Western and Southern Europe
Italy
Hannover Re is considered one of the leading reinsurers in the Italian market. Despite cutthroat competition, we were able to consolidate our core portfolio of qualitatively high-value business and moderately extend our involvement. Assisted by an above-average rating, we are thus in a position to tap into a sizeable business potential.
Yet we are not aiming to gain market shares. Rather, our overriding goal is to avoid impairing the profitability of our portfolio. We make every effort to convert low-margin proportional business to a more profitable non-proportional basis.
In terms of results, the year under review was unable to build on the very good performances of the past six years. This was due to the major loss experience. The severe earthquake in Abruzzo cost our company EUR 11.2 million. The train accident in Viareggio left us with a burden of around EUR 5 million.
France
Rates in France largely held stable. Our goal was to preserve the profitability of our portfolio in the face of a sometimes unsatisfactory premium level. We largely accomplished this aim, although the motor line – in which prices are insufficient – still proved problematic. Hannover Re is the number two player in the market, and we are the leader in the builder's risk and personal accident lines.
In builder's risk insurance we are pursuing a long-term strategy of consistent expansion. We therefore continued to grow our portfolio in 2009, and now rank among the market leaders.
We enlarged our overall premium volume. France was impacted by a number of natural catastrophe events in the year under review, including winter storm “Klaus”. The resulting loss burden was modest, however, owing to our low share of catastrophe-exposed business.
Netherlands
Faced with higher capital requirements in order to fulfil Solvency II standards, smaller insurers in the Netherlands are finding themselves forced to merge. This trend was observed again in the year under review. The more exacting requirements placed on risk management ultimately prompted the purchase of more catastrophe covers.
In the Netherlands we devote special attention to non-proportional business. Hannover Re's strategic objective is to increase the share of its Dutch business deriving from the casualty lines. In light of the favourable rates situation in long-tail casualty business, we therefore moderately enlarged our portfolio. The fierce competition prevailing in property business, however, remained undiminished.
We incurred a high frequency of property claims in the year under review, hence pushing up the loss ratio relative to the previous year.
Our premium volume from the Dutch market remained virtually unchanged.