IGTA Journal - Summer 2018

But reinsurers are benefitting from the fact that new requirements are arising for the customers, aren’t they? Indeed. Local hurdles are causing additional requirements which at least partly can be mitigated by reinsurances. However, on the bottom line, developments like the Brexit have to be deplored. Will you remain in Great Britain? You can be sure about this. In the previous set up? In Great Britain, we are having two branches for the life-insurance and for the property & casualty-reinsurance-business and we expect that it will be possible to maintain this concept also after the Brexit. In the past year, we bought a Lloyd’s-syndicate in Great Britain. If there will be no solution for our branch in the future, we will be able to underwrite business by way of this acquired company and to service it. How strongly does the “America first” policy of the US-president impact Hannover Re? The decided tax-reform determined by President Trump end of 2017 had the effect that we had a very busy Christmas business. We had to change the setup for the US American life reinsurance-business. This was a heavy exercise. The profitability and the tax ratio had been affected by positive and negative effects which have balanced off against each other by and large. We have received all authorizations. The solution is ready. What are you saying about the trade dispute between USA and the European Union? Each interference on free trade is not helpful for our business. Should the new government in Italy start a course of confrontation with the European Union, which consequences would that have? From Italy, we are not directly threatened with dangers. As to our capital investments, we are only with a very low portion invested in Italian bonds. Essentially, our position here is the same as to the Brexit. The rate of price increases in the Euro-area is close to the inflation target of the European Central Bank. How do you evaluate the monetary policy of the Central Bank? Like many, also we are wishing a turnaround in the interest rate policy. It is time now to reduce the monetary support measures in Europe. In the US, interest rates are increasing step by step already since some time. With such small interest rate increases we as reinsurer and capital investor can live very well. Naturally, our hidden reserves in our dollar capital investments are shrinking significantly. But this is the logical consequence of interest rate increases. We would also wish to have normalized capital investment returns for our Euro capital investments. IGTA eJournal | Summer 2018 | 13