Hannover Re: the somewhat different reinsurer

Hannover Re: the somewhat different reinsurer January 2013

Content 01 09 Overview 10 19 Hannover Re Group 20 29 Non-life reinsurance 30 36 Life and health reinsurance 37 46 Investment management 47 50 Risk management 51 59 Capital management 60 69 Q1-3/2012 70 71 Outlook

Key facts about Hannover Re Established in 1966 Majority shareholder: 50.2% of Hannover Re's shares held by Talanx* Non-life reinsurance since 1966 Life and health reinsurance as strategic growth segment since 1990 Initial Public Offering on 30 Nov 1994, Second Public Offering on 12 Jun 2003 More than 100 subsidiaries, branches and representative offices on all 5 continents Total staff of roughly 2,200 employees More than 5,000 insurance clients in about 150 countries * Majority shareholder is HDI V.a.G. 1

Unique group structure supports our business model Majority owner, but operational and financial independence Talanx AG* Free float 50.2% 49.8% 63.7% 8 German mutuals >100 subsidiaries, branch/rep. offices in ~20 countries German business International business * Majority shareholder is HDI V.a.G. 2

We are among the top reinsurers in the world Premium ranking 2011 in m. USD Rank Group Country GWP NPW 1 Munich Re D 33,719 32,274 2 Swiss Re CH 28,664 22,868 3 Hannover Re D 15,664 13,921 4 Berkshire Hathaway Inc. USA 15,000 15,000 5 Lloyd's 2) GB 13,621 10,015 6 SCOR F 9,845 8,891 7 RGA Re USA 7,704 7,736 8 China Re RC 6,179 5,904 9 PartnerRe BDA 4,621 4,474 10 Korean Re ROK 4,551 3,043 11 Everest Re BDA 4,286 4,109 12 Transatlantic Re USA 4,035 3,860 13 MAPFRE RE E 3,407 2,311 14 London Re CDN 3,117 3,057 15 Assicurazioni Generali I 2,674 2,674 1) Source: A.M. Best (September 2012) 1) Net premium earned 2) Reinsurance only 3

Reduction of group volatility due to broad diversification 5-year CAGR +10% Gross written premium in m. EUR 11,429 12,096 10,275 8,259 8,121 44% 45% 44% 37% 39% 63% 61% 56% 55% 56% 2007 2008 2009 2010 2011 Non-life reinsurance Life and health reinsurance 4

We seek to be one of the most profitable reinsurer Our minimum target is 750 bps above risk free 2007 2008 2009 2010 2011 2007-2011 Company RoE Rank RoE Rank RoE Rank RoE Rank RoE Rank avg. RoE Rank Hannover Re 23.1% 1 (4.1%) 9 22.4% 2 18.2% 1 12.8% 1 14.5% 1 Peer 6, Bermuda, non-life Peer 8, US, life and health Peer 3, France, composite Peer 4, Bermuda, composite Peer 1, Germany, composite Peer 7, Bermuda, non-life Peer 5, US, non-life Peer 2, Switzerland, composite Peer 9, US, non-life 22.0% 2 7.3% 2 9.3% 8 14.7% 2 0.2% 7 10.7% 2 10.3% 9 6.5% 3 12.6% 4 12.9% 3 10.7% 2 10.6% 3 13.8% 6 8.9% 1 10.2% 6 10.1% 6 7.5% 4 10.1% 4 17.7% 3 1.1% 6 25.9% 1 11.5% 4 (7.6%) 10 9.7% 5 14.9% 5 6.5% 3 11.8% 5 10.7% 5 3.1% 6 9.4% 6 15.6% 4 (0.4%) 7 14.6% 3 9.9% 7 (1.3%) 8 7.7% 7 10.8% 8 4.8% 5 9.9% 7 7.1% 8 4.9% 5 7.5% 8 13.3% 7 (3.3%) 8 2.3% 10 3.6% 10 9.6% 3 5.1% 9 3.6% 10 (31.8%) 10 2.7% 9 5.8% 9 (4.4%) 9 (4.8%) 10 List shows the Top 10 of the Global Reinsurance Index (GloRe) with more than 50% reinsurance business Data based on company data, own calculation 5

