SIGNAL IDUNA Group 2006
Continued expansion in Eastern Europe.
Successful restructuring of the composite insurers

Dortmund/Hamburg
SIGNAL IDUNA Group has made another step on the way to expand its activity in Eastern Europe, at mid-2006 the group opened a branch in Romania. There are plans to launch activity in the field of insurance within the structures of the group's subsidiary already this year. The new company shall primarily focus on life and health insurance products.

The group already succeeds in on the Hungarian and Polish market. In the year 2000 it reported an average annual premium growth of 25%. 'Thus the results have come up to our expectations to the full extent', said Reinhold Schulte, President of the Board of SIGNAL IDUNA Group during this year press conference held on 18 June in Dortmund to sum up the group's accomplishments.

With both composite companies that belonged to the group so far, i.e. SIGNAL Unfallversicherung a. G. and NOVA Allgemeine Versicherung AG being joined together, SIGNAL IDUNA Allgemeine Versicherung AG launched its operations on 1 October 2006. As Reinhold Schulte puts it: 'Due to restructuring we have made another significant step to complete our concept of developing the non-hierarchical consortium that emerged in 1999.' The new company, compared to the individual companies, is characterised by improved equity structure and occupies a better market position.

In 2006 SIGNAL IDUNA Group managed to surpass the operating result of the previous year by EUR 2.5 m and to stabilise it at a high level with EUR 821.6 m.

Premium proceeds of the consortium's insurance companies increased by 0.4 %, i.e. by EUR 17.7 m to more than 4.6 bn EUR.

Gross expenses in virtue of insured events increased in the previous year by EUR 158.5 m to 3.8 bn EUR for all insurance companies of SIGNAL IDUNA Group.

In 2006 the consortium reported significant cost reduction. By 2010 the annual cost level is expected to decrease by 200 m EUR. By the end of 2006 this goal was already achieved to a large extent.

Last year the fixed assets of SIGNAL IDUNA Group rose by EUR 1.4 bn to EUR 37.7 bn. In 2006 1.4 bn EUR net sales were generated from insurance companies' investments amounting to EUR 31.5 bn. Net yield amounted to 4.7%.

SIGNAL Krankenversicherung a.G. celebrates its 100th anniversary this year. The fourth largest private insurance company in Germany reported in 2006 the increase in the number of insured by 28.045 to 1.977 m persons.

IDUNA Leben reported the increase in premiums from new segments (inclusive of other revenues) by about 321m EUR in the year 2006. With the total interest of clients' contributions it still occupies a top position: with 4.3 % (plus 0.35 % of final surplus share) it ranks fifth among the 20 largest life insurance companies.

Overall, the group managed to extend the car insurance scope by 13,000 risks, despite heavy competition.

The financial subsidiaries of the company, CONRAD HINRICH DONNER BANK AG, HANSAINVEST Hanseatische Investment GmbH as well as SIGNAL IDUNA Bauspar AG could improve their results before taxation by 13.3 % to EUR 18.3 m compared to the previous year. The number of employees (including self-employed tied agents and trainees) of SIGNAL IDUNA Group amounted as at 31 December 2006 to 12.225 persons, which is 895 persons or 6.8% less than last year.

"As a reputable service provider and quality insurance company we aim at exclusiveness in terms of operations and - in contrast to some of our competitors- we do not plan any change of company's direction.", emphasised Reinhold Schulte. The total broker business for independent partners of SIGNAL IDUNA Group was entrusted to DEUFINANZ Vermittlungs-Aktiengesellschaft. Thus the sales dynamics is supposed to be significantly strengthened.

SIGNAL Krankenversicherung a.G.

Signal Krankenversicherung a.G., Dortmund, established in 1907 as a self-help institution of handicraft and today the fourth largest private health insurer in Germany, reported last financial year a significant sales dynamics with respect to additional insurance portfolio. All in all the number of insured rose by 28.045 persons. While the number of substitutive insurance policies sold decreased by 11.544 persons or 2.3 percent, it was reported that the number of complementary insurance policies  increased by 41.870 persons or  3% .

