•  Life insurer maintains position 2
   – leader in Rürup pension business
   – gross premiums written increase by 5.4 percent

•  Property/casualty insurer grows by 1.3 percent

•  Reorientation of distribution on Deutsche Vermögensberatung successfully completed

In 2007 AachenMünchener developed noticeably better than the market. The gross premiums written of the life insurer increased by 5.4 percent (market: 0.7 percent), the property/casualty insurer experienced a 1.3 percent growth against the market trend (market: -0.6 percent). "This top growth is even more remarkable since it has been achieved despite the strategic reorientation of our sales networks on Deutsche Vermögensberatung, in a situation of change", said Michael Westkamp, Chief Executive of AachenMünchener. "The reorientation has been very well digested."

Since January 1, 2008, the long-standing partner Deutsche Vermögensberatung has been the sole distribution channel of AachenMünchener. With the overwhelming majority of tied agents and 92 percent the distribution capacity, the tied-agent network "AachenMünchener Beratungs- und Serviceorganisation (AMBus) changed over to the DVAG subsidiary Allfinanz Deutsche Vermögensberatung AG. In the context of this reorientation, a clear allocation of roles has been agreed. Westkamp: "AachenMünchener now concentrates on its core activities of product development, sales support and customer service. We are set to be first class in these fields."

Life insurer: growth above average
In the business year 2007, AachenMünchener maintained its position no. 2 in the life insurance market. Gross premiums written rose by 5.4 percent to EUR 3,889.4 m (previous year: 3,691.8 m). The market only reached a growth of 0.7 percent. New business in terms of regular premiums, adjusted for the 2006 Riester increase step, increased by 5.7 percent to EUR 449.4 m. Including the Riester impact, new business in terms of regular premiums decreased by 9.9 percent, a drop less steep than expected (previous year: EUR 498.5 m). Single-premium premiums also witnessed an above average growth against the market trend. This business rose by 61 percent to EUR 279.2 m (previous year: 173.5 m). The total premiums of new business thus amounted to EUR 728.6 m (previous year: 672 m) thus witnessing an 8.4 percent growth. This rate, too, is noticeably above the market growth of 1.3 percent.

Leader in Rürup pension business
The business with Rürup policies witnessed an extraordinarily favourable development. In Rürup business, AachenMünchener is among the leading companies in the market. In 2007, it sold approx. 72,000 policies jointly by Deutsche Vermögensberatung and its tied-agent network (regular annual premiums of EUR 102 m), which are four times as many policies as in 2006. The portfolio thus grew to 90,000 policies. In 2006 about 17,000 Rürup pension contracts (regular annual premiums EUR 27.8 m) had been taken out. At year-end 2006 the business in force consisted of more than 19,000 policies.

Riester pension an important factor in new business
Ever since the launch of the Riester pension AachenMünchener, jointly with Deutsche Vermögensberatung, has focussed on this product with a state incentive. "This pays for us every year", West­kamp explains. Last year Deutsche Vermögensberatung and the sales network of AachenMünchener concluded more than 172,000 Riester policies (previous year: about 208,000 policies) with a regular annual premium of EUR 75 m (previous year: EUR 146 m including the Riester increase step). In addition, 70,000 Riester policies were sold last year with the inception date in January 2008. A large amount of this is attributable to the Riester product STRATEGY No. 1 launched in September 2007 – a unit-linked Riester pension with a dynamic optimization of the investment.

Riester increase step 2008
This year, the new business of AachenMünchener will benefit over-proportionately from the fourth Riester increase step. In 2008 the maximum amount eligible for incentives rises from 3 percent to 4 percent of the annual gross salary or a maximum of EUR 2,100. Furthermore, customers with a Riester contract receive a state allowance now amounting to EUR 154 (previous years: 114) and an amount of EUR 185 (previous years: 138) per child.

Higher profit bonus for policyholders
In 2007 the investment volume increased by 8.8 percent to EUR 25.9 bn (previous year: 23.8 bn). The net yield was 4.3 percent. As profit bonus, AachenMünchener passes an increased amount of EUR 571.9 m (2006: 529.6 m) on to its customers. The net income amounted to EUR 44 m (previous year: 40 m).