Hannover Re remains the absolute cost leader Our overhead ratio is less than half of the industry average Administrative expense ratio 1) 7.4% 3.1% 3.2% 3.1% 3.2% 2.8% 2007 2008 2009 2010 2011 Peer average 2) 2011 Own calculation 1) Administrative expenses + other technical expenses (in % of net premium earned) 2) Munich Re, SCOR, Swiss Re, Transatlantic Re, PartnerRe, Everest Re 6

Accelerated growth of book value per share since 2009 Book value per share, paid dividends in EUR 57.10 50.97 15.88 13.58 11.48 41.22 4.78 4.78 17.21 17.90 5.63 19.57 6.58 7.58 20.93 21.57 7.58 24.03 9.18 27.77 11.48 23.47 30.80 37.39 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Book value per share Paid dividends (cumulative since 1994) 2001 2003 US GAAP, as from 2004 IFRS As at 31 December 7

Risk bearing ability further increased EUR 2.1 bn. (+76%) equity increase in three years Policyholders' surplus in m. EUR Financial leverage development* 6,987 7,338 5,295 1,373 573 4,708 1,377 501 5,622 1,365 542 1,869 609 1,732 636 35.0% 41.3% 32.1% 36.5% 30.8% 3,349 2,830 3,714 4,509 4,971 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Hybrid Non-controlling interests Shareholders' equity * Hybrid vs. shareholders' equity (incl. non-controlling interests) 8

Hannover Re: a superior and highly profitable reinsurer......with a somewhat different approach Strong market positioning one of the leading reinsurers worldwide Top rating (S&P: AA-) ensures attractive new business Approved strategy: volume is vanity, profit is sanity Generates noticeably a higher profitability on 5-year average in comparison with our peer competitors Active cycle management in non-life reinsurance: resource allocation congruent to market situation (hard or soft market) De-risking and diversification measures taken to lower the earnings volatility aiming to produce stable dividends Well positioned for further profitable growth! 9

Present in all continents Europe Spain Madrid Ireland Dublin Great Britain London France Paris Germany Hannover Italy Milan Sweden Stockholm Asia America Bahrain Manama Canada Toronto South Korea Seoul USA Charlotte Chicago Denver New York Orlando Bermuda Hamilton Japan Tokyo Taiwan Taipei China Hong Kong Shanghai Mexico Mexico City India Mumbai Colombia Bogotá Africa Australia Malaysia Kuala Lumpur Brazil Rio de Janeiro South Africa Johannesburg Australia Sydney 10

We are somewhat different We are swift, flexible, undogmatic and cut our own path We are frugal and have lean structures Focus on profitable growth Retain and further develop our position as one of the leading reinsurers Efficient capital management is one of our keys to success Diversification ensures optimal use of capital A sufficient equity buffer enables us to act on available & profitable business at all times Lean equity base with efficient use of hybrid capital, securitisations and retrocessions We earn high RoEs Volume is vanity, profit is sanity 11

Our overriding target: profit and value creation All other strategic targets are derived from there Profit and value creation are the cornerstones of sustainable development in the best interest of our clients, shareholders, employees and business partners Our profitability targets IVC: based on our Economic Capital Model (ECM), we aim to achieve a profit in excess of the cost of capital Minimum Return on Equity (RoE) of 750 basis points (bps) above "risk free"* One of the most profitable reinsurers worldwide Increase the IFRS pre- and post-tax profit as well as the value of the company including dividends by double-digit margins every year Share price to outperform weighted Global Reinsurance Index over a 3-year rolling period * Five-year average on ten-year euro bonds issued by the Federal Republic of Germany 12

Well balanced international portfolio Strongest growth in UK and emerging markets Gross written premium (Group) in m. EUR Africa Australia 12,463 3% 20% 11,343 9,567 9,317 9,289 8,259 8,121 10,275 11,429 12,096 4% 5% 7% 11% Latin America Asia 22% 17% 10% Other European countries 20% Germany 50% Great Britain 26% North America 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 US GAAP (Great Britain listed in other European countries), as from 2004 IFRS 13

