The following section describes the development of the various lines of business. We would like to point out that with effect from the beginning of the 2014 financial year the exchange of business under joint underwriting arrangements between Hannover Rück SE and E+S Rückversicherung AG was reorganised. In property and casualty reinsurance, however, a retrocession from Hannover Rück SE to E+S Rückversicherung AG has been maintained. The proportion of Hannover Rück SE’s gross written premium attributable to business accepted from E+S Rückversicherung AG stood at 0.1% (-0.1%) in the year under review and relates to the run-off of the 2013 and prior underwriting years.

Fire

Total gross premium income for the fire line climbed by 22.5% in the 2015 financial year to EUR 1,590.3 million (EUR 1,298.2 million). The net loss ratio improved in the year under review from 61.4% to 53.9%. The underwriting profit climbed to EUR 149.4 million (EUR 140.3 million). An amount of EUR 83.6 million was withdrawn from the equalisation reserve and similar provisions in the year under review, after an allocation of EUR 186.6 million in the previous year.

Casualty

Gross premium in casualty business climbed by 19.3% to EUR 1,400.9 million (EUR 1,174.7 million). The loss ratio decreased from 104.5% to 82.6%. The underwriting result consequently improved to -EUR 69.5 million (-EUR 276.0 million). An amount of EUR 139.6 million was allocated to the equalisation reserve and similar provisions in the year under review; the withdrawal in the previous year had totalled EUR 88.7 million.

Accident

Gross premium increased by 4.4% to EUR 329.8 million (EUR 316.0 million). The loss ratio rose from 57.4% to 70.3%. The underwriting result came in at EUR 9.9 million, after EUR 32.2 million in the previous year. An amount of EUR 23.7 million was withdrawn from the equalisation reserve and similar provisions, following an allocation of EUR 2.9 million in the previous year.

Motor

Gross premium income for the motor line surged by a very substantial 51.2% to EUR 1,423.6 million (EUR 941.7 million). The loss ratio deteriorated to 85.5% (39.1%). The underwriting result closed at -EUR 159.4 million (EUR 138.2 million). An amount of EUR 13.1 million was withdrawn from the equalisation reserve and similar provisions in the year under review, after an allocation of EUR 69.3 million in the previous year.

Aviation

The gross premium volume rose by a modest 1.8% from EUR 343.6 million to EUR 349.7 million. The loss ratio improved markedly from 102.1% to 77.8%. The underwriting result came in at EUR 2.5 million (-EUR 60.7 million). Following a withdrawal of EUR 34.4 million in the previous year, an amount of EUR 15.5 million was allocated to the equalisation reserve and similar provisions in the year under review.

Marine

Gross written premium nudged slightly higher by 0.7% to EUR 436.9 million (EUR 433.8 million). The net loss ratio rose from 62.2% to 74.3%. The underwriting result consequently contracted from EUR 39.4 million to EUR 8.2 million. An amount of EUR 48.2 million (EUR 91.3 million) was allocated to the equalisation reserve and similar provisions.

Life

Gross premium income in the life line grew by 47.0% in the financial year just ended to EUR 5,998.7 million (EUR 4,082.0 million). Business in the year under review was still heavily shaped by the generally very challenging market climate in Europe. Particularly in the markets of Northern and Western Europe, conditions continued to be competitive in the area of traditional life insurance covers. Asian markets as well as those of Central and Eastern Europe are exhibiting stronger interest in automated underwriting systems and innovative life insurance concepts. Generally speaking, it was noticeable that demand for long-term care and longevity insurance solutions increased in all markets. Innovative concepts such as lifestyle products also enjoyed stronger demand. Our international orientation is vital to our success in writing new business worldwide. We are thereby able to ensure sustainable earnings growth.

The underwriting result improved to EUR 163.3 million (-EUR 19.5 million) in the year under review. Our life and health reinsurance portfolio thus developed in line with our expectations. Financial solutions business comfortably outperformed its target.

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 climbed by 14.7% to EUR 2,609.4 million (EUR 2,274.9 million). The loss ratio improved to 68.4% (74.1%). The underwriting result closed at EUR 54.0 million, after -EUR 8.9 million in the previous year. An amount of EUR 53.4 million (EUR 50.6 million) was allocated to the equalisation reserve and similar provisions.