Insights into our evolving strategy
Growing Hannover Re
Ulrich Wallin
CEO
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
1.
Our mission: Growing Hannover Re
2.
Our business model
3.
Our profit and growth targets
4.
Our risk management
5.
Our business partners
6.
Our organisation
7.
Our level of capitalisation
8.
Implementation of the strategy
9.
Conclusion
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
We want to expand our position as a
leading global and extraordinary
successful reinsurer
As the somewhat different reinsurer we
aspire to be the best option for our
clients' reinsurance need
Measurement of success
We are one of the Top 3 reinsurers by
•
client evaluation
•
profitability
•
premium income
1. Mission
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
We conduct our business in our two
business groups, non-life and life and
health reinsurance, which operate from a
common capital base
This allows us to use our capital most
efficiently due to the diversification
between and within our business groups
We write primary insurance business as
a complement to our main activity being
reinsurance
In Germany, we operate through "the
reinsurer for Germany", our subsidiary
the E+S Rück, with a specific focus on
shareholder related business
Measurement of success
Being among the 3 most profitable by
return on equity
At least 30% reduction in required capital
due to the diversification between our
business groups
Profit contribution from business we
cannot reach via reinsurance achieved
through our primary insurance activities
Be among the top 2 reinsurers in Germany
Above-average profit contribution from our
shareholder-related business which we
shall lead for non-life and life and health
2. Biz model
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Self-image:
With our "three-pillar" approach (target markets, specialty
lines, global reinsurance) we are in a position to successfully meet
all individual client and market needs
Profit
Through rigid cycle management we achieve higher RoE
contribution:
margins than our peers by striving for a positive IVC &
an EBIT margin in excess of 10%
Clients and
We combine the high level of technical expertise with sound CRM
products:
in order to secure profitable business. We offer all standard
products but in addition offer tailor-made solutions for individual
clients and develop new products.
Markets:
Our approach to the different markets in reinsurance has been
consistent for decades making us a reliable partner to our clients
Sales channels:
With a view to securing & advancing our business we co-operate
predominantly with R/I brokers, especially in the non-proportional
sector outside Germany
Risk management:
Adequate reserving level is of utmost importance
Hannover Re's
market approach
Non-life reinsurance
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Self-image:
We are a solution-driven reinsurer for the mutual benefit of
our customers and ourselves
Profit
Double-digit increase of our premium revenues by organic growth
contribution:
& acquisitions as the basis to achieve an annual double-digit
growth of VNB & MCEV & an EBIT margin of at least 6%
Clients and
Target clients are defined by a long-term philosophy of
products: partnership
"Five-pillar" business model (financial solutions,
new markets, bancassurance, multinationals, conventional R/I)
Markets:
Growth drivers are our expansion in emerging markets, senior
citizen products in developed markets and our expansion into the
US protection market
Expand local presence in Asian growth markets over the
coming years
Sales channels:
Direct to our clients through our worldwide network of branch
offices and subsidiaries
Risk management:
We strive to balance the biometric risks we are assuming
Hannover Re's
market approach
Life and health reinsurance
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Risk capital for the 99.97% VaR
(according to internal risk model)
in m. EUR
8,382
5,411
2,905
1,962
2,440
407
315
2,618
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
Non-life
reinsurance
Life and health
reinsurance
Assets
Credit
Operational
HR Group
required capital
HR Group
available
economic capital
33%
diversification
Effective
capital
re
quir
em
ent
8,029
The risk categories have been adapted to the Solvency II requirements
Calculation according to economic valuation principles
As at December 2010
* Including hybrid capital
*
Diversification reduces capital requirements by a third
Capitalisation ratio 155%
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
2006
2007
2008
2009
2010
2006 - 2010
Company
RoE
Rank
RoE
Rank
RoE
Rank
RoE
Rank
RoE
Rank avg. RoE
Rank
Odyssey Re
28.3%
1
25.8%
1
20.5%
1
12.1%
6
9.2%
8
19.2%
1
Renaissance Re
27.5%
2
16.9%
4
(0.4%)
7
24.4%
2
18.1%
2
17.3%
2
Hannover Re
18.7%
4
23.1%
2
(4.1%)
9
22.4%
3
18.2%
1
15.7%
3
Partner Re
21.8%
3
17.7%
3
1.1%
5
25.9%
1
11.5%
3
15.6%
4
Everest Re
18.2%
6
15.6%
5
(0.4%)
6
14.6%
4
9.9%
6
11.6%
5
Munich Re
13.5%
9
14.9%
7
6.5%
3
