Development of premium income

The gross premium income booked in the year under review totalled EUR 4.5 billion, an increase of 44.5% relative to the previous year's figure of EUR 3.1 billion. While the assumption of the US portfolio accounted for EUR 0.8 billion in premium volume, organic growth in the year under review was also on a pleasing double-digit percentage level. At constant exchange rates the gross premium would have grown by 46.2%. Net premium earned came in at EUR 4.1 billion, while the retention stood at 90.7%.

The United States took over as the most important single market for the first time thanks to the acquisition of the US mortality portfolio: it accounted for 37.3% of total premium income in the year under review. The United Kingdom, by far the largest European life reinsurance market, now ranks second with 24.0%, while the German market occupies the number three slot with 9.6%.

Further key markets for Hannover Life Re are Australia, France, South Africa, Italy and Luxembourg, while the Asian markets and those of Latin America are of less importance in terms of their absolute volume.

Our acceptances continue to be concentrated on the life and annuity lines, i.e. the assumption of mortality and longevity risks, which altogether contributed 86.6% of total premium income booked worldwide.

The morbidity risk spectrum, which encompasses above all US senior health Medicare Supplement products, longterm care covers in German-speaking countries and some Asian markets as well as disability annuities in Australia, accounted for 11.5% of premium volume, while 1.9% was attributable to individual accident business from various countries. We do not participate in the reinsurance of long-term financial guarantees in connection with deferred unit-linked annuities.