Annual Report 1997/1998 - Munich Re

Munich Re Report of the Board of Management
Europäische Reiseversicherung Europäische and its subsidiaries are the leading travel insurers in the
European market, where they operate in direct and indirect business.
In the German market, which is particularly important for Europäische,
the development of travel insurance is being affected by the reduced
scope of people’s disposable incomes. In the business year 1997
the group wrote total gross premiums of DM 527m (532m). Its
underwriting result declined to DM –3.6m (+7.3m). The consolidated
profit for the year amounted to DM 10m (11m).
An average of 526 (497) staff were employed by the companies in
the group.
Berlinische Lebensversicherung The life insurer Berlinische Leben was able to increase its new
business slightly in 1997 and earned gross premium income of
DM 831m (834m). In-force sums insured decreased a little to
DM 28.8bn (DM 28.9bn). Unadjusted earnings rose markedly to
DM 374m (292m) as a result of large realized capital gains; 98%
of this was allocated to policyholders. The company posted a profit
for the year of DM 7.8m (8.1m).
In May 1998 we sold our majority shareholding in Berlinische Leben
to CGU. Becoming part of the group of one of the largest British
composite insurers with global operations opens up substantial
business opportunities for the company.
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