Life & Health reinsurance at Hannover Re

Globally human population grows by around 75 million per annum

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Dear Clients, Transacting all lines of life, health, annuity, and personal accident business written by life insurance companies, ­Hannover Re­has­advanced­to­become­a­global­top-tier­pro-vider of reinsurance concepts and solutions.

Our­worldwide­network­spanning­24­offices­on­all­continents­allows our clients to have a competent local contact with superb knowledge of the local (re)insurance market available directly on the spot. At the same time the Group’s worldwide expertise is at the service of our clients. Hannover Re is dedicated to deliver individually tailored and comprehensive customer support – everywhere in the world.

It is our company’s core business to assume risks from our clients and to give them security. As one of the largest and most­financially­ sound­professional­ reinsurance­groups­ in­the­world,­rated­AA-­by­Standard­and­Poor’s,­Hannover­Re’s­rating has been consistently stable for more than a decade.

Our­solid­financial­base­is­the­foundation­of­a­genuine­partner-ship,­and­a­long-term,­lasting­relationship­of­mutual­benefit.­We take a consultative approach to working with our business partners, whilst also providing real capacity and security. When clients are looking for innovative and creative solutions we­are­their­first-choice­partner.

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This brochure offers you an insight into our broad variety of expert­offerings­in­the­fields­of­risk­solutions,­financial­solu-tions, and reinsurance services.

We look forward to discussing with you the best solutions for your business in order to unlock promising growth prospects.

Yours sincerely,

Claude Chèvre Dr. Klaus MillerMember of the Member of theExecutive Board Executive Board

We are your first-choice partner for the design of consumer-

oriented protection covers

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Our solutions and services

Our clients benefit from our worldwide network of expertise. With experts on every continent, together with the very special mix of short decision-making processes and local know-how Hannover Re brings international knowledge to the table. We have the courage to tread new paths and pave the way for our clients’ success.

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Risk solutions

• A broad range of solutions for criticalillness, disability, health, long term care,longevity, and mortality

• Competitive terms and appropriatecapacity

• Long-standing experience, soundresearch and data analysis

• Consultative approach

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Reinsurance services

• Wide range of individualised services spanning the spectrum from product and process support, biometrics, and risk assessment

• Immediate access to our expertise

• State-of-the-art underwriting tools and web-based manuals

• International network of actuaries, underwriters, medical doctors, claims and risk assessment specialists

Financial solutions

• Wide range of solutions from standardised arrangements to highly-customised structures and covers

• Financial strength

• In-depth knowledge of local markets and regulations

• Specialists in various jurisdictions

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Around 15% of the world’s population have some form of disability

Risk solutionsHannover Re is amongst the leading providers of life and health reinsurance concepts and is well-positioned as far as breadth of portfolio, expertise and cost-effectiveness is concerned.

We offer a broad range of risk solutions across the life and health spectrum: be it critical illness, disability, health, long term care, longevity or mortality, our solutions are targeted at providing competitive terms and appropriate capacity for all types of technical risks.

In today’s markets the early recognition, evaluation and assessment of risks is becoming increasingly important and requires­long-standing­experience,­sound­research­and­care-ful analysis of data.

We take a consultative approach to our client relationships by offering a full suite of tailored tools and value added offer-ings that address current market trends and anticipate future opportunities. Our lean and dynamic organisation structure

en­ables­us­to­support­our­clients­with­cost-effective­and­tailor-made risk solutions so that they can grow both their top and bottom lines.

Our solution offerings include research, product design, experience analysis, facultative underwriting, policy admin-istration, and valuation. Our clients leverage the actuarial expertise and knowledge in reinsurance, distribution as well as marketing, reporting, and claims management of our local market professionals.

Developments and demographic trends in societies around the­world­are­ ­exerting­a­growing­ influence­on­the­ life­and­health­markets.­­Hannover Re­is­providing­reinsurance­solu-tions to meet these challenges.

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Longevity solutions

The constantly increasing exposure to longevity becomes a major issue for insurance companies and pension providers worldwide, with increasing risk management and reporting obligations. With our extensive expertise in the longevity market we have supported our clients since 1995 in developing tailored solutions to transfer longevity risk.

