Deutsche Rück reports further Asian growth
Asia, Middle East and LatAm focus for German reinsurer
Deutsche Rück Group further expanded its business in 2023, including Asia, while simultaneously strengthening its asset base, reported the German reinsurer.
Group gross premium income rose strongly by 16.8% to just under €1.8bn in 2023, while net premiums earned were up 18.3 % at €1.2bn.
“This strong growth came both from international markets in the Middle East, Latin America and Asia and from our domestic market of Germany,” said the reinsurer.
“We are very satisfied with this result because it shows we are achieving strong, profit-oriented growth not only in our domestic market of Germany, but also in international markets,” said Frank Schaar, chief executive officer of the Deutsche Rück Group.
“Having underwritten property and casualty reinsurance risks throughout Europe for over a decade, the Deutsche Rück Group has expanded its focus in recent years to include the Maghreb region, the Middle East, Latin America and South, East and Southeast Asia, and in future will also underwrite life insurance business in the Middle East and North Africa,” added the group.
The German reinsurer recorded the strongest premium growth in the property insurance segment, which accounts for more than two-thirds of gross premiums. Premium income grew by 22.0% to €1.2bn in this segment. Gross premiums in liability, accident and motor insurance business were also up by 5.9% at around €392m.
The gross claims burden in natural hazard lines was significantly lower than in the previous year. The largest losses related to the summer storms Kay, Lambert and Denis in Germany, hailstorms Tisna and Unai in Italy and Hurricane Oris in Mexico, with total claims of around €81m.
Deutsche Rück was another reinsurer that benefited from a turnaround in investment income as it generated €81.9m, a significant improvement on the previous year’s figure of €33.1m. In total, the Deutsche Rück Group achieved an operating result before tax of €12m.
Across the sector, the group took the opportunity to further strengthen its equalisation reserves and similar provisions with an addition of €30.2m. The group’s total security – including net claims provisions and net provisions for future policy benefits – thus increased to around €2.8bn.
“The strength of our assets works in our favour when it comes to expanding our international business,” Schaar said, adding that this would contribute to the further geographical diversification of the group’s portfolio. “We expect this strong growth trend to continue in all market regions in 2024,” he added.
