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Munich Re Report of the Board of Management
Gross premiums by country
Japan 39 %
Australia 19 %
Taiwan 11 %
Other 28 countries 31 %
We have been represented in the growth region of Asia for many years
through a well-developed network of branches, service companies and
liaison offices, thus acknowledging the importance of the region and its
reinsurance requirements. During the past year we re-examined the
structure of our organization in Asia and adjusted it to take account of
expected economic development. In addition to our new branch office in
Malaysia, our branch in Singapore will function in future as an independent
centre for our activities in South-East Asia, with an office in Manila. Our
Hong Kong office will concern itself not only with the local market but
increasingly with the growing business opportunities in the People’s
Republic of China, where we plan to open a representative office in Beijing.
In Australia, our subsidiary, Munich Reinsurance Company of Australia,
Sydney, is one of the market leaders. In the year under review it recorded
a slightly reduced premium income of A$ 275 million (previous year:
A$ 288 million). Following the very good reinsurance underwriting result of
the previous year, the result of the year under review was fairly normal.
The investment result was significantly improved. In its commercial balance
sheet, the Munich Reinsurance Company of Australia has to value its
investments at market value, which can lead to strong fluctuations in results
– both positive and negative – from one year to the next. Consequently,
following a deficit of A$ 12.7 million in the previous year, which resulted
solely from unrealized losses on investments, the company was able to
show a profit of A$ 26.6 million in the year under review.
Africa, Near East In the business region Africa, Near East we achieved a total premium
income of DM 730 million in the year under review, as compared with
DM 732 million in the previous year.
Gross premiums in DM million
480
576
731
1991 1992 1993 1994 1995
Gross premiums by country
South Africa 37 %
Israel 30 %
Other 56 countries 33 %
732 730
The most important and most highly developed insurance market in Africa
is South Africa. South Africa’s typical combination of first-world and thirdworld
elements is reflected in the structure of the local insurance market.
Whereas petrochemical plants, power stations, mining and other branches
of trade and industry, including the service sector, are highly developed
and make corresponding demands on the insurance industry, a large
portion of the population has little or no insurance protection. It is
insurances of the person, therefore, that above all offer good growth
prospects for the future here.
Our South African subsidiary, the Munich Reinsurance Company of Africa,
Johannesburg, is the country’s leading non-life reinsurer. In the year
under review it earned a premium income of R 809 million (previous year:
R 662 million). It again achieved a clear profit for the year, R 35.3 million as
compared with R 32.5 million in the previous year. In the course of 1996
we have transferred the whole of the reinsurance business we conduct in
the sub-Saharan region to the Munich Reinsurance Company of Africa so
as to be able to service our clients in these countries more directly, from
South Africa.
The insurance market in Israel is a highly developed one. An important
segment of our business here comprises the various classes of
engineering insurance. In view of the sophisticated demands made on
underwriting and technical expertise in this field, it is particularly important
for us to be able to provide reinsurance services on the spot. In acknowledgement
of this fact and of our leading market position, we established a
new engineering office in Tel Aviv in 1995.
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