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<strong>Munich</strong> <strong>Re</strong> <strong>Re</strong>port of the Board of Management<br />
Altogether, we do not anticipate a significant improvement in the premium<br />
income from our domestic reinsurance business in 1996. The result is likely<br />
to be much the same as in the previous year, provided we are not affected<br />
by any exceptional developments in the area of natural catastrophes or<br />
other major losses.<br />
<strong>Re</strong>st of Europe From our business in the rest of Europe we recorded a premium income<br />
of DM 3.9 billion as compared with DM 4.4 billion in the previous year.<br />
The main reason for this 12.3 % decline is, apart from the negative effects<br />
Gross premiums in DM million<br />
of changes in exchange rates, our selective acceptance policy. Develop-<br />
4,682<br />
4,427<br />
ments in individual markets did differ, however.<br />
3,650<br />
4,133<br />
3,881<br />
For us the UK is, after Germany, still the country from which we derive the<br />
largest premium volume in Europe. Our UK clients are above all the large<br />
composite insurers, most of which operate internationally, and Lloyd’s.<br />
1991 1992 1993 1994 1995<br />
Gross premiums by country<br />
UK 23 %<br />
Netherlands 12 %<br />
France 11 %<br />
Switzerland 11 %<br />
Italy 10 %<br />
Austria 10 %<br />
Other 32 countries 23 %<br />
The results of our UK business have improved markedly in the last few<br />
years, owing to the fact that in many areas of business we were able to<br />
achieve rate increases that had become urgently necessary as a result of<br />
large claims burdens from natural catastrophes and other major losses. In<br />
the course of the year under review, however, price competition became<br />
keener again.<br />
We have been represented in London for many years by our Main<br />
<strong>Re</strong>presentation Office and by two branch offices that chiefly handle<br />
local British business. In contrast, our British subsidiary, Great Lakes<br />
<strong>Re</strong>insurance Company (UK), London, writes international business and is<br />
also available for special business segments. The latter was able to<br />
increase its gross premium income in the year under review by 31.5 % to<br />
£96 million (previous year: £73 million) and to make a satisfactory profit.<br />
In the Netherlands we have managed to maintain our important market<br />
position, despite the trend towards a decline in reinsurance volume. In<br />
view of the lively developments taking place in the direct insurance<br />
market, especially in the area of employee benefits products, we see<br />
good opportunities for an expansion of our portfolio in the future.<br />
In France, Belgium and Luxembourg we again achieved a satisfyingly<br />
positive result, since we were largely spared claims burdens from natural<br />
catastrophes and other major losses. Despite keener competition among<br />
the reinsurers, we have been able to improve our position in various<br />
classes of business during the current business year.<br />
In Switzerland the process of deregulation continues. Since 1st January<br />
1996 general insurance conditions and rates have to be approved only in<br />
life and health insurance, and in the area of coverage for natural hazards.<br />
The trend towards concentration within the Swiss insurance market,<br />
observable for many years now, is having the effect of further increasing<br />
competition.<br />
Since 1994 our Swiss subsidiary, the New <strong>Re</strong>insurance Company, Geneva,<br />
has been concentrating its activities on certain European markets, Israel,<br />
Turkey and, through its office in Singapore, the growth markets of Asia,<br />
including Japan. This geographical reorientation meant that its gross<br />
premium income for the year 1995 decreased to Sfr 458 million (previous<br />
year: Sfr 558 million). Its reinsurance underwriting result deteriorated<br />
19