Content

Font size

Life and health reinsurance

Business development

enlarge zoom

Key figures for life and health reinsurance Figures in EUR million
  2011 +/- previous
year
2010 2009 2008 2007
1
Operating result (EBIT)/net premium earned
Gross written premium 5,270.1 +3.5% 5,090.1 4,529.3 3,134.4 3,082.9
Premium deposits 1,704.4 +5.3% 1,617.9 2,331.8 2,181.2 854.5
Gross premium incl. premium deposits 6,974.6 +4.0% 6,708.0 6,861.0 5,315.6 3,937.4
Net premium earned 4,788.9 +2.9% 4,653.9 4,078.7 2,784.9 2,795.3
Premium deposits 1,619.7 +14.5% 1,414.7 2,125.9 2,126.9 783.6
Net premium incl. premium deposits 6,408.6 +5.6% 6,068.6 6,204.5 4,911.8 3,579.0
Investment income 512.6 +0.9% 508.2 520.1 245.5 293.9
Claims expenses 3,328.6 +6.1% 3,135.8 2,743.0 1,674.7 1,672.2
Change in benefit reserves 619.7 -5.2% 653.5 563.7 421.3 397.9
Commissions 985.8 -3.6% 1,022.8 926.2 743.4 780.5
Own administrative expenses 130.6 +10.0% 118.7 98.3 70.1 61.2
Other income/expenses (19.2)   53.0 107.1 (0.2) 52.7
Operating result (EBIT) 217.6 -23.5% 284.4 374.7 120.7 229.8
Net income after tax 182.3 -17.0% 219.6 298.1 78.3 187.7
Earnings per share in EUR 1.51 -17.0% 1.82 2.47 0.65 1.57
Retention 91.0%   91.7% 90.7% 89.3% 90.8%
EBIT margin1 4.5%   6.1% 9.2% 4.3% 8.2%
Key figures for life and health reinsurance Figures in EUR million
  2011 +/- previous
year
2010 2009 2008 2007
1
Operating result (EBIT)/net premium earned
Gross written premium 5,270.1 +3.5% 5,090.1 4,529.3 3,134.4 3,082.9
Premium deposits 1,704.4 +5.3% 1,617.9 2,331.8 2,181.2 854.5
Gross premium incl. premium deposits 6,974.6 +4.0% 6,708.0 6,861.0 5,315.6 3,937.4
Net premium earned 4,788.9 +2.9% 4,653.9 4,078.7 2,784.9 2,795.3
Premium deposits 1,619.7 +14.5% 1,414.7 2,125.9 2,126.9 783.6
Net premium incl. premium deposits 6,408.6 +5.6% 6,068.6 6,204.5 4,911.8 3,579.0
Investment income 512.6 +0.9% 508.2 520.1 245.5 293.9
Claims expenses 3,328.6 +6.1% 3,135.8 2,743.0 1,674.7 1,672.2
Change in benefit reserves 619.7 -5.2% 653.5 563.7 421.3 397.9
Commissions 985.8 -3.6% 1,022.8 926.2 743.4 780.5
Own administrative expenses 130.6 +10.0% 118.7 98.3 70.1 61.2
Other income/expenses (19.2)   53.0 107.1 (0.2) 52.7
Operating result (EBIT) 217.6 -23.5% 284.4 374.7 120.7 229.8
Net income after tax 182.3 -17.0% 219.6 298.1 78.3 187.7
Earnings per share in EUR 1.51 -17.0% 1.82 2.47 0.65 1.57
Retention 91.0%   91.7% 90.7% 89.3% 90.8%
EBIT margin1 4.5%   6.1% 9.2% 4.3% 8.2%

The protracted volatility on international financial markets and the sovereign debt crisis in Europe have triggered uncertainty among private investors and the business community worldwide. Along with the banking sector, the insurance industry was increasingly impacted by these developments. In some cases, as a financially strong contracting partner, this opened up new business potential for us since we were able to offer those of our clients who had been adversely affected by the crisis the security that they were seeking. Despite the unfavourable market conditions, therefore, we were able to generate a broadly satisfactory result for our life and health reinsurance business.

