Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006
Munich Reinsurance Canada Non-Life Group
2006 Prev. year *
Gross premiums written Can$ m 480 475
– Property-casualty Can$ m 480 475
Net earned premiums Can$ m 328 349
– Property-casualty Can$ m 328 349
Loss ratio property-casualty % 47.2 60.2
Expense ratio property-casualty % 30.1 31.2
Combined ratio property-casualty % 77.3 91.4
Result for the year Can$ m 101.8 71.8
Investments Can$ m 1,631 1,592
* Adjusted owing to first-time application of IAS 19 (rev. 2004).
Munich Reinsurance Canada Non-Life Group (Munich
Reinsurance Company of Canada (MROC) and Temple
Insurance Company) continued on course in 2006. It again
surpassed its profit objectives and sought further growth
opportunities. In recent years, our Canadian operations
have consistently excelled.
The 2006 treaty renewal season was very successful
for both new and renewal business. Pricing integrity was
maintained while MR Canada strengthened its position as
the leading reinsurance group in Canada.
The strong profits posted by insurance companies
over the past four years have led to inevitable competition
Corporate Underwriting/Global Clients
Premium income increased by 5.9%
Result markedly improved
Leading position in agricultural insurance extended
Responsible for
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Management report_Reinsurance
and downward pressure on primary insurance rates. This
trend is expected to continue, although most companies
currently maintain that their rates remain technically adequate.
Unlike in 2005, catastrophe activity was negligible in
the Canadian market. Awards for severe bodily injury
cases, however, continued to escalate at a strong pace due
to increasingly generous court awards and a more litigious
social environment.
MROC improved its client relationship management by
using multidisciplinary teams to holistically manage overall
relationships with its key clients. It also supports the
global clients of the Munich Re Group at local level.
Temple Insurance continued its expansion into niche
products with the successful launch of a comprehensive
product for wind farm insurance. It also continued to
implement optimal infrastructures (systems and personnel)
through further development of its primary insurance
administration system. In fact, Temple recently entered
into a partnership agreement with a third-party vendor to
market the system internationally.
Global Clients, Lloyd’s, US business, special lines 2006 2005 2004 2003 2002
Gross premiums written €m 3,558 3,359 3,464 4,552 4,699
Combined ratio % 88.1 126.0 94.0 98.0 120.8
Corporate Underwriting/Global Clients (CUGC) determines
the underwriting standards for the Munich Re Group’s nonlife
business and assures the quality of this business (see
page 56); these tasks are the responsibility of the Group
Corporate Centre within the division. Claims Management
and Consulting formulates the guidelines for claims handling
and reserving, and safeguards the quality of these
operations. Besides this, the division is responsible for
underwriting business in specific classes of business.
The underwriting field comprises a defined number of
international cedants, the Lloyd’s insurance market, agricultural
business worldwide, and US business written in
Munich. We devise comprehensive reinsurance concepts,
write major industrial risks and, where possible, partici-