Annual Report 1997/1998 - Munich Re
Annual Report 1997/1998 - Munich Re
Annual Report 1997/1998 - Munich Re
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<strong>Munich</strong> <strong>Re</strong> <strong><strong>Re</strong>port</strong> of the Board of Management<br />
Premium income in property-casualty insurance was, at DM 5.7bn,<br />
0.8% down on the previous year; the reason for this was the keen price<br />
competition in motor insurance and industrial fire insurance. Counter<br />
to the general trend in their business sector, the property-casualty<br />
insurers recorded lower overall claims expenditure and stable<br />
management expenses; their underwriting profit totalled DM 78m<br />
(21m). Premiums from reinsurance business decreased slightly to<br />
DM 0.4bn.<br />
Altogether, the ERGO Insurance Group achieved an underwriting<br />
profit of DM 559m (519m).<br />
Investments rose by 9% to DM 113.5bn (104.1bn). New investments<br />
concentrated on shares and registered instruments. The investment<br />
result totalled DM 8.4bn (7.7bn). Increased advantage was taken of the<br />
good stock market situation to realize capital gains.<br />
The profit for the year amounted to DM 535m (339m), and<br />
shareholders’ funds rose to DM 4.2bn (3.7bn).<br />
The companies of the ERGO Insurance Group employed an average<br />
total of 23,765 (24,207) staff in <strong>1997</strong>.<br />
Karlsruher Karlsruher operates throughout Germany, but its business clearly<br />
focuses on the southwest. The most important group companies are<br />
the life insurer Karlsruher Lebensversicherung and the propertycasualty<br />
insurer Karlsruher Versicherung.<br />
New business developed pleasingly at Karlsruher Leben in <strong>1997</strong>.<br />
Premiums from new business production increased by 25.7% to<br />
DM 404m; in-force sums insured rose to DM 56.9bn (56.6bn). Gross<br />
premiums grew by 4.4% to DM 1.8bn (1.7bn). Unadjusted earnings<br />
totalled DM 773m (739m), with DM 531m (DM 513m) being allocated<br />
to the provision for policyholders’ dividends. The profit for the year<br />
amounted to DM 27.7m (25.1m).<br />
The gross premiums written by Karlsruher Versicherung fell by<br />
3.1% to DM 356m (368m) in <strong>1997</strong>. The crucial factor was premium<br />
development in motor business, where the growth rate of 5% in<br />
new business was unable to compensate for business lost. The<br />
underwriting account closed with a profit of DM 12m (8m). The profit<br />
for the year increased to DM 11.2m (7.9m).<br />
Karlsruher employed an average of 2,467 (2,488) staff in its group<br />
in <strong>1997</strong>.<br />
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