Munich Re Group Annual Report 2006 (PDF, 1.8

More documents

Recommendations

Info

Munich Re Group Annual Report 2006 Gross premiums overall in €bn 2006 2005 2004 2003 2002 Our primary insurers posted a total premium income of €16.7bn (17.6bn) for 2006, around 45% (46%) of the Munich Re Group’s overall premium volume. Without consolidation effects, their premium volume thus remained stable. Life and health The consolidated result in life and health business, which following the sale of the Karlsruher Insurance Group is written exclusively by ERGO, totalled €336m (594m). The relatively high effective tax rate for 2006 is primarily attributable to foreign withholding taxes. Policyholders’ participation in this tax had the effect of raising the pretax result and tax position by the same amount, thereby distorting the tax rate. The rate was also impacted by the conversion of HVB shares into UniCredit shares in the previous year, leading to a significant rise in the amount of foreign dividends. Gross premiums written in life insurance were down 12.6% to €6.5bn (7.4bn), largely owing to the sale of the Gross premiums in the life segment in €bn 2006 2005 2004 2003 2002 Gross premiums in the health segment in €bn 2006 2005 2004 2003 2002 88 Management report_Primary insurance Karlsruher Insurance Group. However, even without the changes in the consolidated group there would have been a decline in premium volume of 3.6%. Total premium income (including the savings premiums of unit-linked life insurance and capitalisation products) posted by the companies remaining in the consolidated group, decreased by 1.9% to €7.4bn (7.5bn). New business in Germany was up slightly by 0.7%. As in the previous year, single-premium business developed more favourably than regular-premium business. There was a positive trend in annuity insurance, in particular among Riester products, which grew by 150%, largely owing to the commencement of the third subsidisation stage on 1 January 2006. The fourth and last stage will begin on 1 January 2008. We were also satisfied with new business in the field of unit-linked products, where the positive growth trend continued. New business in other countries, by contrast, was down 1.5%, mainly because of lower revenue from single premiums in Italy. 6.5 4.2 4.5 4.5 7.4 16.7 17.6 17.5 17.6 16.6 7.5 7.8 8.0 5.1 4.9
Munich Re Group Annual Report 2006 Management report_Primary insurance In health, premium income grew by 4.3% to €5.1bn (4.9bn) – the strongest growth of all. This increase was due to the further expansion of new supplementary health insurance business in Germany, where we recorded a rise of 15.6% to over four million clients, and to the very satisfactory growth rate of 15.1% in other countries, above all Belgium and Spain. In German comprehensive health insurance, the political debate about health reform continued to cause uncertainty among clients, curbing the growth that would normally be present in this segment. The investment result in life and health totalled €4.1bn (5.1bn), a decline of 18.5% due not only to the conversion of HVB shares and the sale of Karlsruher in the previous year, but also to interest-rate trends. The rise in interest rates in the first six months, which was partially reversed between July and December, triggered a loss of about €283m in the value of our long-term hedges against changing interest rates. We account for these hedges at fair value and recognised the fall in value as an impairment loss. The purpose of these derivative financial instruments is to cover the interest rates guaranteed to our life insurance customers, enabling us to meet our commitments, even if interest rates remain very low for a long period of time, without having to forgo the opportunities presented by rising interest rates. The value of these derivatives fell by €330m to €105m towards the middle of the year as a result Gross premiums in the property-casualty segment in €bn 2006 2005 2004 2003 2002 of rising interest rates, but rose again to €153m in the second half of the year. In the previous year, the investment result had been positively affected by particularly high gains from the disposal of shares in the financial sector. As expected, expenses for claims and benefits were also affected by the investment result, which is particularly significant in this respect in life and health business. These expenses were up as a result of payouts in life insurance and rising prices in healthcare, but this increase was offset by lower net allocations to the provisions for future policy benefits and the provision for premium refunds. Expenses therefore experienced an overall decrease of 7.0%. Costs also developed very favourably. Despite high expenses for new IT systems in health, the administrative expense ratio remained constant at a favourable 3.4%. In life, the administrative expense ratio was reduced from 4.5% to 4.4%, reflecting our firm cost discipline, which we intend to maintain. Property-casualty In property-casualty we again achieved a very good consolidated result of €726m (585m). Premium income totalled €5.1bn (5.3bn). Adjusted for the changes in the consolidated group, premium grew by 2.8% to €5.1bn (4.9bn). 5.1 5.3 5.2 5.1 4.8 89
Page 1 and 2:
Munich Re Group Annual Report 2006
Page 3 and 4:
The Munich Re Group Our operations
Page 5:
Munich Re Group in 2006 Tireless an
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Notable events in 2006 / Letter to
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43: Munich Re Group Annual Report 2006
Page 50 and 51: Munich Re Group / Parameters / Busi
Page 142 and 143:
Page 144 and 145:
Consolidated financial statements a
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Glossary / Index of key terms / Imp
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Quarterly figures Balance sheet 31.
Page 238:
© 2007 Münchener Rückversicherun
show all

Munich Re Group Annual Report 2006 (PDF, 1.8

Create successful ePaper yourself

Delete template?

Save as template?