With its headquarters in Orlando/Florida and three local offices in Denver/Colorado, Charlotte/North Carolina and Long Island/New York, our subsidiary Hannover Life Reassurance Company of America (HLR America) has a structure which is unique within our Group. Each office is equipped with particular know-how in specific business segments. As a total unit, HLR America is responsible for US life and health reinsurance business in the segments of mortality solutions, financial solutions and senior and special markets.

HLR America was able to further extend its market position in the mortality solutions segment through the acquisition of a large US portfolio in the first quarter of 2011. This block of business consists of term life policies written between 2000 and 2003 and therefore ideally complements the previously acquired portfolio of US individual life policies. While the risk experience of this new block of business was pleasing, the claims experience of the ING business acquired in 2009 fell short of expectations.

We also pressed ahead with our activities to acquire new business and again succeeded in enlarging our market share and new business volume, despite the fact that the US life reinsurance market as a whole has contracted. We believe that we are on the right track towards accomplishing our medium-term goal of securing a market share in new business in the range of 10% to 15%.

The tense state of the economy and considerable uncertainty on financial markets heavily impacted both the economic position and risk-carrying capacity of life insurers in the primary sector, hence boosting demand for financial reinsurance products. In the financial solutions segment we therefore booked pleasing increases in premium income, which will be favourably reflected in our operating result in the years ahead. In the area of senior markets we are currently tending towards a cautious approach on account of the existing uncertainties surrounding healthcare reform in the United States.

The premium income in the year under review totalled EUR 1,007.7 million (EUR 1,090.7 million), of which EUR 236.9 million was retained by HLR America after retrocessions. Owing to temporary valuation losses arising out of the fair value measurement of investments deposited with ceding companies as required by the relevant accounting rules, the operating result recognised by our subsidiary in the year under review decreased to EUR 9.0 million (EUR 13.0 million). We were therefore only able to report a profit of EUR 2.5 million (EUR 5.8 million) after tax.

We are active worldwide with our subsidiary Hannover Life Reassurance Bermuda, offering our cedants tailored reinsurance coverage in North America in the financial solutions segment as well as in the emerging markets of Africa and Asia. When it comes to designing products, we make the most of the favourable insurance environment offered by Bermuda in order to provide our clients with optimal coverage structures.

The gross written premium amounted to EUR 141.6 million (EUR 155.8 million), of which EUR 143.0 million (EUR 146.8 million) could be recognised as net premium earned for the financial year (the net amount exceeds the gross premiums in the reporting period due to relatively high unearned premiums). The operating profit was substantially boosted to EUR 23.8 million in comparison with the previous year’s figure of EUR 15.5 million. The EBIT margin stood at 16.6%. The company’s net income after tax corresponds to the operating profit.