Further premium growth in 2011 Premium development in m. EUR 12,463 11,343 65.3% 7,688 71.9% 8,156 87.4% 89.1% 92.6% 90.1% 91.2% 77.9% 79.2% 12,096 76.3% 11,429 10,275 10,047 10,752 9,567 7,575 9,317 7,495 9,289 8,259 8,121 7,092 7,293 7,062 9,307 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Gross written premium Net premium earned Retention 2002 2003 US GAAP, as from 2004 IFRS 14

Reduced EBIT due to high large losses......but still on a satisfying level Operating profit (EBIT) in m. EUR 1,142 1,178 732 820 928 841 471 539 92 148 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002-2003 US GAAP, as from 2004 IFRS 15

EPS 2011 far above 10-year-average of EUR 3.52......despite second-highest net large losses in history Earnings per share (EPS)* in EUR 5.98 6.08 6.21 5.02 4.27 2.75 3.24 2.32 0.41 (1.05) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 US GAAP, as from 2004 IFRS * Adjusted figures to the 3-for-1 share split in July 2002 16

Dividend more than doubled within ten years Pay-out-ratio target of 35% 40% Dividend per share Pay-out ratio: [31%] [29%] [43%] in EUR [ - ] [37%] [38%] [ - ] [35%] [37%] [42%] 2.30 2.30 0.50 2.10 2.10 1.60 0.85 0.95 1.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividend per share Bonus 2002 2003 US GAAP, as from 2004 IFRS 17

Yearly total shareholder return (TSR) of 9.2% Value creation since IPO in m. EUR 2010 2011 +350% Market capitalisation as of date 4,840 4,622 - Market capitalisation at IPO (Nov 1994) 1,084 1,084 + Dividend payments 1,672 1,926 - Capital increases (1996, 1997, 2001, 2003) 811 811 Value creation since IPO 4,618 4,653 1994 1995 1997 1999 2001 2003 2005 2007 2009 2011 18

Attractive RoE despite strong equity growth Strategic target exceeded one more time Return on Equity: yearly Return on Equity: average 23.1% 22.4% 18.2% 12.8% 11.4% 11.2% 11.1% 11.0% 10.6% 14.5% 13.7% 14.1% 11.1% 11.5% 12.1% (4.1%) 2007 2008 2009 2010 2011 5-year Ø 2007 2011 10-year Ø 2002 2011 15-year Ø 1997 2011 Actual Minimum target* * 750 bps above 5-year rolling average of 10-year government-bond rate (risk free), after tax 19

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook We are somewhat different Non-life reinsurance Central underwriting combined with local talent is the key to our success Secures U/W discipline and opportunistic cycle management Lean, efficient infrastructure with lowest administrative expense ratio in the industry Cycle management We only grow our market share in "hard" markets Temporary market share losses consistent with strategic goal of growing premium volume overproportionally in the long term Reserve adequacy No. 1 priority in our risk management Traditionally high comfort level (>50%) Distribution through brokers No appetite for acquisitions Our cycle management gets us all the business we want A no frills, opportunistic player 20

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Our strategy Non-life reinsurance Selfimage Profit contribution We are in a position to successfully meet all individual client and market needs Through rigid cycle management we achieve higher RoE margins than our peers: IVC: 2% EBIT margin: 10% C/R: <100% Our strategy Risk management Clients and products Sophisticated control of aggregates Adequate reserving level is of utmost importance Retrocession is an important part of our risk management We combine high level of technical expertise with sound CRM & offer standard products and tailor-made solutions for clients & develop new products Sales channels Markets Consistent approach to different markets for decades makes us a reliable partner to our clients We co-operate predominantly with R/I brokers (especially in the non-proportional sector) 21

