R+V Versicherung AG Annual Report

Significant events and outlook
The global economy is currently in recession,
and the economic prospects for the
near future look relatively poor. It has also
become clear that no country or region can
replace the US in its role as the “motor”
of the global economy in the last few years.
This is not the only reason why the US
holds the key to any economic turnaround:
before September 11, 2001, it was generally
assumed that a recovery was on the
cards. The terrorist attacks put paid to this
early turnaround, and the negative sentiment
spread to other countries. Conversely,
this leads us to conclude that an improvement
in the US economy would have a positive
effect on other national economies.
Our business policy is based even more
firmly than in the past on three principles.
We intend to systematically deploy our
capacity in areas where we can obtain an
appropriate price for the risk we assume.
Our involvement is based on the premise
that the overall exposure is clearly defined
and that any potential cumulative risks are
recognized and – if necessary – limited in a
suitable fashion.
29
Long-term, trust-based cooperation with
our customers is one of our main priorities.
At the same time, however, a common
basic understanding is essential if the economic
prospects of a business partnership
are to be transparent, balanced and profitable
for both sides in the long term.
We systematically implemented these principles
as part of our renewal negotiations in
2002, withdrawing from unprofitable contractual
relationships in the property and
accident insurance business. The resulting
decline in the premium volume will, however,
be more than offset by new underwriting
business, so that we can expect
moderate premium growth in the next fiscal
year along with a clear improvement in the
balance on technical account.
The consolidation measures initiated in
2001 for the 2002 underwriting year will
not affect the balance sheet until 2003, due
to the deferred reporting of third-party business.
Events during the current fiscal year
to date provide compelling evidence that
our consolidation strategy will be successful.
This is why we have systematically pursued
this approach in the 2003 underwriting
year, with the expectation that 2004 will see
a further improvement in third-party business.
Wiesbaden, April 8, 2003
The Board of Management