The upturn in net loss expenditure exceeded premium growth. As a result, the loss ratio for own account rose by 5.8 percentage points to 68.2%.
The net underwriting account showed a deficit of € 6.5 million, which was again more than in the preceding year (p.y. € 2.1 million).
Gross premium income from Motor insurance in € million
500 400 300 200 100
Gross premium income 6.1% up
After the preceding year’s downturn due to reductions in treaty shares, gross premium income from Motor insurance business rallied in the year under review. Revenues rose by € 25.6 million or 6.1% to € 447.3 million, following the trend in the primary insurance market. The bulk of the additional income was generated by domestic business.
The biggest contribution to Motor insurance growth in absolute terms came from Motor Liability business, which increased by € 16.7 million or 4.8% to € 298.1 million. A somewhat smaller up-turn was registered in Motor Own Damage premiums, which grew by € 11.8 million or 8.6% to € 148.1 million. Motor Passenger Accident business generated € 0.2 million more revenues, raising premium volume to € 1.0 million.
Loss expenditure was down on the preceding year. In view of the in- creased premium income, the net loss ratio for accounting purposes stood at 82.9%, which was 8.3 percentage points lower than in the financial year 2000.
Overall, the underwriting account for the financial year under review showed a net deficit. At € 10.7 million, however, it was considerably less than the preceding year’s shortfall of € 53.3 million. The sharpest deficit downturn was seen in Motor Liability insurance. After dipping to € 40.2 million in the red in 2000, the deficit for the financial year under review amounted to just € 8.2 million. An improved result was also seen in Own Damage business, which produced a deficit of € 2.9 million in the year under review (p.y. € 13.7 million). In Motor Passenger Accident business, a surplus of € 0.4 million (p.y. € 0.6 million) was registered.
Gerling-Konzern Globale Rückversicherungs-AG/Management Report 43