The following section describes the development of the various lines of business. We would like to point out that with effect from the beginning of the year under review the exchange of business under joint underwriting arrangements between Hannover Rück SE and E+S Rückversicherung AG was discontinued. In property and casualty reinsurance, however, a retrocession from Hannover Rück SE to E+S Rückversicherung AG has been maintained. The proportion of Hannover Rück SE’s gross written premium attributable to business accepted from E+S Rückversicherung AG stood at -0.1% (3.7%) in the year under review and relates to the run-off of the 2013 and prior underwriting years.

Fire

Total gross premium income for the fire line contracted by 5.6% in the 2014 financial year to EUR 1,298.2 million (EUR 1,375.7 million). The net loss ratio improved in the year under review from 64.0% to 61.4%. The underwriting profit climbed to EUR 140.3 million (EUR 105.3 million). An amount of EUR 186.6 million (EUR 148.4 million) was allocated to the equalisation reserve and similar provisions.

Casualty

Gross premium in casualty business fell by 4.3% to EUR 1,174.7 million (EUR 1,228.0 million). The loss ratio increased from 96.6% to 104.5%. The underwriting result consequently slipped back to -EUR 276.0 million (-EUR 209.8 million). An amount of EUR 88.7 million was withdrawn from the equalisation reserve and similar provisions in the year under review; the withdrawal in the previous year had totalled EUR 34.2 million.

Accident

Gross premium decreased by 12.8% to EUR 316.0 million (EUR 362.2 million). Profitability was gratifying: the very good loss ratio of 52.8% in the previous year was maintained fairly stable in the year under review at 57.4%. The underwriting result came in at a very pleasing EUR 32.2 million, after EUR 31.9 million in the previous year. An amount of EUR 2.9 million was allocated to the equalisation reserve and similar provisions, following an allocation of EUR 2.5 million in the previous year.

Motor

The gross premium volume for the motor line climbed by a very substantial 44.0%% to EUR 941.7 million (EUR 653.8 million) following the assumption of a large motor quota share arrangement in China. The loss ratio improved to 39.1% (78.9%). The underwriting result consequently increased sharply year-on-year to EUR 138.2 million (-EUR 21.2 million). An amount of EUR 69.3 million was allocated to the equalisation reserve and similar provisions in the year under review, after a withdrawal of EUR 37.2 million in the previous year.

Aviation

Gross premium volume contracted by 10.6% in 2014 from EUR 384.5 million to EUR 343.6 million. Losses incurred in the year under review – in contrast to previous years – were exceptionally heavy. Against this backdrop the loss ratio deteriorated from 50.9% to 102.1%. The underwriting result came in at -EUR 60.7 million (EUR 66.1 million). Following an allocation of EUR 34.0 million in the previous year, an amount of EUR 34.4 million was withdrawn from the equalisation reserve and similar provisions in the year under review.

Marine

Gross written premium climbed by 4.7% to EUR 433.8 million (EUR 414.4 million). The net loss ratio deteriorated from 49.4% to 62.2%. The underwriting result consequently retreated from EUR 75.5 million to EUR 39.4 million. Among the key factors here the most notable was the increased market loss associated with the wreck of the “Costa Concordia” owing to the costly salvage operation. With this in mind we set aside additional reserves. The originally estimated loss expenditure in connection with a wrecked container vessel had also risen. An amount of EUR 91.3 million (EUR 123.3 million) was allocated to the equalisation reserve and similar provisions.

Life

Gross premium income in the life line grew by 4.8% in the financial year just ended to EUR 4.1 billion (EUR 3.9 billion). The business climate in the largely saturated insurance markets of Western Europe was highly challenging. The steady premium erosion observed in particular in connection with a number of large treaties was therefore sustained in the year under review. In Asian markets, on the other hand, the premium development was pleasing and played a correspondingly positive part in the increased gross premium volume.

The underwriting result improved appreciably on the previous year’s figure of -EUR 53.6 million to reach -EUR 19.5 million. Most strikingly, the steps that we have taken to stabilise results in Australian disability business clearly bore fruit in the year under review. In general terms, our portfolio developed very much in line with our expectations, with longevity business performing even better than anticipated.

Irrespective of the business development, the gross premium volume and the underwriting result were also influenced by, among other things, the discontinuation of the reciprocal exchange of business between Hannover Rück SE and E+S Rückversicherung AG effective 1 January 2014.

Other lines

The lines of health, credit and surety, other indemnity insurance and other property insurance are reported together under other lines. Other property insurance consists of the extended coverage, comprehensive householder’s (contents), comprehensive householder’s (buildings), burglary and robbery, water damage, plate glass, engineering, loss of profits, hail, livestock and windstorm lines. Other indemnity insurance encompasses legal protection, fidelity as well as other pure financial losses and property damage.

The total premium volume in the other lines fell by 16.8% to EUR 2.3 billion (EUR 2.7 billion). The loss ratio improved slightly to 74.1% (76.0%). The underwriting result closed at -EUR 8.9 million, after EUR 1.0 million in the previous year. An amount of EUR 50.6 million (EUR 31.0 million) was allocated to the equalisation reserve and similar provisions.