France

In the face of sustained competition with more than sufficient reinsurance capacities, we continued to practice our selective underwriting policy in France. As before, our strategy remains geared to preserving the profitability of our portfolio. We were largely successful in accomplishing this goal.

Our underwriting policy is concentrated on the casualty sector; medical malpractice, for example, is becoming increasingly important. In builder’s risk insurance we are one of the leading players in France. The accident line is another focus of our activities.

No significant loss events were recorded in the year under review.

We slightly scaled back our premium volume in France.

Netherlands

The more exacting equity requirements anticipated under Solvency II and the considerable costs associated with meeting reporting obligations prompted further mergers among primary insurers in 2011. Particularly in the segment of smaller mutual insurance societies, the number of clients is shrinking. This contrasts with an additional demand stimulus triggered by the European Solvency II Directive for a risk-based solvency system. The accompanying more rigorous requirements placed on risk management are giving rise to stronger demand for natural catastrophe covers.

We moderately enlarged our portfolio in the Dutch market in the year under review; casualty business was a particularly important contributory factor here.

The year under review was notable for significant local hail events in motor own damage insurance, some substantial fire losses in property insurance and also for a number of sizeable casualty claims. The loss ratio consequently rose sharply.