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Munich Re announces profit target of €5bn for 2024

2023/12/15

Group

Thanks to consistently good operational performance in all business segments, Munich Re is aiming for a net profit of €5bn in 2024. Group insurance revenue is expected to reach €59bn in 2024, and return on investment to improve noticeably to above 2.8%.

In its reinsurance field of business, Munich Re anticipates an expansion of insurance revenue to €39bn and a net profit of €4.2bn in 2024. In an ongoing favourable market environment, Munich Re will continue to leverage its strong position to spur profitable growth. In property-casualty reinsurance, the combined ratio is likely to improve to 82%, reflecting operating improvements from the earn-through of the 2023 renewals and from the expected outcome of the 2024 renewals. Moreover, on the basis of Munich Re’s very strong reserving position, it is not planned to build up reserve prudency any further by offsetting part of the discounting impact, as was the case in 2023. In life and health reinsurance, Munich Re projects a total technical result of €1.45bn in 2024, owing to annual releases of CSM and risk adjustment, and an ongoing strong contribution from business with non-significant risk transfer. 

The ERGO field of business is expected to generate insurance revenue of €20bn in 2024, continuing its strong development in recent years with a profit contribution of €0.8bn. A combined ratio of 87% is envisaged in the ERGO Property-casualty Germany segment, and 90% at ERGO International.

Please note that all figures are rounded values. As usual, all forecasts and targets are subject to increased uncertainties stemming from geopolitical and macroeconomic developments, to major losses remaining within normal bounds, and to the income statement not being impacted by severe fluctuations in the currency or capital markets, significant changes in the tax environment, or other one-off effects.

Munich Re will present its full-year 2023 financial figures on 27 February 2024 as scheduled.  

Outlook-2024
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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 manager 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 to Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyber risks. 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.

Disclaimer
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 of our Company, in particular the results, financial situation and performance. The Company assumes no liability to update these forward-looking statement or to make them conform to future events or developments.

Further information

For media inquiries please contact:
Stefan Straub
Stefan Straub
Head of Group Media Relations
Axel Rakette
Axel Rakette
Spokesperson
Irmgard Joas
Irmgard Joas
Spokesperson
Faith Thoms
Media Relations Asia Pacific
Ashleigh Lockhart
Ashleigh Lockhart
Media Relations North America
Lillian Ng
Lillian Ng
Head of Marketing Communications