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Munich Re Report of the Board of Management
In Canada both insurers and reinsurers were able further to reduce their
underwriting losses in the non-life sector. Owing to increased investment
income, the overall result was pleasing. In life insurance, competition will
become keener as a result of the increasing participation of banks in the
market.
We are the leading non-life and life reinsurer in Canada. Munich
Reinsurance Company of Canada, Toronto, our non-life reinsurer, increased
its gross premium income by 11.3 % to Can$ 257 million (previous year:
Can$ 231 million). The company’s reinsurance underwriting result was
markedly improved. The profit for the year rose from Can$ 7.9 million in the
previous year to Can$ 14.9 million.
Our Canadian life gross premiums, which we write through the Munich
Reinsurance Company Canada Branch (Life), Toronto, increased by 15.8 %
to Can$ 279 million (previous year: Can$ 241 million).
The internationally operating Great Lakes Reinsurance Company, Toronto,
will largely cease its active business operations on 31st December 1996.
The business has been transferred, where desirable, to other companies in
the Munich Re Group. Our analyses revealed that in the changed business
environment the market segment hitherto serviced by Great Lakes could
be sufficiently covered by our own organization and that an additional
independent entity was not necessary for this. Great Lakes, Toronto,
recorded a gross premium income of Can$ 149 million in the year 1995
(previous year: Can$ 187 million). Its reinsurance underwriting result was
considerably improved. Following a deficit of Can$ 8.1 million in the
previous year, the company closed the year under review with a gratifying
profit for the year of Can$ 34.2 million.
Middle East, Far East, The premium income from the business region Middle East, Far East,
Australia, New Zealand Australia, New Zealand totalled DM 1.6 billion in the year under review as
compared with DM 1.7 billion in the previous year. This decline of 6.2 % is
attributable solely to the negative effects of changes in exchange rates.
Gross premiums in DM million
835
1,137
1,422
1,685 1,580
1991 1992 1993 1994 1995
The Asian markets, developing dynamically as a whole, are characterized
by their high degree of exposure to natural catastrophes. The year under
review also brought its fair share of such events. On the other hand, these
did not affect either the insurance industry or the international reinsurance
market too heavily. The earthquake in Kobe on 17th January 1995 is an
example of this. Owing to the fact that the Japanese treaty year differs from
that of other markets, we had already placed our losses from this event to
account in the business year 1994/95.
In the context of our sustained efforts to further our business in the Asian
markets, in which we are a leading reinsurer, Japan continues to merit our
special attention as one of the world’s most important insurance markets.
As a result of the difficult economic environment, growth in the Japanese
insurance market in the year under review was small, but the market’s
underwriting result was satisfactory. In the longer term, more favourable
economic development ought to stimulate the country’s insurance sector.
We continue to be a particularly close partner of the Japanese insurance
industry, which is presently undergoing deregulation.
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