Munich Re posts 1.1 billion euro profit for Q1, reiterates 6.0 billion euro guidance

By Scott Vincent

May 13 - (The Insurer) - Munich Re reported a quarterly profit of 1.1 billion euros ($1.22 billion) on Tuesday, in line with its company-compiled consensus, with the group reiterating its 6.0 billion euro profit guidance for the full year.

Within its P&C reinsurance segment, Munich Re posted a net profit of 343 million euros and a combined ratio of 83.9%.

This was a beat against the company-compiled consensus of 89.5%.

The result was achieved despite more than 1.0 billion euros of major loss claims expenditure within P&C reinsurance during the quarter, which represented 21.3% of net insurance revenue, compared with a budget of 17%. January’s Los Angeles wildfires accounted for 800 million euros of the P&C reinsurance major claims bill.

Within its newly created global specialty segment, Munich Re reported a net result of 8.0 million euros and a combined ratio of 95.5%, missing the company-compiled consensus of 92.4%. The segment recorded 200 million of net claims expenditure related to the LA wildfires.

Munich Re said it currently expects total net losses of 1.1 billion euros from the wildfires, below its previous guidance of 1.2 billion euros.

At group level, Munich Re reported an operating profit of 1.5 billion euros, down from 2.9 billion euros in the first quarter of 2024.

Insurance revenue from insurance contracts issued rose to 15.8 billion euros from 15.1 billion euros in the prior-year quarter.

Ergo's net profit rose to 241 million euros from 226 million in the first quarter of 2024, while the group’s life and health business produced a technical result of 608 million euros, ahead of pro rata guidance.

At the April 1 renewals, Munich Re said it had increased its volume of business written by 6.1% to 2.8 billion euros. Pricing was down 2.5% overall on a risk-adjusted basis, but the reinsurer said the environment remains favourable with attractive opportunities emerging in India, Latin America and Europe at April 1.

When adjusted for portfolio diversification effects, Munich Re said rates were down 1.7% at April 1.

Despite market pressure increasing, Munich Re said it expects the environment to remain positive at the upcoming July renewals.