According to the presentation at Baden-Baden on 20 October 2025, demand for high-quality reinsurance protection has continued to grow in the current financial year, enabling E+S Rück to further expand its premium volume. After the heavy losses recorded in previous years, expenditures due to natural catastrophes have so far remained moderate, while motor insurance has similarly enjoyed a significant recovery. At the same time, German insurers still find themselves facing a complex environment. Geopolitical uncertainties, extreme weather events caused by climate change and claims inflation continue to create challenges for the insurance sector. Against this backdrop, it remains crucial for E+S Rück that prices as well as terms and conditions adequately reflect the risks in order to offer stable reinsurance protection over the long term, the press release said.
German motor insurance, the largest line of property and casualty insurance by volume, has enjoyed a significant recovery in 2025 following successful remedial actions taken by primary insurers and thanks to lower-than-average expenditures to date on natural perils claims. After two years of heavy losses, E+S Rück expects to see the sector post an underwriting profit again for the first time in 2025.
After the heavy losses incurred in previous years, claims expenditures in natural catastrophe business have been moderate to date. Prudent underwriting and risk-adequate prices nevertheless remain indispensable – irrespective of the claims experience over the remainder of the financial year. Looking ahead to the coming year, E+S Rück expects its business to see a continued increase in demand overall for natural catastrophe covers.
In industrial and commercial business, a softening price trend can be observed in the property line. The number of large fire losses is down year-on-year, while claims expenditure due to natural perils is significantly below average – with positive implications for profitability. In the liability line, the market remains challenging: business is shaped by considerable pricing and competitive pressure, especially in directors and officers (D&O) insurance. In addition, emerging risks and geopolitical uncertainties are increasingly becoming a focus of attention for risk assessment.
The specialty lines of marine and aviation are currently feeling the effects of geopolitical events and tensions combined with existing surplus capacity. Conditions are therefore expected to remain broadly unchanged, while prices will reflect individual customer claims experiences and exposures. The importance of cyber insurance has been repeatedly demonstrated by both more modest incidents and sizeable individual losses. E+S Rück expects to see growing demand in cyber business, especially for non-proportional covers.
"Our clients know: We are always at their side as a reliable and consistent partner – even when the market environment is challenging", said Thorsten Steinmann, Chief Executive Officer of E+S Rück, at this year's reinsurance meeting in Baden-Baden. "Our strong and enduring business relationships coupled with our robust capital base will enable us to generate further profitable growth – together with our clients. Thanks to our business model as a pure-play reinsurer, we offer the entire spectrum of reinsurance coverage and are keen to explore innovative reinsurance concepts, including for example structured solutions for capital management", the CEO added.
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