Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006
Primary insurance
Result target clearly surpassed
Excellent combined ratio of 90.8%
The Group’s primary insurers essentially comprise the
ERGO Insurance Group, Europäische Reiseversicherung
and the Watkins Syndicate.
Together, they are active in nearly all branches of life,
health, and property-casualty insurance. Approximately
79% of their premium income derives from Germany, the
remaining 21% stemming largely from other European
countries. The bulk of the business is transacted in euros.
The ERGO Insurance Group accounts for most of the premium
volume (95.1% in 2006).
Marketing
The brands of ERGO’s operative insurance companies (see
list on page 50) continue to be of great significance. They
are the cornerstones of ERGO’s franchise strength, as its
strategy involves using multiple sales channels to gain
access to clients. In addition to working with a variety of
independent insurance agents, ERGO also cooperates with
brokers and strong business partners. Its exclusive cooperation
with HypoVereinsbank accounted for new business
of €342m (298m) in 2006. KarstadtQuelle Versicherungen,
a member of the ERGO Insurance Group and Germany’s
most popular direct insurer, welcomed its three millionth
client in the year under review.
86
Management report_Primary insurance
2006 2005 2004 2003 2002
Gross premiums written
– Life and health €m 11,606 12,330 12,324 12,558 11,752
– Property-casualty €m 5,147 5,242 5,202 5,082 4,841
Loss ratio property-casualty % 55.8 57.8 57.5 60.2 62.7
Expense ratio property-casualty % 33.8 33.5 33.8 35.4 36.4
Combined ratio property-casualty % 89.6 91.3 91.3 95.6 99.1
Combined ratio legal expenses insurance % 95.3 99.8 98.9 99.2 101.8
Combined ratio property-casualty, including legal expenses insurance % 90.8 93.1 93.0 96.4 99.9
Consolidated result life and health €m 336 594 * 25 –960 –591
Consolidated result property-casualty €m 726 585 * 292 –131 –348
* Adjusted owing to first-time application of IAS 19 (rev. 2004).
Europäische Reiseversicherung, with more than 17,000
partners in the tourist industry, is the leading provider in
its field. For almost 100 years, travel agents have been its
main sales partners, although nowadays its sales avenues
include major tour operators, cooperation agreements
with travel offices, internet platforms and hotels as well.
With its international network of subsidiaries and affiliated
enterprises, Europäische Reiseversicherung is represented
in all major European countries. In the year under review, it
also entered into partnerships in selected Asian markets.
The Watkins Syndicate, which operates within Lloyd’s
of London, is one of the leading primary insurers in international
marine business. In addition, the syndicate has
a wide and efficient distribution network – with branch
offices in Hong Kong, Singapore and, since 2005, Dubai.