As at 31 December 2006 approx. 2 m persons were insured with SIGNAL Kranken. 491.000 of them i.e. 24.8% of all insured, took out full coverage. About 1.5 m persons purchased the complementary insurance.

The gross written premiums increased slightly to approx. EUR 2 bn.

The benefits for our customers (gross expenses of insurance claims) increased  by 2.7% compared to the previous year (1.7%). Major causes for the increase were dental services (8.3% increase) compared to 7.1% in the previous year and the rise in expenses for outpatient consultations at 2.6% (2.2% in the previous year).

Last year SIGNAL Kranken distributed EUR 40.2 m as premium refund to approx. 131.000 benefit-free insureds with eligible tariffs. This type of surplus utilisation will be continued beyond the year 2006.

Results of insurance activity has improved significantly like in the previous year, rising from 11.6% to 13.1%. This indicates in percentage terms of the gross written premiums, how much remains from the premiums after the deduction of expenses for claim and operational costs. EUR 288.1 m (EUR 236.5 m in the previous year) of the gross surplus were allocated to the provision for performance-related premium refunds. Thus SIGNAL Kranken passes 94.2% (last year: 93.2%) of the generated surplus back to the insured. In 2006 reserve funds were also significantly strengthened, which are earmarked among others for future premium reliefs.

The equity ratio - with reference to the contributed gross premiums - rose from 16.8% to 17.8%. Thus excellent performance in terms of equity could be further improved.

SIGNAL IDUNA sees significant growth perspectives in the health market and therefore it launched two new health insurance products in the current year, i.e. the substitutive insurance tariffs OPTIMAL Start and OPTIMAL Komfort. They include offers for innovative GP and generic drugs regulations. The insured are thus encouraged to make cost-wise decisions that directly impact on the premium stability.

IDUNA Vereinigte Lebensversicherung aG für Handwerk, Handel und Gewerbe
SIGNAL IDUNA Pensionskasse AG

The new business activity of IDUNA Leben (inclusive of other proceeds) rose vis-à-vis the previous year by 23.6% to 92 m EUR. Measured by single premiums the new business generated the increase by 11.3% to EUR 228.5 m. In reference to the premiums the greatest part of the new business, which is 72.6%, was allocated to the pension insurance. IDUNA Leben belongs to one of ten biggest pension insurance companies.

With the total clients' contribution interest level IDUNA Leben is still on the top position: with 4.3% (plus 0.35% of the final surplus share) it ranks fifth among the 20 biggest life insurance companies.

The premiums of all group's life insurance companies were maintained at the level of EUR 1.6 bn.

At the end of the business year 2006 IDUNA Leben had about 2.3 m insurance contracts signed. It paid more than 1,7 bn EUR to its clients.

The capital assets of IDUNA Leben grew in the business year 2006 from EUR 18.1 bn to 18.2 bn , which corresponds to a 0.7% increase. The net gains from capital investments amounted to EUR 830.6 m (EUR 900.1 m in the previous year). The net interest amounted to 4.6% compared to 5.0% in the previous year.

SIGNAL IDUNA Pensionskasse AG, a 100%-owned subsidiary of IDUNA Leben developed its activity in accordance with the plan: at the end of the business year 2006 the company is in charge of 167.392 contracts (156.439 contracts last year) and as at 31.12.2006 its premium proceeds amounted to EUR 120.5 m (EUR 116.6 m in the previous year).

The life insurers of SIGNAL IDUNA offer in all three sections of the Retirement Income Act (Alterseinkünftegesetz) life and pension insurance products within the personal as well as the company pension scheme. Special attention should be given to the staff coverage. 