Among life insurers the marked fluctuations on money markets, considerable volatility on stock exchanges and sustained low level of interest rates also prompted stronger demand for reinsurance protection. The interest shown by primary insurers in bespoke reinsurance solutions increased, in part with a view to keeping their own cost of capital on a moderate level and also in order to satisfy the required solvency standards.

Geographical breakdown of gross written premium

Geographical breakdown of gross written premium (pie chart) enlarge zoom

Our established markets of the United States, United Kingdom, Germany, France and Scandinavia continue to play a pivotal role for our company. In addition, we appreciably stepped up our involvement in the emerging markets of Eastern Europe as well as in China, India and in retakaful business.


In the United States we had already successfully completed the acquisition of the ING portfolio in 2009. We further reinforced our market position in conventional US mortality business with another portfolio acquisition in 2011; the addition of these portfolios ideally complements our organic growth. Within the past four years we have tripled our market share of organic new business in the US and thereby boosted our new business by double-digit percentages annually – all of this despite the fact that the total US reinsurance market contracted during the observation period. We consider ourselves to be very well positioned in the market segment of conventional US mortality business and we are targeting a double-digit market share of new business in the years ahead. Alongside our activities in the mortality sector, our focus on our central divisions of Financial Solutions and Senior Markets remains unchanged. In these areas our clients profit from our innovative and customised reinsurance solutions, into which we are able to incorporate our international expertise.

In the United Kingdom we are one of the leading reinsurers for longevity covers and a preferred business partner for private annuities taken out by individuals with a reduced life expectancy – so-called “enhanced annuities”. We also assume pension payment commitments from large pension funds under portfolio acquisitions which are normally limited to the part on which benefits are already being paid. These frequently take the form of so-called longevity swaps. In this context, the reinsurer takes over the actual pension payments and hence the biometric risk in exchange for an agreed fixed premium.

Although the market for longevity swaps is still in its infancy in many countries, we have already received enquiries from clients in Germany, Norway and Denmark as well as Latin America and Canada. We are confident of being able to expand our business in these markets too in the near future.

In major emerging markets we were already able to generate pleasing growth in our business volume in the year under review.

We have grown exceptionally vigorously in Eastern European markets – especially in Russia, where we significantly improved our market position. Strict rules governing local reinsurers have prompted some players to scale back their portfolio or withdraw entirely from the Russian market. Our strategic decision to service this market centrally with our underwriting team in Hannover has proven correct in light of this development and – thanks to changes in the general business environment – has opened up fresh business potential for our company.

In South Africa we continue to be the leading reinsurer in the field of individual life business and we offer our clients here a comprehensive service that also extends to direct sales of insurance products.

In the Indian market we substantially improved our market penetration through our cooperation with the local company GIC Re.

We have substantially expanded our local presence in Asian markets in recent years. Our premium volume here was appreciably boosted in the year under review; particularly in Greater China (China, Hong Kong and Taiwan) we were again able to record unusually strong growth.

Breakdown of gross written premium by business centers

Breakdown of gross written premium by business centers (pie chart) enlarge zoom

In the year under review we also enlarged our business in predominantly Islamic countries such as Bahrain, Saudi Arabia and the United Arab Emirates. We write our business here in accordance with Islamic law (retakaful) through our subsidiary Hannover ReTakaful in Manama/Bahrain.

We are one of the few professional life and health reinsurers operating worldwide and are a top player in the international rankings. For our company, however, playing an active part in shaping and growing the global life insurance market in a dialogue with our clients is more important than this leading position.

Topic Navigation

Build your own individual report according to the topics you are interested in. Choose the topics which are essential for you.







 
show all

My Annual Report

Your page has been added successfully. Please click on "My Annual Report" in the service section to see your selection.

Link für Popup