North America incl. Bermuda
Responsibility for the US market is borne by our Orlando-based subsidiary Hannover Life Re America, which concentrates on the underwriting of financially oriented covers for US clients, supplementary private health insurance for seniors and a number of other US specialty segments.
+++ Sharp rise in premium income at US subsidiaries +++
The English-speaking Canadian market plays a minor role in our assumed business. Canada is, however, home to Hannover Life Re's most important retrocessionaires, with whom we work together on a long-term basis; they are of considerable significance to our worldwide risk management with respect to large and complex individual risks that surpass our retention.
In the United States we closed the largest block assumption transaction involving US individual life business in the history of Hannover Life Re; the transaction encompassed the monetisation of embedded values in several portfolios of endowment insurance.
The gross premium volume booked by Hannover Life Re America totalled EUR 613.6 million (EUR 508.6 million) in the year under review, an increase of 20.7%.
This company too was significantly affected by fair-value adjustments to securities deposits (B36), as a consequence of which the operating result (EBIT) slipped into the red at -EUR 17.7 million (after an operating profit of EUR 8.7 million in the previous year); net income after tax came in at -EUR 12.6 million (EUR 4.9 million).
The Hamilton-based Hannover Life Re Bermuda, our subsidiary that was newly established in 2007, can report a gratifying business development in its first full financial year. It systematically consolidated its position as a specialist within the Hannover Life Re network and acquired its first clients in Bermuda, the Caribbean, the United Kingdom, South Africa and the United States. Gross premium totalled EUR 29.5 million, producing an operating profit (EBIT) of EUR 9.2 million. This operating profit is identical to the net income after tax.