In the reinsurance segment, the volume of premiums written rose in 2020 by 3.0 per cent to €1,162.7 million (2019: €1,129.2 million).
Premiums written including savings portions from unit-linked and index-linked life insurance Reinsurance
In € million
The volume of premiums earned (net, in accordance with IFRSs) increased by 2.6 per cent to €1,056.1 million (2019: €1,029.3 million).
Net insurance benefits in 2020 remained stable at €700.6 million (2019: €700.4 million).
Operating expenses less reinsurance commissions received and the share of profit from reinsurance ceded in the amount of €12.2 million (2019: €10.1 million) rose by 2.4 per cent to €311.0 million (2019: €303.7 million).
Net investment income decreased to €6.9 million (2019: €29.5 million) in 2020.
Earnings before taxes in the reinsurance segment increased by 73.9 per cent to €58.3 million (2019: €33.5 million).
Reinsurance
An insurance company insures part of its risk via another insurance company.
Premiums written
All premiums due during the financial year arising from insurance contracts under direct insurance business, regardless of whether these premiums relate (either wholly or partially) to a later financial year. This involves (net) premiums written when reduced by the amount ceded to reinsurance companies.
Insurance benefits
Total of insurance benefit payments and changes in the claims provision during the financial year in connection with direct insurance and reinsurance contracts (gross). This involves net insurance benefits when reduced by the amount ceded to reinsurance companies. This does not include claims settlement expenses and changes in the provisions for claims settlement expenses.
Operating expenses
This item includes acquisition expenses, portfolio management expenses and the expenses for implementing reinsurance. The operating expenses remain for the company’s own account following deduction of the commissions and profit participation received from the reinsurance business ceded.
Cost ratio
Ratio of total operating expenses (net of reinsurance commissions received and share of profit from reinsurance ceded) to consolidated premiums earned (including savings portions of unit-linked and index-linked life insurance).
Reinsurance
An insurance company insures part of its risk via another insurance company.
Premiums written
All premiums due during the financial year arising from insurance contracts under direct insurance business, regardless of whether these premiums relate (either wholly or partially) to a later financial year. This involves (net) premiums written when reduced by the amount ceded to reinsurance companies.
Premiums earned
The actuarial premiums earned that determine the income for the year. In order to determine these, the changes to the unearned premiums, the cancellation provisions and the premium volume not yet written are taken into account, along with the gross premium volume written attributable to the financial year.
IFRSs
International Financial Reporting Standards. Since 2002 the term IFRSs has applied to the overall concept of standards adopted by the International Accounting Standards Board. Standards already adopted beforehand continue to be referred to as International Accounting Standards (IASs).
Insurance benefits
Total of insurance benefit payments and changes in the claims provision during the financial year in connection with direct insurance and reinsurance contracts (gross). This involves net insurance benefits when reduced by the amount ceded to reinsurance companies. This does not include claims settlement expenses and changes in the provisions for claims settlement expenses.
Operating expenses
This item includes acquisition expenses, portfolio management expenses and the expenses for implementing reinsurance. The operating expenses remain for the company’s own account following deduction of the commissions and profit participation received from the reinsurance business ceded.
Reinsurance
An insurance company insures part of its risk via another insurance company.
