talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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Overall assessm<strong>en</strong>t of<br />
the economic situation<br />
Non-financial<br />
performance indicators<br />
Corporate Governance Remuneration <strong>report</strong> Ev<strong>en</strong>ts of special<br />
significance<br />
Gross writt<strong>en</strong> premium slightly up<br />
The segm<strong>en</strong>t’s gross writt<strong>en</strong> premium amounted to EUR 3.1 (3.1) billion<br />
in the year under review. The individual companies made the<br />
following contributions (before consolidation) to the overall growth<br />
of EUR 62 million: EUR 191 million from HG-I, EUR 40 million from<br />
our Dutch subsidiary and around EUR 20 million each from our<br />
Belgian subsidiary and the reinsurer HDI-Gerling Welt Service AG.<br />
Our US subsidiary HDI-Gerling America Insurance Company, Chicago,<br />
also <strong>report</strong>ed a EUR 20 million increase. HG-I grew especially<br />
in motor lines thanks to premium rises in the in-force portfolio and<br />
a gratifying level of new business, fire business did especially well<br />
outside of Germany. In the Netherlands the take-over of Nassau<br />
Verzekering Maatschappij N. V., Rotterdam (Nassau) by HG-I and its<br />
merger with the Dutch subsidiary HDI-Gerling Verzekering<strong>en</strong> N. V.,<br />
Rotterdam (HDI Netherlands) were the main source of additional<br />
premium income. The increase in Belgium came mainly from the<br />
successful acquisition of new business, especially in the casualty,<br />
fire, marine and <strong>en</strong>gineering lines.<br />
The Spanish subsidiary stayed more or less on a par with the<br />
previous year’s level, market-related declines being comp<strong>en</strong>sated by<br />
new business in property/<strong>en</strong>gineering in Latin America and in the<br />
middle market segm<strong>en</strong>t. The EUR 87 million drop at HDI Versicherung<br />
AG, Vi<strong>en</strong>na (HDI Austria) was due <strong>en</strong>tirely to the fact that,<br />
whereas in 2010 the <strong>en</strong>tire company’s results were <strong>report</strong>ed in the<br />
Industrial Lines segm<strong>en</strong>t, as of <strong>2011</strong> 45% of its business is booked in<br />
the Retail International segm<strong>en</strong>t, which showed a corresponding<br />
increase.<br />
The net premium earned in the segm<strong>en</strong>t dropped by EUR 38 million<br />
to EUR 1.4 (1.4) billion. This was mainly due to the higher cessions<br />
to reinsurers, which rose by EUR 97 million to EUR 1.7 (1.7) billion,<br />
disproportionately to the premium growth. Most of this increase<br />
came from HG-I which, in addition to purchasing higher reinsurance<br />
cover for natural catastrophes, posted reinsurance premiums (before<br />
consolidation) that were EUR 225 million higher, at EUR 1.6 (1.3) billion,<br />
due to a one-off effect. Because of the integration of Nassau,<br />
HG-I’s Dutch subsidiary also posted EUR 21 million higher premium<br />
cessions to reinsurers. By contrast, HDI Austria’s reinsurance premiums<br />
dropped by around EUR 57 million due to transfer of business<br />
to the Retail International segm<strong>en</strong>t.<br />
Risk <strong>report</strong> Forecast and<br />
opportunities <strong>report</strong><br />
Underwriting result<br />
The other underwriting income rose by around EUR 99 million in<br />
the period under consideration to EUR 109 (10) million; ess<strong>en</strong>tially<br />
due to a special effect at HG-I that had the opposite effect on reinsurance<br />
premiums ceded as m<strong>en</strong>tioned above.<br />
The net technical exp<strong>en</strong>ses fell by EUR 153 million to EUR 1.3 (1.5) billion.<br />
This was mainly due to a drop in net claims exp<strong>en</strong>diture by<br />
EUR 162 million to EUR 1.0 (1.2) billion, although administrative<br />
exp<strong>en</strong>ses for own account declined by around EUR 18 million to<br />
EUR 212 (230) million; while acquisition costs rose slightly from<br />
EUR 7 million to EUR 89 (82) million. The other technical exp<strong>en</strong>ses<br />
showed a more significant change at EUR 20 (–1) million. Here, too,<br />
the largest company in the segm<strong>en</strong>t, HG-I, had a major influ<strong>en</strong>ce,<br />
its net claims exp<strong>en</strong>diture declining considerably – despite a year<br />
fraught with natural catastrophes. The take-over of Nassau made its<br />
mark on the Netherlands subsidiaries with a rise in claims exp<strong>en</strong>diture,<br />
which also increased at HDI-Gerling America Insurance<br />
Company and HDI-Gerling Welt Service.<br />
The net claims ratio improved significantly to 66.8 (82.0)%, while<br />
the net exp<strong>en</strong>se ratio remained relatively stable at 21.9 (22.1)%. The<br />
combined ratio was 88.6 (104.1)%. The net underwriting result improved<br />
by a EUR 212 million in all to EUR 155 (–57) million.<br />
Net investm<strong>en</strong>t income slightly down<br />
The Division’s net investm<strong>en</strong>t income declined by EUR 27 million<br />
to EUR 204 (231) million. This was due to a slight drop of EUR 14 million<br />
in ordinary income, but also to an extraordinary result down<br />
EUR 11 million and slightly higher investm<strong>en</strong>t-related exp<strong>en</strong>diture.<br />
The main drivers here were higher impairm<strong>en</strong>ts on fixed-interest<br />
securities at HG-I.<br />
Segm<strong>en</strong>t’s results shaped by its biggest company<br />
Other income was likewise quite significantly down by EUR 49 million;<br />
a loss of EUR 38 million contrasted with a profit of EUR 11 million<br />
achieved in the previous year. This change was again attributable<br />
chiefly to HG-I, which str<strong>en</strong>gth<strong>en</strong>ed its provisions for one-off<br />
ev<strong>en</strong>tualities in the year under review and, what is more, had in the<br />
previous year posted considerable income from release of sundry<br />
provisions and from reversal of impairm<strong>en</strong>ts on reinsurance recoverables.<br />
Talanx Group. Annual Report <strong>2011</strong><br />
45