6.6 Liquidity risks
We counter the liquidity risk by means of regular liquidity planning and a liquid asset structure. In this way we ensure that Hannover Re is able to make the necessary payments at all times. We manage the liquidity risk inter alia by allocating a liquidity code to every security. Adherence to the limits defined in our investment guidelines for each liquidity class is subject to daily control. The spread of investments across the various liquidity classes is specified in the monthly investment reports and controlled by limits. The proportion of investment holdings that can be liquidated on any trading day without a mark-down was almost 60% as at the balance sheet date, a reflection of the high liquidity of our portfolio. Last but not least, active liquidity management in terms of portfolio regrouping and the continuing high level of diversification has helped us to safeguard our unqualified ability to meet our payment obligations at all times in periods of financial crisis.
Excel download (19 KB)Weighting of major asset classes1)
| in % | Parameter as per investment guidelines | 2008 | 2007 |
|---|---|---|---|
| Bonds (direct holdings and investment funds) | At least 50.0 | 89.0 | 79.1 |
| Listed equities (direct holdings and investment funds) | At most 17.5 | 0.1 | 10.1 |
| Real estate | At most 5.0 | 0.1 | 0.1 |
| 1) Calculated on a fair value basis | |||
For basic qualitative statements, e.g. regarding organisation of our risk management or assessment of the risk situation, please see the risk report contained in the management report.