Professor Dr Reimer Schmidt

The first Chairman of the Executive Board of Deutsche Rück was Bruno Lackner. He died in 1955 as a result of a car accident. He was succeeded for the next nine years by a young lawyer and lecturer at the University of Hamburg: Reimer Schmidt. He later became one of the leading figures in the German insurance industry as a professor of insurance law and Managing Director of Aachen-Münchener Versicherung. With a wealth of publications, Professor Dr Reimer Schmidt was one of the most prominent insurance scholars in Germany.

With a wealth of publications, Professor Dr Reimer Schmidt was one of the most prominent insurance scholars in Germany.

Working from Home

Schmidt had his official residence at the rear of the new building and thus lived virtually right next to his executive desk. He led Deutsche Rück alongside his work at the University of Hamburg. In the relatively compact structures of the German insurance industry at the time, such a dual role could be managed successfully.

The auditor’s report for 1957 listed 16 employees

Notification by Deutsche Rück regarding the new executive director, August 1955

This is roughly what the children’s room planned in 1957 would have looked like.

At the end of 1957, Reimer Schmidt applied for an extension to his home. “The current situation means that a member of the family has to sleep on a sofa on a rotating basis,” the minutes of the advisory board meeting note. A children’s room was built additionally.

A Successful First Decade

In its first ten years, Deutsche Rück more than tripled its premium income to over 64 million Deutsche Mark (DM). In view of this rapid growth, the company’s original share capital of 1 million Deutsche Mark was far too low. After lengthy discussions among the shareholders, the capital was increased in 1960 to 3.2 million DM.

Rapid growth in premium income within ten years

How Much Equity?

The question of what level of capitalisation was appropriate for Deutsche Rück occupied the company repeatedly in the decades that followed. While the executive board consistently urged that equity be adjusted to match the rapidly growing business, shareholders were generally very cautious about increasing capital. In later periods of crisis, it became clear that the level of capitalisation was in fact too low given the company’s size.