Compared with the primary insurance markets of Western Europe, growth rates in the countries of Central and Eastern Europe continue to be above average. There was, however, no easing in the intense competition, as a consequence of which prices in the primary sector came under pressure in the year under review. On the reinsurance side, by contrast, rates and conditions were by and large stable.

We have identified the countries of Central and Eastern Europe as strategic growth markets and intend to continue expanding our business here disproportionately strongly over the coming years. In these countries we rank among the three largest providers of reinsurance protection and we write our business in all lines and markets. Our underwriting policy is opportunistic, i.e. it is guided by the healthy profitability of the business written. In the case of loyal clients, we are also willing to extend our margin requirements over a longer period of time.

We are thoroughly satisfied with the development of our business in Central and Eastern European markets. In the year under review we were again able to obtain adequate rates that satisfied our profitability requirements. No major losses were incurred, and the loss ratio consequently improved on the previous year.

As forecast, we again substantially enlarged our premium volume in the year under review.