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Hannover Re subsidiary expects stable prices for upcoming January 2010 treaty renewals in Germany
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| Copyright: | Unknown | | Source: | Market Wire | | Wordcount: | |
HANNOVER, GERMANY -- (MARKET WIRE) -- 10/26/09 --
Hannover Re subsidiary expects stable prices for upcoming January
2010 treaty renewals in Germany
Baden-Baden, 26 October 2009: On the occasion of its press lunch
in
Baden-Baden E+S Rück - which bears responsibility for German
business
within the Hannover Re Group - described the climate prevailing
on
the German market as largely favourable. "Conditions improved
in
2009, not least due to the capacity shortage triggered by
the
financial market crisis. Given the current state of the
primary
insurance markets, these conditions should at least be
maintained
this year", Michael Pickel, Member of the Executive Board,
explained.
For 2010 the company anticipates a mixed picture as far
as
reinsurance prices are concerned. In industrial property business
the
price decline of recent years is likely to continue. E+S Rück
will
write its business highly selectively in the face of a
fiercely
competitively environment.
In industrial liability business the company expects the
competitive
climate on the primary insurance market to remain
unchanged.
Prospects on the reinsurance side, however, are brighter: owing
to
the importance of a very good rating for reinsurers in
casualty
business, the capacities available on the market are of
course
limited. "It is our expectation that prices and conditions here
will
continue to be commensurate with the risks", Mr. Pickel
emphasised.
In motor liability business, an important line for E+S Rück,
the
company expects rates for non-proportional covers to rise. This
can
be attributed in part to sharply reduced premium income in
primary
insurance business and also to lower investment income.
In accident reinsurance E+S Rück does not rely merely on
the
traditional assumption of risks, but also offers product
innovations:
these include, for example, a combined personal accident
annuity
product that represents a cost-effective alternative to
disability
insurance.
Mr. Pickel anticipates a stable price level in catastrophe
business,
adding: "The Solvency II project initiated by the European
Commission
could further boost demand, especially for catastrophe covers -
which
should have positive implications for prices".
The burden of catastrophe losses in the current year to date has
been
moderate relative to 2008: winter storm "Klaus" and the collapse
of
the Cologne City Archive cost E+S Rück a mere
EUR 8 million altogether. The scale of the hailstorms recorded
this
year has, however, been considerable, although their relevance
as
losses on the reinsurance side is not appreciable.
All in all, E+S Rück - as the reinsurer for Germany within
the
Hannover Re Group - is again looking to attractive
business
opportunities in 2010 and hopes to continue the profitable
expansion
of its already large market share.
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. By
adding
blocks of foreign business E+S Rück is able to extend
the
geographical spread of its portfolio, hence improving its
risk
diversification and stabilising earnings.
E+S Rück 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.
This announcement was originally distributed by Hugin. The issuer
is
solely responsible for the content of this announcement.
Copyright © Hugin AS 2009. All rights reserved.
For further information please contact:
Press and Public Relations / Investor Relations:
Stefan Schulz (tel. +49 511 5604-1500,
e-mail: Email Contact)
Press and Public Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: Email Contact)
Please visit: www.hannover-re.com
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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