Key figures for life and health reinsurance | |||||||
---|---|---|---|---|---|---|---|
in EUR million | 2019 | 2018 | |||||
1.1. – 31.3. |
1.4. – 30.6. |
+/– previous year |
1.1. – 30.6. |
+/– previous year |
1.4. – 30.6. |
1.1. – 30.6. |
|
Gross written premium | 1,978.8 | 1,867.7 | +6.6% | 3,846.5 | +9.3% | 1,752.0 | 3,518.2 |
Net premium earned | 1,680.6 | 1,711.3 | +7.2% | 3,391.8 | +7.0% | 1,596.3 | 3,170.7 |
Investment income | 162.5 | 203.0 | +74.5% | 365.5 | +52.9% | 116.3 | 239.1 |
Operating result (EBIT) | 116.3 | 169.6 | +37.4% | 286.0 | +30.3% | 123.5 | 219.4 |
Net income after tax | 88.5 | 169.2 | +76.8% | 257.7 | +75.5% | 95.7 | 146.8 |
Earnings per share in EUR | 0.73 | 1.40 | +76.8% | 2.14 | +75.5% | 0.79 | 1.22 |
Retention | 87.0% | 91.0% | 88.9% | 91.7% | 91.2% | ||
EBIT margin1 | 6.9% | 9.9% | 8.4% | 7.7% | 6.9% | ||
|
Life and health reinsurance markets around the world were similarly heavily influenced by the protracted low interest rate environment. The competitive situation was also unchanged and business in some regions remains extremely hard-fought. In Australia disability income insurance took a toll on the results posted by the entire industry. We continue to see robust demand worldwide in the area of financial solutions, which encompasses individually tailored reinsurance solutions designed to improve the solvency, liquidity and capital position of our clients.
Extraordinary income of EUR 99.5 million was booked in the second quarter from our participation in the German run-off specialist Viridium in connection with a reorganisation of the shareholding structure. This was prompted by Viridium’s acquisition of Generali Lebensversicherung AG. The interest held by Hannover Re in Viridium remained largely unchanged in this context. A number of reinsurance treaties in the United Kingdom and Australia did not perform satisfactorily and we strengthened the relevant reserve positions in this respect.
In the United States new business in the area of mortality solutions fared better than expected, although this was offset by a slightly negative development in the in-force portfolio. Our expectations for the financial solutions segment were exceeded somewhat due to the writing of positive new business. In China we are seeing sustained strong demand for bespoke financial solutions, while the market for longevity solutions is particularly brisk in Canada, the Netherlands and France.
Our online platform “hr | equarium”, which was launched in February as an exclusive marketplace for insurtechs, has generated lively interest among our business partners in recent months. Several hundred registered customers from 91 countries are already using the platform to connect with external providers from 33 countries who are so far offering close to 100 solutions on the platform.
The gross premium volume booked in life and health reinsurance increased by 9.3% as at 30 June 2019 to EUR 3.8 billion (previous year: EUR 3.5 billion). At unchanged exchange rates growth would have come in at 7.4%. Our retention retreated to 88.9% (91.2%). Net premium earned rose by 7.0% to EUR 3.4 billion (EUR 3.2 billion), equivalent to growth of 5.2% at constant exchange rates.
Income from assets under own management in life and health reinsurance doubled to EUR 294.6 million (EUR 141.6 million) primarily due to the release of hidden reserves in connection with the restructuring of the Viridium shareholding.
The operating result (EBIT) totalled EUR 286.0 million (EUR 219.4 million) at the end of the first six months, a figure 30.3% higher than in the previous year. This is considerably more than the targeted EBIT growth of at least 5% that we have set ourselves for the 2019 financial year. The contribution made by life and health reinsurance to Group net income improved by 75.5% to EUR 257.7 million (EUR 146.8 million).