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Three large divisions Target markets North America 1) "Voted as best overall reinsurer for 4 times in a row" 2) Germany 1) "No. 2 R/I in second-largest P/C market" Specialty lines Global R/I Marine (incl. energy) Aviation Credit, surety & political risks Structured R/I & ILS UK, London market & direct Global treaty 1) Global cat XL Global facultative "The leading XL reinsurer" "One of the market leaders" "No. 2 worldwide" (Neg. correlation to rest of P/C) "Innovative, tailormade R/I solutions" "A unique business model" "Diversification through global presence" "Dedicated cat writer" "Your specialised partner" 1) All lines of business except those stated separately 2) As voted in Flaspoehler survey brokers (in 2004, 2006, 2008 and 2010) 22

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Non-life reinsurance: very well diversified portfolio Divisions Regional split Global facultative 10% Global cat XL 5% North America 13% Latin America 10% Africa 4% Australia 3% North America 22% Global treaty 20% Marine 3% Aviation 6% Global R/I Specialty lines UK, London market & direct 9% Target markets Credit, surety & pol. Risk 9% Germany 14% Structured R/I & ILS 11% Asia 12% Other European countries 23% 2011 gross written premium: EUR 6,826 m. (2010: EUR 6,339 m.) Germany 12% Great Britain 14% 23

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Profitable growth continues Premium development in m. EUR 5,190 85.2% 4,498 4,988 88.9% 4,277 5,747 94.1% 5,230 6,339 88.9% 5,394 6,826 91.3% 5,961 2007 2008 2009 2010 2011 Gross written premium Net premium earned Retention 24

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook US casualty is hardening again Example of cycle management US casualty total inforce premium development in m. USD 1,029 1,047 947 852 631 728 584 552 559 580 597 436 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Hardening market: +140% Transition years: -30% Softening market: -18% Inforce premium as at 1 January U/Y perspective! 25

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook How do we calculate our return targets? Our pricing is based on ~900 bps above risk free on IFRS equity Risk capital X Factor = Net income / (1 - tax) = EBIT bps risk free Equity 5,000 X (750 + 270) = 510 / (1-0.3) = 729 Minorities 600 X (750 + 270) = 61 / (1-0.3) = 87 Hybrid 1,700 X 550 = 94 / (1-0.0) = 94 Valuation adj. 1,400 X 600 = 84 / (1-0.3) = 120 Total 8,700 749 1,030 MRC (EBIT / risk capital) 11.8% Risk free - 2.7% Minimum Return on Capital (MRC) spread 9.1% 26

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook How do we calculate the capital margin......for our underwriters and our investment decisions Risk capital X MRC / NPE Capital margin = above risk-free + Admin. expenses (pre-tax) = Total margin above risk-free (pre-tax) Non-life 55.0% reinsurance 4,785 X 9.1 / 6,800 = 6.40% + 2.9% = 9.30% Life and health reinsurance Asset management 27.5% 2,393 X 9.1 / 5,000 = 4.35% + 2.9% = 7.25% AUM 17.5% 1,523 X 9.1 / 30,000 = 0.46% 27

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook MtCR translates our economic targets into IFRS NPE + Economic revaluation - MRC = MtCR Net premium earned Discount effect on non-life net loss reserves (% of NPE) Minimum Return on Capital spread (% of NPE) Maximum tolerable Combined Ratio 100% + 4.4% - 6.4% = 98.0% At an MtCR of ~98% we earn 900 bps above risk free 28

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook MtCR varies substantially by line of business Net premium earned (100%) + Economic revaluation - MRC = MtCR North America* Germany* Marine (incl. energy) Aviation Credit, surety & political risks 7.1% 5.2% 3.7% 4.6% 3.0% 9.6% 5.3% 8.9% 5.4% 5.3% 97.5% 99.9% 94.8% 99.2% 97.7% Structured R/I & ILS 1.6% 1.5% 100.1% UK, London market & direct 3.6% 5.3% 98.3% Global treaty* 5.2% 6.0% 99.2% Global cat. XL 1.4% 21.9% 79.5% Global facultative 4.1% 6.4% 97.7% Total non-life 4.4% 6.4% 98.0% As at March 2012 * All lines of non-life reinsurance except those stated separately 29

