R+V Versicherung AG

Management Report 4
Overview of Business Development
of R+V Versicherung AG
Whereas the claims expenditure of the previous year was
marked by expenses from the settlement result of the loss provisions
this improved substantially in 2009 so that the reported
gross loss ratio fell to 62.6 % (2008: 77.7 %). Due to the less
than average increase in the expenses for the insurance operation
the gross expenses ratio fell to 34.9 % (2008: 35.5 %). The
gross Combined Ratio improved by 15.7 % points to 97.5 %.
Altogether the class closed with a net profit before equalisation
and similar provision of EUR 1.3 million (2008: EUR
- 5.0 million). After taking into consideration a transfer to the
equalisation provision in the amount of EUR 7.9 million (2008:
EUR 0.1 million) this resulted in technical results of EUR - 6.6
million (2008: EUR - 5.1 million).
Motor
Good premium development and fall in losses
The motor insurance, the business of which is underwritten
worldwide, is among one of the classes of R+V Versicherung AG
with the highest premiums. In the period under review it represented
a share of 26.5 % of the gross premiums written.
Owing to their strong position on the domestic market the
companies of R+V contribute a share of 64.3 % to the premium
volume. Despite the strong competition in the industry this
class generated a growth in premiums of a total of 14.6 % to
EUR 304.1 million (2008: EUR 265.5 million). The growth
amounted to 11.0 % on the domestic market.
In particular the motor own damage insurance classes were
also encumbered in the period under review by storm and hail
damages in connection with the low-pressure system “Felix”
and the low-pressure area “Wolfgang”. However, these did not
reach the high level from the thunderstorm damages of the
previous year so that the fiscal year loss ratio fell by 4.2 %
points to 90.0 % compared with the previous year. Owing to an
also increased settlement result of the loss provisions taken
over from the previous year the reported gross loss ratio fell to
86.8 % (2008: 91.3 %).
Annual Financial Statements 33 Further Information 57 15
MOTOR GROSS PREMIUMS
EUR million
320
240
160
80
0
MOTOR
2007
240.0
2008
265.5
2009
304.1
2007 2008 2009
Reported gross loss ratio 88.1 91.3 86.8
Gross expenses ratio 16.0 19.3 19.8
Gross combined ratio 104.1 110.6 106.5
Altogether the class result improved for own account by EUR
7.7 million to EUR - 24.2 million compared with the previous
year (2008: EUR - 31.9 million). The equalisation and similar
provision was reinforced by EUR 8.2 million (2008: EUR
- 12.2 million) so that a technical result for own account
remained of EUR - 32.5 million (2008: EUR - 19.8 million).
Fire
Positive contractual renewal leads to substantial increases in
premiums
Fire insurance recorded a growth in premiums by 28.3 % to
EUR 290.6 million (2008: EUR 226.5 million) in the period
under review 2009 owing to the positive development from
the contractual renewals, which primarily resulted from the
business taken over from ceding companies outside of R+V.
EUR 255.3 million or 87.9 % of the gross premiums related to
the foreign market.