Business Results 2011
Hannover Re’s worldwide activities in the reinsurance of the life, annuity and health lines are brought together under the Hannover Life Re brand name. We also write the accident line in this business group, to the extent that it is transacted by life insurers. The following executive summary provides Hannover Life Re’s key figures 2011. In-depth information on our business development, business model and development of premium income in the year under review is to be found in Hannover Re’s annual report.
Development of Premium Income
The gross premium income booked in the year under review totalled EUR 5.3 billion, an increase of 3.5% relative to the previous year’s premium volume. At constant exchange rates growth would have come in at 5.2%. With net premium earned standing at EUR 4.8 billion, our net retention was 91.0%.
In geographical terms, we sustained our overall premium level year-on-year in the United States and the United Kingdom, while in Australia and Africa we generated pleasing increases. Premium growth in emerging markets is also extremely positive; special mention should be made here of China, Korea, Latin America and Islamic markets.
We generally concentrate on the life and annuity lines, i.e. the assumption of mortality and longevity risks. We generated 89.3% of our total premium income in these segments in the year under review.
Results
The operating profit (EBIT) totalled EUR 217.6 million in the year under review. The EBIT margin came in at 4.5%.
With an average tax ratio of 14.1% and after allowance for minority interests, net income after tax in life and health reinsurance amounted to EUR 182.3 million. This was equivalent to earnings of EUR 1.51 per share.
Our administrative expenses amounted to EUR 130.6 million for the year under review, corresponding to 2.5% of our gross written premium. This administrative expense ratio – which is extraordinarily low compared to our main competitors – is made possible by our lean processes, the delegation of responsibilities on all levels and our concentration on relevant customer groups in the context of our Customer Relationship Management strategy.
