Central and Eastern Europe

The primary insurance markets of Central and Eastern Europe, which had been buffeted by the financial and economic crisis, recovered somewhat in the course of the year under review. Rates in original business nevertheless continued to slide on account of increased competition. It can, however, be assumed that markets in this region will grow at a markedly brisker pace than those in Western Europe. Rates and conditions on the reinsurance side were broadly stable in the year under review and in most cases on a level commensurate with the risks.

We have defined the countries of Central and Eastern Europe as strategic growth markets – always assuming that business here remains profitable. In this region Hannover Re ranks among the top three players in the reinsurance industry. We are very well positioned and quote our business in all lines and markets.

In the year under review we again observed a trend towards the increased purchase of non-proportional reinsurance arrangements. A greater awareness of major catastrophic events is prompting stronger demand for additional capacity in the area of natural catastrophe covers. We also observed higher limits in casualty business.

Although the markets of Central and Eastern Europe were affected by a number of natural disasters in 2010, we are satisfied overall with the development of our business. Our premium volume was again boosted in the year under review.