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Segmental Report as at 31 December 2008

Hannover Re's segmental report is based on IAS 14 "Segment Reporting" and on the principles set out in German Accounting Standard No. 3 "Segment Reporting" (DRS 3) of the German Standards Council, supplemented by the requirements of DRS 3–20 "Segment Reporting of Insurance Enterprises".

The segments are shown after consolidation of internal transactions within the individual segment, but before consolidation across the segments. This is reported separately in the "Consolidation" column.

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Segmentation of assets

Figures in EUR thousand Non-life reinsurance Life/health reinsurance Consolidation Total
  2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
Assets                
Held to maturity 1,262,866 1,262,619 43,058 52,071 169,278 174,126 1,475,202 1,488,816
Loans and receivables 1,418,271 1,263,764 105,019 116,567 157,567 157,558 1,680,857 1,537,889
Available for sale 11,244,214 11,387,469 2,646,643 2,496,286 614,564 593,690 14,505,421 14,477,445
At fair value through profit or loss 145,226 118,573 55,409 35,227 98,547 25,325 299,182 179,125
Other invested assets 871,345 808,047 67,270 57,711 938,615 865,758
Short-term investments 654,969 587,455 148,189 146,952 4,561 196,414 807,719 930,821
Cash 324,659 241,812 97,315 88,295 8,251 5,315 430,225 335,422
Total investments and cash under own management 15,921,550 15,669,739 3,162,903 2,993,109 1,052,768 1,152,428 20,137,221 19,815,276
Funds held by ceding companies 789,996 870,892 8,988,523 7,741,902 (2,372) (2,240) 9,776,147 8,610,554
Contracts deposits 137 288,782 615,997 288,782 616,134
Total investments 16,711,546 16,540,768 12,440,208 11,351,008 1,050,396 1,150,188 30,202,150 29,041,964
Reinsurance recoverables on unpaid claims 1,975,496 2,371,387 103,672 101,629 (1,431) 2,079,168 2,471,585
Reinsurance recoverables on benefit reserves 159,151 255,076 159,151 255,076
Prepaid reinsurance premium 23,582 86,217 6,151 6,105 29,733 92,322
Reinsurance recoverables on other reserves 9,813 3,031 115 2,543 9,928 5,574
Deferred acquisition costs 302,229 262,176 1,558,554 1,544,967 1,860,783 1,807,143
Accounts receivable 1,976,575 1,373,824 825,477 1,152,705 (290) (658) 2,801,762 2,525,871
Other assets in the segment 1,187,502 1,287,379 336,508 304,312 (664,942) (722,819) 859,068 868,872
Total 22,186,743 21,924,782 15,429,836 14,718,345 385,164 425,280 38,001,743 37,068,407
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Segmentation of technical and other liabilities

Figures in EUR thousand Non-life reinsurance Life/health reinsurance Consolidation Total
  2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
2008
31.12.
2007
31.12.
Liabilities                
Loss and loss adjustment expense reserve 15,376,337 15,114,553 1,555,732 1,440,774 (1,439) 16,932,069 16,553,888
Benefit reserve 5,913,075 6,143,460 5,913,075 6,143,460
Unearned premium reserve 1,250,648 1,148,723 83,208 37,659 1,333,856 1,186,382
Provisions for contingent commissions 122,923 146,638 34,073 37,087 156,996 183,725
Funds held 170,294 186,802 398,039 772,352 (2,381) (2,242) 565,952 956,912
Contracts deposits 91,329 156,829 5,055,095 3,511,996 5,146,424 3,668,825
Reinsurance payable 953,518 427,552 284,223 714,857 (829) (1,342) 1,236,912 1,141,067
Long-term liabilities 43,144 41,583 1,376,883 1,373,294 1,420,027 1,414,877
Other liabilities in the segment 1,222,087 1,239,046 1,378,233 1,283,393 (635,381) (625,001) 1,964,939 1,897,438
Total 19,230,280 18,461,726 14,701,678 13,941,578 738,292 743,270 34,670,250 33,146,574
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Segmental statement of income

