Munich Re kicks off 2024 with robust Q1 outcomes

Munich Re has reported a powerful begin to 2024, with its Q1 web consequence climbing to €2,140 million, up from €1,271 million within the earlier yr.

The efficiency was attributed to decrease than common major-loss expenditures, sturdy funding returns, and strong operational outcomes throughout all enterprise divisions.

The corporate’s insurance coverage income from contracts issued elevated to €15,061 million, up from €14,273 million, pushed largely by natural progress within the reinsurance phase and at ERGO Worldwide. The overall technical consequence additionally noticed an increase, reaching €2,785 million in comparison with €1,809 million within the prior interval, whereas the foreign money consequence improved considerably to €176 million, a reversal from a €145 million loss, primarily on account of beneficial properties in opposition to the US greenback.

The working consequence surged to €2,928 million from €1,768 million, with the efficient tax fee barely reducing to 25.9% from 26.4%.

Fairness as of March 31, 2024, stood at €31,226 million, a rise from €29,772 million in the beginning of the yr. The solvency ratio additionally rose to 273%, staying nicely above the best vary of 175-220%. Moreover, a share buy-back program price €1.5 billion has been deliberate.

The annualized return on fairness (RoE) for Q1 2024 was reported at 27.3%, up from 17.6% within the earlier yr.

Munich Re Q1 reinsurance outcomes

Within the reinsurance sector, the online consequence contributed €1,888 million to total efficiency, marking a big year-on-year enhance. Revenues from issued insurance coverage contracts within the sector rose to €9,858 million from €9,232 million. The overall technical consequence improved to €2,203 million from €1,248 million, and the working consequence elevated to €2,592 million from €1,467 million.

The life and well being reinsurance phase additionally confirmed optimistic developments, with the Q1 complete technical consequence rising to €586 million from €320 million. The phase’s web consequence grew to €552 million from €291 million; revenues from issued insurance coverage contracts elevated to €3,027 million from €2,734 million.

Property-casualty reinsurance noticed a Q1 web results of €1,336 million, up from €760 million, with issued insurance coverage income climbing to €6,831 million from €6,498 million. The mixed ratio improved considerably to 75.3% of web insurance coverage income, with a normalized ratio of 79.5%.

Main losses exceeding €30 million totaled €650 million, down from €1,035 million, together with beneficial properties and losses from the runoff of earlier years’ main losses. This expenditure represents 9.9% of web insurance coverage income, nicely under the anticipated common of 14%.

Man-made main losses rose to €418 million, with the biggest being the collapse of the Francis Scott Key Bridge in Baltimore. Losses from pure catastrophes decreased to €232 million from €870 million.

In the course of the April 1 reinsurance renewals, Munich Re elevated its enterprise quantity to €2.6 billion, a 6.1% rise. The corporate took benefit of favorable market circumstances to increase its enterprise, significantly in India, Latin America, and Europe, by enhancing present shopper relationships and establishing new ones.

“Munich Re kicked off the brand new monetary yr with nice momentum,” CFO Christoph Jurecka mentioned. “Our Q1 web consequence this yr is sort of 70% larger than in 2023. Each line of enterprise performed a task on this spectacular efficiency. As well as, we received a lift from the treaty renewals at 1 April, the place we tapped into engaging progress alternatives in opposition to a backdrop of continuous excessive charges. We nonetheless anticipate to generate a revenue of €5bn in 2024. In actual fact, it has turn into extra probably that we are going to surpass that concentrate on.”

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