Central and Eastern Europe
The primary insurance markets of Central and Eastern Europe enjoyed above-average growth in the first six months of the year under review, although this slowed in the second half on account of the global financial market crisis. Rates in original business continued to decline in the face of undiminished intense competition.
+++ Strategic focus on Central and Eastern Europe +++
The situation on the reinsurance side was more favourable: conditions and rates held stable with few exceptions.
For Hannover Re the countries of Central and Eastern Europe constitute a clear strategic focus as growth markets. We rank among the three market leaders in this region and offer reinsurance covers across all lines. As long as profitable business opportunities continue to be available going forward, we intend to pursue further growth.
Our underwriting policy in these markets is opportunistic, and we prefer non-proportional treaties. It is gratifying to note that ceding companies are increasingly showing interest in replacing their proportional cessions with nonproportional covers. In the year under review we observed growing demand for higher limits – as clients raised their retentions – and additional capacity for natural catastrophe risks. Against this backdrop we continued to enlarge our portfolio.
2008 was notable for an increased number of small and mid-sized claims. A severe fire claim occurred in Russia. Winter storm "Emma" caused relatively heavy losses in the Czech Republic, Slovakia and Hungary, while Slovenia was impacted by heavy hailstorms in July and August. The strain for Hannover Re's account was moderate, however, enabling us to generate another gratifying profit in this region.
Our expertise in the Russian market was also honoured by the award of two distinctions as best reinsurance company in the year under review. Hannover Re gained plus points for its undogmatic and quick decision-making as well as for its customer-oriented products.