| Key figures for life and health reinsurance | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | 2015 | 2014 | |||||
| 1.1. – 30.6. |
1.7. – 30.9. | +/– previous year | 1.1. – 30.9. | +/– previous year |
1.7. – 30.9. | 1.1. – 30.9. |
|
| Gross written premium | 3,614.5 | 2,012.1 | +21.4% | 5,626.6 | +21.1% | 1,667.7 | 4,644.6 |
| Net premium earned | 3,124.8 | 1,739.3 | +24.9% | 4,864.1 | +26.0% | 1,392.4 | 3,861.4 |
| Investment income | 366.7 | 176.3 | +8.6% | 542.9 | +17.6% | 162.2 | 461.8 |
| Operating result (EBIT) | 200.0 | 46.2 | -41.6% | 246.3 | +5.3% | 79.1 | 233.9 |
| Net income after tax | 145.6 | 32.1 | -36.7% | 177.8 | +6.9% | 50.8 | 166.2 |
| Earnings per share in EUR | 1.21 | 0.27 | -36.7% | 1.47 | +6.9% | 0.42 | 1.38 |
| Retention | 86.5% | 87.2% | 86.8% | 84.7% | 83.7% | ||
| EBIT margin1 | 6.4% | 2.7% | 5.1% | 5.7% | 6.1% | ||
| 1 Operating result (EBIT) / net premium earned | |||||||
Overall, business in life and health reinsurance developed well as at 30 September 2015 within the bounds of our ambitious expectations.
Our business in Germany, Scandinavia and other Western European countries as well as the annuity portfolio in the United Kingdom generated pleasing profitability. By contrast, results in France and the rest of our UK business fell short of expectations. On balance, though, the result booked for these markets is on the level that we had anticipated.
Developments in US mortality business were mixed. Parts of the portfolio fared better than expected, while other lines failed to perform as we had anticipated. Consequently, our expectations in the reporting period just ended were not fully realised in this business segment. In September 2015, however, we were able to complete a restructuring of our collateral instruments, which should enable us to generate annual cost savings in the low double-digit millions over the coming years.
The performance of our “US Health and Special Risk” business was very much in line with our expectations. Results in US Financial Solutions business were slightly better than anticipated.
In Malaysia we cooperated with a technology partner to set up an online sales company which markets life insurance products through an Internet platform. All processes, including for example applications, underwriting and policy issue, are handled online. Using what is for this market an innovative business model, we have created a cost-effective, state-of-the art sales channel. As the exclusive reinsurance partner we are also active as a financially robust risk carrier.
Gross written premium for life and health reinsurance as at 30 September 2015 amounted to EUR 5.6 billion (EUR 4.6 billion), equivalent to a very healthy increase of 21.1%. Growth would have totalled 10.1% at constant exchange rates. Net premium earned in the period under review surged by 26.0% to EUR 4.9 billion (EUR 3.9 billion); adjusted for exchange rates, growth of 14.3% would still have been generated. The retention rose to 86.8% (83.7%).
Investment income including interest on deposits totalled EUR 542.9 million (EUR 461.8 million) in the reporting period just ended. The performance of the ModCo derivatives, investments held for our account by US cedants, deteriorated in the reporting period relative to the corresponding period of the previous year to stand at -EUR 18.9 million (-EUR 1.6 million).
The operating profit (EBIT) in life and health reinsurance increased to EUR 246.3 million (EUR 233.9 million) as at 30 September 2015. The EBIT margin for our reporting categories of financial solutions/longevity stood at 9.4% - the target is 2% -, while for mortality/morbidity it amounted to 2.9%. In the latter case the target of 6% was not achieved. This was attributable firstly to a sizeable individual claim incurred under a life insurance policy and was also due to the fact that part of our mortality portfolio in the United States recorded poorer results that were not offset by the positive new business written. In addition, our branch in France reported profitability that fell short of expectations.
Group net income for total life and health reinsurance business was boosted by 6.9%, rising to EUR 177.8 million (EUR 166.2 million). Earnings per share amounted to EUR 1.47 (EUR 1.38).
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