Domestic and international gross premium income in 2001
Business for the Group was also affected by the gradual hardening of the insurance market, a trend which has been in evidence since last year. Premium adjustments were frequently possible and constituted one of the sources of premium growth.
Highest loss bill in Gerling history
Set against premium growth is loss expenditure of a magnitude that would previously have been inconceivable. 2001 produced the highest loss the insurance industry has ever had to withstand: the terrorist attack on the World Trade Center. Although we had terminated direct facultative involvement in the World Trade Center in summer 2001, gross losses from our worldwide acceptances added up to € 680.7 mil- lion. The impact of this loss incident was cushioned partially by our own reinsurance programmes but net loss expenditure still reached an unprecedented € 316.1 million.
2001 also produced other major losses which had a considerable impact on results. The failures of Enron, Brinkmann and Hornitex led to an underwriting deficit in Credit insurance. The explosion at a chemical works in Toulouse depressed Marine class results and others. Aviation business was hit not just by the four aircraft that crashed on 11 Sep- tember but also by another plane crash in the New York borough of Queens and a collision at Milan Airport.
On top of that, we made extensive additional provision for run-off as- bestos claims in North America in the light of new court rulings.
Finally, the year was again marked by a large number of standard losses. Total benefit and claim payments for own account increased to € 5,156.6 million (p.y. € 3,715.1 million).
Gerling Global Re Group 17