We are somewhat different Life and health reinsurance We focus on five areas of business (our "five pillars") 10 key markets = 87% of our business; 50 main clients = 80% of our portfolio Sophisticated state-of-the-art Client Relationship Management (CRM) Ability to differentiate between value-creating and value-destroying clients We create long-term win-win situations (don't play zero-sum games) We do consider acquisitions But only if strategic fit/complement No strategic prices Focused, long-term, growth-oriented, win-win approach 30

Our strategy Life and health reinsurance Selfimage Profit contribution We are a solution-driven reinsurer for the mutual benefit of our customers & ourselves Achieve an annual double-digit growth of VNB and MCEV and an EBIT margin of 6% Our strategy Risk management Clients and products We strive to balance the biometric risks Target clients are defined by a long-term philosophy of partnership Sales channels Markets Growth drivers are our expansion in emerging markets, senior citizen products in developed markets and the US protection market as well as to local presence in Asian growth markets Direct to our clients through our worldwide network of branch offices and subsidiaries 31

The five-pillar business model Our long-term unique business approach Financial Solutions New Markets Banc- Multinationals Conventional assurance R/I Worldwide: new business financing, block assumption transactions in life, personal accident and annuities Worldwide: inventing and pioneering new markets, e.g. enhanced annuities, products for senior citizens and takaful Current emphasis on Southern Europe, Germany, Scandinavia, selected Asian markets Preferred partner of various major international groups of life companies Selected lines of business: life, critical illness and health (niches!) Selected markets: USA, UK, Australia, Asia, South Africa and Latin America 32

Life and health reinsurance: well diversified portfolio 5 strategic pillars Regional split Conventional R/I 44% Financial Solutions 7% New Markets 29% Asia 9% Other European countries 11% Australia 8% Africa 4% Latin America 3% North America 32% Multinationals 10% Bancassurance 10% Germany 6% United Kingdom 28% 2011 gross written premium: EUR 5,270 m. (2010: EUR 5,090 m.) 33

Continued growth of gross written premium in 2011 Mainly driven by UK, US, Australia and emerging markets Premium development in m. EUR 90.8% 89.3% 90.7% 91.7% 91.0% 4,529 4,079 5,090 4,654 5,270 4,789 3,083 3,134 2,795 2,785 2007 2008 2009 2010 2011 Gross written premium Net premium earned Retention 34

Strong growth of MCEV MCEV (after non-controlling interests) in m. EUR VIF 2011 vs. VIF 2007: +104% 1,570 617 1,482 650 953 832 MCEV +95% 2,066 839 1,228 2,568 935 1,633 3,066 1,125 1,941 Low Financial Options and Guarantees (FOG) of only EUR 14 m. in 2011 (already excluded from the VIF) Buffer of EUR 415 m. CoRNHR (Cost of Residual Non- Hedgeable Risks) in 2011 (already excluded from the VIF) 2007 2008 2009 2010 2011 Value in Force (VIF) Shareholders' net worth after consolidation 35

MCEV 2011: highlights Substantial increase of MCEV, excellent value of new business in m. EUR 2010 2011 Opening MCEV 2,066.2 2,568.3 Opening adjustments 204.4 18.7 Adjusted opening MCEV 2,270.6 2,587.0 Operating MCEV earnings 289.6 323.9 Economic variances 159.2 89.7 Other economic variances 0.0 5.8 Total MCEV earnings 448.8 419.4 MCEV before closing adjustments 2,719.5 3,006.4 Closing adjustments (151.2) 59.4 Closing MCEV 2,568.3 3,065.8 Return on MCEV 1) 19.8% 16.2% due to - Operating MCEV earnings 12.8% 12.5% - Economic variances 7.0% 3.5% in m. EUR 2010 2011 New business value 149.3 240.6 Expected existing business contribution (reference rate) 2) 90.2 97.4 Expected existing business contribution (in excess of reference 18.7 22.3 rate) 3) Experience variances 1.4 (38.3) Assumption changes (34.5) (97.8) Other operating variances 64.7 99.7 thereof - change of basis/ change of model 80.3 105.0 - other (15.7) (5.3) Operating MCEV earnings 289.6 323.9 1) (MCEV before closing adjustments adjusted opening MCEV )/adjusted opening MCEV 2) Swap yield rates 3) Additional return consistent with the expectation of the management 36

