Aviation

In international aviation reinsurance we similarly rank among the market leaders.

Despite partial limitations on flight operations caused by snow chaos and cancellations due to the volcanic ash cloud over Europe, the economic situation for airlines improved in the year under review. Passenger numbers rose, ultimately with favourable implications for (re)insurers too. The entry into service of the Airbus 380 “super jumbo” served to push up the indemnity limits purchased by airlines.

It was also noticeable that insurers raised their retentions on account of improved capital resources. As a result, the year under review was notable for a number of basic losses, albeit without major repercussions for reinsurers because for the most part they remained within the retention carried by primary insurers. For this reason, and also due to a further rise in reinsurance capacities, the pressure on prices increased as the year under review progressed. Against this backdrop our goal was essentially to maintain our current market shares. We are a market leader for non-proportional treaties in the airline market, whereas in proportional business we write our business opportunistically and concentrate for the most part on niche segments. We maintained our involvement in non-proportional reinsurance on a stable level; our gross premium in the aviation line contracted marginally.

After the unusually heavy loss expenditure incurred in the previous year, the major loss experience in the year under review was on the moderate side. The largest single loss was a fire at a spare parts storage facility of a Saudi Arabian airline, for which we have set aside net reserves of around EUR 13 million.

The combined ratio improved to 75.3% (86.3%).