Annual Report 2018

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Business development Business model Cash Flow Statement Consolidated Balance Sheet Consolidated Statement of Income Financial position and net assets Forecast Remuneration report Results of operations Risk report Segmental Report
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10 year overview
Stock markets Share performance Dividend Annual General Meeting Investor relations activities Sustainability reporting and ratings Shareholding structure Analyst ratings Share data
Foundations of the Group
Business model Management system
Value-based management Operational management system
Research and development
Report on economic position
Macroeconomic environment
Macroeconomic climate Industry-specific environment
Business development
Property & Casualty reinsurance Life & Health reinsurance Investments Total result
Overall assessment of the business position Results of operations
Property & Casualty reinsurance Life & Health reinsurance Investments
Financial position and net assets
Investment policy Investments Analysis of the capital structure Management of policyholders’ surplus Group shareholders’ equity Financing and Group debt Analysis of the consolidated cash flow statement Financial strength ratings Information pursuant to § 315
Information on Hannover Rück SE
Results of operations Development of the individual lines of business Assets and financial position Risks and opportunities Other information Outlook
Combined non-financial information statement
Introduction Description of the business model Group and sustainability strategy Responsible corporate governance Compliance Risk management Stakeholder dialogue Risk expertise and risk assessment Sustainable insurance solutions ESG criteria in asset management Customer orientation and satisfaction Executive development / Employee advancement Employee retention Diversity Operational environmental protection Supplier management
Opportunity and risk report
Risk report
Strategy implementation Major external factors Risk capital Risk management Risk management system Internal control system Risk landscape of Hannover Re Internal risk assessment Underwriting risks in property and casualty reinsurance Underwriting risks in life and health reinsurance Market risks Counterparty default risks Operational risks Other risks
Opportunity report
Overall assessment by the Executive Board
Enterprise management
Declaration on Corporate Governance
Corporate Governance Declaration of Conformity Further enterprise management principles Working practice of the Executive Board and Supervisory Board Compliance Risk monitoring and steering Diversity concept
Remuneration report
Remuneration Executive Board Remuneration Supervisory Board Loans to members of the management boards and contingent liabilities Securities transactions and shareholdings Remuneration of staff and senior executives
Outlook
Forecast
Economic developments Property & Casualty reinsurance Life & Health reinsurance Investments Outlook 2019
Consolidated balance sheet Statement of income Statement of comprehensive income Statement of changes in shareholders’ equity Cash flow statement Notes Independent Auditor's Report Report by the independent auditor Responsibility statement
Report of the Supervisory Board Supervisory Board Members
Global presence Strategic business groups

Analysis of the consolidated cash flow statement

Liquidity

We generate liquidity from our operational reinsurance business, investing activities and financing measures. Regular liquidity planning and a liquid investment structure ensure that Hannover Re is able to make the necessary payments at all times. Hannover Re’s cash flow is shown in the consolidated cash flow statement.

Hannover Re does not conduct any automated internal cash pooling within the Group. Liquidity surpluses are managed and created by the Group companies. Various loan relationships exist within the Hannover Re Group for the optimal structuring and flexible management of the short- or long-term allocation of liquidity and capital.

Consolidated cash flow statement
in EUR million20182017
Cash flow from operating activities2,224.61,693.9
Cash flow from investing activities(2,075.2)(942.3)
Cash flow from financing activities149.5(690.0)
Exchange rate differences on cash16.9(74.5)
Change in cash and cash equivalents315.8(13.0)
Cash and cash equivalents at the beginning of the period835.7848.7
Change in cash and cash equivalents according to cash flow statement315.8(13.0)
Cash and cash equivalents at the end of the period1,151.5835.7
Thereof cash and cash equivalents from IFRS 578.6–
Thereof cash and cash equivalents at the end of the
period excluding disposal group		1,072.9835.7

Cash flow from operating activities

The cash flow from operating activities, which also includes inflows from interest received and dividend receipts, amounted to EUR 2,224.6 million in the year under review as opposed to EUR 1,693.9 million in the previous year. The increase of altogether EUR 530.7 million was essentially due to higher claims paid in the previous year as a consequence of the comparatively heavy burden of losses in 2017.

Kapitalfluss aus laufender Geschäftstätigkeit

Cash flow from investing activities

The balance of cash inflows and outflows from operating activities and investing activities in an amount of EUR 2,075.2 million (EUR 942.3 million) was invested in accordance with the company’s investment policy, giving particular consideration to the matching of currencies and maturities on the liabilities side of the technical account. Regarding the development of the investment portfolio please see also our remarks at the beginning of this section.

Cash flow from financing activities

The cash inflow from financing activities amounted to EUR 149.5 million (cash outflow of EUR 690.0 million) in the year under review. This item includes primarily the dividends paid out by Group companies in the financial year totalling EUR 657.7 million (EUR 647.1 million) and the receipts from issuance of a senior bond in a nominal amount of EUR 750.0 million.

Overall, the cash and cash equivalents therefore increased year-on-year by EUR 315.8 million to EUR 1,151.5 million.

For further information on our liquidity management please see the risk report.

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Cash flow statement Other risks

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