Delvag shows resilience in a challenging business environment and successfully closes the 2022 financial year

In the business year 2022, Delvag demonstrated resilience and closed well despite a cooled global economy and a challenging market and industry environment. The result from ordinary activities was EUR 14.2 million and thus, as expected, below the previous year's result, which was characterised by special effects, among other things (2021: EUR 16.4 million).

"The Ukraine war, very high inflation, massive increases in interest rates: The year 2022 was characterised by many uncertainties and volatile capital markets - this was also a major challenge for the insurance industry. Despite all the adversities, we are in a good position compared to the industry and were able to demonstrate resilience in this difficult environment. This is due, among other things, to our extraordinarily good claims ratio as well as a very good result in almost all product areas. Furthermore, despite the negative development of the capital market, we were able to achieve a very positive net result in our investments," says Martin Schmatz, member of the Executive Board of Delvag.

"The 2022 financial statements confirm our strategy and show that we are well positioned for the future. Thanks to the special commitment of our employees, we were once again able to offer customised solutions for our clients and achieve a good business result. The ongoing digitisation of our internal processes is already giving us even more time for their personal support. In addition, we have completed the separation from active third-party reinsurance business in 2022 and have thus optimised our product portfolio, says Delvag Board Member Lorenz Hanelt.

Stable recovery phase, good loss ratio and positive solvency ratio

The gross premiums written in the 2022 financial year amounted to EUR 79.3 million and were thus at a similar level as in the previous year (EUR 80.4 million, decrease of 1.4%). In direct business, gross premiums increased compared to 2021 and amounted to EUR 53.5 million (previous year: EUR 49.1 million). In particular, the increased premium income in marine insurance (+3.3 million euros) and other classes of insurance more than compensated for the decreased premium income in aviation insurance (-0.6 million euros).

Delvag Versicherungs-AG generated gross premiums of EUR 25.8 million (previous year: EUR 31.2 million) for the inwards reinsurance business. The decline in gross premiums was mainly due to aviation and marine insurance, which could not be compensated for by the opposite development in other areas such as fire insurance.

The net loss ratio of 46.2 percent achieved in 2022 is low in historical comparison and is at the lowest level of the last 10 years. In a long-term comparison, this value has fallen significantly: in 2019, the net loss ratio was still 73.6 percent, in 2020 67.1 percent (a comparison with the previous year is only of limited significance due to the retroactive effect on the result from the portfolio transfer of the active reinsurance business of the former Delvag Rückversicherungs-AG in the 2021 financial year).

Investment income increased by EUR 2.4 million to a total of EUR 15 million in 2022 compared to the previous year (previous year: EUR 12.7 million). The main driver for the overall increase compared to the previous year was an increased profit transfer of the subsidiary Albatros Versicherungsdienste GmbH of EUR 13 million (previous year: EUR 10.7 million). Income from other investments remained stable compared to the previous year at EUR 1.5 million (previous year: EUR 1.5 million). Furthermore, there were gains from the disposal of investments of EUR 0.5 million (previous year: EUR 0.2 million).

As in the previous year, the balance sheet profit was fully transferred to Deutsche Lufthansa AG.

The Solvency II coverage ratio was 298.1 per cent at the end of 2022.

Outlook: Digitisation of customer interface and internal processes as well as implementation of the sustainability strategy

In 2023, Delvag will continue to focus on the digitisation of processes. On the way to becoming a "data driven company", the necessary structures will be expanded to further increase the range of services for customers based on data and to make internal processes even more efficient. Another focus of the strategy is the topic of responsible, sustainable corporate governance. Based on a company-specific analysis, significant fields of action will be identified in 2023 and implemented along a roadmap during the year. In addition, the captive role of Delvag Versicherungs-AG within the Lufthansa Group will be further strengthened, among other things by the planned increase in the self-retention.

Further information on the result and the individual divisions will be published in the annual report. This will be published at the same time as this press release on 27 April 2023 at Publikationen.

The Delvag 2022 financial year - economic data at a glance

(Values may contain rounding differences.)

From Corporate Communications Delvag Group
Delvag | Albatros
Tel. +49 221 8292-309
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