Content

Font size

Facultative reinsurance

In contrast to obligatory reinsurance, a reinsurer underwrites primarily individual risks in facultative business. The general environment for both types of reinsurance in the various markets is, however, for the most part comparable.

In view of broad-ranging demand for facultative covers, we made the most of the available business opportunities in the year under review to generate further profitable growth. We continued to optimise our portfolio structure and withdrew from business segments that did not meet our criteria. The latter include a number of casualty lines such as professional indemnity for lawyers and medical malpractice covers.

In the United States we scaled back our motor liability portfolio and increased the share of agency and niche business. We also stepped up our involvement in personal accident insurance. With market conditions broadly stable, we successfully boosted our premium volume in the US.

For the most part, we are similarly satisfied with the development of our business in Latin America. This market is served primarily from our office in Bogotá. Although in some markets we have withdrawn from casualty covers with exposure to basic losses, we were able to enlarge our premium volume overall in Latin America. We also grew in Central Europe, where we are confident of further good business opportunities going forward.

For years Hannover Re has been active in sports insurance – a sector which encompasses not only disability coverage for professionals engaged in a broad range of sporting careers but also liability and cancellation covers for large sporting events. In the year under review – with perfect timing for the European Football Championship – we wrote the lead share in the coverage taken out by FIFA for footballers playing on their national team. Clubs receive financial compensation if one of their players misses games after being injured playing for their country. This innovative insurance solution closed the previous gap in coverage existing between club sides and national teams.

As was also the case in the traditional reinsurance sector, rate increases in facultative business were attainable in those markets that had seen heavy losses in the previous year – such as Thailand or Japan.

Appreciable price increases could generally be obtained in the energy sector, especially in the mining industry.

The 2012 financial year was essentially spared major losses. Even Hurricane Sandy failed to have any dramatic repercussions on our facultative portfolio. The result for our facultative business was satisfactory.

Premium volume rose slightly as planned in the year under review.

History

Your last visited pages:

More Information

Topic related links within the report:

Topic related links outside the report:

Download

Download this chapter as a PDF file:

Topic Navigation

Build your own individual report according to the topics you are interested in. Choose the topics which are essential for you.







 
show all

My Annual Report

Your page has been added successfully. Please click on "My Annual Report" in the service section to see your selection.

Link für Popup