01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Management Report
Property insurance is an area that needs to be seen in a differentiated light. In the
commercial sector, our solution-oriented approach produced an increased volume of
new business in the face of intense competition, especially for multiple-risk products.
In the industrial sector, the pressure on premiums increased even more. Even so, profitoriented
underwriting enabled us to generate substantial growth. Fire safety and security
boost earnings in industry and commerce and offer the client genuine solutionoriented
added value. Growing interest in target-group and multiple-risk products is
noted on the part of clients and agents. While the SME campaign continues to provide
positive stimuli in the area of multiple-risk products, growth has been achieved in
corporate policies through master agreements.
Marine insurance is a regular source of growth for Gothaer. Despite a difficult market
environment, the underwriting results are very satisfactory. Art insurance and carriers
liability insurance show a gratifying earnings trend.
In engineering insurance, growth was achieved in machinery and electronic lines.
Renewable energy insurance also contributed to growth as anticipated, although not as
vigorously as in previous years. Our position as market leader in windpower plant
insurance was further consolidated and major acquisitions were noted in biogas facility
and photovoltaic system insurance. Because renewable energies in Germany and Europe
continue to be supported in the present economic environment, further growth can be
anticipated. This is taken into account by HR and DP investment.
Automotive insurance faces a difficult environment market-wide. We are prepared for
this but have left growth and earnings requirements unchanged. In commercial automotive
insurance, portfolio consolidation measures resulted in a modest downturn in
premiums. However, extensive insurance was provided for new risks, which will impact
positively on income in 2010. The selective underwriting policy pursued is producing
satisfactory underwriting results. In contrast to this, industrial fleet insurance saw a
further intensification of competition. A combination of risk management by Gothaer
Risk Management GmbH and risk-oriented contracts could not always be achieved in
new business. As a consequence, premium income fell and the underwriting result
deteriorated.
Gothaer caters for the needs of its German industrial clients abroad and makes adequate
insurance protection available for property and liability risks through international
insurance programmes. The range of services we offer is regularly presented to
sales partners and clients and generates growing demand as a result. The international
insurance programmes are generally made up of regional policies organized and
managed by Gothaer and an extensive individual coverage concept in Germany. We made
the structural, process and technical preparations for this at an early stage.
Gothaer Group Annual Report 2009 65