May 10, 2022 | Media relations
- Below-average major losses in property-casualty reinsurance
- Impairment losses on Russian and Ukrainian bonds, first
Russia /Ukraine claims - April renewals yield further premium growth (+7.6%), prices continue to be at a high level
- Gross premium expected to increase to €64bn in 2022
Summary of Q1 figures
At €27,783m, equity was down from the level at the start of the year (€30,945m), mainly due to a decline in valuation reserves on fixed-interest securities. The latter was attributable to a rise in interest rates that is economically advantageous for insurers. The solvency ratio was approx. 231% (227% as at
The annualised retuon equity (RoE) for Q1 2022 was 9.8% (10.4%).
Reinsurance: Result of €511m
The reinsurance field of business contributed €511m (410m) to the consolidated result in Q1. The operating result rose to €654m (558m) and gross premiums written increased to €11,307m (9,389m).
Life and health reinsurance business generated a loss of €78m (+52m) in Q1, mainly due to COVID-19-related losses of €150m, above all from the Omicron wave in the
Property-casualty reinsurance contributed €589m (358m) to the result in Q1. Premium volume increased substantially to €7,938m (6,330m), with a continued strong focus on quality. The combined ratio was 91.3% (98.9%) of net earned premium. In Q1,
Major losses of over €10m each totalled €667m (892m). This figure includes gains from the settlement of major losses from previous years of around €100m. Major-loss expenditure corresponded to 9.2% (15.5%) of net earned premiums, and was thus below the long-term average expected value of 13%. Man-made major losses declined to €185m (247m). Major losses from natural catastrophes came to €481m (646m) in Q1. Major natural catastrophe events included heavy rainfall in easteAustralia, resulting in losses of around €440m, and the winter storms in
In Q1, loss reserves of €291m (230m) were released for basic losses from prior years, which corresponds to 4.0% (4.0%) of net earned premiums. The normalised combined ratio was 94.8%.
In the reinsurance renewals as at
Prices were up overall in the sectional markets, with significantly different trends dependent upon claims experience, future loss expectations and the situation in each individual market. Prices for reinsurance cover rose considerably in some markets, including the
All in all, prices for the
ERGO: Result of €96m
Despite adverse effects from volatile capital markets and major losses, ERGO posted a profit of €96m (178m) for
The
In the Property-casualty
Investments: Investment result of €987m
Overall, the Q1 investment result represents a retuof 1.6% on the average market value of the portfolio. The running yield was 2.3% and the yield on reinvestment rose substantially to 2.1%. The equity-backing ratio including equity derivatives amounted to 7.5% as at
The investment portfolio as at
Outlook for 2022: Annual target unchanged at €3.3bn
All forecasts and targets face considerable uncertainty owing to fragile macroeconomic developments, volatile capital markets and the unclear future of the pandemic. In particular, there is considerable uncertainty regarding the financial impact of the Russian war of aggression in
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Disclaimer
ICC Holdings, Inc. Reports 2022 First Quarter Results
Earnings Document
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