Healthcare

All around the world people are looking to cover their healthcare costs. Hannover Re offers its clients bespoke health solutions designed to help them pro-vide consumers with peace of mind at an affordable price. This enables our clients to develop the health market sustainably and profitably.

Lifestyle products

We have observed a sharp increase in lifestyle prod-ucts – an area where traditional insurance is often combined with perks for sports or leisure activities. A trend, that we support wholeheartedly as a reinsurer and where we have gained substantial experience in product design for innovative lifestyle insurers.

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Financial solutionsAs one of the largest professional reinsurers in the world, Hannover Re understands the unique financial challenges that life and health insurers face not only in the dynamic global market but in each individual market in which they operate.

We are happy to demonstrate to you how financial solutions can help you to achieve your financial objectives and that they are often an attractive alternative to debt and equity financing.

Financial solutions are reinsurance transactions tailored to enable­clients­to­overcome­a­specific,­quantitative­financial­challenge­and­to­achieve­financial­objectives­such­as:­

•­ Increase return on capital

•­ Improve solvency ratios

•­ Reduce the cost of capital

•­ Increase capital levels

•­ Ease reserving requirements

•­ Fund organic business growth

•­ Assist in financing of mergers or acquisitions

•­ Reduce volatility in earnings and financial ratios

Typically­financial­solutions­are­sought­after­by­clients­to­pro-tect and strengthen their capital base, but their application extends­far­beyond­this.­As­a­source­of­capital,­financial­solu-tions are precise in the amount of capital generated, as well as quick to execute. Compared to traditional capital sources, financial­solutions­are­less­expensive­than­equity­capital­due­to the Hannover Re Group’s ability to raise hybrid capital at economical­prices,­and­more­flexible­than­debt­instruments­which­saddle­the­client­with­a­fixed­repayment­burden.

Financial solutions under Solvency II

Health insurers using the Solvency II standard model can reduce their cost of capital by leveraging the greater depth of modelling and diversification of risks at Hannover Re. Our approved internal capital model shows that the required capital for the same business is significantly reduced when reinsurance is structured appropriately. The savings from reduced cost of capital can be shared to the benefit of all stakeholders or the freed capital can be deployed more efficiently.

We work in concert with our clients, developing and swiftly implementing­optimal­financial­solutions­with­a­clear­under-standing­of­each­client’s­market­and­financial­objectives.­Dur-ing­this­process,­our­clients­not­only­benefit­from­our­deep­

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As a source of capital, financial solutions are precise in the

amount of capital generated, as well as quick to execute

knowledge of local markets and regulations, but also from our global­resources,­which­include­dedicated­teams­of­financial­solutions­specialists­in­various­jurisdictions.­Hannover Re’s­financial­ strength­ and­ vast­ experience­ in­ providing­ viable­financial­solutions­worldwide­add­to­the­value­proposition.­Our track record provides evidence of our success: We have facilitated more than 100 structured transactions for clients in Africa, America, Asia, Australia and Europe, testimony to our­superior­financial­security,­technical­expertise­and­client-orientated services.

The­range­of­our­financial­solutions­offerings­matches­our­clients’­objectives­and­spans­from­standardised­arrangements­to­highly-customised­structures­and­covers,­for­example:

•­ New-business­ financing:­ flexible­ financing­ amounts­compliment the uncertainty of new business volumes providing our clients with the security that their capital base will move in sync with their expansion.

•­ Monetisation of embedded value: the ability to unlock the future business value inherent in our client’s illiquid asset base.

•­ Reserve relief: allowing our clients to focus on the economic risk embedded in their business

•­ ­Solvency­relief:­targeting­the­optimisation­of­either­avail-able capital resources or required capital levels

•­ ­Divestiture­ of­ non-core­ businesses:­ ­accommodating­change by allowing our clients to redeploy scarce resources­in­line­with­new­objectives.

