Western and Southern Europe

France

The 2010 financial year in France was again notable for intense competition. The rate level continues to be unsatisfactory in some areas, and our primary goal therefore was to maintain the profitability of our portfolio. We were largely successful in accomplishing this aim.

Hannover Re is one of the major reinsurance players in the French market and a leader in the builder’s risk and personal accident lines. In builder’s risk insurance we continued to pursue our strategy of long-term expansion in the year under review. Overall, the premium volume in France contracted slightly.

Netherlands

The higher capital requirements anticipated with the advent of Solvency II prompted further mergers and acquisitions among smaller insurers in the year under review. What is more, the more exacting requirements placed on risk management are giving rise to stronger demand for natural catastrophe covers. According to the standards set down by Dutch insurance regulators, companies must now protect themselves against “200-year-events” under catastrophe covers.

Hannover Re stands by its strategy of expanding the share of its Dutch business deriving from casualty lines. In view of the more attractive rate situation prevailing in non-proportional casualty business, we therefore moderately enlarged our portfolio; property business, on the other hand, is written highly selectively. In motor insurance it would seem that tariffs in original business have now bottomed out.

After the high frequency of property claims incurred in the previous year, the loss situation in the year under review was moderate. The loss ratio consequently improved.

Our premium volume from the Dutch market contracted slightly.