11.8%
7
10.7%
4
11.5%
6
Transatlantic Re
15.6%
8
15.4%
6
3.1%
4
13.2%
5
9.7%
7
11.4%
7
SCOR
12.7% 10
13.8%
8
8.9%
2
10.2%
8
10.1%
5
11.1%
8
Swiss Re
16.5%
7
13.3%
9
(3.3%)
8
2.3% 10
3.6% 10
6.5%
9
XL Re*
18.5%
5
3.6% 10 (31.8%) 10
2.7%
9
5.8%
9
(0.2%)
10
Ranking among shown peer group, based on company data, own calculation
* Based on XL Capital group figures
We aim to be one of the top 3 R/I in terms of RoE
Hannover Re consistently among most profitable reinsurers
Even on after-tax basis, in spite of strong Bermuda competition
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
Triple 10-target
Increase of our business volume in excess
of the market average
Achieve a profit in excess of the cost of
capital based on our internal economic
capital model
Achieve a return on equity of at least
750 bps above the risk-free interest rate
according to IFRS
Outperform the RBS Global Reinsurance
Index on a 3-year rolling basis
Continuously pay an attractive dividend to
shareholders
Measurement of success
10% growth per year of
EBIT, EPS, book value per share
Premium growth in comparison to our peer
group
IVC > 0
RoE
Development of our share price
Continuous dividend payment which is
relatively more attractive compared to our
peers
3. Profit & growth targets
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Operating profit (EBIT)
in m. EUR
109
471
732
539
92
820
928
148
1,174
1,142
0
200
400
600
800
1.000
1.200
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001 - 2003 US GAAP, from 2004 IFRS, 2009 figures restated
CA
GR
: 30
%
EBIT increased slightly by 3%
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Earnings per share (EPS)*
in EUR
6.21
6.08
(1.05)
5.98
4.27
0.41
2.32
3.24
2.75
0.11
-2
0
2
3
5
6
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001 - 2003 US GAAP, from 2004 IFRS, 2009 figures restated
*Adjusted figures to the 3-for-1 share split in July 2002
CAG
R: 5
7%
Record earnings per share
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Book value per share (as at 31 Dec), dividend
in EUR
17,21
17,90
19,57
20,93
21,57
24,03
27,77
23,47
30,80
37,39
11.48
11.48
9.18
7.58
7.58
6.58
5.63
4.78
4.78
3.49
0
10
20
30
40
50
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Book value per share
Dividend (cumulative since 1994)
2001 - 2003 US GAAP, as from 2004 IFRS, 2009 figures restated
BV/S
CAG
R: 8%
Highest book value per share ever
Year-on-year +21.4%; >100% within ten years
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
CA
NOPAT
Shareholders equity (average)
Group net income
+
Minorities (average)
+
Minority interest in profit or loss
+
Economic valuation adjustments (average)
+
Economic adjustments
(Loss reserve discount, EVNR)
+
Hybrid capital (average)
+/-
Reclassification NII AuM
Capital Allocated (CA)
+
Technical interest
(risk free on neutral portfolio)
−
= IVC
+
Interest on hybrid capital
CoC
+
Tax effect on adjustments
Cost of debt
Net operating profit after adjustments
and taxes (NOPAT)
+
Cost of equity
+
Cost of economic valuation adjustments
Weighted average Cost of Capital (CoC)
×
The question is:
Do we generate enough profit to compensate our cost of capital?
Our central management tool
Allows us to steer our business toward the profitable segments
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
15.5%
7.5%
6.4%
0
0
0
0
0
Non-life R/I
L/H R/I
Asset
management
86 %
Capital allocated (CA)
in m. EUR
L/H R/I
1,571
Non-life R/I
4,319
Asset
management
1,963
55%
25%
Value creation
IVC in m. EUR
Excess return on CA (xRoCA)
in %
L/H R/I
244
Non-life R/I
324
Asset
management
126
35%
47%
20%
18%
Capital allocation and value creation
Life with higher xRoCA
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
We position our risk-taking based on
our internal capital model so that we
are profitable in 9 out of 10 years and
have a ruin probability of no more than
0.3‰
Allocation of capital to our business
segment to achieve the highest
possible risk-adjusted profitability
Details are laid down in our risk
strategy
Measurement of success
Results of our DFA report
IVC achieved by all segments of business
4. Risk mgmt.
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
2010 Actual in m. EUR
Non-Life
Life
Asset
Management
Group
Group net income
581
219
0
750
Minority interest in profit or loss
78
4
0
82
Net income
659
223
0
832
Total adjustments
(20)
135
270
435
Economic adjustements
198
247
(12)
423
Reclassification NII AuM
(752)
(211)
316
(647)
Technical interest (riskfree on neutral portfolio)
527
69
52
647
Interest on hybrid capital
0
0
0
85
Tax effect on adjustments
7
31
(86)
(72)
Net operating profit after adjustments and taxes (NOPAT)
639
359
270
1,267
Capital
allocated
4,319 1,571 1,963 7,853
Weighted average cost of capital (WACC)
7.3%
7.3%
7.3%
7.3%
Cost of Capital (CoC)
315
115
143
573
Intrinsic value creation (IVC)
324
244
126
694
Excess return on capital allocated (xRoCA)
7.5%
15.5%
6.4%
8.8%
IVC margin (% of net earned premium)
6.0%
5.2%
6.9%
Who created how much?
