Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006 Management report_Primary insurance
Overview and key figures
ERGO Insurance Group
2006 2005 2004 2003 2002
Gross premiums written €m 15,930 15,919 15,569 15,566 14,775
Net earned premiums €m 14,339 14,253 13,736 13,700 12,954
Combined ratio % 89.4 90.0 90.1 89.7 97.6
Consolidated result €m 906 786 * 236 –1,431 –1,212
Investments €m 101,853 100,193 97,001 91,370 87,012
* Adjusted owing to first-time application of IAS 19 (rev. 2004).
Europäische Reiseversicherung
2006 2005 2004 2003 2002
Gross premiums written €m 359 343 316 305 307
Net earned premiums €m 300 286 267 255 260
Combined ratio % 95.3 97.1 94.6 96.4 102.7
Consolidated result €m 4.3 2.0 10.8 5.0 –4.5
Investments €m 161 151 179 156 148
Watkins Syndicate
2006 2005 2004 2003 2002
Gross premiums written £m 323 248 208 229 208
Net earned premiums £m 208 189 172 162 103
Combined ratio % 87.0 109.0 83.5 87.2 93.3
Consolidated result £m 36 –11 33 23 10
Investments £m 419 410 378 282 187
* Financial statements in accordance with national accounting law.
Our primary insurance business was very successful in
the past year.
Despite a decline in premium income, our primary
insurers achieved very good results thanks to continued
positive underwriting and good investment returns. Nevertheless,
a comparison with the previous year’s results is
difficult because of three significant effects.
– Firstly, the changes in the consolidated group: our sale
of the Dutch Nieuwe Hollandse Lloyd Verzekeringsgroep
(NHL) on 30 June 2005 and the Karlsruher Insurance
Group on 30 September 2005, and our acquisition of the
Turkish I . sviçre Group as at 1 October 2006.
– Secondly, the conversion of our HVB shares into Uni-
Credit stock in the fourth quarter of the previous year,
which had a very favourable impact on results. Both
effects are reflected in all the main items of our income
statement, although their influence on life and health
was greater than on property-casualty.
– The third factor is a positive one-off tax effect in 2006. As
a result of new German corporate tax legislation, tax
credits for prior years will become payable in the years
2008 to 2017 and had to be recognised in the balance
sheet in 2006 as accounts receivable at their present
value of €224m, resulting in a one-time positive entry of
€202m in the income statement (see page 199).
A look at the result shows a very gratifying picture. The
unadjusted figures amounted to €1,278m (1,526m) for the
operating result and €1,062m (1,179m) for the consolidated
result. Without the effects mentioned above, both our
operating result after tax and consolidated result clearly
exceeded the previous year’s figures.
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