Quarterly statement: Munich Re generates net result of €1.7bn in the first quarter of 2026

• Property-casualty reinsurance and Global Specialty Insurance: Excellent combined ratios of 66.8% and 83.7% thanks to low major-loss expenditure
• Life and health reinsurance: Total technical result of €500m slightly above pro-rata guidance
• ERGO: €235m contribution to net result
• April renewals: Deliberate reduction in business volume (–18.5%) together with lower prices (–3.1%)
• Outlook reaffirmed by high operating profitability and sustained advantageous business opportunities in upcoming quarters

Summary of Q1 figures

In Q1 2026, Munich Re generated a net result of €1,714m (1,094m). The total technical result rose to €2,676m (2,054m), which was attributable in particular to low major-loss expenditure in reinsurance. Insurance revenue from insurance contracts issued fell to €15,018m (15,811m), mainly due to adverse currency translation effects. The currency result came to –€162m (–506m). The high currency losses in the same quarter of the previous year were primarily attributable to the significantly higher exposure to the US dollar at that time and its depreciation. The operating result rose to €2,230m (1,465m) and the effective tax rate was 20.9% (22.3%).

Equity was higher at the reporting date (€34,616m) than at the beginning of the year (€33,421m). The solvency ratio¹ stood at 292% (31 December 2025: 298%), well above the Solvency II target of >200%. The planned share buy-back of €2.25bn is already reflected in the reported solvency ratio.

The annualised return on equity (RoE) for Q1 2026 was 19.7% (13.3%).

Reinsurance: Result of €1,479m

The reinsurance field of business contributed €1,479m (853m) to the net result in Q1. Insurance revenue from insurance contracts issued fell to €9,346m (10,251m). The total technical result was up, at €2,095m (1,505m), as was the operating result of €1,902m (1,142m).

Life and health reinsurance generated a total technical result of €500m (608m). The net result for life and health reinsurance was €436m (501m). Insurance revenue from insurance contracts issued increased to €3,306m (3,071m).

The property-casualty reinsurance segment posted a net result of €841m (343m); insurance revenue from insurance contracts issued fell to €3,923m (4,892m). The combined ratio improved to 66.8% (83.9%) of net insurance revenue; the normalised combined ratio was 80.3%.

Major-loss expenditure in the property-casualty reinsurance segment was fortuitously lower, dropping to €130m (1,008m); Q1 2025 had been severely impacted by the Los Angeles wildfires. The figure reported includes run-off profits and losses for major claims from previous years. Major-loss expenditure corresponded to 3.5% (21.3%) of net insurance revenue, far below the expected value of 18%; major losses from natural catastrophes fell to €55m (757m). Man-made major losses amounted to €75m (251m). The major-loss figures above take account of the effects from discounting and risk adjustment.

The Global Specialty Insurance segment posted a net result of €202m (8m). Insurance revenue from insurance contracts issued amounted to €2,117m (2,289m), while the combined ratio improved to 83.7% (95.5%) of net insurance revenue thanks to the drop in major-loss expenditure. Here, too, the first quarter of the previous year had been adversely affected by the LA wildfires.

Claims arising from the Iran war came to approximately €90m for Munich Re – with around €60m attributable to Global Specialty Insurance and approximately €30m to property-casualty reinsurance.

Renewals as at 1 April 2026

In the reinsurance renewals as at 1 April 2026, the volume of business written dropped to €2.0bn
(–18.5%). Munich Re systematically opted to not renew or write business that did not meet expectations with respect to the required prices or terms and conditions. Falling prices also led to a reduction in volume. In April, business was written particularly in Japan and India, accounting for approximately 11% of Munich Re’s total property-casualty reinsurance business.

It was possible to maintain the portfolio’s high quality thanks to largely stable contractual terms and conditions for the renewed business.

While prices were generally on a downward trend, it was nevertheless possible to compensate for the higher loss estimates in some areas, which were primarily attributable to inflation or other loss trends. Despite a 3.1% drop, the good price level of Munich Re’s portfolio was largely maintained overall. These figures are, as always, risk-adjusted. In other words, price fluctuations are offset if they are associated with changes in risk and, consequently, different loss expectations.

Looking ahead to the upcoming round of renewals in July, Munich Re expects a market environment in which the sustained favourable price levels as well as improved terms and conditions can be largely upheld despite the current market pressure.

ERGO: Result of €235m

In the ERGO field of business, Munich Re posted a net result of €235m (241m) in Q1. Insurance revenue from insurance contracts issued grew to €5,671m (5,560m), driven by international business in particular.

In the ERGO Germany segment, the result rose to €157m (140m) – mainly due to a higher contribution from property-casualty business. Further, the segment’s Q1 insurance service result improved significantly year on year. Property-casualty business benefited from major-loss expenditure that was lower than in the same quarter of the previous year. At Life and Health Germany, the release of the contractual service margin was similar year on year; the insurance service result from short-term health and travel business increased considerably.

ERGO International generated a net result of €78m (100m). Good operational performance was contrasted by higher claims in the Baltic states and Poland as a result of severe winter weather. In addition, international joint ventures had made an exceptionally high contribution to the result in the same quarter of the previous year. This segment’s insurance service result for Q1 2026 was lower year on year, largely influenced by a one-off effect relating to the sale of a portfolio in Belgian life insurance business.

The total technical result for the ERGO field of business increased to €581m (549m); the operating result rose slightly to €328m (323m). The combined ratio was at a very good level of 86.7% (88.8%) at Property-casualty Germany and 89.5% (89.0%) in the ERGO International segment.

Investments: Investment result of €1,682m

Munich Re’s investment result rose to €1,682m (1,323m) in Q1. Regular income from investments amounted to €1,979m (2,090m). The balance from write-ups and write-downs was –€35m (–39m); the balance from gains and losses on the disposal of investments came to –€6m (–40m). The fair-value change was –€25m (–527m).

The year-on-year increase in the investment result was primarily attributable to the significant improvement in the result from fair-value changes. A balanced result was achieved in spite of recent volatility in the capital markets. The losses realised on disposal were also lower than in the previous year.

Overall, the Q1 investment result represents a return of 2.9% (2.2%) on the average market value of the portfolio. The running yield was 3.5% (3.5%) and the reinvestment yield was 4.2%. As at 31 March 2026, the equity-backing ratio including equity-linked derivatives amounted to 3.3% (3.1% as at 31 December 2025). The carrying amount of the investment portfolio as at 31 March 2026 was €222,702m (222,747m).

Outlook for 2026: Annual guidance unchanged at €6.3bn

Anticipating sustained advantageous business opportunities in coming quarters, Munich Re is aiming to generate a net result of €6.3bn for the 2026 financial year. The targets communicated for 2026 in Munich Re’s Group Annual Report 2025 remain unchanged.

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.