R+V Versicherung AG Annual Report
R+V Versicherung AG Annual Report
R+V Versicherung AG Annual Report
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Business developments in the individual<br />
insurance classes<br />
Life<br />
Currency developments impacted the gross<br />
premium volume<br />
18<br />
Life<br />
Gross premiums in € million<br />
400<br />
300<br />
200<br />
100<br />
338.5<br />
361,0<br />
2000 2001<br />
321,7<br />
2002<br />
The development of the life insurance markets<br />
was affected worldwide by the slump<br />
in share prices and low interest rates. As a<br />
result, customers moved away from fundand<br />
index-linked products, concentrating<br />
instead on guaranteed life insurance policies<br />
and traditional endowment insurance<br />
policies.<br />
Developments on the capital market meant<br />
that the German life insurance sector was<br />
faced with dwindling hidden reserves, the<br />
application of the amendments to section<br />
341b of the HGB (less strict lower of<br />
cost or market principle) and a reduction in<br />
profit-sharing, among other things. German<br />
life insurers also started selling Riester<br />
pension products, sales of which did not<br />
meet expectations.<br />
On the international life reinsurance markets,<br />
there was sustained demand for<br />
proportional and non-proportional risk<br />
transfer. Prices for nonproportional cumulative<br />
cover rose substantially following the<br />
events of September 11, 2001. However,<br />
the currently high level of rates are unlikely<br />
to be maintained in the long term. Demand<br />
for balance sheet protection solutions and<br />
traditional reinsurance financing is expected<br />
to increase in the future.<br />
<strong>R+V</strong> <strong>Versicherung</strong> <strong>AG</strong>’s life insurance<br />
portfolio grew by €388.8 million to a total<br />
insured sum of €19.7 billion, an increase of<br />
2.0%. The net portfolio rose 2.2% to a total<br />
insured sum of €15.8 billion.<br />
Premiums from domestic business fell<br />
by 0.3% to €211.8 million in the year under<br />
review, while retained premiums grew by<br />
7.0% to €107.5 million.<br />
Gross premium income from foreign<br />
business, which was also impacted by<br />
exchange rate movements, fell. The volume<br />
of gross premiums increased by €38.7<br />
million, or 26.0%, while the volume of net<br />
premiums decreased by €52.8 million, or<br />
75.4%.<br />
Overall, gross premiums fell by €39.3<br />
million, or 10.9%, and net premiums by<br />
€45.8 million, or 26.8%.<br />
Life insurance recorded a profit of €5.1<br />
million at the end of the fiscal year (previous<br />
year: €3.2 million).