Annual Report 1997/1998 - Munich Re

Munich Re Report of the Board of Management
Gross premiums by class of business
Engineering 8% (10%)
Fire 21% (20%)
Life 17% (20%)
Personal accident/
health 7% (6%)
Liability 11% (9%)
Motor 19% (17%)
Marine/aviation 6% (5%)
Other classes 11% (13%)
Net premium income from reinsurance business was up 29.4% to
DM 21.7bn (16.8bn). The retention ratio amounts to 87.1% (86.8%).
Portfolio structure further improved
Following the acquisition of American Re, the regional spread of our
reinsurance business has become considerable more balanced. The
share of North American business in the reinsurance group’s gross
premium income has risen to 29% (17%). Conversely, the share of
European business has decreased to 57% (68%), with 34% (45%)
coming from Germany.
Gross premiums 1997 Previous year
written by reinsurers DM m % DM m %
Europe 14,111 56.6 13,234 68.4
North America 7,218 28.9 3,284 17.0
Asia and Australasia 1,872 7.5 1,625 8.4
Africa,
Near and Middle East 1,044 4.2 807 4.2
Latin America 699 2.8 379 2.0
Total 24,944 100.0 19,329 100.0
Premium development in the individual classes of business has also
been significantly affected by the first-time consolidation of American
Re. Especially in personal accident, liability, motor, marine/aviation
and fire, premium income has increased markedly. Our portfolio is
balanced, with the weight equally distributed between insurances of
the person, where results tend to be more stable, property business,
whose results are more volatile due to large losses, and motor and
liability business, which is longer-term in orientation.
1997 Previous year
Premiums written Gross Net Gross Net
by reinsurers DM m DM m DM m DM m
Life 4,217 3,529 3,860 3,200
Personal accident/health 1,746 1,520 1,229 1,108
Liability 2,798 2,418 1,751 1,425
Motor 4,612 4,049 3,341 2,917
Marine/aviation 1,544 1,268 1,056 891
Fire 5,238 4,632 3,799 3,408
Engineering 1,948 1,716 1,900 1,613
Other classes 2,841 2,583 2,393 2,213
Total 24,944 21,715 19,329 16,775
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