Dusseldorf-headquartered international multiline reinsurer, Deutsche Rück Group, further expanded its business in the 2024 financial year while simultaneously strengthening its financial position, the group said in a statement released yesterday.
Gross premiums written grew in all business areas, rising significantly by 18.3% to around EUR2.1bn ($2.4bn). Net premiums earned increased by 17.5% to EUR1.4bn. Growth came from both international markets and the German domestic market.
“We grew strongly and profitably in all business areas in 2024,” said Mr Frank Schaar, CEO of the Deutsche Rück Group. Schaar. “Our strategy of gradually and purposefully internationalising our business over the recent years is paying off.”
Claims
“Claims were on a satisfactory level in 2024,” said Mr Schaar. “We are well below our calculated expectations in both Nat CAT and fire business.”
Nevertheless, gross claims incurred were higher than in the previous year, partly due to flooding caused by the ORINOCO-QUIRINA-RADHA and ANETT (also known as BORIS) low-pressure systems in Europe and heavy rainfall in the Middle East.
Thanks to Deutsche Rück Group's retrocession programme focused on property business, the net claims incurred rose only moderately.
Expansion of life insurance business
In the 2024 financial year, the Deutsche Rück Group expanded its life and health reinsurance business to the markets of the Middle East and North Africa.
Overall, the reinsurer achieved a net profit after taxes of EUR14.5m (previous year: EUR12.0m).
A high allocation to the equalisation reserves and similar provisions of EUR114.8m further contributed to strengthening the Deutsche Rück Group's financial position.
“Our financial strength is an important factor in the expansion of our international business,” said Mr Schaar. “We expect further premium growth for 2025.”
In a report released in December 2024, Standard & Poor’s highlighted Deutsche Rück Group's internationalisation strategy, which is acting as a driver for greater diversification of the portfolio and more growth. In recent years, the reinsurer initially entered the standard property and casualty business in the Middle East, Latin America and South, Southeast and East Asia. The internationalisation of life and health reinsurance business activities has also been underway. In addition to its core markets of Germany and Austria, Deutsche Rück Group now also writes life and health business in selected countries in the Middle East and Maghreb region.