Development of the individual lines of business

The following section describes the development of the various lines of business. With effect from the beginning of the 2014 financial year the cooperation and exchange of business between Hannover Rück SE and E+S Rückversicherung AG was reorganised. In this context a quota share retrocession from Hannover Rück SE to E+S Rückversicherung AG has since been maintained in property and casualty reinsurance.

Fire

Total gross premium income for the fire line climbed by 12.7% in the 2018 financial year to EUR 2,213.3 million (EUR 1,963.4 million). The net loss ratio was virtually unchanged at 75.2% (75.7%). The underwriting result improved to EUR -56.5 million (EUR -122.5 million). An amount of EUR 54.1 million (EUR 337.2 million) was withdrawn from the equalisation reserve and similar provisions.

Casualty

Gross premium in casualty business rose by a modest 0.4% to EUR 1,590.1 million (EUR 1,584.0 million). The loss ratio increased from 44.3% to 91.9%. The underwriting result consequently deteriorated in the year under review to EUR -195.1 million (EUR 349.5 million). An amount of EUR 64.4 million was withdrawn from the equalisation reserve and similar provisions; the allocation in the previous year had totalled EUR 305.1 million.

Accident

Gross premium income for the accident line increased by 16.4% in the year under review to EUR 391.1 million (EUR 336.1 million). The net loss ratio retreated to 48.9% (64.6%). The underwriting result came in at EUR 34.7 million (EUR 18.0 million). After a withdrawal of EUR 24.9 million in the previous year, an amount of EUR 13.3 million was allocated to the equalisation reserve and similar provisions.

Motor

Gross premium for the motor line grew by 31.8% to EUR 2,452.3 million (EUR 1,860.8 million). The loss ratio decreased from 85.6% to 78.4%. The underwriting result closed at EUR -176.5 million after EUR -247.5 million in the previous year. An amount of EUR 27.5 million was allocated to the equalisation reserve and similar provisions, following a withdrawal of EUR 60.5 million in the previous year.

Aviation

The gross premium volume contracted by 5.3% from EUR 238.1 million to EUR 225.4 million. The loss ratio deteriorated sharply to 63.1% (-42.7%). The negative figure in the previous year had been influenced by the ending of a legal dispute, which led to the release of reserves. The underwriting result came in at EUR 18.6 million (EUR 198.6 million). An amount of EUR 3.3 million was allocated to the equalisation reserve and similar provisions in the year under review, after a withdrawal of EUR 57.1 million in the previous year.

Marine

Gross written premium for the marine line fell by 4.1% in the 2018 financial year to EUR 329.3 million (EUR 343.2 million). The net loss ratio improved appreciably from 96.2% to 37.9%. The underwriting result closed at EUR 75.8 million (EUR -35.8 million). An amount of EUR 9.8 million was allocated to the equalisation reserve and similar provisions in the year under review, following a withdrawal of EUR 28.6 million in the previous year.

Life

Gross premium income in the life line totalled EUR 4,236.5 million (EUR 4,104.9 million) for the period under review. Life and health reinsurance business has a clear international focus. We write our business on all continents and in many instances we are directly available as a local point of contact thanks to our extensive network. In addition to traditional mortality-oriented life reinsurance we write financial solutions business as well as health and longevity risks on a worldwide basis.

The underwriting result in life business amounted to altogether EUR 29.6 million (EUR 29.3 million) for the reporting period.

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 gross premium volume in the other lines grew by 11.9% to EUR 3,202.8 million (EUR 2,862.4 million). The net loss ratio decreased from 80.9% to 65.6%. The underwriting result came in at EUR 269.3 million after EUR -202.3 million in the previous year. An amount of EUR 39.4 million (EUR 37.2 million) was allocated to the equalisation reserve and similar provisions.