New: Asset Management separately
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
122%
92%
46%
33%
57%
68%
66%
Partner Re
Swiss Re
Munich Re
Everest Re
Transatlantic Re
SCOR
Hannover Re
Source: Aon Benfield (Japan EQ, NZ EQ II, Australian events)
Major cat losses as % of net premium earned
Non-life reinsurance
Hannover Re Cat losses are relatively lower than peers'
Q1/2011
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Recoveries from our retrocessions (K6 and Whole Account) amounted to 43%
of the total gross major losses in Q1/2011
Net of reinstatement premiums the total recoveries amounted to ~ EUR 420 m.
The remaining coverage after Q1/2011 from our worldwide P/C protections is
~ EUR 450 m.
•
Thereof, approx. EUR 150 m. will be consumed by expected attritional losses in
Q2 - Q4/2011
Expected net catastrophe losses (natural and man-made) of EUR 410 m.
EUR 300 m. cover will remain for a big event
Further coverage of USD 100 m. bought for US hurricane
Our retrocession strategy works
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Net aggregates for peak perils 1/100y incl. exposure from RDS segments
1)
in m. EUR
275
136
217
483
77
310
420
51
237
158
448
800
287
0
100
200
300
400
500
600
700
800
900
Group EBIT
2011e
USA L.A. EQ
USA/GoM HU
Europe ST
Tokyo EQ
Japan TY
Sydney EQ
2011 as of 1 Jan
2011 as of today
~
Risks in peak perils well below expected EBIT in 2011
4. Risk mgmt.
2)
1) Based on gross aggregates, retro structure and f/x rates
2) Incl. USD 55 m. further coverage as of 1 Jun 2011.
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
0%
20%
40%
60%
80%
100%
120%
140%
160%
12
24
36
48
60
72
84
96
108 120 132 144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
86 4.0% 25.8% 48.5% 70.0% 97.7% 111.1% 126.6% 142.1% 143.4% 146.8% 149.0% 150.0% 176.0% 131.3% 17.7% 27.0%2000
145 5.1% 27.7% 55.4% 80.3% 116.6% 128.9% 139.2% 141.2% 142.7% 146.7% 151.1% 167.9% 131.7% 18.8% 17.4%2001
248 9.0% 16.7% 45.3% 65.9% 76.1% 83.8% 94.6% 97.3% 99.2% 100.3% 120.6% 84.1% 15.6% 21.0%2002
360 1.6% 9.0% 21.2% 34.6% 44.5% 48.4% 50.8% 52.7% 53.3% 68.3% 46.5% 6.7% 15.1%2003
526 3.7% 14.9% 22.8% 27.4% 32.0% 34.3% 36.8% 38.3% 62.1% 31.2% 6.6% 24.3%2004
493 3.5% 14.6% 22.7% 26.6% 32.4% 35.3% 38.1% 65.8% 27.9% 9.9% 28.0%2005
446 3.9% 11.6% 18.3% 24.9% 30.1% 36.4% 72.6% 26.4% 9.2% 37.0%2006
372 3.1% 11.7% 20.7% 29.2% 33.3% 81.6% 18.8% 13.9% 48.9%2007
303 3.9% 10.4% 20.5% 30.3% 89.9% 15.2% 14.3% 60.4%2008
283 8.4% 21.8% 30.0% 101.9% 8.4% 20.7% 72.9%2009
258 3.7% 12.1% 101.1% 1.8% 9.1% 90.2%2010
156 13.3% 102.2% 0.3% 11.3% 90.6% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -50 50 150 250 350 450 550Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
US/Bermuda Liability non-proportional (HR/E+S)
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
68
66
73
62
86
59
60
52
47
31
29
28
44
48
41
66
57
54
65
64
0
20
40
60
80
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
ULR (as 12/2010)
+ realised + projected part to complete 9th-year paid ratio
ULR ("as if": 66% - 51% + + )
Ultimate Loss Ratios (ULR)
in %
39
43
49
66%
average ULR
51%
average paid ratio
67%
average ULR
60%
average ULR "as-if"
51
US/Bermuda Liability non-proportional: looks promising
On average still ~7%pts higher ULRs
than mature years suggest
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
Dedication to provide our clients with
reinsurance solutions which help them to
reach their own goals
To be the most preferred reinsurer of our
clients
Safeguard our financial capacity to meet
our obligations
Measurement of success
Results of client surveys
Percentage of possible clients we see
business from
Average signed lines
First contacted for required new
reinsurance solutions by clients
All business placed being offered to us
S&P and A.M. Best rating at a high level
(S&P: AA-, A.M. Best: A+)
5. Biz partners
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
Keep our competitive advantage of the
lowest expense ratio in the industry
Measurement of success
Level of administrative expenses
compared to our peers
6. Organisation
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Our goals
To have sufficient capital according to
•
our internal capital model
•
solvency requirements
•
rating agencies
•
our customer expectations
The level of equity capital shall not
endanger our RoE goals
Measurement of success
Level of solvency
Ratings
Ability to have access to all business
Level of achievable RoE
7. Capital
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
There will be a fundamental Strategy
Review in 2011
As part of the preparations, we are
reviewing and optimising the strategy
implementation process
We are assembling the PE 2.0 toolbox;
it contains the necessary tools and opens
up additional scope for co-operation in
order to allow all units to support our
strategy by their activities
Performance Excellence 2.0
Strategy process
Strategy Review 2011
In 2010, we discussed tools and processes,
in 2011 we are talking strategy!
