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
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
This media release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.