talanx group annual report 2011 en

60
The Talanx Group Strategy Enterprise
management
Talanx Group. Annual Report 2011
Research and
development
In our target markets of Germany and North America, our business
fared better in the year under review than had been expected
after high losses at the beginning of the year: premium volume
rose to EUR 1.9 (1.8) billion. The combined ratio stood at 106.1%,
after 97.4% in the previous year, the operating profit (EBIT) was
EUR 184 (301) million.
The underwriting result of the segment as a whole deteriorated
to –EUR 264 (78) million. Net investment income rose by 13% to
EUR 880 (779) million. The operating profit (EBIT) for the non-life
reinsurance at 31 December 2011 fell to EUR 629 (909) million due
to high expenditure on large-scale claims.
Life/Health Reinsurance
2011 2010 2009
Figures in EUR million
Gross written premium 5,270 5,090 4,529
Net premium earned 4,789 4,654 4,078
Underwriting result –281 –290 –258
Net investment income 512 508 525
Operating result (EBIT) 225 276 371
The Life/Health Reinsurance segment brings together our reinsurance
activities in the life, annuity and health lines under the
Hannover Life Re brand name. Hannover Life Re is one of the four
biggest life/health reinsurers in the world. It has operating units at
more than twenty locations on all five continents so as to be able
to offer the clients optimum on-the-spot service.
Tried and trusted business model
We carry on the international life/health reinsurance activities of
the Hannover Re group under the brand name Hannover Life Re.
We offer customised reinsurance solutions in the fields of life, annuity
and health insurance worldwide, deliberately concentrating
on providing cover for the biometric risks of mortality, longevity
and morbidity. We also write the accident line in this segment to the
extent that it is transacted by life insurers, and also retakaful business,
i.e. reinsurance specifically for insurance products compliant
with Islamic law.
Markets and
general conditions
Business
development
Assets and
financial position
Our core business policy is based on the five pillars of conventional
reinsurance, new markets, multinational insurers, bancassurance
and financial solutions. Each of these pillars calls for special skills,
features a unique marketing approach and is geared towards different
client needs and products. Within the conventional reinsurance
segment we selectively participate in attractive, traditional life/
health reinsurance business. Through the other four pillars we offer
customised, innovative and targeted insurance solutions.
Conventional reinsurance traditionally accounts for the lion’s
share of our portfolio. But especially through our activities in the
UK enhanced annuities sector we have significantly increased our
business volume in the new markets, so that this pillar is making a
consistently growing contribution to our business results.
Good business trends despite a difficult environment
The ongoing volatility on the international financial markets and
the government debt crisis in Europa are causing uncertainty
among private and corporate investors worldwide. In the wake of
the banking sector, the insurance industry is also being affected
more and more by these developments. This has enabled us as
a financially strong business partner to tap into new business
potentials by offering our crisis-stricken clients the security they
are looking for. For this reason, and despite unfavourable market
conditions, we have been able to achieve largely satisfactory results
in our life/health reinsurance business.
On the life primary insurance side, the pronounced fluctuations on
the money markets, stock exchange swings and the persistently low
interest level are fueling demand by for reinsurance cover. More
and more primary insurers are showing an interest in tailor-made
reinsurance solutions to enable them on the one hand to keep their
cost of equity to a moderate level while on the other complying
with more stringent solvency requirements.
Over the past four years we have been able to significantly expand
our market share in US organic new business by chalking
up double-digit percentage increases in new business every year,
despite the US reinsurance market overall having shrunk in the
period in question.