China

The Chinese insurance market again generated strikingly vigorous growth in the year under review. Special reference should be made to the more stringent requirements adopted by the China Insurance Regulatory Commission with respect to the equity resources of insurance companies. Demand for reinsurance solutions that could serve as equity substitutes was therefore marked. Overall, the industry generated a good underwriting result. Similarly, reinsurers generated very healthy growth rates and good results in 2010. Government-sponsored subsidy programmes have again sharply driven up sales of domestically built motor vehicles. Consequently, further substantial growth in motor insurance – the dominant line in China – was recorded in the year under review.

Rates for non-proportional covers were stable in 2010 and – more importantly given the dominance of proportional business – insurance terms and conditions were maintained largely unchanged.

Competition in the (re)insurance market is also very fierce in view of the enormous growth opportunities. In our assessment, China offers particularly attractive prospects in the areas of facultative business and agricultural risks as well as in the marine and aviation lines.

As forecast, our premium volume in China increased appreciably. Our Shanghai branch, which commenced operations in the year under review, improved our business opportunities as we had expected. As a “local” reinsurer, we now also enjoy access to treaties in the domestic currency.

Although China was affected by a number of (natural) disasters in the year under review, the insured losses remained moderate. We did not incur any major losses.

We are satisfied with the development of our portfolio from the Chinese market.