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Deutsche Rückversicherung AG successfully continued its rock-solid performance in 2018. “We improved our clients’ risk positions, generated added value for our shareholders and simultaneously strengthened our assets,” Chief Executive Officer Frank Schaar said.
Deutsche Rück’s overall performance was positive in the 2018 financial year. Net premiums earned rose by 3.2 % to €482 million, driven by accident, life and liability lines. In gross terms, Deutsche Rück recorded a year on year drop in premium volume to €856 million, owing to the restructuring of a business segment within the group of German public insurers.
Clients of Deutsche Rück were particularly affected by storm DAVID (also known as FRIEDERIKE) and a large number of major fire claims in 2018. Gross claims expenditure rose by almost one quarter as a result. “However, our retrocession scheme, which is geared towards property business, enabled us to limit our risk positions effectively,” Schaar said. Both the net loss ratio and the combined ratio increased only moderately.
“In 2018 we once again strengthened our reserves and continued our long-standing, conservative reserving practice,” said Schaar. The technical account therefore closed with a loss after the change to equalisation reserves. At the same time, Deutsche Rück achieved exceptionally good investment income of €35 million. The satisfactory operating result before tax of €23.4 million was followed by tax expenses of almost the same amount and a lower net profit than in the previous year, at €2.2 million.
The subsidiary DR Swiss recorded a drop in claims expenditure and thus an improvement of almost 10 percentage points in the loss ratio to 67.6 % in 2018, which led to significant growth in profits.
Deutsche Rück expects its business performance to remain stable in the current financial year, with slightly lower gross premium volume overall and no change in the combined ratio.
Frank Schaar, CEO Deutsche Rück