Annual Report 2011 - R+V Versicherung

Management Report 4
Business development and basic
conditions
YIELD FEDERAL GOVERNMENT BONDS – 10 YEARS RESIDUAL TERM
in percent
4.0
3.5
3.0
2.5
2.0
1.5
1.0
2009 2010
2011
The developments created a divided picture over the course
of the year. Whilst limited optimism regarding the economic
situation and the hope of a solution to the crisis still dominated
in the first six months of the year, in the second six
months, the capital market was defined by fears of recession
and a deepening of the crisis. The ECB withdrew its interest
rate increases. The interest rates for 10-year German government
bonds halved during the course of the year falling to a
historic low of just under 1.7% and only recovered slightly to
1.8% by the end of the year. The divergence of interest rates in
the eurozone countries increased significantly; the interest
rates for ten-year government bonds in Italy increased temporarily
to 7.2% and in Portugal to as high as 14.0%. Interest
charges also increased significantly for all peripheral capital
assets, first and foremost for bank bonds.
These developments were also reflected on the equity markets.
In the first six months of the year, the equity market index
benchmark for the eurozone, EuroStoxx 50, fluctuated between
2,700 and 3,100 points. It fell sharply between July and
September, for a time by approximately one third, from a year
high to a year low. At the end of year it stood at 2,316 points,
thus showing a decline for the whole year of 18.4%. The DAX
German share index fell by 15.6%.
Annual Financial Statements 35 Further Information 62 9
DEVELOPMENT STOCK INDEX EURO STOXX 50
Index
4,000
3,500
3,000
2,500
2,000
1,500
1,000
2009 2010
2011
Insurance business situation
German insurers were able to show stable business trends in
2011 and, in spite of the continued worsening of the debt
crisis in Europe, they only had to contend with slight losses in
gross premium income. This decline is attributable primarily to
the normalisation of one-off premium business that was
sought after in the industry
In life insurance, an increase in current new business premiums
was accompanied by a decline in one-off premiums.
Consequently, new business pushed ahead of current premiums
by 8.2%. Conversely, following extremely strong growth
in the preceding years, one-off premiums fell by one sixth from
26.8 to 22.4 bn euros. Overall, the life insurers generated gross
premiums of 86.6 bn euros, a fall of 4.2%. The cancellation
ratio fell again according to GDV and now concerns approximately
3.5% of policies.
Private health insurers continued their growth course and
recorded an increase in premiums of 4.9% to 34.9 bn euros.
Approximately 32.8 bn euros were applicable to comprehensive
and supplementary insurance and 2.1 bn euros to long-term
care insurance.