8. Strategy
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
1
Our Target Business
2
Ambitious Profit and Growth Targets
3
Active Risk Management
4
Successful Employees
5
Preferred Business Partner
6
Adequate Shareholders' Equity
7
Secure Investments
8
Lean Organisation
9
Sustained Compliance
10
Performance Excellence 2.0
Performance Excellence Model 2.0 of Hannover Re
8. Our Strategic Principles
PE 2.0 is the tool to aid rigorous execution of the strategy
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
We have brought into sharper focus the
various levels of the Hannover Re
strategy
Clear line that extends from our self-
image to the contributions of the
individual units
The ground rules and tools of PE 2.0 are
compulsory for all units within the Group
Strategic levels are to be harmonised with the risk strategy
Somewhat
different
Strategic principles
Strategic objectives
Contributions of the
individual units to group strategy
8. Strategy cascade of Hannover Re
Ensure consistent derivation of strategic objectives across all units
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
It enhances transparency and helps us to learn from one another
The Strategy Cockpit is a jointly used tool for
strategy development and the planning of
measures
This tool makes management of the overall
organisation simpler and more efficient
It is the next logical step after the many existing
paper solutions
Greater interdepartmental transparency with
respect to strategy development and execution
Greater integration of interfaces with regard to
strategy execution and strategic measures
8. Strategy Cockpit 2.0
Practical tool for goal-oriented and systematic management
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
We strive to deliver attractive and less
volatile returns
We have dedicated and ambitious
profit and growth targets
We aim to expand our position as a
leading global and extraordinary
successful reinsurer
We take risks on clear and measurable
parameters
We write our business in non-life and
life and health reinsurance from a
common capital base
We are a somewhat different reinsurer
9. Conclusion
9. Conclusion: We aspire to be the best choice for investors. . .
Appendix
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Germany
2,578
USA
4,184
Europe
3,018
UK/Ireland
3,327
Rest of world
2,528
* As of 31 December 2010, consolidated, IFRS
27%
17%
19%
21%
16%
Hannover Re Group
Non-life: EUR 15,634 m.
Total gross non-life loss reserves*
in m. EUR
Group-wide non-life reserve study
(internal and external)
•
Hannover Re/E+S Rück, Canada,
Bahrain, Takaful
–
calculations by GRM RES:
EUR 12,641 m. (81%)
•
Bermuda, Australia, Malaysia, Shanghai
–
by external appointed actuaries:
EUR 953 m. (6%)
•
UK(IICH), Ireland, Sweden, South Africa
–
by HR Group own actuaries:
EUR 2,040 m. (13%)
Our well-diversified non-life business. . .
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Gross non-life reinsurance loss reserves*
in m. EUR
Other
4,222
General liability
5,539
Motor liability
2,525
* As of 31 December 2010, consolidated, IFRS
45%
34%
21%
EUR 12,286 m.
About 45% related to general liability
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
"Home-made" IBNR*
in m. EUR
Cedent-advised
reserves
5,937
Additional IBNR
6,349
* As of 31 December 2010, consolidated, IFRS
52%
48%
EUR 12,286 m.
Estimation system & bulk IBNR
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Legal entity
Total reserves
U/Y 1979 - 1998
Total reserves
U/Y 1999 - 2010
in m. EUR
U/Y 1979 - 1998
in % of HR Group
U/Y 1999 - 2010
in % of HR Group
Hannover Re/
1
General liability non-prop.
348.5
2.2%
3,383.0
21.6%
E+S Rück
2
Motor non-prop.
398.7
2.6%
1,473.9
9.4%
3
General liability prop.
151.6
1.0%
1,429.3
9.1%
4
Motor prop.
139.6
0.9%
786.5
5.0%
5
Property prop.
15.0
0.1%
853.8
5.5%
6
Property non-prop.
4.9
0.0%
544.3
3.5%
7
Marine
15.9
0.1%
787.8
5.0%
8
Aviation
23.4
0.1%
782.1
5.0%
9
Credit/surety
22.3
0.1%
693.2
4.4%
Total
All lines of business
1,119.8
7.2%
10,734.1
68.7%
Line of business
No.
* As of 31 December 2010, consolidated, IFRS
. . .represent 75% of our gross carried reserves
Reported loss triangles*. . .
