Munich Re reports €527m profits in Q3 after Hurricane Ian losses

Written by Michael Griffiths

08/11/2022

Munich Re has reported that it achieved a profit of €527m in Q3, taking its total to €1.90bn for the first nine months of the year.

The quarter was marked by above-average expenditure for natural catastrophes, with the insurer projecting losses of around €1.60bn from Hurricane Ian.

Munich Re’s reinsurance field of business contributed €81m to the consolidated result for Q3, and €1.20bn for the period covering Q1 through to Q3.

Life and health reinsurance business recorded a substantial increase in profit to €424m to the result. The German group reported that its premium income rose to €3.47bn, and that business with non-significant risk transfer continued to see “very pleasing growth” and achieved a result of €76m in Q3.

However, property-casualty reinsurance contributed –€343m to the result in Q3. Munch Re stated that premium volume grew robustly to €10.24bn, and that the combined ratio totalled 108.2% (112.8%) of net earned premiums in Q3 and 96.9% (100.9%) for the period covering Q1 to Q3.

Munich Re CFO, Christoph Jurecka, said: “Financial solidity and professional expertise are of fundamental importance to our clients in times of crisis and guide Munich Re in its actions. Hurricane Ian matches the pattern science would expect of a warming world.

“Therefore the rising probability of such extreme storms is part and parcel of our models and must be reflected in pricing. The sustainable and reliable offering our clients expect of us is based on realistic analyses, not only of natural catastrophe risks, but also of cyber and pandemic risks.

“And although Hurricane Ian and the macroeconomic environment are making it significantly more challenging for us, we are firmly adhering to our annual guidance of €3.3bn. All fields of business are contributing to sustainably positive performance.”

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