… efficient
Capital allocation – efficiently managed
In the early years after its founding Hannover Re operated with scarce capital resources.
This led, in the first place, to systematic strengthening of the reserves from organic growth
in times of high interest income, while at the same time it resulted in a sophisticated risk-based
capital model that enabled the company to write the most profitable business possible with its limited
capital resources. Thanks to this capital model, we are able to identify attractive business,
optimally deploy our capital in business groups, regions and lines and leverage potential scope for diversification.
In 2015 this was the first internal model of any reinsurance company to be approved by the financial supervisory authority.
