Quarterly statement: Munich Re generates net result of €2bn in Q3 and confirms annual guidance of €6bn

• Net result rises to €5.2bn for Q1–3 
• Property-casualty reinsurance & Global Specialty Insurance: Below-average major-loss expenditure ensures low combined ratios in Q3: 62.7% & 82.8%
• Life and health reinsurance: Unfavourable claims experience in Q3 dampens total technical result (€314m); strong new business particularly in the US and UK
• ERGO: High contribution of €304m to net result
• Outlook confirmed: Munich Re expects net result of €6.0bn in 2025 

Summary of Q3 figures¹^,²

In Q3 2025, Munich Re generated a net result of €1,997m (907m), and €5,176m (4,623m) in Q1–3. Insurance revenue from insurance contracts issued fell to €14,575m (15,496m) and to €45,162m (45,510m) in Q1–3, due primarily to negative currency translation effects. In Q3, the total technical result increased to €2,822m (1,696m). Owing mainly to foreign exchange losses against the US dollar, the currency result amounted to –€189m (–462m). The operating result rose significantly to €3,036m (1,161m), while the effective tax rate was 32.9% (17.8%).

Equity was slightly lower at the reporting date (€32,414m) than at the start of the year (€32,901m). This was due primarily to dividends and share buy-backs as well as currency translation effects. Munich Re’s solvency ratio³ increased slightly to 293% (31 December 2024: 287%), thus remaining above the target corridor of 175–220%.

In Q3 2025, the annualised return on equity (RoE) amounted to 24.2% (11.5%), and to 20.8% (19.9%) in Q1–3.

Munich Re has reported Global Specialty Insurance (GSI) as a separate segment within the reinsurance field of business since the first quarter of 2025. GSI bundles the global specialty primary insurance activities insofar as they are managed by the reinsurance organisation. They were previously part of the property-casualty reinsurance segment. The comparative figures have been adapted accordingly.

The reinsurance field of business contributed €1,693m (766m) to the net result in Q3 and €4,380m (3,993m) in Q1–3. Insurance revenue from insurance contracts issued declined to €9,262m (10,224m) in Q3. The total technical result increased to €2,190m (1,198m) and the operating result climbed to €2,477m (956m). 

The total technical result in the life and health reinsurance segment decreased to €314m (507m) in Q3, due primarily to unfavourable claims experience which, however, remained within the scope of normal fluctuations. The segment result declined to €286m (481m). Insurance revenue from insurance contracts issued amounted to €2,868m (2,936m). 

The net result in the property-casualty reinsurance segment rose significantly to €1,187m (263m) in Q3, due primarily to a very low major-loss expenditure. Insurance revenue from insurance contracts issued decreased to €4,241m (5,055m), due mainly to the low US dollar exchange rate and the deliberate discontinuation of business that no longer met our return requirements. The combined ratio improved to 62.7% (89.5%) of net insurance revenue; the normalised combined ratio was 78.7%. 

The major-loss expenditure in the property-casualty reinsurance segment fell significantly to €118m (1,336m) after retrocessions and before taxes. This amount includes run-off profits and losses for major claims from previous years, and is equivalent to 2.9% (27.8%) of net insurance revenue, significantly below the expected figure of 17%. A release of €47m was recorded for major losses from natural catastrophes in Q3, after an expenditure of €1,137m had been recognised in the prior-year quarter due to several major loss events in the US, Canada, and Central and Eastern Europe. Man-made major losses amounted to €165m (199m). The major-loss figures provided above take account of the effects from discounting and risk adjustment. 

The GSI segment generated a net result of €221m (22m) in Q3; insurance revenue from insurance contracts issued amounted to €2,153m (2,233m). The combined ratio improved to 82.8% (92.6%) of net insurance revenue, in particular due to the decrease in major-loss expenditures to €59m (273m) (after retrocessions and before taxes), which corresponds to 2.9% (12.6%) of net insurance revenue. 

Munich Re generated an extraordinarily good result of €304m (141m) in its ERGO field of business in Q3 and €796m (629m) in Q1–3. This development was supported by a number of one-off effects, which had a cumulative positive impact on the net result of ca. €50m. Insurance revenue from insurance contracts issued rose to €5,313m (5,271m) in Q3 and to €16,019m (15,553m) in Q1–3.

The ERGO International segment’s net result increased to €324m (23m). The total technical result increased significantly compared to the prior-year quarter, due primarily to very good operating performance in the major international property-casualty markets and a higher release of the contractual service margin in life and health. The segment’s investment result benefited from a one-off effect in connection with the complete takeover of the US insurer NEXT Insurance. On 1 July 2025, Munich Re acquired the remaining approx. 71% of the voting shares in NEXT Insurance. As a result, Munich Re increased its stake to 100%.

ERGO Germany generated a net result of –€21m (118m), burdened by a negative one-off effect in connection with the reduction in corporation tax from 2028. The segment’s technical result improved compared to the prior-year quarter, driven in particular by the health and travel business. The short-term health and travel business recorded an increase in the technical result due to lower claims and seasonal effects. The release of the contractual service margin in life and health was slightly higher than in the prior-year quarter. In the German property-casualty business, the technical result was on par with the prior-year quarter.

The total technical result for the ERGO field of business in Q3 increased to €632m (498m), while the operating result rose to €560m (205m). The combined ratio in the ERGO Germany segment was 88.7% (88.8%) in Q3 and 88.8% (89.2%) in Q1–3. This corresponds to the target figure for the year as a whole. In the ERGO International segment, the ratio improved significantly to 88.7% (96.1%) in Q3 and to 89.1% (92.4%) in Q1–3; it was therefore below the target value for the year as a whole. The ratio in Q3 2024 was negatively impacted by the catastrophic flooding in Central and Eastern Europe.

Munich Re’s investment result increased to €2,385m (2,091m) in Q3; regular income from investments amounted to €2,092m (2,026m). The balance from write-ups and write-downs was –€51m (–138m); the balance from gains and losses on the disposal of investments rose to €337m (–115m). The change in fair value amounted to €215m (467m).

The higher investment result compared to the prior-year quarter was due primarily to the increased regular income and the higher result from the disposal of investments. This was realised primarily through the complete takeover of NEXT Insurance and the resulting effect on profits in Q3. In addition, the fair values of equities contributed to the positive net result due to stronger equity markets.

Overall, the Q3 investment result represents a return of 4.1% on the average market value of the portfolio. The running yield was 3.6% and the yield on reinvestment was 4.0%. As at 30 September 2025, the equity-backing ratio including equity-linked derivatives amounted to 2.9% (31 December 2024: 2.9%). The carrying amount of the investment portfolio as at 30 September 2025 was €225,575m (230,716m). 

Munich Re is well positioned to achieve its guidance of €6bn for the year. In reinsurance, insurance revenue of €39bn (previously €40bn) is now expected due to premium adjustments, the effects of renewals, and exchange rate developments. The insurance revenue forecast for the Group is therefore €61bn (previously €62bn).  Mainly due to low major-loss expenditures, a combined ratio of around 74% (previously around 79%) is now expected in the property-casualty reinsurance segment, while a combined ratio of about 87% (previously approximately 90%) is now forecast for the GSI segment. All other expectations for 2025 remain unchanged compared to the information in the 2025 half-year financial report published in August.

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.