Despite high losses, Munich Re achieves a result of around €0.4bn in Q3, and maintains its annual guidance for 2021

In Q3 2021, Munich Re’s result was burdened by high losses from natural catastrophes.  The company estimates that windstorm Bernd, which led to flooding and flash floods in Germany and neighbouring countries,  will cost roughly €0.6bn  in the  segments  property-casualty reinsurance and ERGO Property-casualty Germany. And  in the USA,  Hurricane Ida caused losses totalling  roughly  €1.2bn  in property-casualty reinsurance.

Thanks to continued positive performance in all segments and a high investment result – also due in part to large gains on disposals – as well as a high currency translation result, Munich Re nevertheless achieved a  preliminary  result of  around  €0.4bn  in Q3 (consensus:  –€10m*).  

Munich Re thus attained a result of  roughly  €2.1bn  for the first nine months.  For the full year 2021, Munich Re anticipates that it will  still  meet its overall profit target of €2.8bn.  

This  forecast takes into account higher COVID-19-related losses for life and health reinsurance than expected at the time the Q2 results were announced. As already intimated at the time, Munich Re will therefore not reach its technical result target**  of €400m for this year. In property-casualty reinsurance, there were no noteworthy COVID-19 losses  in Q3.

Munich Re will announce its final Q3 result, as scheduled, on 9 November.

* Average of estimates from  15  financial analysts
** Including the result from insurance contracts with non-significant risk transfer