Positive operating cash flow continues to support asset growth Assets under own management increased by 55% in 5 years Operating cash flow in m. EUR Assets under own management in m. EUR 25,411 28,431 31,188 2,523 523 2,144 20,137 22,507 1,752 1,681 799 1,459 705 518 267 264 628 542 608 706 822 267 450 259 737 424 230 336 473 2008 2009 2010 2011 Q1-3/2012 2008 2009 2010 2011 Q1-3/2012 Q1 Q2 Q3 Q4 37

Increased investment volume......supports investment income Total investments in m. EUR Investment income in m. EUR 29,042 29,691 9,227 9,553 33,293 10,786 38,047 12,636 41,683 13,342 1,122 220 1,120 277 1,259 316 1,384 339 19,815 20,137 22,507 25,411 28,341 902 278 844 943 1,046 2007 2008 2009 2010 2011 Funds withheld and contract deposits Assets under own management 200 79 2007 2008 2009 2010 2011 Income and expenses on funds withheld and contract deposits Net income from assets under own management 38

Ongoing reallocation into credits but slower at pace Volume increase due to strong cash flow and increased market values Tactical asset allocation 1) Investment category 2007 2008 2009 2010 2011 30 Sep 12 Fixed-income securities 79% 89% 87% 84% 89% 90% - Governments 19% 28% 25% 23% 19% 19% - Semi-governments 20% 23% 26% 21% 23% 23% - Corporates 26% 23% 22% 25% 30% 32% Investment grade 24% 22% 20% 24% 29% 30% Non-investment grade 2% 1% 2% 1% 1% 2% - Pfandbriefe, Covered Bonds, ABS 15% 15% 15% 16% 16% 16% Equities 12% 3% 2% 4% 2% 2% - Listed 10% <1% <1% 2% <1% <1% - Private Equity 2% 3% 2% 2% 2% 2% Real Estate/Real Estate Funds <1% <1% 1% 2% 2% 2% Others 2% 2% 2% 2% 2% 2% Short-term investments (STI) & cash 6% 6% 8% 8% 5% 4% Total balance sheet values in bn. EUR 19.8 20.1 22.5 25.4 28.3 31.2 2) 1) Economic view based on market values without outstanding commitments for Private Equity and Alternative Real Estate as well as fixed-income investments of EUR 504.6 m. (EUR 451.9 m.) as per 30 September 2012 2) Of which Pfandbriefe and Covered bonds = 84% 39

Despite downgrades, we have a well rated fixed-income book Fixed-income portfolio in m. EUR 2011 35.1% 29.9% 21.6% 10.3% 5.0% 30 Sep 41090 12 32.4% 30.4% 21.4% 12.7% 3.2% AAA AA A BBB <BBB S&P financial strength rating Economic view based on market value as at 30 September 2012 Modified duration as at 30 September 2012: 4.4 (2011: 4.2) 40

Fixed-income book well balanced Governments Semigovernments Corporates Pfandbriefe, Covered Bonds, ABS Short-term investments, cash AAA 26.5% 61.1% 1.5% 61.0% - 32.4% AA 59.3% 35.6% 14.8% 18.4% - 30.4% A 6.5% 2.5% 48.6% 11.4% - 21.4% BBB 5.8% 0.6% 29.4% 4.9% - 12.7% <BBB 1.8% 0.1% 5.7% 4.2% - 3.2% Total 100.0% 100.0% 100.0% 100.0% 100.0% Total Germany 9.0% 43.7% 6.8% 26.2% 29.9% 20.4% UK 8.0% 6.9% 11.1% 10.5% 5.4% 9.1% France 10.5% 2.9% 6.8% 10.5% 0.9% 7.0% GIIPS 2.4% 0.1% 4.0% 12.3% - 3.9% Rest of Europe 6.3% 19.6% 16.5% 23.9% 5.3% 15.9% USA 40.6% 8.9% 35.2% 7.1% 15.0% 24.4% Australia 6.2% 8.9% 8.6% 5.3% 9.0% 7.6% Asia 9.6% 1.2% 3.5% 0.1% 22.1% 4.5% Rest of World 7.4% 8.0% 7.5% 4.0% 12.5% 7.2% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% As at 30 September 2012 41

