Annual financial statements 2004 - Euler Hermes ...

The first successes in acquiring new business in other European countries fell in this year.
In general, there is growing interest in our product abroad, in particular in Switzerland, Austria and
Italy. The stringent portfolio clean-up of loss-making policies and yet another year with only a low
number of major claims generated a gross loss ratio for the insurance year of 42.0 per cent. The
run-off result was 17.7 million EUR net.
INWARDS REINSURANCE BUSINESS
In our inwards reinsurance business we cover credit insurers, the majority of whom are – like
Euler Hermes Kreditversicherungs-AG itself – members of the International Credit Insurance and
Surety Association (ICISA). We reinsure exclusively credit, guarantee and fidelity risk with the same
standards we apply in our own underwriting business.
The majority of our ceding companies are group companies of Euler Hermes Kreditversicherung
and foreign business units of Allianz AG (72.6 per cent of premium underwritten in 2004), as well as
other companies (27.4 per cent premium underwritten in 2004).
Inwards reinsurance accounted for 12.4 per cent of Euler Hermes Kreditversicherung-AG’s premium
income gross, before outwards reinsurance and 17.7 per cent net, i.e. after deduction of the reinsurers’
share. The share of this generated by foreign business rose by 4.5 percentage points year-on-year to
74.5 per cent.
Gross premium income written increased by 1.6 million EUR to 80.9 million EUR in the year under
review after the equivalent figure of 79.3 million EUR one year earlier.
Credit insurance accounted for 52.8 million EUR of this, bonding and guarantees 26.1 million
EUR and fidelity 2.0 million EUR.
The gross loss ratio for the insurance year for inwards reinsurance calculated on earned premiums
went up by 0.6 per cent to 49.9 per cent. The run-off result was 11.9 million EUR gross.
Business Report
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