German residential insurers' business result positive for the first time in 15 years
For the first time since 2001, in 2016 there has been a slight gain in residential property insurance in Germany, says a recent statement of GDV - the German Insurers' Association. The company's combined ratio last year was 97% (previous year: 101.4%), according to current industry figures. GWP for residential insurance amounted to EUR 6.8 billion while paid benefits were worth EUR 4.7 billion.
The main reason for the development is that in the second half of last year there were hardly any major natural catastrophes with high insurance losses in Germany. "In 2016 the residential building insurers therefore came out with a blue eye because in spite of the violent summer storms, especially in the south and west of Germany, it was an under-average natural season," said GDV Managing Director Bernhard Gause.
Overall, the companies in the property and casualty insurance sector recorded a contribution margin of 2.8% to EUR 66.2 billion in 2016. All divisions recorded revenue gains. At the same time, the gross expenses for insurance claims climbed by 2.8% to EUR 49.5 billion. The combined ratio is expected to be around 96%.
In motor insurance, the volume of contributions increased by almost 3% to EUR 25.9 billion; but the services increased by almost 4% to EUR 22.7 billion. This resulted in an insurance profit of around EUR 300 million.
Property insurance came to EUR 18.6 billion, 3.5% more than in 2015. Services rose by 3.1% to EUR 13.4 billion. The actuarial profit amounted to approximately EUR 300 million euros.