achim-bosch-deutsche-ruck
Achim Bosch, chief underwriting officer, Deutsche Rück
22 October 2019Insurance

Deutsche Rück to explore North African markets, says chief underwriting officer Bosch

Diversification into North Africa is high on the agenda for Deutsche Rück, chief underwriting officer Achim Bosch told Baden-Baden Today.

The core of the business will continue to be focused in Europe but in order to cement long-term stability, the company recognises the need to diversify.

“For a reinsurer it always makes sense to diversify therefore we are dipping our toes into the North African market,” Bosch said.

“We see some very good opportunities there because the core of how we do reinsurance is based on long-term partnerships, and that seems to be held in very high esteem there.

“We want to slowly and steadily explore other markets as well, but only if it makes sense for us profitability-wise. North Africa is in its very early stages; we will see what happens in these renewals.”

He added that the company is eyeing further opportunities in European markets.
“Whether there is a profitability opportunity for us depends on the terms and conditions as they are close to what we have seen as unhealthy in the past,” he explained.

“There are now signs of increasing rates, especially in the cat market. We have increased our cat capacity for the European markets and that should give us a bit of tailwind to strengthen relationships and win new ones.”

While there is talk of rate increases, Bosch notes that these are still at a relatively low level and affect only areas that were hit by heavy losses.

“The environment is in a situation where, in areas where clients have had a longer bad loss experience, the tolerance to continue at the same terms and conditions has come to an end,” he said.

“Although signs are better than in former years, we have to live with that relatively low profitability environment for the foreseeable future until the governments decide that risk and return have to get back to an economically reasonable balance.”

He added that in this environment, Deutsche Rück’s commitment to long-term partnerships gives it an advantage.

“We have some advantages over the average reinsurer: the stable ownership structure which is highly valued by a lot of clients, the A+ financial stability and the reliability that is embedded in our DNA,” he concluded.

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22 September 2020   The move is a part of the reinsurer's strategy to expand outside its core markets in Europe and the Maghreb countries.