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Munich Re Report of the Board of Management
Gross premiums by class of
business
Life 19 %
Personal accident/health 6 %
Liability 11 %
Motor 18 %
Marine 4 %
Fire 20 %
Engineering 10 %
Other classes 12 %
By class of business, the premium income developed as follows:
1995 1995 Pr. year Pr. year
Gross Net Gross Net
DM m DM m DM m DM m
Life 3,539 3,054 3,446 2,942
Personal accident/health 1,209 1,113 1,367 1,219
Liability 2,092 1,943 1,772 1,525
Motor 3,267 2,933 3,560 3,043
Marine 683 666 707 669
Fire 3,623 3,166 3,727 3,404
Engineering 1,847 1,615 1,973 1,651
Other classes 2,247 2,036 2,296 2,078
Total 18,507 16,526 18,848 16,531
The reinsurance underwriting result again improved markedly. This is
attributable above all to the considerably more favourable business
experience of the Munich Reinsurance Company. Following the
appreciable reduction in the losses recorded in our underwriting account
over the two preceding years, the emphasis we have been placing on
profitability again had a very positive effect. This development was helped
by a lower incidence of large losses and the generally favourable situation
in many markets.
The combined result of our reinsurance subsidiaries was also better than in
the previous year. Although there was a deterioration in the underwriting
results of the Munich Reinsurance Company of Australia, Sydney, the
Munich American Reassurance Company, Atlanta, and the Great Lakes
American Reinsurance Company, New York, this was more than made up
for by very pleasing improvements in the results of the Munich American
Reinsurance Company, New York, and the Great Lakes Reinsurance
Company, Toronto.
Experience was more favourable than in the previous year in nearly all
classes of business. Results developed positively in particular in motor,
liability and engineering, with deficits being significantly reduced and motor
achieving a break-even result for the first time again after the underwriting
losses of the previous years. In fire and marine the pleasing results of the
previous year were even surpassed.
The result of the reinsurance companies’ investments also improved.
Owing to the more favourable cash-flow situation, it was possible to
increase the overall volume of investments, which led to higher investment
income. Writedowns were appreciably lower than in the previous year.
The reinsurance companies’ unadjusted earnings were, at
DM 2,163 million, markedly higher than the DM 1,270 million
achieved in the previous year.
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