Deutsche Rück’s profits rise but GWP shrink in 2018
German reinsurer Deutsche Rück Group's profits soared in 2018 but its book shrank due to a restructuring of a business segment within the group of German public insurers.
However, its CEO remains optimistic about the 2019 outlook, expecting slightly lower gross premium volume overall and no change in the combined ratio.
The company made a net profit of €56 million, a big increase on the €3 million it made a year earlier.
Deutsche Rück recorded a year on year 7.8 percent drop in its gross written premium volume to €1.1 billion, owing mainly to the restructuring of a business segment within the group of German public insurers.
The company’s combined ratio increased to 97.2 percent compared with 95.8 percent a year earlier.
In 2019, Deutsche Rück expects its business performance to remain stable, with slightly lower gross premium volume overall and no change in the combined ratio.
Chief executive officer Frank Schaar said: “We improved our clients’ risk positions, generated added value for our shareholders and simultaneously strengthened our assets.
“In 2018 we once again strengthened our reserves and continued our long-standing, conservative reserving practice. The technical account therefore closed with a loss after the change to equalisation reserves.
“However, our retrocession scheme, which is geared towards property business, enabled us to limit our risk positions effectively.”
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