Quarterly statement: Munich Re expands its business and raises its profit target to €6.6bn

• Net result rises to €5.7bn in Q1–3, insurance revenue to €46.6bn
• Life and health reinsurance: High total technical result of €493m in Q3 thanks to strong new business and favourable claims experience; expansion of business in all key regions
• Property-casualty reinsurance and Global Specialty Insurance: Good combined ratios of 80.0% and 83.9% in Q3 thanks in part to low major-loss expenditure; full-year guidance improved
• ERGO: High contribution of €263m to net result
• Outlook: Profit target for 2026 raised from €6.3bn to €6.6bn

Summary of Q3 figures

Munich Re generated a net result of €1,742m (1,997m) in Q3 2026. The result was driven by very pleasing operating performance across all business segments, major losses below average expectations in property-casualty reinsurance, and a strong investment result in reinsurance. The higher net result in the same quarter of the previous year was attributable in particular to the exceptionally low major-loss expenditure in Q3 2025. In Q1–3, the net result climbed to €5,667m (5,176m).

Insurance revenue from insurance contracts issued rose to €16,626m (14,575m) in Q3 and to €46,583m (45,162m) in Q1–3. The total technical result in Q3 amounted to €2,375m (2,822m). The currency result improved to €74m (–189m); the corresponding quarter of the previous year had been adversely affected by currency losses on the US dollar. The operating result in Q3 decreased to €2,472m (3,036m) and the effective tax rate was 27.6% (32.9%).

Equity was slightly lower (€33,368m) than at the beginning of the year (€33,421m). The solvency ratio¹ stood at 301% (31 December 2025: 298%), well above the Solvency II target of >200%. 

The annualised return on equity (RoE) amounted to 20.2% (24.2%) in Q3 2026 and to 21.9% (20.8%) in Q1–3.

Reinsurance: Result of €1,479m

The reinsurance field of business contributed €1,479m (1,693m) to the net result in Q3 and €4,849m (4,380m) in Q1–3. Insurance revenue from insurance contracts issued increased in Q3 to €10,434m (9,262m). The total technical result decreased to €1,728m (2,190m) and the operating result to €2,113m (2,477m).

In Q3, the total technical result for the life and health reinsurance segment rose to €493m (314m). The key factors behind this were strong growth in new business and very good biometric experience, particularly with regard to mortality. The segment’s net result increased to €340m (286m). Insurance revenue from insurance contracts issued rose to €3,769m (2,868m), driven by significant business growth in all key regions, particularly in North America, the UK and Asia.

The property-casualty reinsurance segment generated a net result of €938m (1,187m) in Q3. Insurance revenue from insurance contracts issued increased to €4,446m (4,241m). The combined ratio was 80.0% (62.7%) of net insurance revenue.

In Q3, Munich Re reported major losses amounting to €646m (118m) after retrocession and before tax. The figure reported includes run-off profits and losses for major claims from previous years. Major-loss expenditure corresponded to 14.9% (2.9%) of net insurance revenue, and was thus below the expected value of 18%. In terms of major losses from natural disasters, Munich Re posted an expenditure of €514m in Q3, compared to a release of €47m in the same quarter last year. Man-made major losses amounted to €132m (165m). The major-loss figures above take account of the effects from discounting and risk adjustment. The costliest natural disaster in Q3 was the El Choco earthquake in Colombia, which produced nominal losses of €0.3bn.

The Global Specialty Insurance segment generated a net result of €201m (221m) in Q3. Insurance revenue from insurance contracts issued amounted to €2,219m (2,153m). The combined ratio was 83.9% (82.8%) of net insurance revenue.

ERGO: Result of €263m

Munich Re reported strong operating performance in its ERGO field of business, with a result of €263m (304m) in Q3 and of €819m (796m) in Q1–3. In Q3 2025, one-off effects had had a substantially greater positive impact on the overall result than they did in Q3 2026. Insurance revenue from insurance contracts issued rose to €6,192m (5,313m) in Q3 and to €17,360m (16,019m) in Q1–3. In addition to a strong increase in Germany, ERGO NEXT Insurance in particular, as well as the inclusion for the first time of ADB Gjensidige and ERGO China Life Insurance, contributed to this positive development in international business.

The ERGO Germany segment increased its net result significantly to €118m (–21m). The same quarter of the previous year was primarily shaped by a negative one-off effect in connection with the reduction in corporation tax from 2028. ERGO Germany’s insurance service result fell slightly overall but was in line with expectations. In life and health business, both the release of the contractual service margin and the result from short-term health insurance business increased. In property-casualty business, technical provisions were further strengthened against a backdrop of equally strong operating performance.

The ERGO International segment generated a net result of €145m (324m). In addition to strong business performance at the major European subsidiaries, the first-time consolidation of ERGO China Life Insurance had a positive impact on the result. This effect was partly offset by minor one-off negative factors. The corresponding quarter of the previous year was characterised by a significant one-off effect resulting from the complete takeover of NEXT Insurance (now ERGO NEXT Insurance). The insurance service result increased significantly compared with the same quarter of the previous year. The release of the contractual service margin in Life and Health International increased, largely driven by health business in Spain and life and health business in Belgium. International property-casualty business recorded a significant increase in the insurance service result compared with the same quarter of the previous year, driven by strong operating performance in most major markets.

The ERGO field of business’s total technical result for Q3 rose to €648 (632m), whilst the operating result amounted to €359m (560m). The combined ratio for Property-casualty Germany was 89.8% (88.7%) in Q3 and 88.8% (88.8%) in Q1–3, in line with the target level for the year as a whole. In the ERGO International segment, the combined ratio stood at 89.0% (88.7%) in Q3 and at 89.4% (89.1%) in Q1–3, and was thus also in line with the target for the full year.

Investments: Investment result of €1,859m

Munich Re’s investment result for Q3 amounted to €1,859m (2,385m), with the strong return on investment of 4.7% in reinsurance being particularly noteworthy. Regular income from investments climbed to €2,314m (2,092m). The balance from write-ups and write-downs was −€35m (−51m), with the balance from gains and losses on the disposal of investments coming to €13m (337m). The change in fair value amounted to –€280m (215m).

The lower investment result compared to Q3 2025 was primarily due to the lower result from changes in the fair value of investments. The marked rise in interest rates led to greater losses on fixed-interest securities. We also recorded losses on equities, compared with gains in the same quarter of the previous year.

Overall, the Q3 investment result represents a return of 3.2% on the average market value of the portfolio. The running yield was 4.0% and the yield on reinvestment was 4.7%. As at 30 September 2026, the equity-backing ratio including equity-linked derivatives amounted to 3.6% (3.1% as at 31 December 2025). The carrying amount of the investment portfolio as at 30 September 2026 was €223,195m (222,747m).

Outlook for 2026: Full-year target raised to €6.6bn

Munich Re is very well positioned to surpass its original annual profit target of €6.3bn. Accordingly, it has raised its guidance for the 2026 net result to €6.6bn. Munich Re now anticipates that the net combined ratio in property-casualty reinsurance business will amount to less than 80% (previously: ca. 80%). Similarly, Munich Re now anticipates that the net combined ratio in the Global Specialty Insurance segment will be less than 90% (previously: ca. 90%). The other expectations communicated for 2026 in Munich Re’s Half-Year Financial Report 2026 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.