Core Gross Net Premium Written (GNPW) of AGCS (i.e. premium net of fronting and facultative reinsurance) increased year-over-year by EUR 487 million to EUR 2.508 billion (Q1 2022: EUR 2.021 billion) driven by strong new business, higher rates on renewals (7% on average incl. adjustment for terms and conditions) as well as a higher renewal base in multiple lines of business.
Almost all lines of business achieved year-overyear growth, especially Alternative Risk Transfer, MidCorp and Property.
The Core Combined Ratio for Q1 2023 is roughly in line with prior year and stands at 93.2% (Q1 2022: 93.0%). The improvement in both the current accident year loss ratio, benefitting from higher interest rates leading to a higher claims reserve discounting benefit, and the expense ratio is offset by a higher reinsurance ratio. The profitable underwriting performance allowed for an additional build-up of reserves, mainly to address inflation risks.
The Operating Profit for Q1 2023 of EUR 202 million (Q1 2022: EUR 182 million) is EUR 20 million better than prior year mainly due to a better insurance service result.