Deutsche Rück really knows its business

to the benefit of its clients

2020 financial year: Strong growth and significant strengthening of assets

The Deutsche Rück Group recorded strong premium growth in the 2020 financial year while simultaneously strengthening its assets. The Group’s entry to the new market region Middle East has paved the way for further growth and broader diversification.

The Group recorded strong premium growth of over 12 % in the property classes. Overall, gross premiums written increased by 9.5 % to EUR 1.21 billion. Net premiums earned were up 6.1 % year on year, at EUR 781 million. Gross claims expenditure declined slightly in the year under review from EUR 703 million to EUR 676 million. The gross and net loss ratios dropped to 54.9 % and 63.4 % respectively. The Deutsche Rück Group’s performance was thus stable in 2020, despite the coronavirus crisis.

Based on its clients’ claims experience in the coronavirus pandemic, the Group has added a safety margin to the reported claims expenditure in each case and has also recognised adequate provisions for unknown IBNR claims. Gross claims expenditure of approximately EUR 76 million has been calculated for the Deutsche Rück Group in the annual financial statements. The burden on the net profit for own account came to around EUR 50 million.

Strong capital base at AAA level

Despite fluctuations in the capital markets due to the pandemic and the fact that interest rates remained low, the Deutsche Rück Group generated investment income of around EUR 58 million and thus achieved its investment targets once again.

Around EUR 53 million was allocated to equalisation reserves and similar provisions, bringing the Group’s total security – including net claims provisions and net provisions for future policy benefits – to more than EUR 2 billion.

The strength of the Group’s assets is reflected in its strong capital base at AAA level. The rating agency Standard & Poor’s once again confirmed its rating of “A+” with a stable outlook in 2020, recognising the Group’s sustainable and very strong capital base coupled with a secure earnings position and supported by risk-commensurate underwriting and a conservative strategy for the recognition of reserves.

Development of GPE 2016 – 2020

in €m

Portfolio Structure 2020 (brutto)

Investment Performance 2016 - 2020

in €m (Figures at close of year excl. deposits retained)

Winfried Keller

is manager of the Accounting Department

Hansaallee 177
40549 Düsseldorf
Phone: +49 211 4554-239