BADEN-BADEN, Germany--(BUSINESS WIRE)--Reinsurer E+S Rück - which bears responsibility for German business within the Hannover Re Group - is looking with optimism towards the treaty renewals as at 1 January 2012 in its domestic market. 'The claims situation and the prevailing uncertainties on financial markets - together with the associated challenge of generating sufficient investment income - should promote considerable discipline on the technical pricing side', Michael Pickel, Member of the Executive Board, stated at a press conference in Baden-Baden. 'We anticipate stable conditions overall, and allowing for the current financial climate this means that the profitability requirements in the portfolio can be maintained.'
The picture in the individual lines of business is a mixed one: industrial property and casualty business, for example, is the scene of fierce competition. Price erosion in the original business is expected above all in property insurance. With this in mind, the company intends to write its business highly selectively. On the casualty side, by contrast, stable rates are to be anticipated.
In motor business - an important line for the company - stable reinsurance conditions are to be expected on the liability side; this is based on the assumption that premium income will rise. In own damage business the natural hazards events of August and September coupled with claims from prior years have led to high loss ratios, as a consequence of which price increases are to be anticipated.
The accumulation of natural disasters and the planned implementation of Solvency II will likely be reflected particularly prominently in rates for catastrophe covers. 'It is our assumption that clients will reconsider the scope of their coverage and purchase additional capacities', Pickel noted. Prices should trend upwards on the back of the current claims expenditures and those of previous years. The latest model adjustments made by the provider RMS will probably also have an impact here.
Renewable energies offer vast potential for reinsurers. Complementary to traditional insurance products, E+S Rück offers its clients energy saving warranties as well as protection against weather-related losses of revenue and profit. The company intends to respond to customer demand by further expanding its range of products and services. 'We are working together with our partners on solutions designed to safeguard the insurability of energy-efficient technologies', Pickel emphasised.
All in all, E+S Rück again sees attractive business opportunities for the 2012 financial year and is looking to generate further profitable expansion of its already large market share.
Please visit: www.hannover-re.com
E+S Rück - a subsidiary of Hannover Re - is responsible for German business within the Group, although it also has an interest in developments on the international (re)insurance markets through retrocession arrangements with other Group companies. It is the second-largest non-life reinsurer in the German market. The rating agencies most relevant to the insurance industry have awarded Hannover Re as well as E+S Rück very strong insurer financial strength ratings (Standard & Poor's AA- 'Very Strong' and A.M. Best A 'Excellent').
Disclaimer: Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Hannover Re and its affiliates does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will E+S Rück and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.
| Language: | English | ||
| Company: | Hannover Rückversicherung AG | ||
| Karl-Wiechert-Allee 50 | |||
| 30625 Hannover Germany | |||
| Phone: | +49-(0)511-5604-1500 | ||
| Fax: | +49-(0)511-5604-1648 | ||
| E-mail: | |||
| Internet: | |||
| ISIN: | DE0008402215 | ||
| WKN: | 840 221 | ||
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart; Terminbörse EUREX | ||