Premiums up 5.8%, again growing faster than market |
Net profit for year up 20.1% |
190 years of growth and innovation |
Cologne, 22 June 2010 - With gross premiums written up 5.8% since the previous year to Euro 4.186bn (without premiums from the reserve for premium refunds; previous year: Euro 3.956bn, the Gothaer Group in 2009 was growing at a rate above the market average of 4.1% established by the Association of German Insurers (GDV). Net profit for the year at Euro 75m and growth of 20.1% were well above the values for 2008 (Euro 62m). "We are looking back at a very satisfactory year. All ratios point into the right direction: premiums are up, underwriting expenses are down, equity capital has grown, and it was also possible to significantly boost the net profit for the year. In last year's ambitious market environment, we also benefited from the experience and competence we have built up over a period of 190 years," sums up Dr Werner Görg, CEO of the Gothaer Group. The Company is celebrating its 190th anniversary on 2 July, making it one of Germany's oldest supra-regional insurers.
The Group's chief ratios according to IFRS:
| IFRS results, in € m | 2008 | 2009 |
| Gross premiums written* | 3.956 | 4.186 |
| Policyholder benefits (net) | 2.436 | 3.383 |
| Underwriting expenses (net) | 691 | 648 |
| Group net profit for year | 62 | 75 |
| Group equity capital | 942 | 1.067 |
| Employees 5.466 | 5.466 | 5.350 |
*without premiums from the reserve for premium refunds
More than just insurance - Additional services for customers
Besides a segment-crossing insurance range, the Company offers customers a whole range of insurance-related services, extending from the individual health-promoting programmes of the Group's own healthcare service provider MediExpert, via the provision of craftsmen and service suppliers in an insured event, all the way to simple proposals and insurance policies from the direct insurer Asstel for printing out at home. In autumn 2010, a new distribution cooperation scheme is being launched with solarhybrid AG. The Cologne-based insurer's agents will be able in future to recommend use of solarhybrid solar systems to their customers. Interested customers are passed on to certified specialist dealers. The target groups are corporate SME clients and private individuals who wish to install a solar system themselves or rent their roof surface for installing solar panels. "We want to offer our customers added value in every situation in life, thus building a long-term association with the Company," says the Board member in charge of Marketing and Sales, Dr Hartmut Nickel-Waninger. "Another selling point is our high advisory competence: for the third time, Gothaer's self-employed fieldforce has been awarded a 'very good' by the independent agency ServiceRating," adds a happy Nickel-Waninger.
Capital investment: investment policy proving its worth
Gothaer's investment strategy has proved its worth in the crisis as well. "As of 31 December 2009, we largely left the crisis behind us in balance-sheet terms, so that we have been able since the turn of the year to build up undisclosed net reserves again," says CFO Jürgen Meisch. Gothaer companies pass all stress tests. "In the current situation, we are backing shorter terms to switch flexibly to investment classes with higher yields when interest rates rise and to earn more capital. In the second half of 2010, investments will focus on government bonds with medium terms in the euro periphery, on first-rate real properties, AAA-ABS and private equity," sums up Meisch.
Gothaer Allgemeine growing in new business
At Euro 1.4bn, Gothaer Allgemeine Versicherung AG's gross premiums written in 2009 were roughly at the 2008 level. "We note an unchanged positive trend: despite the crisis on the financial markets, new business is growing. In addition, we have been able to lower yet again a loss ratio that was already below the market figure. In July, we will be launching new products in accident, private liability, multi-risk and pet owners' liability and creating a uniform product structure for our customers with 'Basis-Schutz' (basic protection), 'Top-Schutz' (top protection) 'Plus-Deckung' (plus cover)," reports Thomas Leicht, Board Chairman at Gothaer Allgemeine. It was possible to further expand the strategic 'Renewable Energies' business field: premiums written grew by 5.7%. Here, the 26% growth in France is worth stressing: in view of the current difficult situation in the economy, and given the delays in many major projects, a handsome success.
Gothaer Leben expands its strategic business fields
New business at Gothaer Lebensversicherung AG in terms of new premiums climbed 31.9% to Euro 618.1m. This is partly due to a rise in single premiums and partly to growing demand in the area of company pension schemes and biometric risks. "Our growth trend in the strategic business fields 'Company Pension Schemes' and 'Biometric Risks' continues unabated. More and more customers are asking about disability insurance and the recently launched market innovation 'PflegeRent Invest' ? the first unit-linked long-term care insurance on the German market. Our solution competence and our holistic service chain in important current subjects, like working-time accounts and Germany's Accounting Law Modernization Act (BilMoG), are another crucial success factor," summarizes Dr Helmut Hofmeier, Board Chairman at Gothaer Lebensversicherung AG.
Gothaer Kranken's notable growth push
Gothaer Krankenversicherung AG boosted its new business for the sixth year running, reaching a monthly target premium income of Euro 3.6m (up 33% on the previous year). "All indicators point to growth," says an enthusiastic Michael Kurtenbach, Board Chairman at Gothaer Krankenversicherung AG. "The number of insureds is rising continuously: at the end of March 2010, the figure was just under 523,000. In May 2010, we were able to reward the loyalty of our long-term care-insurance customers with a cheque for Euro 140 per customer," says Kurtenbach. The supplementary insurance launched in 2010 for private hospital treatment after an accident and providing supplementary cover for preventive dental treatment and professional dental cleaning is set to stoke growth even further.
Asstel in a new getup
Asstel Sach's premiums written rose to Euro 36.0m (previous year: Euro 34.9m). In 2009, Asstel Leben's premiums written, without provision for premium refunds, stood at Euro 215.6m (previous year: Euro 231.8m). Thanks to new online marketing approaches, it was possible to generate the highest share in new supplementary insureds for the Group. In May of this year, logo and getup enjoyed a relaunch. The new brand values are 'smart', 'individual' and 'mobile'. "The company's motto of creating freedom for our customers is now being clearly underlined visually as well," says Dr Mathias Bühring-Uhle, Asstel Board member. Advice at Asstel is event-related and takes account of customers' individual needs, like phase of life, marital status and income. The re-alignment is already paying off. In 1Q10, it was possible to broker over 60% more insurance policies than in the comparable period of the previous year.
Your contact
Sabine Exinger
Presse und Unternehmenskommunikation
T: +49 221/308-34534
F: +49 221/308-34530
Gothaer Allee 2, D-50969 Köln
E: sabine_exinger@gothaer.de
www.gothaer.de
