Western and Southern Europe
Primary insurance business in France fared satisfactorily. Rates bottomed out in 2008 after three years of declines. The motor line, in which the rate level on the reinsurance side was still insufficient, remained problematic.
In light of this situation we are not seeking to increase our market shares, but instead focus primarily on profitability.
In the year under review we continued to optimise our portfolio in builder's risk insurance and pursued a longterm strategy of consistent expansion. Operations at our Paris office for life reinsurance business were extended in 2008 to include facultative and treaty reinsurance in the personal accident line.
+++ Involvement in builder's risk insurance stepped up +++
With the exception of the fire in the Eurotunnel there were no significant loss events on the French market. The strain incurred by Hannover Re from this event was in the order of EUR 6.3 million for net account. Our premium volume was slightly scaled back in the year under review.
Amalgamations among smaller players were the hallmark of the primary insurance market in the Netherlands in the year under review. Further insurers will find themselves forced to merge in the face of the looming high costs With the exception of the fire in the Eurotunnel there were no significant loss events on the French market. The strain incurred by Hannover Re from this event was in the order of EUR 6.3 million for net account.
Our premium volume was slightly scaled back in the year under review.
Amalgamations among smaller players were the hallmark of the primary insurance market in the Netherlands in the year under review. Further insurers will find themselves forced to merge in the face of the looming high costs associated with fulfilment of Solvency II standards. The financial market crisis also hit a number of insurers in the Netherlands, who felt compelled to take up government offers of assistance. The Dutch part of a major Belgian- Dutch group passed into state ownership. There were no negative repercussions for the reinsurance industry. Rather, it can be anticipated that the crisis on financial markets will prompt stronger demand for reinsurance covers. The intense price competition in industrial property business showed no signs of abating.
In the Netherlands we devoted special attention in the year under review to non-proportional niche segments, including for example reinsurance for greenhouses and public entities liability business. In view of the favourable rates in the casualty sector, we expanded our portfolio in this line.
Our premium volume from the Dutch market remained virtually unchanged.
The burden of losses incurred by Hannover Re in the year under review was moderate: while catastrophe business was spared losses – with the exception of a sizeable regional hailstorm –, the blaze at Delft University of Technology caused the largest fire claim hitherto recorded in Dutch property business. Based on the loss information currently available, the original claim is in the order of EUR 140 million. Our share of this loss will come in at a modest EUR 1 million.
All in all, we were satisfied with the development of our business in the Netherlands.