Munich Re has set its financial targets for 2025, aiming for an IFRS net profit of €6 billion, driven by consistent operational performance across its business segments. The group projects insurance revenue to reach €64 billion and return on investment to exceed 3.0% by 2025.
In the reinsurance sector, Munich Re anticipates insurance revenue growth to €42 billion and a net profit of €5.1 billion in 2025. The company expects to maintain profitability with a combined ratio of 79% in property and casualty (P&C) reinsurance and 90% in Global Specialty Insurance (GSI), which will be reported as a separate IFRS segment starting in 2025.
Including strong business growth in GSI and adjustments for discounting effects, the overall combined ratio for P&C reinsurance is projected at 83%. In life and health reinsurance, the group forecasts a total technical result of €1.7 billion for the year.
The ERGO business segment is expected to generate insurance revenue of €22 billion in 2025, contributing €0.9 billion to group profit. ERGO Germany, which will combine life, health, and property-casualty businesses into a single reporting unit from 2025, is targeting a combined ratio of 89%. ERGO International is expected to achieve a combined ratio of 90%.
Munich Re said that its projections are subject to uncertainties tied to geopolitical and macroeconomic developments, major losses remaining within normal bounds, and stability in currency and capital markets. The company also noted that changes in the tax environment or other one-off effects could impact results.
The company will disclose its full-year financial results for 2024 as scheduled on 26 February 2025.
Last month, the global reinsurer 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.
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.
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