We are largely satisfied with market conditions in non-life reinsurance. The outcome of the renewals as at 1 January 2012 – the date when around two-thirds of our treaties in non-life reinsurance (excluding facultative business and structured reinsurance) were renegotiated – was pleasing for our company. Given the continuing uncertain capital market environment and the associated difficulties generating sufficient investment income, reinsurers exhibited considerable discipline in quoting prices that were commensurate with the risks. On average, we obtained conditions and rates that were better than in the previous year. In light of this attractive climate, we enlarged our premium volume by around 6%.

We achieved particularly substantial rate increases in the property catastrophe sector – and not only loss-impacted programmes. In Australia price increases of up to 60% were possible; in the US, too, we achieved percentage increases in the low double-digit range. The treaty renewals also passed off highly satisfactorily for us in Canada. Treaties in Japan and New Zealand – countries that were hard hit by natural disasters in 2011 – are renewed within the year. We expect to see significant rate increases at this time.

In marine business we enlarged our premium volume by some 12%. Rate increases were recorded primarily in the offshore energy sector. Broadly stable prices were obtained in other marine business. Rate erosion was observed in both primary insurance and reinsurance on account of the good results booked in the aviation sector in recent years. The business nevertheless remains attractive, and we therefore boosted our premium volume by around 7%. In credit and surety reinsurance we also noted moderate rate erosion on the back of reduced claims rates. Yet here, too, we were satisfied with the outcome of the treaty renewals because they offered sufficient opportunities to write profitable business. The trend towards rising prices has still to take hold in the liability lines, prompting us to stand by our highly selective approach to writing US casualty risks.

We were thoroughly satisfied with the outcome of the renewals in structured reinsurance. Brisk demand for reinsurance solutions that afford capital relief could be observed in the face of more exacting capital requirements associated with risk-based solvency models such as Solvency II.

Based on our very good rating (“AA–” from Standard & Poor’s and “A” from A.M. Best) we are a sought-after reinsurance partner among our clients, enabling us to profit in especially large measure from the available market opportunities.

The following sections describe the outlook for our major markets and lines of business.