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Munich Re Report of the Board of Management
Gross premiums in DM million
2,766
12,050
3,165
13,517
Life
Non-life
3,414
15,645
3,446
15,402
3,539
14,968
1991 1992 1993 1994 1995
Reinsurance
As the world’s leading reinsurer, Munich Re works together with direct
insurance companies in more than 150 different countries. We operate on
the one hand directly from our head office in Munich, Germany; on the
other hand we are represented in 32 other countries through reinsurance
subsidiaries, branch offices, service companies and liaison offices.
A geographical balancing of risks by means of a global presence is as
essential for conducting professional reinsurance as financial strength. In
the last few years, these requirements have resulted in an ongoing process
of consolidation throughout the reinsurance industry worldwide. The
acquisition of American Re by Munich Re agreed in August 1996 may
be seen as part of this process. The Munich Re Group’s position in the
US market will be considerably strengthened as a result. In addition, the
acquisition will enable Munich Re to supplement its own outstanding
expertise in international reinsurance business with American Re’s
strengths, especially the latter’s highly specialized knowledge in the areas
of financial reinsurance and alternative markets.
In the year under review the development of our reinsurance business was
again influenced by our clear profit orientation. We only wrote new
business or increased shares in cases where prices and conditions were
commercially acceptable. We again terminated business connections
that did not offer any tangible prospects of reasonable development.
All in all, the combined premium income from the business we renewed
and potentially profitable new shares showed growth of 2.8 % in original
currencies. When the figures are translated into our balance sheet
currency, however, this growth is more than neutralized by the negative
effects of changes in exchange rates amounting to approximately
DM 871 million. The consolidated gross premium income of our reinsurers
is therefore, at DM 18,507 million, 1.8 % down on the previous year.
More than 80 % of this premium income was again written by the Munich
Reinsurance Company. The net premium income from reinsurance
business changed very little in the year under review, amounting to
DM 16,526 million (previous year: DM 16,531 million).
The geographical division of the Group’s reinsurance premium was as
follows:
1995 Previous year
DM million DM million
Germany 8,846 8,947
Rest of Europe 3,881 4,427
North America 3,124 2,617
Middle East, Far East
Australia, New Zealand 1,580 1,685
Africa, Near East 730 732
Latin America 346 440
Total 18,507 18,848
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