We have been active on Europe’s largest life reinsurance market for more than 15 years through our subsidiary Hannover Life Reassurance UK (HLR UK). Based in Virginia Water/ London, our local team supports the conventional reinsurance market from the initial customer contact through underwriting to claims management. This is complemented by an extensive range of services. The reinsurance of longevity risks from the assumption of pension funds as well as private annuities for individuals with a reduced life expectancy (enhanced annuities) are written directly from Hannover.

In the area of mortality and disability covers the UK life reinsurance market is notable for a multitude of providers. This results in an extremely competitive market environment, which is why HLR UK has continued its prudent and conservative underwriting policy. Targets for premium growth have consciously not been set.

The gross premium booked by HLR UK totalled EUR 194.4 million (EUR 197.6 million). The operating profit (EBIT) of EUR 25.7 million for the year under review fell only marginally short of the previous year’s level of EUR 26.7 million; relative to the net premium earned we generated a highly gratifying EBIT margin of 17.9%. Net income after tax was also extremely favourable at EUR 19.5 million.

In the area of enhanced annuities, which is handled from Hannover, we have built up considerable expertise over the past two decades and continue to operate as one of the market leaders in this segment. For some years now we have also been working together with a number of specialist insurers and banks to reinsure UK pension funds. We are able to draw upon our know-how from enhanced annuities business in orderto appropriately analyse the longevity risk associated with the pension funds and to adequately structure the reinsurance protection.

Both enhanced annuities and the pension business are rapidly growing segments. In the year under review the premium volume surpassed EUR 1 billion for the first time to reach EUR 1,053.0 million (EUR 944.3 million), corresponding to growth of 11.5% for the two segments combined.