Figures in EUR thousand Non-life reinsurance life/health reinsurance Consolidation Total
  2008
1.1.–31.12.
2007
1.1.–31.12.
2008
1.1.–31.12.
2007
1.1.–31.12.
2008
1.1.–31.12.
2007
1.1.–31.12.
2008
1.1.–31.12.
2007
1.1.–31.12.
Gross written premium 4,987,823 5,189,508 3,134,416 3,082,904 (1,320) (13,511) 8,120,919 8,258,901
thereof                
From insurance business with other segments 1,320 13,511 (1,320) (13,511)
From insurance business with external third parties 4,987,823 5,189,508 3,133,096 3,069,393 8,120,919 8,258,901
Net premium earned 4,276,748 4,497,597 2,784,877 2,795,333 7,061,625 7,292,930
Net investment income 11,114 783,282 245,518 293,850 21,827 44,614 278,459 1,121,746
thereof                
Deposit interest and expenses 13,208 42,572 186,373 177,486 6 50 199,587 220,108
Claims and claims expenses 3,028,007 3,359,951 1,674,732 1,672,196 (612) (1,076) 4,702,127 5,031,071
Change in benefit reserve 421,342 397,934 421,342 397,934
Commission and brokerage, change in deferred acquisition costs and other technical income/expenses 915,339 1,016,676 743,394 780,548 (6,244) (6,692) 1,652,489 1,790,532
Administrative expenses 148,751 147,642 70,062 61,194 (2,766) (4,478) 216,047 204,358
Other income and expenses (193,493) (99,923) (187) 52,471 (6,331) (15,327) (200,011) (62,779)
Operating profit/loss (EBIT) 2,272 656,687 120,678 229,782 25,118 41,533 148,068 928,002
Interest on hybrid capital 77,442 77,600 77,442 77,600
Net income before taxes 2,272 656,687 120,678 229,782 (52,324) (36,067) 70,626 850,402
Taxes 178,022 47,191 35,494 (2,183) (7,906) 2,444 205,610 47,452
Net income (loss) from continuing operations (175,750) 609,496 85,184 231,965 (44,418) (38,511) (134,984) 802,950
Net income (loss) from discontinued operations 12,131 22,954 35,085
Net income (loss) (175,750) 621,627 85,184 231,965 (44,418) (15,557) (134,984) 838,035
thereof                
Minority interest in profit or loss (14,838) 72,104 6,841 44,268 (7,997) 116,372
Group net income (loss) (160,912) 549,523 78,343 187,697 (44,418) (15,557) (126,987) 721,663

Our secondary segmental reporting covers the continuing operations and is based on the regional origin of the investments and gross written premium.

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Total investments1)

Figures in EUR thousand 2008 2007
  31.12. 31.12.
Total investments    
Germany 6,172,406 6,252,371
United Kingdom 1,134,915 1,187,499
France 1,628,884 1,117,610
Other 3,167,276 3,251,338
Europe 12,103,481 11,808,818
USA 5,812,077 5,909,163
Other 695,394 589,295
North America 6,507,471 6,498,458
Asia 426,485 384,628
Australia 664,541 659,006
Australasia 1,091,026 1,043,634
Africa 230,475 276,441
Other 204,768 187,925
Total 20,137,221 19,815,276
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Gross written premium1)

Figures in EUR thousand 2008 2007
  1.1.–31.12. 1.1.–31.12.
Gross written premium    
Germany 1,140,992 1,385,552
United Kingdom 1,453,402 1,512,164
France 381,205 386,054
Other 1,227,653 1,131,846
Europe 4,203,252 4,415,616
USA 1,732,645 1,879,555
Other 357,869 390,375
North America 2,090,514 2,269,930
Asia 745,202 563,461
Australia 420,381 476,560
Australasia 1,165,583 1,040,021
Africa 266,974 262,427
Other 394,596 270,907
Total 8,120,919 8,258,901
1) After elimination of internal transactions within the Group across segments