Annual Report 1997/1998 - Munich Re

Munich Re Report of the Board of Management
Considerably larger underwriting profit
The first full consolidation of DKV and the pro rata consolidation of
VICTORIA and D. A. S. significantly improved the underwriting result of
the direct insurance group.
In life and health insurance, payments and bonuses to policyholders
increased appreciably. By contrast, the claims situation in propertycasualty
insurance was more favourable than in the previous year. In
spite of further large investments to optimize administrative processes,
management expenses increased only moderately.
Owing to the more favourable underwriting result, the propertycasualty
insurers were able to allocate an amount of DM 56m to their
claims equalization provisions.
Investments substantially increased through consolidation of
VICTORIA and D. A. S.
The direct insurers’ investments increased by DM 52bn to DM 138bn
(86bn); DM 45bn of this was attributable to the first-time consolidation
of VICTORIA and D. A. S.
Investment income totalled DM 9.4bn (6.4bn), of which DM 1.8bn
derives from VICTORIA and D. A. S. on a pro rata basis. The life and
health insurers especially took advantage of the good stock market
situation to realize capital gains.
Important figures for the direct insurers in DM m (consolidated):
1993 1994 1995 1996 1997
Gross premiums 9,579 10,126 10,482 12,852 19,578
Net premiums 8,740 9,406 9,706 12,159 18,762
Underwriting result*
Life** 451 365 444 407 443
Health** – – – 100 143
Property-casualty*** 30 97 31 38 54
Total 481 462 475 545 640
Operating result 440 504 455 497 1,101
*** The figures for 1993 are comparable only to some extent with those as from 1994
owing to the change in the allocation of the expenses for employees’ pensions and
“other depreciation”.
*** Including the investment results.
*** Before change in claims equalization provision.
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