Germany: Deutsche Rück expands its business and strengthens assets
Source: Middle East Insurance Review | Jun 2023
In the 2022 financial year, the Deutsche Rück Group expanded its business further and also strengthened its long-term asset base, the company said in an announcement last month.
Income from gross premiums written climbed by 8.3% to more than EUR1.5bn ($1.62bn), while gross claims expenditure declined significantly. The group’s total security increased to over EUR2.4bn.
Following the significant impact of the BERND natural catastrophe event the previous year, 2022 again saw major losses in the natural hazard lines. However, the resulting impact was well below that of the year before. The biggest event for the Deutsche Rück Group was the Ylenia–Zeynep–Antonia series of winter storms (also known as Dudley, Eunice and Franklin), which led to gross losses of EUR109.2m. Total gross claims expenditure declined to under EUR1bn and the gross loss ratio improved accordingly from 80.2% to 66.2%. The net loss ratio fell likewise from 73.2% to 62.2%.
The net technical account before changes to equalisation reserves closed with a profit of EUR57.1m. In contrast, investment income was impacted by write-downs, coming in at EUR33.1m. In total, the Deutsche Rück Group generated an operating result before tax of EUR15.7m.
“We are very satisfied with this result as we were once again able to strengthen our asset base,” said Deutsche Rück Group CEO Frank Schaar. A total of EUR66.7m was allocated to the equalisation reserves and similar provisions. The group’s total security – including net provisions for outstanding claims and for future policy benefits – thus increased to over EUR2.4bn. M