Hannover Re’s main markets in Southeast Asia are Malaysia, Thailand, the Philippines and Indonesia. Our portfolio here consists predominantly of property business. The accident, crop and livestock insurance lines as well as structured reinsurance products were further expanded in the year under review. We also continued to engage in the field of micro-insurance, which enables even low-income individuals to purchase insurance protection.

Given the greater importance attached to risk-based models not only in Malaysia but also in Thailand, we observed a surge in demand in proportional motor business. We are supporting our clients here with an eye to the increased capital requirements. It remains the case that rates in the primary insurance sector are scarcely adequate in Southeast Asian markets, although reinsurance conditions held stable in the year under review.

In terms of major losses, the region again came under strain in 2011. The flooding in Thailand, which even left parts of the capital city Bangkok under water for several weeks, was particularly devastating. The total market loss is estimated to be in excess of USD 11 billion, making it the largest insurance loss to date in Southeast Asia. The net burden of losses for Hannover Re amounted to EUR 196 million.

The result deteriorated appreciably owing to the exceptionally heavy loss expenditure recorded in this market.