Background: The separation according to branches in the operation of insurance is through Section 8 Insurance Supervision Act (VAG) prescribed: the operation of life insurance is to be separated from the operation of other insurance lines; Likewise, the operation of health insurance is to be separated from the operation of other insurance lines (Versicherungsbote reported). This means that all those branches and areas that do not come under life or health insurance are assigned to a third large division for property and casualty business: the composite business (“Compositum” = the composite).
The composite business is important for the insurance industry – around 73,205 million euros were posted in gross premiums across the market in the 2019 financial year, for example. An average combined ratio (CR) of 92.57 percent (across 50 insurers) also shows that the composite branch is definitely profitable. However, it is precisely important sub-branches such as residential building and motor vehicle insurance that are in crisis.
The overall balance sheet of the composite division does not show these problems more clearly because smaller and profitable branches such as associated household effects have a balancing effect – only three insurers are therefore in the red for their overall business in 2019. And with Allianz Direct, the direct insurer tellingly has the worst CR in the industry (109.40 percent) that cannot compensate for the ailing motor vehicle business via other branches (Versicherungsbote reported). The figures are taken from the industry monitors of VERS Leipzig GmbH, created in cooperation with Sirius Campus. The studies can be paid for on the website of the analysis house can be acquired.
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