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Munich Re Report of the Board of Management
Another very large allocation was made to the claims equalization
provisions and similar provisions; at DM 984 million, this was even larger
than the previous year’s very sizeable allocation of DM 798 million. In
particular, the sum allocated to the provision for earthquake risks was
substantially larger than in the previous year, when withdrawals for
earthquakes in the USA (Los Angeles) and Japan (Kobe) resulted in
only a small overall increase.
In the case of the Munich Reinsurance Company, it was again possible
to make very large special allocations to the provision for outstanding
claims, amounting to DM 500 million (previous year: DM 250 million).
The reinsurance companies’ pre-tax profit for the year increased from
DM 222 million in the previous year to DM 679 million in the year under
review; this represents an improvement of more than 200 %.
The important figures for the reinsurers in DM million (consolidated):
1991/92 1992/93 1993/94 1994/95 1995/96
Gross premiums 14,816 16,682 19,059 18,848 18,507
Net premiums 12,730 14,385 16,750 16,531 16,526
Underwriting result* –1,454 –1,652 –746 –562 98
Investment result* 2,612 2,317 2,857 2,745 3,174
Unadjusted earnings 379 664 1.097 1,270 2,163
Special allocations to the provision
for outstanding claims –125 –450 –350 –250 –500
Change in the claims equalization
provisions and similar provisions –40 –33 –523 –798 –984
Operating result 214 181 224 222 679
* The figures for the years 1991/92 to 1993/94 are comparable only to some extent with those
for the years 1994/95 and 1995/96 owing to the change in the allocation of the expenses for
employees’ pensions and “other depreciation”.
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