United Kingdom
For many years we have devoted special attention to the UK market, the most significant European life reinsurance market. We participate not only in traditional risk-oriented business but also in the area of enhanced annuities with a reduced payment period.
While traditional reinsurance relationships were adversely impacted by slowing new business on the back of the mortgage crisis, the vitality of the private annuity segment was undiminished. We significantly extended our customer base in this area and have considered ourselves the market- leading reinsurer for many years.
Ceding companies from this market are reinsured by various risk carriers within Hannover Life Re: the parent company Hannover Re, Hannover Life Re United Kingdom, Hannover Life Re Ireland and - since 2008 - by our new subsidiary Hannover Life Re Bermuda. For the first time we concluded a number of block assumption transactions for existing pension funds under which we assume the longevity risk for a defined group of pensioners.
Gross written premium contracted by 7.6% to EUR 857.1 million (EUR 927.4 million) on account of the weakness of the pound sterling; of this amount, 43.0% was attributable to business written by Hannover Re, 21.4% to Hannover Life Re United Kingdom, 32.8% to Hannover Life Re Ireland and 2.8% to Hannover Life Re Bermuda.
The technical results from this market were once again most gratifying for the mortality and critical illness risk categories, while for the longevity risk they were within the actuarially expected bounds.
With net premium of EUR 100.7 million (+7.8%) and an operating profit (EBIT) of EUR 22.8 million (EUR 26.3 million), our UK subsidiary Hannover Life Re United Kingdom based in Virginia Water outside London delivered a very pleasing result; net income after tax came in at EUR 16.5 million (EUR 19.7 million).