Australia/New Zealand

Hannover Re still ranks third in the Australian non-life reinsurance market. Our underwriting strategy is geared strictly towards profitability and we therefore relinquished unprofitable business in the year under review. We write the entire spectrum of reinsurance business in Australia and New Zealand. Our offerings in Australia are complemented by a primary insurance license held by our subsidiary Inter Hannover. We continue to be a leading provider for catastrophe business and also maintain our involvement in the liability lines.

The pressure on prices for insurers and reinsurers licensed in Australia is growing on account of more exacting capital requirements with respect to the risk capital that has to be kept available.

The rate trend was unsatisfactory in some areas due to the highly competitive environment in Australia and New Zealand. The hail events in March, for example, had no appreciable positive effects on prices; against this backdrop we withdrew from a number of programmes. Similarly, the severe earthquake in New Zealand in September failed to trigger the expected rate increases. The region around Christchurch suffered severe devastation. This loss event produced a net strain of EUR 113.8 million for Hannover Re. Another major loss was caused by the flooding in Queensland in December, for which we have reserved an amount of EUR 16.1 million.

The loss ratio increased in the year under review.