Overriding goals and organisation of risk management
The overriding goal of our risk management is to adhere to the strategically defined risk positions of the Hannover Re Group which are enshrined in our risk strategy. In order to ensure that our shareholders’ equity is protected, we seek to manage and control individual risks such that the total risk remains within the permissible defined tolerances. Divergences may occur as a result of external influencing factors, and the company must always be in a position to immediately initiate appropriate countermeasures. We attach central importance to the following aspects:
- Regular review of the efficiency of systems and, as appropriate, adjustment to the business environment and/or the changed risk situation
- Separation of functions between divisions that manage risks, on the one hand, and those that monitor risks, on the other
- Process-independent monitoring by Internal Auditing
- Systematic and comprehensive monitoring of all conceivable risks from the current perspective that could jeopardise the company’s profitability or continued existence with the aid of efficient and practice-oriented management and control systems
- Reporting to the Risk Committee and the Executive Board that is counterparty-oriented and encompasses all the various types of risk
- Documentation of the material elements of the system in mandatory instructions
- Good financial strength and risk management ratings from the rating agencies of greatest relevance to our company
The current financial strength rating from Standard & Poor’s is “AA–” (“Very strong”, stable outlook), while the rating from A.M. Best is “A” (“Excellent”, positive outlook). Hannover Re’s risk management is assessed by Standard & Poor’s as “strong”, the second-best S&P rating. This evaluation testifies to the quality of our holistic approach to risk management.