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Munich Re Report of the Board of Management
The life insurer Berlinische Lebensversicherung, Wiesbaden, suffered from
a decline in the demand for credit life insurance as a result of the overall
economic situation; altogether, however, its new business decreased less
markedly than the market average. The company’s gross premiums rose
by 5.0 % to DM 878 million. Its in-force sums insured decreased by
10.0 % to DM 29.6 billion. The provision for policyholders’ dividends
was increased by DM 172 million (previous year: DM 200 million). The
company showed a profit for the year of DM 2.5 million (previous year:
DM 7.2 million).
Hermes Kreditversicherung, Hamburg, showed an increase in its gross
premiums of 11.3 % to DM 809 million for 1995. Owing to the further rise
in the number of insolvencies, the company’s underwriting loss more
than doubled; the claims ratio of the business written by the company
increased significantly. This deterioration was, however, largely
compensated for by means of substantial withdrawals from the claims
equalization provisions, so that all in all the company was able to show
an increased operating profit of DM 11.9 million (previous year:
DM 8.0 million).
Owing to the noticeably tighter financial situation of German households in
the current year, our travel insurer Europäische Reiseversicherung, Munich,
was able to show premium growth of only 1.8 % to DM 304 million in 1995,
following the major premium increases recorded in the previous years.
The company recorded a break-even underwriting result and its profit
for the year amounted to DM 8.9 million (previous year DM 9.0 million).
In the autumn of 1995 and at the beginning of 1996 the company
consolidated and extended its market position in Europe through the
acquisition of former sister companies in Denmark, France, Sweden and
the Czech Republic, and the establishment of a subsidiary in Slovakia.
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