The Deutsche Rück Group further expanded its business in the 2024 financial year while simultaneously strengthening its financial position, said the reinsurer in a press release.
Gross premiums written grew in all business areas, rising significantly by 18.3% to around EUR2.1bn ($2.36bn). Net premiums earned increased by 17.5% to EUR1.4bn. Growth came from both international markets and the German domestic market. Total security resources rose by EUR375.8m to more than EUR3.1bn.
The highest premium increases came from the liability, accident and motor insurance business and the other lines of insurance. In the liability, accident and motor insurance lines, the second-largest segment of Deutsche Rück’s portfolio, gross premiums rose by 23.9% to EUR485.8m. The other lines of insurance grew by 28.0% to EUR102.9m. Gross premium income in property insurance, which accounts for more than two-thirds of the Group’s gross premiums, also grew strongly by 16.5% to EUR1.4bn.
“Claims were on a satisfactory level in 2024,” said the Deutsche Rück Group CEO Frank Schaar. “We are well below our calculated expectations in both Nat CAT and fire business.” Nevertheless, gross claims incurred were higher than in the previous year, partly due to flooding caused by the ORINOCO-QUIRINA-RADHA and ANETT (also known as BORIS) low-pressure systems in Europe and heavy rainfall in the Middle East. Owing to Deutsche Rück Group’s retrocession programme focussed on property business, the net claims incurred rose only moderately.
In life business, the Deutsche Rück Group recorded a 9.7% increase in gross premiums to EUR84.2m. In financial year 2024, the Deutsche Rück Group expanded its life and health reinsurance business to the markets of the Middle East and North Africa.
“We grew strongly and profitably in all business areas in 2024,” said Schaar. “Our strategy of gradually and purposefully internationalising our business over the recent years is paying off.” The Deutsche Rück Group generated investment income of EUR74.8m. Overall, the reinsurer achieved a net profit after taxes of EUR14.5m (previous year: EUR12.0m).
A high allocation to the equalisation reserves and similar provisions of EUR114.8m further contributed to strengthening the Deutsche Rück Group’s financial position. Total securities – including net claims provisions and provisions for future policy benefits – thus increased to more than EUR3.1bn. M