Equity capital before appropriation of profit rose by more than EUR 17 million to EUR 529.2 million. "Deutsche Ruck has continued its solid performance of previous years with a combination of growth and a strengthening of its assets," CEO Frank Schaar said.
Growth in gross premium income to EUR 1.2 billion came from non-life and life reinsurance and was attributable to connections in both Group of German Public Insurers and market business.
In terms of claims, the positive trend from previous years continued. In particular, liability, accident and motor insurance business as well as fire business contributed to the improvement in the gross loss ratio from 58.1% to 56.0%. Expenses for insurance operations remained stable at the parent company and fell significantly at DR Swiss. This is reflected in the improvement of almost six percentage points in the net expense ratios for the business as a whole (to 30.6%) and non-life business (to 29.3%). "The Deutsche Ruck Group thus remains highly competitive in relation to other reinsurers," Mr Schaar said.
The good performance of previous years continued with a combined ratio in non-life business of 96.4% in net terms. "At the same time, we're maintaining our policy of very conservative allocations to provisions," Mr Schaar said. The equalization reserves were strengthened significantly by EUR 23.8 million.
In view of persistently low interest rates, the Group is highly satisfied with its investment income, which, at EUR 57.2 million, is well above the previous year's figure of EUR 41.3 million.
Including the technical result, the Group achieved a slightly improved operating result before tax of EUR 24 million. After deduction of tax expenses, which had almost doubled owing to changes in tax legislation, this positive result led to a net profit for the year of EUR 3 million.
A change in the business model in residual credit business is expected to lead to a significant reduction in gross premiums in the current financial year. "We also expect some of our cedants to increase their retentions," Mr Schaar said. "However, we will offset most of this decline through increases in our share and natural growth." The negative impact of storms in the spring of 2018 was in line with Deutsche Ruck's expectations.
The Deutsche Ruck Group consist in Deutsche Ruckversicherung AG and its subsidiary Deutsche Ruckversicherung Switzerland Ltd. The annual reports of the Group and both individual companies can be found on the website at www.deutscherueck.com under the heading 'Press and Downloads'.
About Deutsche Ruck
Deutsche Ruckversicherung AG and its subsidiary Deutsche Ruckversicherung Switzerland Ltd offer reinsurance cover on the European insurance market. Thanks to outstanding long-term credit ratings and consistent market performance, the group companies are much sought-after and well-established in Germany as leading reinsurers. In 2017 the Deutsche Ruck Group generated gross premiums of EUR 1.2 billion.
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