Continuously reduced share of bank exposure Unchanged focus on conservative title selection Corporate allocation in m. EUR by currencies by rating by country 8,600 10,071 28% 16% 7% Others GBP 4% 20% <BBB BBB 7% 23% Rest of World Asia& Australia 5,011 39% 6,288 44% 32% 68% 72% 35% 41% USD EUR 48% 28% A AA 15% 22% 5% 8% 11% 9% US Rest of Europe GIIPS FR GB DE 61% 56% Total bank exposure*: EUR 2,860 m. 2009 2010 2011 30 Sep 12 Non Banks Banks * Economic view based on market value as at 30 September 2012 42

No material exposure in Southern Europe and Ireland* Merely 0.3% of total AuM; further reduction of exposure in Spain Asset allocation in m. EUR Spain 36 Portugal 20 0.3% Greece 0 Italy 18 Ireland 24 Total assets under own management EUR 98 m. Economic view based on market value as at 30 September 2012 * Investments in governments and semi-governments 43

Stress tests on assets under own management Portfolio Scenario Change in market value in m. EUR Changes in OCI before tax in m. EUR Equities Prices -10% -5-5 Equities Prices -20% -9-9 Equities Prices -30% -14-14 Fixed-income securities Yield increase +50 bps -636-479 Fixed-income securities Yield decline -50 bps +659 +497 Fixed-income securities Yield increase +100 bps -1,242-936 Fixed-income securities Yield decline -100 bps +1,347 +1,016 * As at 30 September 2012 44

Inflation swaps: Positive contribution of realised EUR inflation USD market values effected by lower inflation expectations Partial hedge of non-life loss inflation provided by USD and EUR Zero Coupon Swaps Initially established in Q2/2010 (4 and 5 years) Protection reloaded in Q1/2011 (8 years) Aggregated volume USD USD 2,530 m. Aggregated volume EUR EUR 930 m. Covered level of inflation 2.17% Positive contribution of so far realised inflations Traded inflation expectations below covered level of inflation hedge Market values as at 30 September 2012 USD - 19.7 m. EUR + 6.2 m. Market position as at 30 Sep 2012 in m. USD and in m. EUR 8 4 0-4 -2.4-2.5 4.3 3.2-1.3-8 -14.7-12 -16 2010-4Y 2010-5Y 2011-8Y 2010-4Y 2010-5Y 2011-8Y Contribution of realised inflation to market value Contribution of expected inflation to market value 45

Impact of the inflation swaps Overview of sensitivities Current (30 September 2012) holding of inflation swaps at EUR 2.8 bn. (equivalent swap volume) reacts as follows to underlying risk factors: Change in market value in m. EUR Inflation expectation*: +100 bps +78 Inflation expectation*: -100 bps -76 Inflation expectation*: +400 bps +324 Interest curves Credit spreads Equity markets marginal reagibility no reagibility no reagibility * CPI Consumer Price Index (US inflation index) HICP Harmonised Indices of Consumer Prices (EU inflation index; actually traded is the sub-index HICP ex tobacco) 46

~ EUR 2.2 bn. Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Several levels of protection safeguard capital base Improved protection at lower cost Agg. XL EUR 104 m. Div. cat. swaps max. EUR ~190 m. Eurus III + Select Cat. EUR ~170 m. Whole account EUR ~166 m. K-Cession securitisation EUR ~272 m. + expected premium (EUR ~265 m.) Group EBIT ~ EUR 1.3 bn. As at August 2012 Policyholders' surplus (shareholders' equity, minorities, hybrid capital) 2011: EUR 7.3 bn. 47

