Hannover Re is highly satisfied with the development of business in 2016. The company achieved its targets for important key indicators such as the return on investment, Group net income, return on equity as well as the EBIT margin and combined ratio in property and casualty reinsurance. This is all the more pleasing because the business environment for reinsurers remained challenging. The generated investment income and return on investment were very satisfactory despite the continued low level of interest rates. Group net income again surpassed EUR 1 billion. The company’s shareholders’ equity showed a thoroughly gratifying increase, causing the total policyholders’ surplus to climb to a new record high. At the time of preparing the management report, the business position of the Hannover Re Group remains very good and its financial strength has been further reinforced.