MUNICH(Bloomberg) — Premium income at German property and casualty insurers, including units of Allianz SE and Talanx AG, is forecast to fall 0.4 percent this year, hurt by lower car-insurance premiums.Gross premium income at German non-life insurers is forecast to fall to 54.7 billion euros ($73.6 billion) in 2007, German Insurance Association GDV said in an e-mailed statement.

Motor insurance, the largest insurance segment in Germany in terms of premium income, will continue its "negative development" as competition remains intense, the association said.

Premium income in the motor segment is forecast to decline about 2.4 percent this year.

The average combined ratio for German insurers will worsen to 97 percent this year from 93 percent in 2006 following winter storm Kyrill, which hit Europe in January and will cost the industry "significantly" more than two billion euros, the German association said.

The lower the combined ratio, which measures insurers' costs and expenses as a percentage of premium income, the more profitable is their underwriting.

The combined ratio in motor insurance is expected to reach 102 percent this year, up from 99 percent in 2006, "leading to the first technical loss since 2002," GDV said.