years. Including the other Property classes reported together with it, Fire business produced a significantly higher deficit than in the preced- ing year.
For Motor insurance – an insurance class that has for years been plagued by price warfare – the future seems to look brighter. Tariff adjustments in 2001 started to have an impact on Motor Liability and Motor Own Damage results. Overall, the Motor classes still produced a deficit, but one which was considerably smaller than in the preceding year. Motor Passenger Accident, which plays only a minor role in terms of business volume, yielded a moderate surplus.
Liability business failed to match the preceding year’s positive result. Owing to the Lipobay incident and additional provisions for run-off claims, especially asbestos claims, Liability business produced a large deficit.
In Engineering insurance, an increased volume of standard losses again made for a deficit, although it was somewhat smaller than in the financial year 2000. Overall, however, the situation in this class remains unsatisfactory.
Aviation insurance was the second class badly hit by the incidents of 11 September 2001. The year’s business thus resulted in an extremely high deficit.
In Marine insurance, the negative developments of recent years contin- ued. Results were substantially shaped by the sinking of an oil platform belonging to the Brazilian oil company Petrobras. The net underwriting account showed a deficit greater than that registered in the preceding year.
Business in the Credit, Legal Expenses, Motorist Assistance and Other indemnity insurance classes listed under “Miscellaneous insurance classes” produced a higher deficit than in the preceding year. This was due to the performance of the Credit insurance class, which had yielded a surplus in the financial year 2000 but was now severely hit by major losses connected with Enron, Brinkmann and Hornitex. After the pre- ceding year’s negative result, Other indemnity insurance class business produced a surplus in the year under review. The Legal Expenses and Motorist Assistance classes registered deficits on a par with those post- ed for 2000.
Life business produced a significantly greater surplus, Health insurance a higher deficit.
38 Gerling-Konzern Globale Rückversicherungs-AG/Management Report