Deutsche Rück boss quits; hunt starts for successor
Improved earnings lead to Deutsche Rück ratings outlook upgrade
Deutsche Rück has negotiated better conditions with its cedants in fire/property insurance in Germany.
“We managed to negotiate better conditions with our cedants following a noticeable trend towards an improvement in conditions in 2016. We expect the positive technical results for the last financial year to be surpassed slightly in 2017,” the company said in its 2016 annual report.
In natural hazards business, Deutsche Rück anticipates a further increase in premiums for 2017. German homeowners’ insurance, the class accounting for the largest volume within its property insurance portfolio, will further increase its share of the overall premium volume following encouraging premium growth in 2016, according to the company.
Provided that natural hazard events remain within the anticipated range, Deutsche Rück expects earnings to continue to develop positively. Furthermore, the company expects the premium volume in liability, accident and motor insurance business to remain stable in 2017.
Deutsche Rück said that it has built up sufficient security for possible future burdens in these lines of business, which have a long claims settlement process.
The company anticipates a slight decline in the German life insurance business in 2017, following significant premium growth in the last financial year.
Overall, Deutsche Rück managed to offset increases in cedants’ retentions by increases in its share and natural growth in the German renewals for 2017.
In the European market, Deutsche Rück anticipates only a marginal increase in premiums in the current financial year.
In 2016, Deutsche Rück grew gross written premiums to €1.18 billion compared to €1.08 billion in 2015. Net profit improved slightly to €14.5 million from €14.3 million over the period. The combined ratio deteriorated to 100.9 percent in 2016 compared to 99.0 percent in the previous year.
Deutsche Rück, Property, Fire, Germany