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Reinsurance servicesWe believe in providing clients with immediate access to our expertise in areas ranging from biometrical data, pricing and valuation, risk and claims assessment, risk modelling, policy terms and conditions, to seminars and customised on-site trainings.

Our comprehensive range of reinsurance services is geared towards the individual needs of our clients. Backed by our strong international network of specialists on all continents we not only know our clients’ markets but are also well equipped to best respond to their individual requirements.

We focus on enhancing clients business growth, by sup-porting the development of tailored products or developing underwriting standards for new distribution channels, when entering new markets or countries and by providing com-prehensive­solutions­for­start-ups­and­supporting­business­re-engineering­processes.

We at Hannover Re are convinced that the underwriting process should be allied to sound training and guidance for underwriters

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Medical underwriting and claims Our team of experienced underwriters and physicians offers professional underwriting and claims handling support for all Life & Health clients as a matter of course. We practice decen-tralised medical underwriting with experts located all around the world creating a unique network of worldwide expertise.

We attach great importance to sound yet competitive under-writing­ principles­ and­ evidence-based­ underwriting­ deci-sions. It is our belief that these principles must be allied to detailed­training­and­guidance­for­underwriters,­reflected­in­our education and training programme and in our electronic underwriting manuals.

hr | Ascent is Hannover Re’s online underwriting manual that caters for a broad spectrum of under-writing considerations with varying degrees of com-plexity. Frequently updated, it proves its dynamic nature and, coupled with the manual’s powerful search engine, hr | Ascent enables our customers to respond rapidly and competitively, saving time in the evaluation of life insurance risks.

Underwriting systemsWe have gathered substantial expertise in providing individu-alised­support­ for­process­optimisation.­Automated­under-writing solutions are key to modern sales processes in order to improve­overall­process­efficiency­as­well­as­the­risk­profile­of­new business. Hannover Re’s underwriting systems combine state-of-the-art­functionality­with­exceptional­flexibility­and­ease of use. Our systems can be quickly and conveniently integrated­into­insurers’­own­IT­landscapes­and­fully­config-ured­to­reflect­local­market­conditions­–­resulting­in­better­and­faster­risk­selection­and­underwriting,­and­significant­process­efficiency­gains.

Our point-of-sale engine provides a high-quality medi-cal rule set that remarkably simplifies and accelerates the application process.

Access to our knowledge and expertiseWe support our clients by keeping them up to speed on the latest product and medical developments, and challenges affecting the life and health insurance industry either face to face, via our publications or our website.

Systematic­training­and­guidance­of­underwriting­and­claims­personnel are essential factors for ensuring the optimum quality of the underwriting and claims process. We have devel-oped a modular training concept for our clients’ underwriters and claims assessors which is systematic and continuous: the Hannover Re education and training programme E & T.

We host regular client and market seminars as well as train-ings,­which­have­become­a­fixed­institution­in­the­respective­markets, and which focus on hot topics affecting the insurance industry at large.

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Your global partner We have built an international organisation, with a presence on all continents.

Central to our approach is an understanding that each country is unique, with its own legislative framework, culture and business parameters. Support is close at hand from local experts who understand your market, and speak your language – in more ways than one. And at the same time you can tap into the rich resources, skills and experience available across our cross-border operations.

Toronto

DenverNew YorkCharlotteOrlando

Mexico City

Hamilton

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Taipei

Seoul

Tokyo

ShanghaiHong Kong

Kuala Lumpur

Madrid

Dublin

London

Paris

Stockholm

Hannover

Milan

Sydney

Mumbai

Manama

Johannesburg

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Our Life & Health Executive Board Members and their markets

Claude Chèvre

•­ Africa

•­ Asia

•­ Australia / New Zealand

•­ Latin America

•­ Western­and­Southern­Europe

•­ Longevity­Solutions

Dr. Klaus Miller

•­ Northern America

•­ Northern, Eastern and Central Europe

•­ UK and Ireland

Published by Hannover Rück SE Life & Health business group

Karl-Wiechert-Allee 50 30625 Hannover Germany

Information as of January 2017

www.hannover-re.com