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Düsseldorf, 27 April 2021 – 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. In total, the Deutsche Rück Group’s gross premiums rose by 9.5 % to over EUR 1.2 billion.
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 Deutsche Rück Group’s performance was stable in 2020, despite the coronavirus crisis,” said Chief Executive Officer Frank Schaar.
The Group recorded strong premium growth of over 12 % in the property classes, driven by fire and homeowners’ comprehensive insurance. Premium income was down in liability, accident and motor insurance business and in life insurance. 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.
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.
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. In total, the Group reported an operating result before tax of over EUR 10 million. “A very respectable result, particularly as we once again significantly strengthened the Group’s assets,” Mr Schaar said. “We have made a confident start to the 2021 financial year, in which we look set to achieve further profitable growth combined with broader diversification, partly by entering the new market of Latin America.”
Frank Schaar, Chief Executive Officer