DGAP-News: Hannover Rückversicherung AG / Key word(s): Miscellaneous
Hannover Re subsidiary expects prices to move broadly higher in the
German market
22.10.2012 / 13:30
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Hannover Re subsidiary expects prices to move broadly higher in the German
market
Baden-Baden, 22 October 2012: E+S Rück - which bears responsibility within
the Hannover Re Group for German business - anticipates stable or rising
prices in its domestic market for the upcoming treaty renewals on 1 January
2013.
'Even though the situation in motor insurance has improved, we still see
some ground to be made up in a number of lines. Along with windstorm
business, the fire line is also a cause for concern in this regard',
Michael Pickel, a member of the company's Executive Board, explained during
the reinsurance week in Baden-Baden.
The stubbornly low interest rate level continues to pose a special
challenge, especially for long-tail liability lines. In the face of
diminished investment returns it remains the case that considerable
discipline is needed on the technical pricing side.
All in all, Pickel is looking to rate increases and stronger demand for
reinsurance protection on the German market.
When it comes to the individual lines of business, the picture is a mixed
one. In motor insurance - which is of key importance to E+S Rück since the
company is market leader in the reinsurance of this business in Germany -
the positive trend should be sustained: in liability business as well as
the own damage sector prices are likely to rise further on both the
insurance and reinsurance side in the wake of the unsatisfactory results
posted in the current cycle.
A trend reversal is needed in industrial fire/property insurance, which is
notable for a high claims frequency. Business with private customers is
also under strain: homeowners' insurance is running at a chronic deficit,
not least owing to the numerous frost claims incurred in this line at the
beginning of the year.
In the area of catastrophe covers Pickel expects to see rising demand
overall. This will be prompted by model adjustments and the more exacting
equity requirements imposed on insurers by Solvency II.
E+S Rück is also enjoying continued success in the field of product design
for personal accident insurance. The company has worked together with
various primary insurers to create consumer-friendly protection in the form
of so-called hybrid products - which also provide benefit entitlements in
case of illness. 'Thanks to a new automated risk assessment tool our
clients are now able to reach an insurance decision even more quickly',
Pickel emphasised.
E+S Rück is again looking forward to attractive business opportunities in
2013 and hopes to generate further profitable expansion of its already
large market share.
For further information please contact:
Media Relations:
Gabriele Handrick (tel. +49 511 5604-1502,
e-mail: gabriele.handrick@hannover-re.com)
Corporate Communications:
Karl Steinle (tel. +49 511 5604-1500,
e-mail: karl.steinle@hannover-re.com)
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+ 'Superior').
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.
End of Corporate News
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22.10.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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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: info@hannover-re.com
Internet: www.hannover-re.com
ISIN: DE0008402215
WKN: 840 221
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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189447 22.10.2012
DGAP-News: Hannover Re subsidiary expects prices to move broadly higher in the German market
| Source: EQS Group AG