Serguei ZAITSEV, Associate Director, HANNOVER Re
Although the so called "hard" market had already passed its peak in 2007, reinsurance rates were on the adequate level in most cases. The sustained favourable state of the reinsurance market in non-life reinsurance had a positive effect on the development of HANNOVER Re's business.
XPRIMM: How was this renewal season for HANNOVER Re?
| Published on 01.05.2008
Serguei ZAITSEV: Although the so called "hard" market had
already passed its peak in 2007, reinsurance rates were on the adequate
level in most cases. The sustained favourable state of the reinsurance market
in non-life reinsurance had a positive effect on the development of HANNOVER
Re's business. By using the selective underwriting principles we were able
to generate profitable business. In general, we were satisfied with the
course of non-life treaty renewals for the year 2008, too.
XPRIMM: How do you see the major development of the re/-insurance markets
in CEE and CIS region?
S.Z.: Central European countries, Russia and the CIS states offer a
particularly large growth potential for (re)insurance business. These markets
become, however, fiercely competitive. In past years HANNOVER Re has nevertheless
been successful in consistently writing profitable business in the area.
For the current 2008 financial year, too, we anticipate adequate reinsurance
margins. HANNOVER Re ranks itself among the top 3 reinsurers in CEE and
CIS countries and is well positioned with significant market share, especially
with regard to non-proportional reinsurance which we would prefer to write.
XPRIMM: Taking into consideration the opportunities, what are the plans
HANNOVER Re has made for this region in 2008?
S.Z.: In CEE and CIS countries, HANNOVER Re is providing its clients
with reinsurance capacity in all lines of business, including private, commercial
and industrial property; business interruption and loss of profit; engineering;
protection against natural perils; marine, land and air-going cargo; general
third party liability, product liability, professional indemnity, employers'
liability, medical malpractice, D&O; motor hull and motor third party
liability; marine hull; aviation; agriculture risks; credit, bond, surety
and political risks; terrorism; personal accident; life and health, etc.
HANNOVER Re maintains know-how and an infrastructure that enable us at any
time and in all lines of business to both quote and lead any type of treaty
and to assist our partners with pro-active and professional claims management.
Furthermore, throughout all phases of the reinsurance market cycle we systematically
identify niche markets and cultivate flexible and innovative solutions for
XPRIMM: What are the major opportunities and threats of the Romanian
insurance market, one year after joining EU?
S.Z.: The insurance market in Romania is growing very fast. Our expectation
is that after joining EU the insurance services in this country will grow
even faster than in the past. HANNOVER Re will participate in this development
by doing good business with professionally operating insurance companies.
For the time being, we do not see any particular threats.
XPRIMM: What is the HANNOVER Re' strategy in Romania in 2008?
S.Z.: We are very much satisfied with the financial results of our reinsurance
business in Romania. We are now in a more stronger position to serve our
Romanian clients. We are open to further fruitful co-operation with ceding
companies and brokers and especially committed to our loyal cedants which
are able to merit the quality of HANNOVER Re's services provided to them.
It means that for those clients who are willing to demonstrate their loyalty
and long-term approach HANNOVER Re is prepared to extend its profitability
criteria to a longer timeframe as a competitive advantage granted to our
loyal partners. In the future we shall without any doubt continue to devote
increased attention to Romania's insurance market.
XPRIMM: What are your expectations regarding the reinsurance demand in
Romania for this year and for which lines of business do you think this
demand would increase?
S.Z.: In Romania, we would expect increased reinsurance demand in liability
classes of business as well as in the reinsurance protection against natural
perils. We would be happy to serve our existing clients with appropriate
efficient reinsurance solutions. We would like to be of greater service
to small and medium sized companies and would support new established ventures
and niche players with our know-how and suitable reinsurance solution.
The rating agencies Standard & Poor's and A.M. Best have awarded HANNOVER
Re above-average ratings of "AA-" (very strong) and "A" (excellent)
respectively. This means that our cedants can rely upon our financial strength
and excellent ability to pay their claims from a long-term perspective.
XPRIMM: Thank you!