Deutsche Rück hacks 10 pts from combined ratio on cut to claims
Germany-headquartered reinsurer Deutsche Rück Group increased earned premiums at a double-digit pace and enjoyed a decline in net losses, helping the group take over 10 points from its combined ratio and trim the underwriting loss to a mere €9.7 million.
“We are very satisfied with this result as we were once again able to strengthen our asset base,” CEO Frank Schaar (pictured) said of the 2022 financial year results.
“The strength of our asset base gives us more scope to expand international business, with a view to the further geographical diversification of our portfolio,” Schaar added. “Following a successful renewal season for 2023, we are seeing profitable growth continue in the current financial year.”
Gross written premium of €1.5 billion was up 8.3% year on year ahead of a 11.67% growth in net premiums earned. The portfolio is now 66% property, 25% liability-accident-motor and 5% life.
An outright decline in claims against that premium gain helped the German reinsurer take a hefty 11 points off of its net loss ratio to 73.2% or 14 points from the gross loss ratio to 80.2%.
The Ylenia-Zeynep-Antonia series of winter storms (aka Dudley, Eunice, Franklin) delivered the heaviest blow with gross losses of €109.2million.
In consequence, the group cut its net loss on underwriting to a fractional EUR 9.7 million from the prior year's €48 million loss.
Management's preferred measure, the net technical account before €66.7 million in top-ups to the equalisation reserves, closed with a profit of €57.1 million.
Investment income for the group was nearly halved from the prior year period to €33.1 million, with management blaming unspecified investment write-downs.
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