Annual Report 2003 - Hannover Re

Management report
life and health reinsurance
Hannover Life Re
Australasia is the largest
life reinsurer in Australia
Other international markets
Australia and New Zealand
Our subsidiary Hannover Life Re Australasia
operates in Australia and New Zealand. In the
year under review it further consolidated its position
as the Australian market's leading life reinsurer.
The bulk of the business written is riskoriented,
with concentrations in life, disability
annuities and critical illness policies. Direct group
life business is a particular speciality in which the
company has made a name for itself as one of
the leading providers of occupational pension
schemes in Australia.
Gross premiums grew by 28.8% in the year
under review to EUR 201.1 million (EUR 156.1
million). Profitability was again gratifying thanks
to a favourable overall claims experience and a
20.8% increase in investment income. The operating
profit (EBIT) climbed by 29.2% to EUR
12.2 million (EUR 9.4 million).
Africa
On this continent we concentrate on the
English-speaking markets of southern Africa, i.e.
sub-Saharan Africa, with a clear focus on South
Africa. As the second-largest reinsurer in Africa,
our subsidiary Hannover Life Re Africa in Johannesburg
writes a risk-oriented portfolio of life
and health business.
Since results in the previous two years –
particularly in health business – had failed to
meet our expectations, we decided to implement
extensive portfolio rehabilitation. Gross premium
income grew only slightly to EUR 67.5 million
(EUR 63.3 million). Following a positive result in
the previous year, the year under review closed
with an operating loss (EBIT) of EUR 6.3 million.
markets of Malaysia and Singapore as well as in
China, where we were able to conclude our first
financing transaction with a major client.
The premium volume grew by 6.8% to
EUR 47.0 million, with Hong Kong, Japan and
Malaysia making the most prominent contributions.
The claims experience varied widely in the
year under review. As had also been the case in
the previous year, an important Japanese life
treaty unexpectedly produced an above-average
number of claims which not only burdened
us with regular losses but also compelled us to
establish an additional premium deficiency reserve.
The claims experience in Greater China, on
the other hand, was very good, and in the ASEAN
markets it was excellent.
In China our goal is to significantly expand
our position in the medium term, and in the
fourth quarter of 2003 we therefore decided to
file a licensing application with the China Insurance
Regulatory Commission (CIRC) for operation
of a branch in Shanghai. We expect this
branch to commence business activities in the
first half of 2005.
Asia
The Asian markets are currently served by
the two branches of Hannover Life Re International
in Kuala Lumpur and Hong Kong. Our
efforts to acquire new business in the year under
review made considerable progress in the ASEAN
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