Annual Report 2010 - Hannover Re

frost at the beginning of the year, which resulted in additional
claims expenditure of around EUR 400 million for German
insurers. The combined ratio for property and casualty insurers
consequently increased, especially in the homeowners’
comprehensive line.
The German market is served within the Hannover Re Group
by our subsidiary E+S Rück. As the dedicated reinsurer for the
German market, the company has for decades been a soughtafter
partner thanks to its good rating, highly developed customer
orientation and the continuity of its business relationships.
E+S Rück is very well positioned in our domestic market and
continues to be the number two player in Germany, the second-largest
non-life reinsurance market in the world. It ranks
first in the reinsurance of motor business.
The brighter developments on the primary side also had positive
implications for our motor portfolio: margins under our
proportional treaties were better, while non-proportional arrangements
benefited from an improved premium level in the
original business as well as increased reinsurance premiums.
Breakdown of gross written premium in Germany
by line of business
26.0% Liability
5.4% Accident
32.4% Property
36.2% Motor
Business developed favourably in general liability insurance,
which delivered a positive profit contribution thanks to a combined
ratio under 100%.
The German market recorded a major loss in the year under
review in the shape of winter storm “Xynthia”. The impact on
E+S Rück was, if anything, below average at EUR 4 million for
net account. A further strain was incurred in connection with
a pharmaceutical claim. The combined ratio for our German
business improved to 94.0% (103.1%) in the year under review.
Personal accident insurance, which remains one of our target
lines, developed favourably. We acquired new clients in the
year under review, while at the same time assuming larger
participations with existing accounts. Our premium volume
consequently showed further growth. In terms of the loss
situation, too, we are highly satisfied with the business development
in accident insurance. In the year under review we
further extended our range of services, which include inter
alia training programmes for cedants in matters of underwriting
and claims assessment.
Industrial fire business fared considerably better than expected
in the year under review. We profited from the absence of
significant losses in this regard.
We succeeded in cementing our position as one of the leading
reinsurers in the profitable German market in the year under
review. With our gross premium volume showing modest
growth, we are highly satisfied with the development of business
on our domestic market in the face of sometimes challenging
conditions.
North America
The North American (re)insurance market is the largest single
market both worldwide and for our non-life reinsurance
portfolio. It accounted for 13.2% of our premium volume in
this business group.
The loss situation in the engineering lines was satisfactory
overall for our company in 2010, although the insurance of
wind turbines has still to turn a profit on account of various
serial losses.
Hannover Re is very well positioned in the United States; we
write our business almost exclusively through brokers. It is
therefore all the more gratifying to report that in the year under
review a survey of US brokers conducted by the Flaspöhler
Research Group crowned us as the best reinsurance company
for the fourth time in succession. Ceding companies are of the
opinion that our excellent financial standing and our service
have continuously improved and they therefore consider it
important for all their casualty placements to be submitted to
our company.
24 Management report Non-life reinsurance
Hannover Re Group annual report 2010