01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Management Report
Segmental Performance
Property/Casualty segment
Performance in the
Property/Casualty
segment
Gothaer Group activities are divided into segments reflecting Group and reporting
structure: Property/Casualty, Life, Health and Other Activities. Developments in these
segments are described below. The performance of the most important Group companies
in the segments is also assessed on the basis of financial statements prepared in
accordance with national accounting practices.
The Property/Casualty segment includes Gothaer Allgemeine Versicherung AG, Janitos
Versicherung AG, ASSTEL Sachversicherung AG and CG Car-Garantie Versicherungs-AG as
well as the Group parent Gothaer Versicherungsbank VVaG. As the largest property insurer
in the Gothaer Group, Gothaer Allgemeine Versicherung AG is responsible for all
significant lines and coverages in the area of property insurance, catering to the needs of
both private and commercial clients. Janitos Versicherung AG addresses the core target
group of high-end private clients in property insurance. ASSTEL Sachversicherung AG complements
these operations with simple property insurance products for price-sensitive
clients, mostly offered through direct marketing. CG Car-Garantie Versicherungs-AG is a
provider of automotive repair and warranty insurance.
Gross premiums in the Property/Casualty segment were moderately recessive at €1.63
billion (PY: €1.64 billion). Premium increases in indirect business were offset by premium
downturns in direct business. Because of higher retention than in the prior year, net
earned premiums in the segment rose by 0.9 % to €1.32 billion.
Investments for the segment totalled €3.82 billion, which is €272.5 million more than in
the prior year. Again, the lion’s share consisted of investments available for sale, which
increased by €227.5 million to €1.08 billion. The recovery of the capital markets is
reflected here – amongst other things in improved fair values of investments available for
sale. Also mirroring the recovery is higher investment result of €255.9 million (PY: €224.0
million), which was achieved because significantly less depreciation needed to be recognized
for impaired financial instruments in the financial year under review.
Net benefits paid to policyholders totalled €880.7 million, which was substantially more
than the prior-year figure of €802.6 million. While the loss reserve adjustment in the prior
year boosted income, the loss reserves in the year under review needed to be increased.
At the same time, the volume of claims paid was greater.
Underwriting expenses showed a gratifying development, decreasing by 9.4 % to
€382.1 million in the net account. The results of the Group cost reduction programme can
also be seen in the Property/Casualty segment, where administrative costs were sharply
reduced. Moreover, higher reinsurance commissions were noted for business ceded to
reinsurers.
46 Gothaer Group Annual Report 2009