Growth in foreign premiums and high claims payments due to extreme weather events

At the members' representatives' meeting in Niedernhausen, the two board members Christian Senft and Dr Dietmar Kohlruss emphasised the extraordinary challenges of the past year and gave a cautious forecast for the current year.

Premium growth in direct business

Both board members expressed their satisfaction with the significant premium growth recorded by Gartenbau Versicherung in the 2023 financial year. Gross premiums rose to a total volume of 116.2 million euros. This growth was largely driven by direct business, particularly in the foreign markets of France, Switzerland and the Netherlands. Foreign business accounted for 47.9% of the total direct business of Gartenbau-Versicherung in 2023. For 2024, for the first time in the history of horticultural insurance, a parity premium level of 50% in Germany and 50% in the other European countries is on the horizon. "The decision taken around thirty years ago to expand into Europe was and is the right one," emphasised CEO Christian Senft, referring to the declining number of members in Germany, which is due to businesses having to close for economic reasons or being unable to find a successor.

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"The decision taken around thirty years ago to expand into Europe was and is the right one" Christian Senft

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Exceptionally high damage

The extreme weather events of the past year are also reflected in the claims balance of horticultural insurance: at 76.3%, the gross loss ratio in direct business reached the second-highest value in a tenyear comparison. This was due to severe hail events in Germany, Italy and Switzerland, as well as flooding in Greece, a Mediterranean cyclone over Sicily and the storm Ciarán over Brittany. The most heavily impacted line of insurance was hail, with a gross loss ratio of 119%. Indirect business also recorded a significantly higher gross loss ratio in 2023.

"Due to the steadily growing importance of our cross-regional risk diversification, we expanded our business area to Belgium at the beginning of 2024. We are now present on the market there in the form of open co-insurance," said CEO Senft, explaining the future direction of the company with regard to even broader risk diversification. He also emphasised: "Even in times of climate change, we are striving to offer stability and security for our members in Germany and Europe."

Positive annual result before deduction of taxes

Gartenbau-Versicherung is gradually reorganising itself in key areas such as IT in order to continue to offer its members the best protection and advice. The associated costs are an important investment in the future, but have an impact on gross operating expenses, which have increased by €0.7 million compared to the previous year. Reinsurance cover remains a central component of risk management at Gartenbau Versicherung. In the reporting year, the reinsurance result totalled € -3.2 million, an improvement on the previous year.

Overall, Horticultural Insurance reported a loss of €2.3 million before equalisation provision in the gross underwriting result for 2023. In contrast to 2022, a withdrawal from the equalisation reserve was necessary in the reporting year, which enabled Gartenbau-Versicherung to achieve a positive net underwriting result of €3.4 million.

The result from ordinary activities before taxes was a profit of 3.5 million euros. After deducting taxes, the net loss for the year totalled EUR 1.1 million. At this point, CFO Dr Dietmar Kohlruss emphasised the positive gross result that was achieved despite challenging market conditions and higher reinsurance costs. "This shows the strength and stability of our business model. We will continue to make targeted investments in our risk management and reinsurance strategies in order to ensure stable and positive results in the future and to be able to support our members as a reliable partner," Dr Kohlruss concluded his summary of the business performance.

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"We will continue to make targeted investments in our risk management and reinsurance strategies“ Dr Dietmar Kohlruss

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New members in the committees

In the regular elections, Supervisory Board members Hanspeter Meyer and Tobias Müller were confirmed in their positions. Karin Hagdorn was newly elected to the Supervisory Board. The graduate in public administration runs a tomato company in the Stuttgart area together with her husband. She succeeds Klaus Umbach, who stepped down from the Supervisory Board after 24 years, so that the Supervisory Board "can and may successively rejuvenate". The Chairman of the Supervisory Board, Frank Werner, expressly thanked Klaus Umbach for his intensive and long-standing work on the Supervisory Board, which was always orientated towards the well-being of the horticultural insurance company.

The term of office of numerous member representatives was also renewed by the 40-strong meeting. Ute Gorges, co-owner of a pot plant business in Babenhausen, and Andreas Huben, Baumschule Huben Ladenburg, stood for election as new member representatives. Both have already gained committee experience as deputy member representatives. Mario Mertz (family-run garden centre from Hadamar) and Oliver Mewes, Managing Director of an ornamental plant company in France, successfully stood as their deputy member representatives. Chairman of the Supervisory Board Frank Werner expressed his sincere thanks to all departing member representatives for their trusting cooperation. He was able to express his personal thanks to Jürgen Mertz, who was not standing for reelection as a member representative at his own request after 26 years.