Reinsurance giant Munich Re today revealed it generated a profit of €2.93 billion (about US$3.32 billion) in 2021, up significantly from 2020’s result of €1.2 billion and exceeding its profit target of €2.8 billion. In Q4 2021 alone, the group’s profit rose to €871 million from €212 million in Q4 2020.
Among other key financial results posted by the reinsurer today, it was noted that the group saw its GWP increase 8.5% year on year to €59.567 billion (up from €54.89 billion in 2020), the highest figure in the history of Munich Re. The organization’s operating result in the 2021 financial year rose to €3.517 billion, up from 2020’s €1.986 billion.
The reinsurance arm of the business contributed €2.328 billion to the consolidated result in the 2021 financial year, of which €734 million was in Q4. This was despite numerous natural catastrophes and losses resulting from COVID in life and health reinsurance. 2021 saw GWP for the business climb to €41.354 billion, up from €37.321 billion in 2021.
In the reinsurance renewals as of January 01, 2022, Munich Re saw business volume increase 14.5% to €14.8 billion and, despite increasing market pressure, expects the market environment to remain positive and to present attractive growth opportunities in the upcoming April and July renewal rounds.
Munich Re’s ERGO arm generated a profit of €605 million in 2021, of which €137 million was in Q4. Overall premium income across all lines of the business rose substantially to €19.166 billion (from €18.448 billion in 2020) and gross premiums written increased to €18.213 billion (up from €17.569 billion in 2020).
In an earnings release, Munich Re noted that having now completed the first year of its Ambition 2025 strategy program, it is on track to meet the financial targets specified by the program.
Commenting on the results, CEO Joachim Wenning said 2021 was a good year for Munich Re. The group beat its profit target, he said, while making its balance sheet even stronger despite high inflation.
“Both an increased dividend and a new share buy-back will enable our shareholders to share in this success,” he said. “Our Ambition 2025 strategy program got off to a very good start and is picking up speed. Propelled by this momentum, we will resolutely tap into the favorable market environment as we increase our profit to €3.3 billion in 2022.”
