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Development of the individual lines of business

Development of the individual lines of business

The following section describes the development of the various lines of business. Hannover Rück SE also participates in the German reinsurance market through intra-Group retrocessions from E+S Rückversicherung AG. The proportion of Hannover Rück SE’s gross written premium attributable to business accepted from E+S Rückversicherung AG stood at 3.7% (3.8%) in the year under review.

Fire

Total gross premium for the fire line again grew by an appreciable 8.1% in the 2013 financial year to EUR 1,375.7 million (EUR 1,272.1 million). The net loss ratio deteriorated in the year under review from 59.4% to 64.0%. After an underwriting result of EUR 157.6 million in the previous year, the fire line closed with a profit of EUR 105.3 million in 2013. An amount of EUR 148.4 million (EUR 201.3 million) was allocated to the equalisation reserve and similar provisions.

Fire
in EUR million20132012
Gross written premium1,375.71,272.1
Loss ratio (%)64.059.4
Underwriting result (net)105.3157.6

Casualty

Gross premium in casualty business contracted by 2.5% to EUR 1,228.0 million (EUR 1,259.5 million). The loss ratio increased slightly from 92.4% to 96.6%. The underwriting result consequently slipped back to -EUR 209.8 million (-EUR 164.8 million). An amount of EUR 34.2 million was withdrawn from the equalisation reserve and similar provisions in the year under review; the allocation in the previous year had totalled EUR 27.5 million.

Casualty
in EUR million20132012
Gross written premium1,228.01,259.5
Loss ratio (%)96.692.4
Underwriting result (net)(209.8)(164.8)

Accident

Gross premium climbed sharply as anticipated by 25.9% to EUR 362.2 million (EUR 287.8 million). Profitability was gratifying: the very good loss ratio of 51.1% in the previous year was almost maintained in the year under review at 52.8%. The underwriting result came in at a very pleasing EUR 31.9 million, after EUR 41.0 million in the previous year. An amount of EUR 2.5 million was allocated to the equalisation reserve and similar provisions, following an allocation of EUR 8.1 million in the previous year.

Accident
in EUR million20132012
Gross written premium362.2287.8
Loss ratio (%)52.851.1
Underwriting result (net)31.941.0

Motor

The gross premium volume for the motor line contracted by 12.7% to EUR 653.8 million (EUR 748.6 million). The loss ratio slipped back to 78.9% (74.7%). The underwriting result decreased slightly year-on-year to -EUR 21.2 million (-EUR 20.6 million). An amount of EUR 37.2 million (EUR 1.8 million) was withdrawn from the equalisation reserve and similar provisions.

Motor
in EUR million20132012
Gross written premium653.8748.6
Loss ratio (%)78.974.7
Underwriting result (net)(21.2)(20.6)

Aviation

The gross premium volume contracted in the year under review from EUR 405.2 million to EUR 384.5 million. The major loss experience was once again unremarkable. Against this backdrop the net loss ratio decreased to 50.9% (69.6%). The underwriting result came in at a very good EUR 66.1 million (EUR 27.5 million). Following an allocation of EUR 6.8 million in the previous year, the equalisation reserve and similar provisions were boosted by an amount of EUR 34.0 million in the year under review.

Aviation
in EUR million20132012
Gross written premium384.5405.2
Loss ratio (%)50.969.6
Underwriting result (net)66.127.5

Marine

Gross written premium declined by 4.8% to EUR 414.4 million (EUR 435.2 million). The net loss ratio improved from 81.3% to a pleasing 49.4%. The underwriting result consequently climbed from -EUR 11.7 million to EUR 75.5 million. The previous year had been overshadowed by significant strains from major losses due to the wreck of the “Costa Concordia” cruise ship as well as Hurricane “Sandy”. An amount of EUR 123.3 million (EUR 35.3 million) was allocated to the equalisation reserve and similar provisions.

Marine
in EUR million20132012
Gross written premium414.4435.2
Loss ratio (%)49.481.3
Underwriting result (net)75.5(11.7)

Life

Gross premium income in the life line remained on the level of the previous year at EUR 3.9 billion. The flat premium volume is attributable primarily to the saturated insurance market in European countries, where premium growth rates have been on the retreat for years, as well as to termination of a large treaty from the United States. Nevertheless, we succeeded in boosting our market share of new business in the United States despite a declining market overall. Furthermore, the sluggish effects were offset by a positive business development in China, France and some parts of Eastern Europe.

A strengthening of the reserves for Australian disability business, which was made necessary by elevated risk experiences market-wide, caused the underwriting result to deteriorate sharply from EUR 67.2 million to -EUR 53.6 million.

Life
in EUR million20132012
Gross written premium3,893.53,912.1
Underwriting result (net)(53.6)67.2

Other lines

The lines of health, credit and surety, other indemnity insurance and other property insurance are reported together under other lines. Other property insurance consists of the extended coverage, comprehensive householder’s (contents), comprehensive householder’s (buildings), burglary and robbery, water damage, plate glass, engineering, loss of profits, hail, livestock and windstorm lines. Other indemnity insurance encompasses legal protection, fidelity as well as other pure financial losses and property damage.

The total premium volume in the other lines increased by 28.0% to EUR 2.7 billion (EUR 2.1 billion). The loss ratio of 76.0% was virtually unchanged from the previous year (73.1%). The underwriting result closed at EUR 1.0 million in the year under review, after -EUR 3.0 million in the previous year. An amount of EUR 31.0 million (EUR 63.4 million) was allocated to the equalisation reserve and similar provisions.

Other lines
in EUR million20132012
Gross written premium2,735.82,136.8
Loss ratio (%)76.073.1
Underwriting result (net)1.0(3.0)

History

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