Deutsche Rückversicherung, a German reinsurer, will begin writing business in Asia, with a focus on a few South, Southeast, and East Asian areas.
In the recently created market area, Düsseldorf-based Deutsche Rück will concentrate on traditional property and casualty operations. Subject to formal regulatory authorizations and with an eye toward profitable expansion, Deutsche Rück intends to begin writing conventional property and casualty business in a few Asian markets with an eye toward the approaching renewals in 2023.
Deutsche Rück will enter these markets as a financially sound capacity supplier and do business from its headquarters in Düsseldorf.
Mr. Tarik Aouad, who has successfully led Deutsche Rück's market entry in the Middle East since 2020 as the company's head of those markets, has been named the managing director of the newly created Middle East/Asia division. Achim Bosch, a board member, is his subordinate.
Mr. Aouad is a well-known reinsurance expert in the developing Afro-Asian insurance and reinsurance markets with more than 20 years of experience in various reinsurance capacities. He has previously worked in a number of top executive management positions in various markets, with specific exposure to the Middle East and Asia. He has dual citizenship in Germany and Morocco and a master's in mathematics.
A highly specialized risk manager and member of the German Savings Banks Finance Group, Deutsche Rück is one of the few mid-sized reinsurance companies that is not publicly traded. The reinsurer commands a dominant share of the domestic market.
Asia
Deutsche Rück focuses on primary insurers in the local and regional markets in Asia.
"Asia's markets are widely seen as the future driver of global economic growth as households there amass wealth and expertise and the middle class grows quickly. The comparatively low level of insurance penetration and these promising prospects offer a chance for profitable growth and more geographic diversification, according to Mr. Aouad. Deutsche Rück has been insuring risks for property and casualty reinsurance over the whole European market for the past ten years, and in more recent years has expanded into foreign markets like the Maghreb region, the Middle East, and Latin America.
As part of Deutsche Rück's targeted international expansion in the non-life reinsurance lines, Mr. Bosch remarked, "The market launch in Asia is a logical step and will help to the diversification of our portfolio."
Reinsurance coverage is provided in the European insurance market and a few other international markets by Deutsche Rück and its subsidiary Deutsche Rückversicherung Switzerland. The Deutsche Rück Group produced around EUR1.4 billion in gross premiums in 2021.
The rating company Standard & Poor's routinely reaffirms its "A+" rating for the Group with a "stable" outlook, highlighting Deutsche Rück's robust and sustained capital basis, risk-adequate underwriting, and conservative approach to reserve recognition.
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