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical gross reported loss triangles based on cedents' original advices
(paid and case reserve information)
Converted to EUR with exchange rates as at 31 December 2010
Figures in triangles do not include business written in branch offices and
subsidiaries
Data on underwriting-year basis
Data are combined triangles for companies HR and E+S Rück
Data description and information
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
* As of 31 Dec 2010 (in m. EUR), consolidated, IFRS, development in months
0%
20%
40%
60%
80%
100%
120%
12
24
36
48
60
72
84
96
108
120
132
144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
2,216 76.2% 92.1% 96.0% 98.0% 99.3% 100.9% 101.7% 103.0% 103.3% 103.4% 103.4% 103.4% 106.3% 96.5% 6.5% 3.3%2000
2,461 65.1% 93.2% 105.0% 108.2% 110.1% 112.8% 111.4% 112.0% 112.1% 112.0% 111.6% 115.6% 99.5% 12.3% 3.8%2001
3,260 69.1% 80.5% 86.5% 91.6% 92.0% 93.5% 94.1% 95.3% 95.9% 95.6% 100.9% 87.3% 8.5% 5.1%2002
3,764 44.0% 50.5% 53.1% 55.3% 55.9% 56.4% 56.4% 56.7% 56.7% 61.5% 51.5% 5.0% 5.0%2003
3,665 30.5% 39.6% 42.3% 44.3% 45.3% 46.0% 46.5% 47.1% 54.8% 39.9% 6.8% 8.1%2004
3,366 31.3% 45.1% 48.7% 50.7% 52.5% 53.3% 53.9% 65.1% 46.5% 7.3% 11.3%2005
3,639 54.4% 71.9% 77.0% 79.7% 81.6% 82.8% 96.2% 73.7% 9.0% 13.5%2006
3,478 30.7% 39.3% 42.1% 44.7% 46.1% 63.3% 35.8% 9.8% 17.7%2007
3,430 36.3% 49.6% 54.4% 56.9% 78.3% 43.1% 13.6% 21.6%2008
3,424 39.0% 54.9% 59.4% 83.2% 39.3% 17.9% 26.0%2009
3,611 33.5% 46.0% 78.3% 24.8% 17.6% 35.9%2010
2,478 38.4% 81.2% 12.1% 15.6% 53.4%Statistical data (as provided by cedants)
Booked data
0% 20% 40% 60% 80% 100% 120% 140% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 ,500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
Reported claims triangle for HR/E+S*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
132 11.2% 29.8% 48.7% 65.0% 84.8% 94.5% 106.0% 116.7% 118.8% 120.7% 123.6% 124.3% 148.0% 103.5% 20.2% 24.4%2000
215 8.3% 74.4% 145.4% 145.9% 186.3% 194.4% 200.6% 204.1% 207.5% 211.8% 216.0% 237.8% 189.0% 26.4% 22.4%2001
327 27.7% 25.2% 50.2% 75.3% 82.7% 94.6% 103.5% 106.6% 112.9% 116.6% 140.2% 89.2% 26.8% 24.2%2002
493 3.3% 13.1% 25.6% 37.6% 44.7% 48.5% 50.5% 52.7% 53.2% 70.8% 43.4% 9.8% 17.6%2003
670 4.4% 14.2% 21.7% 26.8% 32.6% 35.5% 38.6% 40.1% 64.6% 27.9% 11.6% 25.1%2004
639 4.7% 14.6% 21.8% 26.8% 32.3% 35.5% 38.8% 70.8% 26.1% 12.7% 32.0%2005
615 6.2% 13.9% 19.8% 26.1% 32.3% 37.6% 77.7% 23.6% 13.5% 40.6%2006
555 4.8% 13.0% 20.2% 28.2% 32.5% 85.0% 15.1% 16.9% 53.0%2007
520 5.9% 15.6% 25.6% 35.4% 94.5% 13.6% 20.6% 60.2%2008
498 9.5% 20.3% 30.9% 98.6% 6.2% 22.9% 69.5%2009
483 5.0% 14.1% 98.3% 1.6% 10.7% 86.0%2010
315 13.2% 101.3% 0.7% 10.7% 90.0% 0% 50% 100% 150% 200% 250% 12 24 36 48 60 72 84 96 108 120 132 144 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0% 50% 100% 150% 200% 250% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 100 200 300 400 500 600 700 800Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
0%
20%
40%
60%
80%
100%
120%
140%
160%
12
24
36
48
60
72
84
96
108 120 132
144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
