The 2015 financial year passed off highly satisfactorily for Hannover Rück SE. The gross premium of Hannover Rück SE in total business increased by 30.1% to EUR 14.1 billion (previous year: EUR 10.9 billion). The level of retained premium contracted from 79.3% to 73.0%. Net premium earned grew by 20.0% to EUR 10.2 billion (EUR 8.5 billion).

The underwriting result for total business (before changes in the equalisation reserve) improved in the year under review from -EUR 15.0 million to EUR 158.4 million. An amount of EUR 136.1 million (EUR 277.6 million) was allocated to the equalisation reserve and similar provisions.

Condensed profit and loss account of Hannover Rück SE
in EUR thousand20152014
Earned premiums, net of retrocession10,178,6028,481,296
Allocated investment return transferred from the non-technical account, net of retrocession328,840442,194
Other technical income, net of retrocession1523
Claims incurred, net of retrocession7,222,0166,801,306
Changes in other technical provisions, net of retrocession(1,020,247)166,116
Bonuses and rebates, net of retrocession(12)48
Operating expenses, net of retrocession2,105,7992,301,759
Other technical charges, net of retrocession1,0561,533
Subtotal158,351(15,017)
Change in the equalisation reserve and similar provisions(136,129)(277,646)
Net technical result22,222(292,663)
Investment income1,862,5931,739,563
Investment charges166,675158,722
Allocated investment return transferred to the technical account(532,949)(567,810)
Other income160,761161,566
Other charges281,979284,151
Profit or loss on ordinary activities before tax1,063,973597,783
Taxes on profit and income and other taxes158,172176,546
Profit for the financial year905,801421,237
Profit brought forward from previous year2,46294,208
Allocations to other retained earnings250,263445
Disposable profit658,000515,000

Major loss expenditure in the year under review was higher than in 2014. Although the hurricane season once again passed off unremarkably, a number of natural catastrophe events and other large losses were recorded. The explosion in the port of the Chinese city of Tianjin was the largest single loss for Hannover Rück SE, resulting in net loss expenditure of EUR 43.1 million. In addition, damage to an oil rig in the Gulf of Mexico and a storm in Japan led to losses of EUR 29.6 million and EUR 23.2 million respectively. The total net expenditure incurred by Hannover Rück SE from large losses was EUR 330.6 million (EUR 257.0 million).

Ordinary investment income including deposit interest clearly exceeded the previous year’s level to reach EUR 1,737.8 million (EUR 1,589.6 million). This was due principally to higher distributions from our investment holding companies. Our exposure to high-yield fund investments was also a very pleasing factor here. Net gains of EUR 94.0 million (EUR 104.0 million) were realised on disposals. Write-downs of EUR 83.2 million (EUR 92.9 million) were taken on investments. They were attributable almost exclusively to bearer debt securities held as current assets. The write-downs contrasted with write-ups of EUR 5.1 million (EUR 30.5 million) that were made on assets written down in previous periods in order to reflect increased fair values.

All in all, our net investment result improved to EUR 1,695.9 million (EUR 1,580.8 million).

The profit on ordinary activities increased to EUR 1,064.0 million (EUR 597.8 million). The year under review closed with a profit for the year of EUR 905.8 million (EUR 421.2 million).

 

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