Property/casualty insurer: growth against negative market trend
The property/casualty business composed of property, personal accident, general liability and motor business for private and corporate customers again witnessed growth against the market trend. Gross premiums written amounted to EUR 1,052 m. Adjusted for the broker company AMPAS, which was transferred to the fellow subsidiary Volksfürsorge, this equals a growth of 1.3 percent. The market experienced a decrease of 0.6 percent in 2007. The gross premiums written in the classes of property, personal accident and general liability insurance increased by 2.4 percent to EUR 612.2 m (previous year: 598.1 m). The market only had a slight growth of 0.2 percent in premium income. AachenMünchener's motor business stagnated and saw a slight 0.1 percent decrease to EUR 439.8 m (previous year: 440.3 m). The market experienced a decline of 1.8 percent. AachenMünchener has thus reached its target of keeping its gross premiums written above the 1 bn mark, despite a situation of change.

Higher combined ratio due to Kyrill
The combined ratio of claims and expenses increased from the previous year's level to 97.1 percent (previous year: 95.0 percent). This is exclusively attributable to the storm Kyrill, which caused severe claims in vast areas of Germany early in 2007. AachenMünchener paid to its customers an amount of EUR 39 m in respect of 54,000 declared claims. Primarily due to realized capital gains, the property/casualty insurer achieved a net income of EUR 109 m (previous year: 31.1 m).

Success factor Deutsche Vermögensberatung
In 2007 Deutsche Vermögensberatung as the strategic distribution partner again produced the bulk of AachenMünchener's new business. As far as the new business of the life insurer is concerned, the more than 32,000 financial advisors produced a share of 86.8 percent. 57.7 percent of the property/casualty insurer's new business was acquired by the financial advisors. "This success is the result of the unique distribution achievements of Deutsche Vermögensberatung", Westkamp says.

Standard & Poor's assigns AA financial strength rating (excellent)
Standard & Poor's, the rating agency of international renown, has again assigned an outstanding AA rating ("excellent") to AachenMünchener. Currently this is the highest rating given by Standard & Poor's to a primary insurer in Germany. AachenMünchener Lebensversicherung received a AA rating for the ninth consecutive time. The property/casualty insurer AachenMünchener Versicherung AG has this rating since 2001. "This series of ratings from S&P and the continuity involved are unique in the insurance market", Westkamp underlines. According to the recently published rating report of Standard & Poor's, both companies distinguish themselves by the quality of their manage­ment and by being part of the international Generali Group. Standard & Poor's perceives the integration of AachenMünchener's agents into Deutsche Vermögensberatung as a logical step in order to reinforce market power and improve efficiency.

Reform of the Insurance Contract Act implemented as scheduled
The reform of the Insurance Contract Act (VVG) has been largely implemented in AachenMünchener. In property and casualty business, AachenMünchener applies the more customer-friendly rules introduced with the VVG reform also for claims referring to existing portfolio business and is thus pursuing a more customer-friendly approach than required by law. According to legislation, the VVG reform only applies to new contracts starting from January 2008. For customers having taken out their contract before 2008, the amendments will become applicable starting from 2009. Further­more, AachenMünchener is also well prepared for the Decree on Information Duties coming into force on July 1, 2008.

About AachenMünchener:
The companies operating under the name of AachenMünchener are AachenMünchener Lebensversicherung AG and AachenMünchener Versicherung AG. With a premium volume of € 3,889.4 m (2007), AachenMünchener Lebens­versicherung AG is the second-largest life insurer in Germany. AachenMünchener Versicherung AG is one of the biggest German property/casualty insurers. Its 2007 premium volume amounted to € 1,052 m. With its strategic partner Deutsche Vermögensberatung, AachenMünchener provides transparent advice, first-class service and excellent covers and benefits. The rating agencies Standard & Poor's and Fitch Ratings assign an AA financial strength rating to AachenMünchener, which currently is the highest rating awarded to a German primary insurer. Moody's assigns an Aa3. AachenMünchener is part of the AMB Generali Group .


AachenMünchener Lebensversicherung AG
AachenMünchener Versicherung AG
Pressesprecher:
Andreas Krosta
medien@amv.de
Aureliusstraße 2
52064 Aachen
Telefon: (02 41) 4 56-54 81
Telefax: (02 41) 4 56-55 14
www.amv.de