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We remain an international reinsurer

The Gerling Global Re Group sustained a loss after tax of € 582.8 million in the financial year 2001. This large deficit was a result of the terrorist attacks in New York and additional provisions for asbestos claims in the United States in the light of new court rulings.

The business result was additionally depressed by generally recessive income from investments. Last year was the worst year the reinsurance sector has experienced for half a century. The catastrophes hit all rein- surers in a market where negotiations had brought about an increase in premiums but not yet an adequately high level of rates.

To make up the Gerling Global Re Group’s losses and create new scope for the future, shareholders Dr. Rolf Gerling and Deutsche Bank effected capital increases totalling more than € 700 million. The additional capi- tal strengthens the financial base of the Gerling Group as a whole and thus also boosts that of the Gerling Global Re Group. We therefore con- tinue to enjoy a good financial standing and retain the ability to harness potentials in the current market environment of rising premium rates.

In line with our new strategic orientation, gearing business to profit is a matter of primary importance, although the resulting improvement in the quality of our portfolio may bring about a reduction in premium volume. We will systematically withdraw from certain markets, terminate engagements which have long been unprofitable and focus on business offering a sound return on investment.

The Gerling Global Re Group attained a premium volume of € 5,849.9 million in the financial year 2001 (p.y. € 5,195.5 million). Premium rev- enues realized outside Germany accounted for 77.4% of total premium income. 29.3% of our premium volume was generated in European coun- tries other than Germany and 36.2% in the North American market. We will consolidate our position as a worldwide reinsurer and, in doing so, pursue systematically our aim of ensuring long-term profitability.

Foreword 7

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