Step by Step into the Wide World
Following the negative experiences during its first international expansion from the mid-1970s onwards, Deutsche Rück now proceeded with great caution. To support this approach, it formulated two guiding principles for expanding the business:
We fundamentally only underwrite risks that we understand well.
We generate the risk capital for expansion from our own resources rather than through external financing.
These two guiding principles shaped the phase of international expansion over the following decades and ensured steady, linear growth of the business – without major leaps and without major risks.
Deutsche Rück expanded its capital base year after year, thereby laying the foundation for its success itself.
From the DACH region to Central and Eastern Europe
In 2009, the next stage of expansion followed: Deutsche Rück expanded its market presence into Central and Eastern Europe. Under Dr Arno Junke, Chairman of the Board of Executive Directors of Deutsche Rück from 2009 to 2017, the company continued its cautious yet persistent course of international expansion without extreme growth spurts. In the new markets, the company offered capacity in its core fire and natural catastrophe business. Deutsche Rück acted as a following reinsurer rather than as a leading reinsurer.
Dr Arno Junke
Deutsche Rück also focuses on establishing long-term risk partnerships in Central and Eastern European markets.
The international expansion strategy always centred on ensuring that no risks arose for the shareholders – and that the shareholders’ influence over Deutsche Rück’s business was not diminished.
Strong Rating – Strong Competitive Position
A good rating is a key prerequisite for success abroad. This first became evident in 2004 when the international rating agency Standard & Poor’s awarded Deutsche Rück an “A+” rating.
The rating covers Deutsche Rück in Düsseldorf and DR Swiss in Zurich. Standard & Poor’s regularly highlighted the sustainable, solid capital base, strong competitive position and secure earnings situation of the Deutsche Rück Group.
Since 2016, Standard & Poor’s has continuously rated Deutsche Rück “A+” with a stable outlook.
The expansion of the international business marked the beginning of a continuous growth story. While Deutsche Rück’s premium volume stood at the equivalent of EUR 471 million in 2000, it had already reached EUR 712 million by 2009.
Gross written premiums in € million
Gross written premiums in € million
Vilnius, Lithuania