Munich Re reported a net profit of €5.67 billion for the 2024 financial year, surpassing its original target of €5 billion.
This marks the fourth consecutive year that the company’s annual profit has exceeded expectations. The fourth-quarter net result totaled €979 million, compared to €1 billion in the same period of the previous year.
Revenue from insurance contracts issued increased to €60.83 billion, up from €57.88 billion, reflecting organic growth across all segments. The company’s return on equity (RoE) for 2024 was 18.2%, compared to 15.8% the previous year. Earnings per share rose to €42.78 from €33.88.
In 2023, the company reported a net income of US$339 million, or US$1.85 per diluted common share, a substantial turnaround from the net loss of US$402.8 million in 2022.
In the same year, the consolidated combined ratio improved to 84.5% in 2023 from 96.4% in 2022, indicating more efficient underwriting practices.
“We’ll remain ambitious as we seek to boost our annual profit to €6 billion this year. Our confidence here reflects our successful renewals as at January 1, 2025, among other factors,” board chair Joachim Wenning said.
The board of management has proposed a dividend of €20 per share for 2024, representing a 33% year-on-year increase. Munich Re’s solvency ratio stood at 287% as of Dec. 31, 2024, up from 267% at the end of the previous year, remaining above the company’s target range of 175–220%.
The total technical result for 2024 increased to €8.92 billion from €7.55 billion, while the investment result grew to €7.19 billion from €5.37 billion. The currency result improved to €175 million, compared to a loss of €292 million the previous year.
The operating result rose to €7.97 billion from €5.70 billion, with an effective tax rate of 26.9%, up from 16.9% in 2023. Equity at the end of 2024 was €32.75 billion, compared to €29.77 billion at the beginning of the year.
Munich Re attributes its financial strength to the diversification of its business portfolio. The company said that the profitability of all segments and its approach to reserving help mitigate the impact of major claims and capital market risks.
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