Hannover Rueck SE Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kamran Hossain - JPMorgan - Analyst : Two questions from. First was just around rating agency capital and how that interacts with dividends. Earlier in the quarter, S&P confirmed your credit rating. In their comments summary, they suggested you have more capital now than you did in the past. And now I know that you're in the middle of hurricane season or about to get to the peak of it, but maybe theoretically, could you discuss that if you get a sense of the year, you hit the EUR2.1 billion-plus net income target and whether there might be a little bit more -- there might be a little bit more freedom on the dividend for this year. And second question just on the life and health result, obviously a great result overall. Could you maybe give some context on the China (inaudible) piece? It sounded like in Q1, you took the opportunity because your result was going to take action. It's not the same case this quarter. Was there something else going on in the Chinese Sea? Thank you.

Question: Tryfonas Spyrou - Berenberg - Analyst : I have two questions. One is in P&C Re. It looks like at the half year the combined ratio is running well below 89% level. You guided to -- I guess, want to shipping out the benefits from a fee and discounting which you haven't actually earned and potentially the retro chart is actually much lower. I appreciate it's still early in the year but given the possibility you have done last year is that around -- maybe it is cutting lower at the full year. I guess my question is, what would you do that? Would you let this flow through to P&L or would you look to, to tend to buffer a little bit more. That was my first question. Second one is on life and health Re. I guess, extension and new contract, it looks like quite strong again. When I look at the cumulative number or the last two years, (inaudible) going from that extension contracts. It's actually bigger than the new business CSM. So I guess my question is how really, how sustainable is it going forward? Are there still contracts with potential to extend the hub and how they choose to do so with the runway, there is still strong. Thank you.

Question: Tryfonas Spyrou - Berenberg - Analyst : Yes, life and health. The growth that has come from extension on new contracts, yes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 12, 2024 / 8:30AM, HNRGn.DE - Q2 2024 Hannover Rueck SE Earnings Call

Question: Derald Goh - RBC Capital Markets - Analyst : Just a couple of quick ones, please. Can you (technical difficulty) how much of the life and health service results came from financial solutions for both the quarter and half. And my second question, can you tell us what your reinvestment yield is maybe at the end of July instead of end of June? Thank you.

Question: Derald Goh - RBC Capital Markets - Analyst : Yes.

Question: Derald Goh - RBC Capital Markets - Analyst : And checking that 4.6%, is that as of the end of June or is that at the end of July?

Question: Vinit Malhotra - Mediobanca - Analyst : So just from me a bit more on the life re side, please. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 12, 2024 / 8:30AM, HNRGn.DE - Q2 2024 Hannover Rueck SE Earnings Call So I understand the China (inaudible) was in expectations and in your guidance, but there's also a significant offsets coming from a variety of experience variance, say in many lines to longevity, modality. I'm just curious if you could just comment a bit about these because these can't be projected out. These have helped the numbers this quarter but also just to confirm, there is no assumption from positive experiences in the outlook, right? Because that cannot be probably assumed and I'm just curious about if you could comment a bit more about the positive experience there as well. And just second thing is on the P&C re, the secondary perils have been noted Jean-Jacques in your press release commentary and also you said that the sentiment and market hasn't really changed. I'm just curious if there any change you're seeing that would be happening in the marketplace because the secondary perils just keep very stubbornly presenting themselves year after year, year after year. And I'm curious whether you think there is something going on there that should be interesting to the market. Thank you.

Question: Vinit Malhotra - Mediobanca - Analyst : Yes, that and that's coming from a variety of places as well (multiple speakers)--

Question: Vinit Malhotra - Mediobanca - Analyst : Thank you. So just to follow up Claude, in financial solutions, the experience variances probably comes only from (technical difficulty) could you confirm. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 12, 2024 / 8:30AM, HNRGn.DE - Q2 2024 Hannover Rueck SE Earnings Call

Question: Vinit Malhotra - Mediobanca - Analyst : So okay. Thank you.

Question: Vinit Malhotra - Mediobanca - Analyst : And terms and conditions are still holding, right, Sven?

Question: Freya Kong - BofA Global Research - Analyst : I'm sorry to come across a little greedy, but the exit run rate for your P&C combined ratio normalized last year. I think you said was around 87.5%, but we're running at 87.8% year to date. Wouldn't it be fair for us to be expecting some improvement this year given the [earn through] of 2023 renewals? Or is there any reason why this isn't developing more favorably? And then secondly, just at a group level, your other expenses line was a little lower than I expected. Any comments on this or is this just normal quarterly volatility? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 12, 2024 / 8:30AM, HNRGn.DE - Q2 2024 Hannover Rueck SE Earnings Call

Question: Will Hardcastle - UBS - Analyst : First of all just coming back to the renewal. So a little bit of extra color would be helpful on lines of business regions. You mentioned a couple of things. And I guess the key is just making sure does that return same margin as the core book there weren't any lower margin quota shares, for example, within that? So looks very favorable. Secondly, just coming back to one of the questions -- one of the first question is related to the S&P capital outcome. Clearly, that's come in -- that's come in well. I noticed the binding constraint. I just wanted to fit into your thinking in terms of I think you mentioned a potential or high probability of a potential one times benefit a release or whether you think about that in terms of flow and greater confidence in a regular payout, just how you'd frame that outcome for yourselves? Thank you.

Question: Darius Satkauskas - Keefe, Bruyette & Woods Europe - Analyst : I have two questions, please. The first one is are you doing anything in relation to your inflation linkage position as interest rates are coming down? And the second is a Board question, please. Is there anything that you and the industry can do to improve the disclosure around life and health reserving. So it's less of an information vacuum, perhaps disclosing the present value of claims payments rather than just giving us the present value of cash flows, which is a positive figure because of premiums or more color on lapses [to run the] assumptions. As my understanding, it's more changes here can have a huge impact on the CSM due to long duration of cash flows. So anything that can help us be much appreciated. Thank you.

Question: Faizan Lakhani - HSBC - Analyst : I have two questions. One is on the insurance revenue pathway, I guess, for page 2. In fact, the more of the January renewals (technical difficulty) runoff and you got the and you get a stronger renewals coming through. Should we expect double-digit growth in the revenue and what's under 2025 given the strong renewals at midyear this year as well? Second question is on your reinsurance recovery. I can see that you had relatively limited recoveries across the majority of your [nav cat] events. In particular, the storm in Germany, and that's considerably lower than what you achieved from storm Bernd in 2021. Can you maybe elaborate in terms of how the reinsurance program panned out in H1, please? Thank you.