Probable development of the Group

Industrial Lines

In the 2011 financial year our business in Industrial Lines is to be further expanded in Europe as well as Latin America, (South-)East Asia and the Arabian Peninsula. There are also plans to establish a branch office in Canada. Given the economic recovery both domestically and in the export market, the company is looking to boost its premium income – especially from turnover-based policies. The gross premium volume of EUR 2.6 billion expected for 2011 is thus marginally higher than the level recorded as at 31 December 2010. The industrial insurance market remains fiercely competitive in light of the unchanged predatory competition over prices and conditions. At the time of going to press it was still too early to foresee with any certainty the implications of the Japanese earthquake in March 2011. The Industrial Lines segment must anticipate appreciable claims expenditure. On the other hand, parallel to this, we are looking to a trend reversal on the pricing side – which should make itself felt partially in 2011 but above all in 2012. Rising claims expenditure must also be anticipated as a consequence of the widespread economic upturn. Despite the cautious assumptions with respect to investment returns, the company expects to achieve again in 2011 the satisfactory investment income generated in 2010.