Annual Report 2011 - R+V Versicherung

10
Business development and basic conditions
OVERALL FIGURES FOR THE SECTOR
2011 Change from
EUR billion previous year
Gross premium income
domestic
Insurance services from
178.1 – 0.4%
direct insurers 147.7 + 7.0%
The upward trend in property and accident insurance in the
previous year came to an end. Premium income increased to
56.7 bn euros (+ 2.7%). The positive trends in motor insurance,
where premium income increased by 3.5%, made a
crucial contribution to this. According to provisional GDV
information, the other insurance branches also generated
increases in premiums. Claims payments increased to 44.4 bn
euros (+ 2.6%) in 2011.
Development on the reinsurance markets
2011 proved to be a challenging year for the reinsurance industry.
The unusual accumulation of severe natural disasters
as well as lower profits from capital investments reduced the
earning power of the sector.
In chronological terms, the first quarter was particularly
catastrophic in the Pacific region and in Eastern Asia. In addition
to severe flooding in Queensland, North Eastern Australia
also had to contend with cyclone Yasi in January which hit the
coast on 3 February at wind speeds of up to 280 km/h. The
New Zealand city of Christchurch was also hit by another severe
earthquake in February. Although the event was barely
noticeable in the European media, insured losses amounted to
significantly more than 10 bn US dollars. Just two weeks later
the biggest loss of 2011 occurred. Measuring 9.0 on the
Richter scale, an earthquake struck Honshu, the main island
of Japan, causing a tsunami. Insured losses are estimated at
more than 30 billion US dollars and make this event the most
expensive earthquake the insurance industry has experienced
to date.
DEVELOPMENTS OF THE LIFE INSURANCE CLASS*
2011 Change from
EUR billion previous year
Gross premiums written 86.6 – 4.2%
Number of new policies 6.5 million + 2.3%
Total new business premiums 28.7 – 12.2%
*GDV (German Insurance Association) figures (life insurers,
pension investment funds, pension funds), Status January 2012
Driven by, among others, an extreme stormy season in the USA
with hundreds of tornados, which primarily affected the states
of Alabama, Missouri and Tennessee, by the middle of the year
the global financial losses had risen to a value which even exceeded
the previously most expensive year, 2005.
In spite of an active hurricane season with seven named hurricanes
and twelve named tropical storms as well as the flood in
Bangkok, the loss situation did not deteriorate any further in
the second half of the year. Although the losses incurred by
insurance companies over the whole year in 2011 added up to
a high level comparable with the record year of 2005, the reinsurance
industry was in a position to carry the costs thanks to
its good capitalisation and again underlined its importance in
the offsetting of financial losses. The capital strength of reinsurance
companies was also confirmed by the rating agencies
which continued to assess the industry positively due to the
good capitalisation.
Whilst stable to slightly declining ratios were observed in the
renewal negotiations at the beginning of 2011, rates rises were
recorded from the first quarter primarily in the loss burdened
segments and those affected by natural disasters. The loss
situation, the weak return on capital and the euro crisis also
allow the conclusion of stable to increasing rates for the next
renewals.
In France, 2011 was a year characterised by relatively low losses
in the direct insurance sector. Although the South East of
the country was affected by major flooding at the end of the