The pace of the Chinese economy’s growth slowed somewhat in the year under review. Nevertheless, at around 16% (33%) the growth rates recorded by the reinsurance industry were still unusually high. In view of the relatively low insurance density as well as more stringent requirements governing the equity resources of insurance companies, we anticipate further significant growth here in the years ahead. With this in mind, all major reinsurers consider this country to be a target market.

The dominant line in China is motor insurance. Now that government-sponsored subsidy programmes have been discontinued, sales of locally made automobiles have fallen – as a consequence of which (re)insurance premiums did not grow quite as vigorously as in the previous year. The development of business in this segment was thoroughly satisfactory: conditions remained stable and the major loss experience was unremarkable, hence enabling us to generate a good underwriting result.

In the other lines the environment was again intensely competitive, and expanding our market share was therefore not a central concern for our company.

As anticipated, our business prospects enjoyed a further boost from the establishment of our branch in Shanghai in 2010. Now that we have the status of local reinsurer, we are also able to write insurance business in the domestic currency.

On the whole, we are satisfied with the development of our portfolio from the Chinese market. Our premium volume was enlarged in the year under review.