E+S Rück eyes rate improvement
E+S Rückversicherung, the Hannover Re subsidiary responsible for the group’s German business, expects significant improvements in risk-adjusted prices and conditions in property and casualty reinsurance on the back of continued heavy claims expenditure and soaring inflation.
“Insurers and reinsurers alike find themselves facing a sharp rise in inflation, which together with sustained high expenditures for major claims is adversely impacting the profitability of the entire industry,” Michael Pickel (pictured), CEO of E+S Rück, said.
“While the images of last year’s devastating flooding remain very much in all our minds, the winter storms, droughts and wildfires experienced this year show that Europe is seeing an increased prevalence of natural disasters. All this makes further price rises in both original and reinsurance business inevitable.”
Winter storms such as Ylenia and Zeynep as well as other severe weather events ensured that in Germany alone the insured losses in the first half of 2022 again surpassed the multi-year average. In other parts of Europe, too, insurers had to deal with substantial losses, including for example those incurred from June hailstorms in France.
Against the backdrop of continued heavy claim expenditures, E+S Rück anticipates significant adjustments to prices and conditions in the property line—extending beyond pure catastrophe covers. Moreover, demand for high-quality reinsurance protection such as that offered by E+S Rück remains strong.
