Business model
Our acquisition and underwriting policy continues to be based on the “Five Pillar” business model under which five distinct customer-oriented product and service offerings are brought together under a single strategic umbrella. Each pillar features a specific marketing approach, which is supported by the worldwide network of Hannover Life Re.
The conventional reinsurance business of mortality and morbidity risks traditionally accounted for the lion's share (almost 40%) of Hannover Life Re's total premium volume. The US acquisition in the spring of 2009 for the first time boosted this share to more than 44%, i.e. an amount of around EUR 2.0 billion, in the year under review. The four specialty segments of financial solutions, partnerships with multinational clients, new markets and bancassurance also continued to grow in absolute figures, but – with the exception of new markets – they contracted in relative terms.
Within the four specialty segments we observed particularly dynamic growth in the European bancassurance sector and in the area of new markets – and in the latter case especially with respect to UK enhanced annuities.
The UK pension market also constitutes a strong growth segment. We cooperate here with a number of specialist providers and cover the biometric risk of longevity by way of so-called longevity swaps.
We are also thoroughly satisfied with the financial solutions segment, in which we were able to close several small and mid-sized transactions at attractive conditions in the United States, United Kingdom, Germany, South Africa and Hong Kong. Demand for reinsurance solutions of this type reached a level in the year under review that we had never experienced in the past 20 years.
In the traditional business segment Asian markets – and above all Greater China – as well as South Africa showed vigorous growth, while Central European markets were more sluggish.
As in the past, we continue to place great emphasis on the cultivation of long-term relationships with our major cedants and we attach paramount importance to the principle of identity of interests between insurers and reinsurers.
Systematic Customer Relationship Management plays a central role in this context, reinforced by the regular sharing of experiences among our managers with regional sales responsibility.