SIGNAL IDUNA Allgemeine Versicherung AG,
SIGNAL Unfallversicherung a.G., ADLER Versicherung AG,
PVAG Polizeiversicherungs-AG,
ALLRECHT Rechtsschutzversicherung AG

The Non-Life insurance companies of SIGNAL IDUNA Group reported in 2006 an improved annual surplus of EUR 28 m vis-à-vis EUR 24 m reported in the previous year.

The gross written premiums in domestic companies amounted to EUR 935 m (EUR 947.6 m in the previous year). The decrease, despite the extension of business, is to be attributed to the development in the field of motor insurance.

The major growth areas also in the previous year were property, Third-Party Liability and all risks insurances. The increase in premiums amounted to approx. 1.5%, in the event of a special product for medium-sized enterprises ,all-risks policy' the increase was even 15%.

In the motor insurance class SIGNAL IDUNA purposefully refrained from reducing the tariff in 2006 and focused on the formerly introduced "autoflex-procedure". The motor insurance portfolio was extended by 13,000 risks.

At the turn of 2006/2007 the portfolio of motor insurances for private clients was extended, in the segment of privately used cars 5,000 risks were included in the insurance. In the corporate motor insurance sector SIGNAL IDUNA decided to preserve the performance-related status quo. On 1 August 2007 a new car tariff ("scoring-tariff") shall be introduced to strengthen the market position of SIGNAL IDUNA.

Successful performance in the general accident insurance sector: the premium income rose in 2006 for the first time for years. The new business premium increased significantly by 40%, and in accident insurance sector with the  guarantee of contribution refund it rose even by 370%. The above mentioned results are to a large extent attributable to innovative tariffs introduced in 2006 for individual and group accident insurance.

In 2007 the premium growth in the general accident insurance sector still sustains

SIGNAL Versicherung AG, Budapest

SIGNAL Versicherung AG Budapest established in 1993 has become even more profitable in 2006. The premium income increased by 4% to EUR 39.5 m. The company generated an after-tax profit of EUR 4.3 m. The growth stimulating factor in the previous year was the unit-linked life insurance sector with a premium increase of 76%. The SIGNAL Versicherung AG Budapest has more than 250,000 customers.

The company has successfully started with the portfolio of motor insurance products in 2007. Up to then the company had only offered life, accident and property insurance products for private and corporate clients. By the end of February about 40,000 motor insurance contracts were already signed.

SIGNAL IDUNA Polen Versicherung AG
SIGNAl IDUNA Polen Lebensversicherung AG

The SIGNAL IDUNA companies belonged with a premium increase of 52.4% in 2006 to the insurance companies with the highest growth rate on the Polish market that reported a 21% increase. The premium income in the previous year amounted to EUR 18.8 m, i.e. it has increased by 160% since 2004. In the meantime, approx. two million persons are insured.

The leading factor of this growth was the group life insurance which increased the premium income by 144%.

Positive results were also achieved in the new sector of health insurance. Since the last quarter of 2006 SIGNAL IDUNA has addressed its offer of group insurance services to corporate clients, encouraging them to conclude such agreements on behalf of their personnel. It has been the only insurance company in Poland that offers inpatient health care products. So far, about 52,000 clients have decided to purchase private health insurance coverage with SIGNAL IDUNA.

Apart from health insurance, the most important segment of SIGNAL IDUNA Poland is the travel insurance. With a premium income of approx. EUR 10 m and a growth of 28% the company occupies the position of the market leader.

SIGNAL IDUNA Rückversicherungs AG

SIGNAL IDUNA Rückversicherungs AG with the registered office in Zug (Switzerland) reported sales of approx. EUR 60 million in its third business year.


Dortmund/Hamburg, June 18th, 2007
Press office

Hannes Tutschku
phone: (0231) 135-2023
fax:  (0231) 135-39 2023
e-mail: hannes.tutschku@signal-iduna.de

Priska Flinzer-Frömmling
phone: (040) 4124-3834
fax:       (040) 4124-4026
e-mail: priska.flinzer-froemmling@signal-iduna.de
 

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