85 76.6% 98.4% 108.4% 116.1% 125.2% 128.0% 132.0% 134.3% 136.0% 135.1% 138.1% 138.3% 157.4% 102.8% 35.8% 18.7%2000
93 37.7% 56.4% 67.6% 85.2% 90.0% 95.1% 95.4% 97.4% 98.0% 101.0% 100.4% 121.4% 65.6% 36.3% 19.5%2001
104 25.5% 43.3% 55.5% 61.3% 65.4% 71.6% 72.7% 75.1% 75.2% 75.0% 96.9% 45.7% 29.3% 21.9%2002
154 32.3% 49.3% 59.6% 63.9% 66.4% 67.7% 69.0% 70.8% 71.3% 96.3% 43.3% 28.1% 24.9%2003
196 19.8% 39.7% 45.8% 52.0% 53.4% 54.1% 55.1% 55.2% 83.1% 33.0% 22.4% 27.7%2004
227 21.9% 34.4% 44.0% 48.3% 52.7% 53.3% 53.3% 87.6% 30.1% 23.5% 34.0%2005
261 16.8% 30.6% 36.6% 41.7% 43.2% 43.6% 78.6% 24.3% 19.6% 34.6%2006
245 21.6% 32.3% 38.1% 42.9% 44.7% 84.9% 24.1% 20.6% 40.2%2007
231 28.1% 43.8% 51.6% 55.7% 108.7% 29.8% 25.1% 53.8%2008
217 57.9% 67.5% 73.0% 134.1% 51.7% 20.4% 62.0%2009
219 18.5% 30.4% 100.2% 8.1% 19.9% 72.2%2010
162 17.5% 98.6% 1.4% 12.1% 85.1% 0% 30% 60% 90% 120% 150% 180% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 50 100 150 200 250 300Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
248 75.0% 77.7% 85.5% 91.1% 89.8% 96.4% 96.1% 100.8% 103.2% 102.9% 101.7% 101.8% 106.7% 95.0% 6.4% 5.3%2000
230 76.3% 91.7% 107.1% 103.8% 95.0% 111.4% 95.4% 97.2% 98.6% 100.1% 97.5% 104.2% 87.7% 9.7% 6.7%2001
326 53.8% 65.7% 73.4% 87.3% 83.5% 87.9% 88.2% 96.0% 94.4% 92.1% 100.5% 83.1% 9.5% 7.9%2002
292 59.7% 61.0% 59.8% 64.1% 61.0% 62.4% 62.2% 62.1% 62.1% 72.8% 51.1% 9.9% 11.7%2003
281 35.2% 46.7% 49.4% 54.3% 50.3% 53.2% 54.7% 57.6% 70.8% 42.9% 14.2% 13.8%2004
260 32.7% 36.6% 37.5% 42.9% 47.4% 48.3% 49.9% 67.4% 38.0% 9.4% 19.9%2005
266 33.2% 40.6% 42.1% 42.2% 47.4% 48.7% 69.5% 36.8% 12.8% 19.9%2006
246 37.0% 40.1% 39.1% 48.2% 53.3% 75.6% 30.8% 17.1% 27.7%2007
313 39.7% 46.2% 50.0% 53.5% 92.2% 33.7% 20.6% 37.9%2008
280 36.6% 45.5% 50.7% 87.9% 21.9% 25.7% 40.3%2009
440 41.1% 46.1% 82.2% 13.4% 30.3% 38.5%2010
299 43.7% 87.5% 14.4% 22.9% 50.2% 0% 20% 40% 60% 80% 100% 120% 12 24 36 48 60 72 84 96 108 120 132 144 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0% 20% 40% 60% 80% 100% 120% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 50 100 150 200 250 300 350 400 450 500Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
643 96.2% 98.9% 97.4% 95.8% 95.6% 94.7% 94.4% 93.8% 93.7% 93.0% 92.7% 92.5% 92.6% 88.7% 3.5% 0.4%2000
681 91.8% 97.5% 94.7% 94.8% 94.3% 93.5% 93.1% 94.4% 93.2% 91.9% 92.9% 92.7% 87.6% 4.9% 0.2%2001
654 84.9% 87.2% 86.6% 85.7% 85.1% 84.2% 83.3% 82.1% 82.5% 82.0% 80.9% 76.8% 4.0% 0.1%2002
701 80.0% 84.5% 83.1% 82.3% 81.6% 81.1% 80.6% 80.0% 80.0% 78.9% 73.5% 5.0% 0.3%2003
603 77.4% 79.5% 77.5% 77.7% 77.3% 76.7% 75.4% 75.3% 74.6% 67.5% 6.1% 0.9%2004
454 71.2% 76.0% 73.9% 72.9% 72.3% 72.1% 71.7% 72.5% 63.9% 7.9% 0.7%2005
451 73.4% 74.8% 73.1% 72.5% 71.6% 71.4% 71.6% 62.7% 8.8% 0.0%2006
450 77.1% 79.4% 78.0% 76.1% 75.6% 76.5% 63.2% 12.4% 0.9%2007
425 76.6% 79.3% 77.5% 77.9% 76.9% 62.3% 14.7% -0.1%2008
447 78.7% 81.3% 81.5% 78.6% 63.2% 16.6% -1.2%2009
475 79.2% 88.1% 85.0% 59.9% 23.2% 1.9%2010
411 52.9% 80.8% 24.7% 3.2% 53.0%0%
20%
40%
60%
80%
100%
120%
12
24
36
48
60
72
84
96
108
120
132
144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 100 200 300 400 500 600 700 800 900 1000Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
