24 Gerling Global Re Group
Owing to retrocession agreements – mostly with companies in the Gerling Global Re Group – GGR Zug nevertheless achieved a profit after tax totalling € 6.9 million.
€ 285.4 million
€ 175.9 million
€ –20.6 million
€ 2.0 million
€ 289.3 million
€ 245.2 million
Gerling Global General and Reinsurance Company Ltd. (GGG&Re London), London
Gross premiums Loss ratio (net)* Cost ratio (net) Loss/profit after tax Investments
benefit and claim payments in relation to earned premiums
In the London reinsurance market, reinsurers were able to put across significant rate rises in all Property classes. The result was depressed, however, by numerous major losses.
Premium revenues increased by 62.3% to € 285.4 million in the year under review. Growth focused on the Liability and Marine insurance classes while the volume of premium income from Property business hovered around the preceding year’s level. Growth was largely fuelled by the acceptance of greater reinsurance shares and by reinstatement premiums due to major losses in the year under review.
In line with the company’s business policy, a shift was seen in the portfolio mix of Liability and Property business from proportional reinsurance to excess of loss treaties.
As a reinsurer operating in the international London insurance market, GGG&Re was hit by several major losses in 2001. The loss ratio in the year under review was 36.6 percentage points higher than in the pre- ceding year. Net income for the year was significantly depressed not only by World Trade Center losses but also by the explosions at the Petrobras drilling platform and a fertilizer factory in Toulouse. Loss reserves for the underwriting years up to 2000 were increased in the Marine and Property classes. The company ended the year under review with a loss after tax of € 20.6 million.
The parent company strengthened the equity base of GGG&Re London with a capital increase of € 19.3 million in 2001.