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Ensuring the quality of our portfolio Our quotation process in non-life reinsurance Step 3 Step 1 Determining the expected loss Historical loss and exposure analysis Future inflation Changes in the quality of the underlying risk Changes in the quantity of the underlying risk Discounting of future cash-flows Step 2 Estimating expenses Commission Brokerage Internal administration Pricing for the cost of capital Quantity of capital allocated dependent on volatility of underlying business and its contribution to diversification Return on equity expected by shareholders Mix of capital Regular review of: loss cost trends inflation Most important non-life distribution channel: brokers variable cost 48

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook Equity Substitutes We pioneered securitisations (transfer of risks into capital markets) In 1994 Hannover Re pioneered the first securitisation of natural catastrophe risks (Kover) followed by further transactions (K2 to K6) In 1998 Hannover Re started with the first-ever transfer of acquisition costs from life reinsurance business to the capital market, referred to as "L" deals (L1 to L7) On-going transactions in m. K-Cession (Q1/12) USD 350 3) Eurus III (Q3/12) EUR 100 1) As at October 2012 1) Transfer of natural perils (P/C) 2) Portfolio-linked swap (P/C) 3) Portfolio-linked securitisation (P/C) 4) Aggregate XL cover (P/C) 5) Credit-linked floating rate note Expired transactions in m. Kover (Q1/94) USD 85 1) K2 (Q4/96) USD 150 2) L1 (Q1/98) DEM 100 L2 (Q2/99) DEM 250 L3 (Q4/99) EUR 50 L4 (Q4/00) EUR 200 K3 (Q2/02) USD 230 3) L5 (Q4/02) EUR 300 C1 (Q1/05) USD 225 3) L6 (Q1/06) EUR 100 K5 (Q1/06) USD 540 3) Eurus I (Q3/06) USD 150 3) Kepler (Q1/07) USD 200 4) Merlin (Q1/07) EUR 95 5) L7 (Q1/09) EUR 100 K6 (Q1/09) USD 335 3) Eurus II (Q3/09) EUR 150 1) 49

Overview Hannover Re Group Non-life reinsurance Life and health reinsurance Investment mgmt. Risk mgmt. Capital mgmt. Q1-3/2012 Outlook The risk is manageable Stress tests, after retrocessions for natural catastrophes Effect on forecast net income after tax in m. EUR 2010 2011 100-year loss European windstorm (146.5) (63.2) 100-year loss US windstorm (259.8) (296.8) 100-year loss Japanese windstorm (189.4) (255.5) 100-year loss Tokyo earthquake (195.1) (237.4) 100-year loss California earthquake (233.1) (224.8) 100-year loss Sydney earthquake (72.5) (89.6) 50

Our capital structure consists not only of equity Use of hybrids, securitisations etc. lowers cost of capital, increases RoE Equity capital is by far the most expensive Therefore, we make optimal use of equity substitutes, e.g. hybrid capital: 2004: EUR 750 m. (20 nc 10) [ISIN: XS0187043079]: 5.75% 2005: EUR 500 m. (perp. nc 10) [ISIN: XS0126063386]: 5.00% 2010: EUR 500 m. (30 nc 10) [ISIN: XS0541620901]: 5.75% 2012: EUR 500 m. (30.6 nc 10.6) [ISIN: XS0856556807]: 5.00% Conventional reinsurance/retrocession on an opportunistic basis (i.e. use of other reinsurers' capital) Securitisations, capital market transactions We have the lowest cost of capital (WACC) in the industry 51

Financial strength ratings Group S&P A.M. Best General Reinsurance Corp. AA+ 1) A++ Hannover Re AA- A+ Munich Re AA- A+ Swiss Re AA- A+ Everest Re A+ A+ PartnerRe A+ A+ 1) Lloyd's A+ 2) A SCOR A+ A Transatlantic Re A+ A XL Re A 2) A As at 2 January 2013 1) Negative outlook 2) Positive outlook 52