New Re growth of 23%
In 2007, New Re’s gross written premiums grew by 23% and achieved a volume of CHF 1,241m. Net earned premiums rose to CHF 1,188m, up 22% on the year before. The strong growth came from life and health business where volume (net earned) went up from CHF 443m to CHF 632m (an increase of 43%). In property and casualty business, premiums rose "only" by 5% to CHF 556m. This moderate growth is a combination of further developing New Re’s niche segments and reducing volumes in traditional business segments as markets continued to soften.
Exceptional combined ratio of 85.8%
Technically, 2007 was a particularly good financial year. Underwriting discipline as well as favourable development in several long-tail segments led to an exceptionally low combined ratio of 85.8%.
Record profit of CHF 227m
Last year’s profit amounted to CHF 299m. However, this figure included a CHF 191m capital injection for business growth and "real" profit of CHF 108m. With CHF 227m "real" profit in 2007, New Re more than doubled its record result of 2006.
Excellent capitalisation and very strong S&P rating
2007 profits have been retained and shareholder equity rose by 32% to CHF 941m. Also on the basis of this excellent capitalisation, New Re enjoys a AA- S&P rating. In addition, New Re is a core company of Munich Re Group.
Mixed outlook for 2008
In many segments, the direction taken by the markets makes it virtually impossible to achieve risk-adequate prices. As a result, New Re expects for 2008 a significant decline in traditional non-life business volumes. However, we anticipate that New Re will be able to compensate for this by further growth in niche business.