529 77.8% 95.0% 95.0% 94.0% 91.7% 92.2% 92.6% 93.0% 92.8% 93.3% 92.9% 92.6% 93.4% 90.1% 2.6% 0.7%2000
539 83.1% 99.6% 99.9% 101.3% 102.0% 101.6% 101.0% 99.9% 99.9% 99.6% 99.3% 100.5% 98.3% 1.3% 0.8%2001
729 75.8% 84.1% 84.7% 85.8% 86.1% 85.1% 85.5% 86.0% 86.7% 85.9% 89.1% 84.1% 3.1% 1.9%2002
834 60.5% 61.8% 62.4% 62.1% 61.8% 61.7% 61.7% 61.6% 61.8% 62.7% 61.0% 0.8% 0.8%2003
682 38.8% 48.4% 51.4% 50.8% 49.5% 49.5% 49.4% 49.6% 50.9% 47.9% 1.8% 1.2%2004
558 45.8% 58.4% 60.7% 60.2% 60.4% 60.7% 60.8% 61.9% 59.0% 1.8% 1.1%2005
617 47.2% 57.3% 57.8% 58.6% 59.1% 59.3% 61.6% 56.7% 2.6% 2.3%2006
623 43.7% 51.7% 53.3% 54.1% 54.6% 58.4% 50.7% 3.8% 3.9%2007
649 41.2% 55.8% 59.1% 58.3% 65.1% 53.0% 6.2% 5.9%2008
672 47.8% 56.4% 57.8% 63.9% 43.0% 9.4% 11.6%2009
644 38.9% 55.4% 66.2% 34.3% 13.7% 18.2%2010
416 50.5% 67.9% 11.5% 18.9% 37.5%0%
20%
40%
60%
80%
100%
120%
12
24
36
48
60
72
84
96
108 120 132 144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0% 20% 40% 60% 80% 100% 120% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 100 200 300 400 500 600 700 800 900Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
1,000
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
156 140.0% 173.4% 178.7% 177.7% 177.1% 176.8% 175.0% 175.0% 175.0% 174.7% 174.6% 174.5% 171.9% 170.2% 1.4% 0.2%2000
209 46.9% 70.1% 70.7% 70.5% 69.2% 69.7% 69.4% 69.7% 69.4% 69.2% 68.4% 69.6% 67.8% 1.6% 0.2%2001
357 137.6% 152.9% 154.5% 155.9% 157.7% 158.7% 159.8% 163.3% 162.9% 161.9% 162.5% 159.2% 2.9% 0.5%2002
466 37.3% 40.4% 41.3% 41.9% 42.0% 41.4% 41.1% 41.2% 41.1% 41.5% 40.2% 0.9% 0.4%2003
459 18.4% 21.4% 22.5% 23.6% 24.3% 24.4% 24.9% 25.0% 25.5% 22.3% 2.7% 0.5%2004
445 32.7% 49.3% 52.3% 53.8% 54.0% 54.6% 54.1% 55.6% 51.2% 3.2% 1.2%2005
564 110.6% 137.2% 142.6% 145.9% 147.1% 146.8% 147.7% 140.8% 5.3% 1.6%2006
497 24.0% 30.3% 32.5% 32.9% 33.0% 34.7% 29.9% 3.0% 1.9%2007
443 55.3% 63.7% 66.2% 65.7% 68.6% 58.2% 7.2% 3.2%2008
427 38.6% 45.6% 47.0% 52.6% 33.9% 11.9% 6.8%2009
457 30.8% 43.7% 54.1% 22.9% 18.6% 12.6%2010
349 45.4% 60.1% 15.9% 25.1% 19.0%0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
12
24
36
48
60
72
84
96
108
120
132
144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 100 200 300 400 500 600Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
165 55.7% 96.9% 103.5% 106.4% 107.0% 107.0% 105.4% 105.3% 104.1% 104.6% 104.6% 106.2% 106.5% 100.2% 6.0% 0.3%2000
182 69.1% 114.7% 123.3% 125.6% 126.0% 124.3% 121.6% 119.9% 119.5% 119.5% 119.4% 120.5% 117.1% 2.6% 0.8%2001
264 69.1% 93.2% 100.3% 99.5% 98.7% 99.0% 96.2% 93.7% 93.7% 93.2% 96.6% 83.0% 10.8% 2.8%2002
296 21.2% 33.4% 36.8% 37.2% 35.9% 35.4% 35.6% 35.6% 35.4% 37.2% 33.8% 1.8% 1.7%2003
278 17.4% 30.8% 32.1% 34.9% 39.1% 39.0% 38.9% 38.7% 40.7% 36.6% 2.1% 2.0%2004
248 34.9% 82.0% 87.5% 89.7% 93.3% 92.5% 91.5% 95.5% 88.7% 3.1% 3.7%2005
323 143.3% 218.0% 246.1% 251.0% 251.5% 253.3% 259.0% 243.2% 10.2% 5.7%2006
310 14.3% 25.6% 29.7% 30.5% 30.8% 40.1% 24.5% 6.3% 9.3%2007
315 21.4% 58.9% 64.5% 65.4% 78.2% 49.5% 15.6% 13.0%2008
304 33.6% 70.3% 74.0% 106.6% 48.7% 25.3% 32.7%2009
