Content

Font size

Life and health reinsurance

Stable growth and minimal exposure to random fluctuations in results are the traditional hallmarks of life and health reinsurance that make it an attractive business segment.

Nevertheless, life and health reinsurance is subject to technical and economic risks. The most significant economic risks are the interest rate risk, counterparty/default risk and exchange rate risk, which are influenced principally by the international economic environment and developments on financial markets. The technical risks include, above all, mortality, longevity, morbidity, disability and lapse. If the actual loss experience of the individual risks contained in the portfolio diverges from the previously calculated assumptions, this can have adverse implications for the performance of the underlying business. We counter this risk by adequately and appropriately selecting the basic arithmetical assumptions and by systematically and continuously reviewing the biometric actuarial bases. In addition, we take care to ensure adequate and complete reserving of all technical liabilities and we take into account the diversification of the portfolio as a whole, both geographically and in terms of risk types. We attach extraordinarily great importance to our risk management and thereby safeguard corporate profitability.

Internationally, the life and health reinsurance market offers sustained attractive potential. The progressive demographic shift in mature markets such as the United States, United Kingdom, Japan and Germany is generating steadily growing demand for seniors’, long-term care and annuity insurance products. In so-called emerging markets such as India, Brazil and also Russia dynamic economic growth is creating a middle class with purchasing power, which is taking an increasingly strong interest in protecting their families and preserving their wealth as well as safeguarding their health and providing for retirement.

On account of regulatory rules imposing more rigorous capital requirements and solvency standards on primary insurers, particularly promising business opportunities will be available going forward when it comes to optimising their capital, liquidity and risk management. The implementation of Solvency II will also play a pivotal role in this regard, and individual reinsurance solutions designed to reduce the risk capital that insurers are required to hold to cover risks will attract growing attention.

Under these conditions, we are convinced that the international life and health reinsurance market will offer healthy earnings opportunities for our company in the years ahead, as it has in the past.

History

Your last visited pages:

More Information

Topic related links within the report:

Topic related links outside the report:

Download

Download this chapter as a PDF file:

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