Ireland
Since its establishment in 1999 our Dublin-based Irish subsidiary Hannover Life Re Ireland has designed and implemented tailored reinsurance solutions for an international clientele comprised primarily of large life insurers with first-class ratings in the United States, United Kingdom and Continental Europe.
The contraction in the premium volume to EUR 502.7 million (EUR 586.8 million) in the year under review was crucially driven by the strength of the euro against our two main currencies - the pound sterling and US dollar. The technical result, especially from UK business, did not quite pick up on the previous year's performance. The significant strain on the company's profitability was incurred in the investment sector, however, as a consequence of fair value adjustments (B36) in excess of EUR 29 million for securities deposits furnished to US cedants.
Following the exceptionally high operating profit (EBIT) of the previous year (EUR 45.0 million), which had been heavily shaped by positive special effects, net income after tax amounted to EUR 0.7 million in the year under review.