242 29.6% 45.4% 86.2% 26.3% 17.1% 42.8%2010
186 46.2% 117.7% 18.0% 23.9% 75.7%0%
50%
100%
150%
200%
250%
300%
12
24
36
48
60
72
84
96
108 120 132 144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0% 50% 100% 150% 200% 250% 300% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 50 100 150 200 250 300 350Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS
earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
120 38.3% 71.2% 81.2% 91.6% 95.5% 98.0% 102.8% 104.3% 105.1% 106.5% 107.6% 107.2% 110.5% 94.7% 12.4% 3.4%2000
160 18.8% 137.2% 184.4% 208.8% 194.6% 211.6% 211.8% 212.7% 214.3% 209.1% 199.0% 202.1% 116.9% 82.8% 2.4%2001
325 26.1% 49.9% 62.7% 70.8% 70.1% 69.6% 70.0% 69.8% 69.6% 70.6% 73.5% 59.7% 10.9% 2.9%2002
319 9.9% 23.6% 25.3% 27.2% 28.5% 28.6% 28.1% 28.4% 28.5% 32.6% 26.9% 2.1% 3.6%2003
239 6.1% 19.5% 21.0% 22.1% 22.4% 22.7% 23.2% 23.0% 27.8% 21.4% 1.6% 4.8%2004
286 11.5% 24.1% 29.1% 31.5% 31.1% 31.7% 31.9% 38.5% 28.4% 3.7% 6.4%2005
268 14.8% 27.4% 30.1% 32.4% 33.5% 34.6% 49.3% 25.0% 9.4% 14.9%2006
262 16.9% 40.8% 45.5% 47.7% 47.9% 67.4% 38.5% 9.3% 19.6%2007
216 21.3% 39.0% 42.1% 43.4% 63.4% 32.4% 10.0% 20.9%2008
238 19.7% 54.0% 60.7% 80.6% 25.5% 34.0% 21.0%2009
220 18.4% 47.3% 80.4% 23.1% 17.9% 39.4%2010
81 41.0% 76.5% 8.6% 25.8% 42.1%0%
50%
100%
150%
200%
250%
12
24
36
48
60
72
84
96
108 120 132 144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0% 50% 100% 150% 200% 250% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 50 100 150 200 250 300 350Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
* As of 31 December 2010 (in m. EUR), consolidated, IFRS, development in months
Reported claims triangle*
1. Mission | 2. Biz model | 3. Profit & growth targets | 4. Risk mgmt. | 5. Biz partners | 6. Organisation | 7. Capital | 8. Strategy | 9. Conclusion |
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
12
24
36
48
60
72
84
96
108 120 132 144
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Statistical data (as provided by cedents)
Booked data
U/W
year
IFRS earned
premium
12
24
36
48
60
72
84
96
108
120
132
144
Ultimate
loss ratio
Paid
losses
Case
reserves
IBNR
balance
1999
138 27.3% 51.5% 60.8% 62.7% 67.7% 69.6% 70.2% 71.0% 70.4% 70.7% 70.6% 69.7% 69.7% 64.7% 5.0% 0.0%2000
152 31.0% 62.4% 73.0% 85.7% 85.6% 77.3% 77.5% 77.3% 76.7% 76.5% 78.0% 78.2% 72.9% 5.2% 0.1%2001
174 55.2% 84.3% 89.3% 90.5% 89.0% 86.8% 84.0% 83.3% 82.8% 82.4% 87.1% 80.2% 3.8% 3.1%2002
210 38.4% 54.0% 57.3% 59.0% 59.3% 59.0% 58.0% 57.4% 56.6% 58.3% 52.9% 4.1% 1.2%2003
258 27.2% 42.3% 44.5% 44.8% 45.4% 45.3% 45.1% 45.5% 47.0% 39.5% 6.6% 1.0%2004
249 17.8% 36.2% 37.8% 38.0% 37.0% 36.7% 36.4% 39.2% 33.4% 3.5% 2.3%2005
275 22.8% 37.3% 40.1% 41.3% 41.8% 41.7% 47.4% 36.0% 5.9% 5.5%2006
291 24.0% 34.4% 37.4% 38.1% 40.2% 53.3% 35.0% 5.1% 13.2%2007
317 23.7% 38.4% 49.6% 54.3% 68.8% 44.1% 10.1% 14.5%2008
340 21.7% 65.9% 75.5% 87.9% 63.8% 10.9% 13.1%2009
429 19.9% 31.2% 71.2% 20.3% 9.7% 41.3%2010
260 17.5% 64.0% 3.0% 7.8% 53.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 50 100 150 200 250 300 350 400 450Paid losses Case reserves
IBNR IFRS earned premium
IFRS gross written premium
