01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Management Report
Performance
of the companies
Policyholder benefits, which include both losses incurred and changes in underwriting
reserves, more than doubled to €1.74 billion, rising from a prior-year figure – €0.83
billion – significantly depressed by the financial crisis. After a year in which policy reserves
were adjusted to take account of unrealised losses on unit-linked life policies of
€368.5 million, 2009 saw unrealised gains of €179.3 million factored into the adjustment.
While the allocation to reserves for premium refunds showed a moderate improvement,
benefits paid – as a result of increased index policy surrenders and
maturities – also rose sharply to €1.33 billion (PY: €1.19 billion).
In contrast to the positive development of premiums, acquisition expenses decreased
to €137.6 million (PY: €146.9 million). This was due to the greater share of singlepremium
business. Including increased administrative expenses of €47.8 million
(PY: €43.2 million), total underwriting expenses amounted to €185.4 million (PY: €190.1
million).
Owing to the developments described above, the Life segment registered an operating
loss of €11.2 million (PY: €27.0 million operating profit) in the year under review. After
allowance for financing expenses and tax income of €22.2 million (PY: €8.4 million tax
expense), the statement of income showed a net profit for the year of €6.9 million
(PY: €13.3 million) prior to transfer of profits.
Gothaer Lebensversicherung AG (German Commercial Code)
€million
2009 2008
Gross premiums written 1,470.1 1,242.8
Earned premiums net of reinsurance 1,417.3 1,147.1
Policyholder benefits 1,910.4 1,209.3
Acquisition cost ratio 5.9 % 5.8 %
Administrative cost ratio 2.7 % 2.8 %
Investments incl. deposits retained on assumed business 12,096.4 11,905.7
Investment result 450.1 494.4
Net yield 3.5 % 4.1 %
Gross profit 165.0 166.8
Equity 270.4 270.4
Underwriting reserves 10,788.4 10,322.9
Despite the financial crisis, Gothaer Lebensversicherung AG showed itself to be a sound,
profitable company and competitive market player in 2009.
Owing to the rise of single-premium business, new business volume at Gothaer Lebensversicherung
AG was significantly greater than in the prior year. As a result of the growth
registered in strategic lines of business in unit-linked life insurance and company pension
schemes, total new business increased by 65.7 % to €579.5 million. This growth is also
reflected in the 18.3 % surge in gross premiums written, which rose to €1.47 billion in the
financial year.
52 Gothaer Group Annual Report 2009