Munich Re generates Q3 result of €930m and is set to exceed annual target

On track to exceed target of €5 billion for 2024

Munich Re generates Q3 result of €930m and is set to exceed annual target

Reinsurance

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Munich Re released the third quarter results of 2024, with net result increase in Q1 to Q3 despite losses due to natural catastrophes in the third quarter.

Q3 2024 Highlights

Munich Re generated a net result of €930 million in Q3, down from €1.17 billion year-on-year due to natural disasters during the quarter. In the first three quarters, net profit reached €4.69 billion, up from €3.59 billion in the same period last year.

Meanwhile, insurance revenue for Q3 rose to €15.49 billion, up from €14.46 billion in Q3 2023, due to organic growth in all segments. Munich's solvency ratio was at 292%, which is above the optimum range of 175% to 220%, while its return on equity (RoE) was 11.7% in Q3, with 20.1% for Q1 to Q3.

Reinsurance Segment Performance

Munich's reinsurance segment contributed €766 million in Q3, down from €995 million year-on-year. On the other hand, major losses from natural catastrophes increased to €1.38 billion from Hurricane Helene and three other Canadian catastrophes. Additionally, property-casualty reinsurance generated a Q3 result of €375 million, down from €644 million last year, with an elevated major-loss expenditure of €1.60 billion.

ERGO Segment Update

Munich generated €164 million in its ERGO business segment in Q3 and €699 million in Q1 to Q3, thanks to growth in the life, health, and property-casualty divisions. However, the ERGO International segment faced losses connected to flooding from Storm Boris in Poland and Austria.

Investment Performance

Munich Re's Q3 investment result rose to €2.09 billion, up from €760 million last year. The increase is owed to gains in equity markets, as well as fixed-interest securities benefiting from declining rates. Overall, the Q3 investment result represented a return of 3.6% on the average market value of the portfolio.

Outlook

Munich Re is on track to exceed its annual profit target of €5 billion for 2024, with a projected net profit above €4.2 billion in reinsurance and €800 million from ERGO.

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