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Munich Re Report of the Board of Management
In life insurance, new business is developing pleasingly, despite the still
difficult economic environment. Impulses for growth are coming from,
among other things, “dynamic” plans linked to the development of the
maximum contribution levels for German statutory pension insurance. The
attractiveness of annuity insurances remains unbroken, and they continue
to have a significant positive influence on overall development.
In health insurance we anticipate a rising premium income and a
satisfactory result, despite higher claims costs.
The growth of our indemnity insurance business is likely to stagnate owing
to the continued slow development of the economy and the growing
intensity of price competition. The increased competitive pressure is due
not least to the generally improved earnings situation in 1995 and also to
increasing product competition, especially in the field of motor insurance.
The share exchange with Allianz and the acquisition of the American Re
will favourably affect the development of the Munich Re Group in the years
to come.
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