Other international markets
Africa
Our subsidiary Hannover Life Re Africa, which is based in Johannesburg, serves South Africa and the English-speaking African markets. The company writes predominantly risk-oriented individual life business of mid-sized and larger South African life insurers. In the fourth quarter of 2008 the company - in cooperation with its affiliates Hannover Life Re Bermuda and Hannover Life Re Ireland - concluded a large block assumption transaction with one of South Africa's foremost life insurers.
Over the past two years we stepped up our expansion into neighbouring African markets and improved our access to Nigeria and Kenya by cooperating with a local professional reinsurer outside South Africa.
The gross written premium generated by Hannover Life Re Africa contracted to EUR 92.2 million (EUR 105.2 million) due to the strength of the euro against the South African rand. Results were thoroughly satisfactory, however, producing an operating profit (EBIT) of EUR 6.9 million (EUR 5.7 million).
Central and South America
Central American markets are served by our office in Mexico City, while South America is supported directly from Hannover Home Office.
In the year under review, despite growing competitive pressure, we succeeded in cementing a leading position in most of our target markets - especially the bancassurance sector - and winning over clients through our clear commitment to loyalty and continuity.
Premium income in 2008 climbed by 40.7% to EUR 98.8 million, and profitability - as in previous years - can be described as good.
Events have taken a new turn in Brazil: following the long-awaited opening up of the reinsurance market, Hannover Re has now secured the status of an "admitted reinsurer" and established a representative office in Rio de Janeiro for life and non-life business. We intend to be more of a pacesetter in this key market going forward.
Asia
The Asian life markets in the Far East - encompassing the Chinese-speaking economic region, Korea and Japan - are served by our regional centre in Hong Kong, while responsibility for the markets of Southeast Asia and South Asia rests with our branch office in Kuala Lumpur.
Our premium income climbed by 23.1% in the year under review to EUR 103.9 million (EUR 84.4 million), with all major markets contributing to this growth. Results continued to develop favourably.
+++ New customer relationships in China +++
In China we have been represented by a fully operational life branch in Shanghai since May 2008. We made the most of the extended opportunities opened up by the status of a locally licensed reinsurer to acquire several new customer relationships and thus moved closer to attaining our goal of ranking among the market's three leading life reinsurers.
In the Korean market, the largest life reinsurance market in Asia, we have also made significant progress since our new life branch in Seoul commenced business operations in May 2008.
We have successfully taken the first steps towards tapping into the Indian market by concluding a multi-year cooperation agreement with the leading local reinsurer GIC Re. In a parallel move, we established our own service company in Mumbai to support our customer relationships in life and facultative non-life business. This company started doing business on 1 December 2008.
Australia and New Zealand
Business written in Australia and New Zealand is the responsibility of our subsidiary Hannover Life Re Australasia. The company concentrates on risk-oriented treaty business in the areas of life, critical illness and disability annuities.
Occupational retirement provision is becoming an increasingly important segment in Australia; in this context the company participates in the assumption of biometric risks but plays no part in the capital accumulation process.
Owing to the planned reduction of a major individual account, the premium volume contracted by 17% in 2008 to EUR 290.5 million (EUR 348.6 million). The operating profit (EBIT) of EUR 11.3 million was again satisfactory, although it failed to match up to the previous year's result of EUR 34.5 million – which had been influenced by a nonrecurring effect.