Deutsche Rück expects lower premium for 2018
A change in the Deutsche Rück business model in residual credit business is expected to lead to a significant reduction in gross premiums in the current financial year, said CEO Frank Schaar.
"We also expect some of our cedants to increase their retentions," Schaar noted. "However, we will offset most of this decline through increases in our share and natural growth."
In 2017, Deutsche Rück grew gross premium income by 2.3 percent year on year to €1.2 billion, driven by non-life and life reinsurance. In terms of claims, the positive trend from previous years continued, the company said. In particular, liability, accident and motor insurance business as well as fire business contributed to the improvement in the gross loss ratio from 58.1 percent to 56.0 percent. The combined ratio in the non-life business was at 96.4 percent in net terms.
The operating result before tax was €24 million. After deduction of tax expenses, which had almost doubled owing to changes in tax legislation, the net profit for the year was €3 million.
Deutsche Rück and its subsidiary Deutsche Rückversicherung Schweiz (DR Swiss) focus on reinsurance in continental European markets for the German public insurers.
Germany’s legally independent public insurers have organised themselves on a national basis as the Association of German Public Insurers. The Association is the central service provider of the second largest group of the German primary insurance market and also acts as reinsurer of its member companies in life insurance and liability, accident and motor insurance.
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