Deutsche Rück to enter new North African markets
The Deutsche Rück Group is planning a geographical expansion outside its core markets. Achim Bosch, chief underwriting officer at the company, told Monte Carlo Today that in the coming months, the group will enter some new markets outside Europe and take on business from selected North African markets.
“We have identified interesting growth perspectives for these markets, and we consider them highly compatible with our own business approach, as personal contact and considerate, long-lasting partnerships are held in high esteem,” Bosch said.
“We will successively expand expertise in our core competencies, the natural hazard lines, but also in new areas such as cyber risks or automated driving. Our aim is to strengthen our position in our home market even more, where we are among the market leaders, and to increase our business in all other European markets—with the necessary caution.”
The Germany-based reinsurer has traditionally written reinsurance business from its headquarters in Düsseldorf, with a focus on business in its home market, and in Austria, Switzerland, and the Central and Eastern European markets.
The company’s subsidiary in Zurich, DR Swiss, takes on business from other European markets.
“We are planning to enter new markets in North Africa, for reasons of risk diversification and adequate margins. This is what our clients and shareholders know us for, and this is what they expect from us,” Bosch explained.
He acknowledged that cyber risks, especially silent cyber, is one of the most obvious challenges for the industry, but he added that there are also many other threats.
“Extreme weather events constantly remind us that there are other challenges ahead, which governments and society still tend to ignore, or at least they do hardly anything to reduce the upcoming challenges.
“Think of the summer’s heatwaves in Europe and losses due to windstorms and heavy rain,” he said.
“We will work even more on our expertise in climate issues and natural hazards as well as in calculating the respective risks.”
The chief underwriting officer also highlighted challenges that may arise from the capital markets, where persistently low interest rates “will eventually necessitate adjustments in investment strategies”.
