16 Annual Report 2020 General overview In 2020 NewRe s top line developed posi tively Primarily driven by Non Life busi ness premium volume rose from CHF 5 4bn in 2019 to CHF 5 6bn in 2020 At CHF 118m NewRe s overall 2020 result was impacted by both Covid 19 and Weather losses and as a result is below the previous year s figure of CHF 210m Market conditions competition supply and demand NewRe saw overall price increases in its P C lines of business in Europe In Property reinsurance price levels in creased across Europe especially in natu ral catastrophe reinsurance business while the per risk reinsurance business re mained challenging Casualty again suffered from declining in terest rates and high claims inflation how ever this was largely compensated for by price increases In Life reinsurance business opportunities arose in the North American market where mortality covers were written and in the German market due to interest rate based reserving requirements so called Zinszusatzreserve and generally due to solvency requirements for primary insurance clients NewRe was able to ben efit from this environment and several new Life transactions were signed Staff NewRe had roughly 120 employees trans lating into 109 Full time Equivalents at the beginning and 111 FTEs at the end of 2020 with an average of 110 FTEs during the year Innovation and development In Non life reinsurance our aim has been to continue to offer solvency and earnings protection and retrospective products In Life reinsurance our focus has been on supporting primary insurance companies in offering innovative products to their cli ents and on covering the risks associated with those new products Significant events Non life and Life reinsurance experienced a year of Covid 19 related losses with a bottom line impact of about CHF 110m Apart from Covid 19 no significant loss was experienced Management report Weather business incurred losses in Europe which were partly offset by intra group business stemming from the US Risk management Due to the volatile nature of the reinsur ance business and the potential for signifi cant losses NewRe has a dedicated risk policy and maintains a tight risk manage ment system The features of this risk management system are explained in more detail in the relevant section of this report see page 17 Risk assessment Outlook In NewRe s Non life reinsurance business 1 January is the date on which a significant portion of the book is due for renewal The 1 January 2021 business renewals saw growth in both the Property and Casualty segments Risk adjusted price levels es sentially stayed flat in Casualty considering the lower interest rates whereas Property saw increased prices across Europe es pecially in natural catastrophe reinsurance business Life reinsurance business is written throughout the year In the light of NewRe s positioning in the market and its growth strategy bottom line growth is expected despite the top line being affected by the termination of a structured transaction in the US with substantial premium volume All in all the outlook for NewRe s business in 2021 is favourable but the coronavirus pandemic might again impact results all the more so as reinsurance business re mains highly volatile by nature The natural catastrophe reinsurance segment and parametric weather business in particular may be affected by large loss events and weather extremes In addition NewRe has significant risk in the life segment from a number of possible events such as pan demic large losses lapse and losses on our market risk transfer portfolio On the basis of NewRe s current capitali sation and growth expectations profits in future years will likely be distributed to shareholders as dividends NewRe will change its functional currency from CHF to EUR as of 1 January 2021 NewRe AnnualReport 2020 indd 16 28 04 21 19 06

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