R+V Versicherung AG Annual Report

Major claim events such as ”Petrobras“ or
the explosion in a chemicals factory in
Toulouse impacted the earnings situation,
so that this class closed the year with a
loss from both domestic and foreign business.
The net technical loss totaled €13.3
million (prior year: €–14.0 million). As there
was no change in the calculation of the
equalization provision during the year under
report, the technical loss remained at €13.3
million (previous year: €–14.0 million).
Aviation business during the year under
review was dominated by the events in the
US on September 11, 2001 and a general
economic downturn. Following September
11, market players renewed their previously
half-hearted restructuring efforts.
The strategy of concentrating on target
customers in an improving market environment
was used to broaden the premium
base at improved conditions. The gross
premium volume in aviation and aerospace
insurance improved by €5.2 million, or
46.1%, to €16.4 million. The retention
premium rose by €4.4 million, or 42.7%, to
€14.7 million, in parallel to the development
of gross premium income.
This growth was mainly due to foreign
business. In this segment, gross premium
volume climbed by €4.5 million, or 56.3%,
to €12.4 million, while net premium volume
rose €4.0 million, or 50.5%, to €11.8 million.
Gross domestic business grew by €0.7 million,
or 21.3%, to €4.0 million; the net figure
was up €0.4 million, or 18.0%, to €2.9 million.
This insurance class posted a loss of €0.4
million at the end of the fiscal year, lower
than the previous year’s loss of €1.4 million.
This figure increased to €1.3 million (previous
year: €–0.6 million) following the allocation
to the equalization provision.
23
Other insurance classes
Growth in premium volume – increased net
loss ratios
Other classes
Gross premiums in € million
200
150
100
50
166,3
2000
183,7
2001
199,6
2002
2000 2001 2002
Gross loss ratio % 71,3 61,0 70,4
Gross expense ratio % 34,0 34,0 32,5
Gross combined ratio % 105,3 95,0 102,9
The trend towards an increase in the premium
volume last year continued in the fiscal
year under review. Premium income rose in
gross terms by €15.9 million, or 8.7%, to
€199.6 million and by €28.9 million, or
28.1%, to €131.9 million net.
While premium income from domestic business
fell by €2.6 million, or 23%, to €110.2
million, the net volume increased by €10.1
million, or 23.6%, to €53.1 million. Foreign
business developed positively in both gross
and net terms. The gross premium volume
grew by €18.5 million, or 26.1%, rising from
€70.9 million to €89.4 million, while the
retention premium improved by €18.8 million
(31.3%), from €60.0 million to €78.8
million.