 429,168 374,926218,858817,137648,026
Contract deposits 4,285 11,098 6,068,0535,558,8346,072,3385,569,932
Reinsurance payable 358,836 674,469 742,649397,326(168)(141)1,101,3171,071,654
Long-term liabilities 283,855 227,130 1,986,4922,237,8302,270,3472,464,960
Other liabilities in the segment 2,042,408 1,822,435 1,982,8211,690,822(1,023,766)(855,763)3,001,4632,657,494
Total liabilities 26,714,715 24,438,446 24,528,86521,566,725961,0441,380,34652,204,62447,385,517

Table as Excel file: download (27 KB)

Consolidated segment report as at 31 December 2014
Segment statement of income Property and casualty reinsurance Life and health reinsurance Consolidation Total
in EUR thousand 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013
Gross written premium 7,903,369 7,817,866 6,458,669 6,145,370 (237) 173 14,361,801 13,963,409
Thereof
From insurance business with other segments 237 (173) (237) 173
From insurance business with external third parties 7,903,369 7,817,866 6,458,432 6,145,543 14,361,801 13,963,409
Net premium earned 7,011,347 6,866,317 5,411,425 5,359,847 309 500 12,423,081 12,226,664
Net investment income 843,552 781,192 614,201 611,516 14,088 19,102 1,471,841 1,411,810
Thereof
Change in fair value of financial instruments (23,344) (38,432) (9,083) 11,394 (830) (98) (33,257) (27,136)
Total depreciation, impairments and appreciation of investments 27,429 18,937 129 161 27,558 19,098
Income / expense on funds withheld and contract deposits 20,394 14,947 355,662 342,401 376,056 357,348
Claims and claims expenses 4,827,939 4,821,804 4,636,243 4,305,742 (10) 9,464,172 9,127,546
Change in benefit reserve 28,620 146,518 5 173 28,625 146,691
Commission and brokerage, change in deferred acquisition costs
and other technical income / expenses
1,643,705 1,532,749 946,361 1,168,993 6 2,590,066 2,701,748
Administrative expenses 188,198 176,250 175,682 156,667 (21) 757 363,859 333,674
Other income and expenses (4,265) (55,665) 25,097 (42,913) (2,642) (1,175) 18,190 (99,753)
Operating profit / loss (EBIT) 1,190,792 1,061,041 263,817 150,530 11,781 17,491 1,466,390 1,229,062
Interest on hybrid capital 95,720 126,670 95,720 126,670
Net income before taxes 1,190,792 1,061,041 263,817 150,530 (83,939) (109,179) 1,370,670 1,102,392
Taxes 296,084 206,721 44,941 (10,857) (35,462) (32,721) 305,563 163,143
Net income 894,708 854,320 218,876 161,387 (48,477) (76,458) 1,065,107 939,249
Thereof
Non-controlling interest in profit or loss 65,560 46,587 13,898 (2,805) 79,458 43,782
Group net income 829,148 807,733 204,978 164,192 (48,477) (76,458) 985,649 895,467
Consolidated segment report as at 31 December 2014
Segment statement of income Property and casualty reinsurance Life and health reinsurance Consolidation Total
in EUR thousand 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013 1.1. – 31.12.2014 1.1. – 31.12.2013
Gross written premium 7,903,369 7,817,866 6,458,669 6,145,370 (237) 173 14,361,801 13,963,409
Thereof
From insurance business with other segments 237 (173) (237) 173
From insurance business with external third parties 7,903,369 7,817,866 6,458,432 6,145,543 14,361,801 13,963,409
Net premium earned 7,011,347 6,866,317 5,411,425 5,359,847 309 500 12,423,081 12,226,664
Net investment income 843,552 781,192 614,201 611,516 14,088 19,102 1,471,841 1,411,810
Thereof
Change in fair value of financial instruments (23,344) (38,432) (9,083) 11,394 (830) (98) (33,257) (27,136)
Total depreciation, impairments and appreciation of investments 27,429 18,937 129 161 27,558 19,098
Income / expense on funds withheld and contract deposits 20,394 14,947 355,662 342,401 376,056 357,348
Claims and claims expenses 4,827,939 4,821,804 4,636,243 4,305,742 (10) 9,464,172 9,127,546
Change in benefit reserve 28,620 146,518 5 173 28,625 146,691
Commission and brokerage, change in deferred acquisition costs
and other technical income / expenses
1,643,705 1,532,749 946,361 1,168,993 6 2,590,066 2,701,748
Administrative expenses 188,198 176,250 175,682 156,667 (21) 757 363,859 333,674
Other income and expenses (4,265) (55,665) 25,097 (42,913) (2,642) (1,175) 18,190 (99,753)
Operating profit / loss (EBIT) 1,190,792 1,061,041 263,817 150,530 11,781 17,491 1,466,390 1,229,062
Interest on hybrid capital 95,720 126,670 95,720 126,670
Net income before taxes 1,190,792 1,061,041 263,817 150,530 (83,939) (109,179) 1,370,670 1,102,392
Taxes 296,084 206,721 44,941 (10,857) (35,462) (32,721) 305,563 163,143
Net income 894,708 854,320 218,876 161,387 (48,477) (76,458) 1,065,107 939,249
Thereof
Non-controlling interest in profit or loss 65,560 46,587 13,898 (2,805) 79,458 43,782
Group net income 829,148 807,733 204,978 164,192 (48,477) (76,458) 985,649 895,467