is spokesman of Deutsche Rück and head of our Communications Department
Phone: +49 211 4554-123
Deutsche Rück has continued to achieve profit-oriented growth in tough market conditions. During the 2015 financial year, the Group – which consists of Deutsche Rückversicherung AG and its subsidiary Deutsche Rückversicherung Switzerland Ltd – increased gross premium income by 3.8 % to approximately €1.08 billion. Net profit amounted to €14.3 million. Deutsche Rück responded to sustained pressure on terms and conditions as well as the low interest rate environment by maintaining its selective underwriting policy. “This strategy enabled us to build further on our positions in the German domestic market and Central and Eastern Europe, and to strengthen our capital base once again”, said Dr Arno Junke, CEO.Developments in the market were again shaped by surplus reinsurance capacity and limited opportunities for underwriting business of acceptable quality. “We nevertheless succeeded in strengthening our position in our target markets and further expanding our business relations by acquiring new interests, increasing our stakes and enlarging our portfolio,” said Junke.
In non-life reinsurance, Deutsche Rück benefitted both from improvements in conditions and a more favourable trend in claims. The gross loss ratio improved from 70.1 % to 62.3 % as a result of a comparatively moderate claims burden from natural hazards and fire business. The positive business performance was also reflected in the combined ratio of 94 % (gross) in non-life reinsurance.
Life reinsurance business also performed well. “Our services to protect against biometric risks provided impetus for growth, which we were able to exploit in order to expand our business volume, particularly with existing cedants,” said Junke. As a result, the Deutsche Rück Group increased its volume of business in life reinsurance by more than 11 % to almost €42 million.The net technical account before changes to equalisation reserves improved significantly year on year, closing with a deficit of €11.0 million. Owing to the improvements in results, €14.2 million in net terms had to be allocated to the equalisation reserves. After changes to the equalisation reserves and similar provisions, the technical account closed with a loss of €25.2 million (previous year: – €35.1 million).
Despite the sustained low interest rates and accompanying turbulence in the capital markets, Deutsche Rück once again achieved a robust investment result with a regular income of €49.0 Million.
After taking into account the technical result, Deutsche Rück posted an operating result of €17.0 million before tax and a net profit of €14.3 million.
Dr Arno Junke, CEO