01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Outlook
General
Management Report
One major focus in 2010 will be on maintaining the growth rate that has now been
restored. Accordingly, we plan to increase premium revenues steadily in the years ahead.
Our marketing strategy, which was revised last year, will therefore be systematically
maintained and implemented in four defined submarkets (market segments) addressed
with different sub-strategies.
In the classical comprehensive and supplementary health insurance market – the first
market segment – 2009 furnished impressive evidence that Gothaer can still realize
considerable growth on the basis of its very competitive range of products. Supplementary
insurance business will be further increased via the second (collective business
with corporate clients) and fourth (direct/retail cooperation) market segments. The third
market segment is the private/statutory convergence market.
The strategy of cooperating with statutory health insurance schemes will continue to be
pursued intensively. After 2009, which was an exceptional year, we are planning for a
reduced volume of new business in 2010. The main reason for this is that the recent
change in the scales for no-claims premium refunds and the higher premium adjustment
in comparison to past years may give rise to temporary caution on the part of individual
sales partners. Against this backdrop, we note a very satisfactory start to the year for new
business. The total projected volume of new business will suffice to realize the premium
growth target for 2010.
On the earnings side, the focus continues to be on stabilizing profitability at the level
achieved. Despite a market-wide rise in healthcare costs, we are planning for a relatively
constant loss ratio. Because of the reduced volume of new business, the cost ratio is
likely to be moderately recessive. Our sights are thus set on a relatively constant development
of the underwriting profit ratio. Overall, we anticipate a balanced risk result, so the
safety margin will be available in full as a source of income.
For 2010 and 2011, we anticipate a return to rising net yields from investments. This will
impact positively on the development of gross profit.
No transactions or events of special significance occurred after the reporting date.
The forecasts and assessments of future business development contained in this Annual
Report are provided on the basis of what is known at the present time. Economic
developments, upheavals in financial markets, changes in legal, tax and demographic
conditions as well as changes in the competitive environment may cause the parameters
underlying the forecasts to develop differently.
Gothaer Group Annual Report 2009 91