Deutsche Rück achieves better rates in German fire/property insurance
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.
Today’s stories
Lemonade quickly stealing clients from ‘old insurance companies’, says co-founder
Lloyd’s Novae Syndicates put “under review for possible downgrade”
Reinsurance rate reductions accelerate in June renewals: JLT Re
‘More efficiently structured’ ERGO to contribute over $600m to Munich Re profit
Marsh introduces aircraft financing product
Lloyd’s Market Association sets up third party capital committee
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
