R+V Versicherung AG Annual Report

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Asia remained affected by the financial crises of the 1990s. Brisk competition among market players kept direct insurance premiums at a low level. Only in Malaysia and Thailand were rates in the motor insurance class adjusted upwards after declining for many years. Australia/New Zealand In Australia, the situation on the most important sales markets showed no signs of recovery. At 1.7% of GDP, the balance of payments deficit reached its lowest point since 1980. Only the construction industry contributed more than average to economic growth thanks to generous government subsidies. The insolvency of the insurance group HIH was the most important event on the Australian insurance market in the past fiscal year. However, this also spurred a recovery in rates and conditions in a number of insurance classes and speeded up market consolidation. At the end of the year under review, certain types of liability cover, e.g. medical liability, were taken over by the government, since physicians were unable to meet the premium increases demanded. The bush fires which raged in the vicinity of Sydney from Christmas until around January 8, 2002 were the largest claim event for the insurance sector, although this did not affect us to any significant extent. New Zealand’s economy was strongly driven by domestic demand and the real estate boom. Private consumer spending rose 1.4% in the last quarter of the year, corresponding to annual growth of 3.5%. Demand developed particularly well in the motor vehicle and real estate sectors. 12 Africa In African countries economic growth continued almost unchanged during the year under review, even though the external economic shocks took their toll on this continent too. Africa also felt the effect of the weak global economy. The declining raw materials prices had a serious impact on most countries’ economies. This development was partly cyclical, as on the metals market, but in some cases the changes were much more drastic; coffee and tobacco prices both collapsed, for example. As this pushed down exports, the balance of payments deficit remained high in most cases. Only oil-producing countries such as Algeria recorded high surpluses. Despite the negative development in the terms of trade and the negative effects this had on the economy, domestic demand remained robust. Economic policy progressed in terms of macroeconomic stability in almost all countries, with private investment rising. Countries experiencing political turbulence were the exception; output in Zimbabwe, for example, took a nosedive and inflation skyrocketed. Africa’s insurance markets were still characterized by fierce competitive pressure and political instability in many regions. This general competitive pressure led to the merger of a number of direct insurers, principally in South Africa, which meant that the number of market players fell. The reinsurance market followed suit, a trend which resulted in greater growth opportunities for the remaining companies.
Business development and position of the Company Premium income Retention increases within the R+V Group reduced the premium volume. Foreign business records additional growth R+V Versicherung AG’s gross premium income fell by 6.9% in the fiscal year to €957.9 million. 5.2 percentage points of this decrease were attributable to exchange rate effects. After adjusting for this, the Company recorded a decrease in premiums of €18.4 million. Increases in the retentions of direct insurers within the R+V Group resulted in domestic premiums being reduced in the life, motor vehicle liability, motor vehicle and bond/ construction guarantee insurance classes. Premiums written 2002 2001 Change 2002 2001 Change Gross €m Gross €m Gross % Net €m Net €m Net % Life 321.7 361.0 –10.9 124.7 170.4 –26.8 Accident 39.3 36.5 7.6 38.1 34.8 9.6 Liability 44.9 50.0 –10.4 32.9 35.1 –6.1 Motor 106.1 211.6 –49.9 103.4 128.2 –19.3 Fire 163.8 123.7 32.5 125.3 92.3 35.8 Other property 98.4 102.5 –4.0 73.7 67.1 9.9 Marine and aviation 82.5 62.0 33.0 66.5 48.9 36.0 Others 101.2 81.2 24.6 58.3 35.9 62.2 Total 957.9 1,028.5 –6.9 622.9 612.7 1.7 In contrast, premiums increased in the general accident, credit (provision for doubtful debts) and fidelity insurance classes due to new underwritings and portfolio growth. The premium volume generated by business assumed from domestic cedents outside the R+V Group fell by €11.7 million or 7.4%. Overall, domestic business saw a 17.9% decrease in premiums. 13 Premium income from foreign business rose by €34.6 million or 7.9%. This meant that foreign business accounted for 49.6% (previous year: 42.8%) of the total premium volume. The main contributors to the premium volume were the traditional reinsurance markets of North America, Italy, the UK, Spain and France, along with the Singapore branch. Despite negative exchange rate movements, the expansion of foreign business activities led to moderate premium growth. The total net premium volume increased year-on-year by €10.1 million, or 1.7%, to €622.9 million. Retention increased to 65.0% (previous year: 59.6%). The following table shows the Company’s premium income broken down according to its key insurance classes:
Page 1 and 2: 2002 R+V Versicherung AG Annual Rep
Page 3 and 4: Content Management Report 4 Proposa
Page 5 and 6: However, the significant increase i
Page 7 and 8: Developments on the international r
Page 9 and 10: However, the events of September 11
Page 11: As a result of the relatively poor
Page 15 and 16: Liability business developed negati
Page 17 and 18: Including interest on deposits and
Page 19 and 20: In terms of sums insured, the portf
Page 21 and 22: Overall, gross premium income decli
Page 23 and 24: Major claim events such as ”Petro
Page 25 and 26: Shareholder structure As of the bal
Page 27 and 28: Investment risks: In order to creat
Page 29: Significant events and outlook The
Page 32 and 33: Proposal on the Appropriation of Pr
Page 34 and 35: Balance Sheet as of December 31, 20
Page 36 and 37: Equity and liabilities 36 2002 2001
Page 38 and 39: Income Statement for the period fro
Page 40 and 41: 40 2002 2001 € € € € 8. Ext
Page 42 and 43: Premiums and discounts were amortiz
Page 44 and 45: List of Shareholdings Shares in aff
Page 46 and 47: Notes to the Balance Sheet Statemen
Page 48 and 49: Assets C. Investments Present value
Page 50 and 51: Notes to the Income Statement I. 1
Page 52 and 53: Dr. Jürgen Förterer Chairman Wolf
Page 54 and 55: Auditors’ Report We have audited

R+V Versicherung AG Annual Report

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