The 2021 flood was the costliest loss in DEVK history, DEVK Versicherungen, press release

The Board of Directors presented the business results for 2021 in Cologne today. It was a record year for DEVK Versicherungen, with new business premiums of €945 million and premium growth of 5.1 percent. But due to the West German flood catastrophe also with the costliest damage event in DEVK’s 135-year history.

The last financial year was satisfactory for DEVK. This applies to the group of companies as a whole, as well as to all large individual companies and insurance branches. “In 2021, the DEVK Group’s premium income increased by more than five percent to €4.1 billion,” he said. Gottfried Ruessman. The Chairman of the Board of Directors again personally presented the annual balance sheet to the press. DEVK has done a lot to support customers, employees and business partners.

About 1.7 million new contracts

That DEVK new business developed positively in 2021 with a new business premium of EUR 945 million (+1.8 percent). The number of insured risks and contracts amounts to 15.5 million, with which the portfolio grows by 0.5 percent. Gross premiums of the DEVK Group increased to 4.1 billion euros (+5.1 percent).

The domestic primary insurance business property and casualty insurance grew by 2.2% to a premium of EUR 2.1 billion (industry: +2.4%). Revenues in motor insurance (+1.1 percent, sector: +0.7 percent) and legal protection insurance (5.8 percent, sector: 4.5 percent) developed more strongly than in the market.

Income from life insurance premiums (including pension funds) increases by 3.4 percent (industry: -1.1 percent) to around €1.1 billion. the DEVK medical insurance grew to EUR 107 million in gross written premiums and improved revenue from the previous year by 4.5 percent (industry: 5.0 percent).

The business field of reinsurance was significantly expanded. The number of clients increased from 691 to 753. The recorded contributions of the DEVK reinsurance including Echo Re from non-DEVK business amounted to EUR 670.9 million, an increase of 22.5 percent compared to the previous year. After taxes, DEVK Reinsurance achieved a net income for the year of €34.3 million (previous year: €45.5 million).

the volume of capital investments DEVK rose 5.3 percent to EUR 21.0 billion in the latest financial year. This resulted in a net investment result of €684 million, 44.3 percent more than in 2020.

Most expensive loss event

In the Group’s property and casualty insurance business, including reinsurance and foreign business, the gross premium income with more than 2,900 million euros, a pleasant 5.7 percent above the value of the previous year.

2021 was a damaging year. The flood disaster in July alone saw DEVK’s direct insurers claim an expense of €234.9m, making it the costliest claim in the company’s history to date. Reinsurers bore most of the claims burden, so DEVK’s direct insurers’ net claims expense was EUR 15.0 million.

The mobility of many people, which meanwhile has increased again, and especially the sharp rise in prices in workshops and craft shops increased the number of claims. In the property and casualty area, the ratio of expenses for damages and costs to income from premiums deteriorated – the Net Combined Ratio – at 96.3 per cent (previous year: 92.0 per cent). This trend was also noticeable in auto insurance, with the net combined ratio rising from 98.1 percent a year earlier to 103.0 percent.

Return of premium of 13 million euros

In 2021, however, policyholders benefited from the significantly more favorable evolution of claims from the previous year. DEVK reimbursed a total of EUR 13 million: persons insured for motor vehicles received EUR 8 million in the general market and persons insured for household items in the transport market, i.e. employees of transport companies, received EUR 5 million . In 2022, some 460,000 members with civil liability insurance will receive a total of more than 5 million euros.

Decrease due to worse evolution of claims actuarial result before the change in the compensation reserve to EUR 69 million (previous year: EUR 173 million). After a withdrawal from the compensation reserve of EUR 7 million (previous year: allocation of EUR 61 million), the technical result in property and casualty insurance was EUR 77 million (previous year: EUR 112 million).

Together with the technical results of the life and health insurance and pension fund business, this results in an amount of €83 million (previous year: €121 million).

Due to lower depreciation and sharply reduced losses from the disposal of investments, this exceeded Non-technical account investment result 2021 with 223.7 million euros clearly the value of the previous year of 87.9 million euros.

That The result of normal business activity. improved to EUR 185 million (previous year: EUR 107 million). After taxes, there was a net profit for the year of €92 million (previous year: €77 million).

Pension linked to the successful unit

In the life insurance Unit-linked annuity insurance continued to be particularly popular in 2021. Premium income from unit-linked DEVK pension insurance increased pleasantly.

This was the case for single premiums New business of DEVK life insurers a slight decline in 2021. Compared to the previous year’s high figure, single premiums in new business that were redeemed fell by just 0.9 percent to €217.4 million (prev.yr.: €219.3 million).

reserved ones gross premiums DEVK life insurance in the strict sense registered a slight decrease to 806.3 million euros (previous year: 812.2 million euros). However, with -0.7 percent, they performed better than in the industry (-1.4 percent).

the life insurance premiums in a broader sense (including DEVK pension funds) increased by 3.4% (industry: -1.1%) to €1.1 billion.

112 million euros for the pot of benefits of the insured

According to the income and expenses of 2021 in life insurance resulted in a total excess €128 million (previous year: €66 million). Of this, 88 per cent or EUR 112 million was allocated to the provision for refunds of premiums (RfB), the source of profit for policyholders.

DEVK Lebensversicherungsverein aG is reducing its current surplus holding moderately to 2.5 percent for fiscal 2022, but it is still above the industry average. DEVK Allgemeine Lebensversicherungs-AG is also moderately reducing the ongoing surplus holding to 1.9 percent.

At 4.36 percent, the churn rate was below the prior year’s level (4.80 percent) and thus close to the industry average (4.22 percent).

Benefits paid to policyholders fell 11.7 percent to EUR 815 million (previous year: EUR 923 million). Benefits paid are expenses for insurance claims and bailouts, as well as excess balances paid.

Outlook 2022

There have already been many severe weather events over the course of 2022. In addition, the current framework conditions continue to concern DEVK, such as inflation, supply bottlenecks and regulatory requirements.

DEVK expects one for the group in 2022 premium growth of more than 6%. The main engine of growth is active reinsurance.

DEVK’s annual reports and sustainability report can be found here: reports


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