In contrast to obligatory reinsurance, which covers an insurer’s entire portfolio, 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.

Here, too, our strategy is to grow only in those areas that offer adequate profitability. In the year under review we therefore further optimised our portfolio structure and withdrew from business areas that did not meet these criteria. The latter include, among others, risky liability business such as medical malpractice in certain developed countries.

In view of the favourable general environment we further stepped up our involvement in Latin America and the Middle East in the year under review. With energy prices on the rise and the increasing shift towards green energy sources, we are keeping a close eye on the development of insurance solutions.

We took a more active interest in risks from the engineering and global energy sectors. Our company also wrote an increasing number of covers for the construction of wind farms.

As was also the case in the traditional reinsurance market, rate increases in the facultative sector were attainable in those areas that had seen heavy losses in the year under review. Special mention should be made here of Japan, Australia and New Zealand. In other markets rates remained broadly stable. In energy business – and especially in the mining industry – appreciable price increases were obtained.

The severe natural disasters recorded in the year under review also adversely impacted our facultative portfolio, although our shares in this regard were very moderate.

The premium volume from facultative business decreased slightly in the year under review.