ERGO, 2Q2020: Second quarter profit went up 27.4% year-on-year

6 August 2020 — press.release
During the second quarter of 2020, ERGO, part of Munich Re, generated a sizeable profit of EUR 173 million (+27.4%) in its field of business, while for the January-June 2020 period, it's consolidated profit reached EUR 245 million (+11.4%).


ERGO 2Q2020 preliminary figures, y-o-y changes


  • Gross premiums written: EUR 3,971 million (-5.8%), of which:
    • L&H Germany: EUR 2,149 million (-7.0%)
    • P&C Germany: EUR 696 million (+1.4%)
    • International: EUR 1,126 million (-7.6%)
  • Net earned premiums: EUR 4,159 million (-3.9%)
  • Combined ratio:
    • P&C Germany: 92.5% (+6.3 pp.)
    • P&C International: 90.1% (-4.9 pp.)
  • Technical result: EUR 101 million (-60.0%)
  • Operating result: EUR 291 million (+13.1%)
  • Consolidated result: EUR 173 million (+27.4%)


Total premium income across all segments in Q2 amounted to EUR 4,228 million (-12.8%), while the total amount of gross premiums written was EUR 3,971 million (-5.8%). The fall in total premium income is largely attributable to a one-off effect in 2019. This income was further impacted both by the sale of companies outside Germany in 2019 as part of portfolio optimization and by a drop in premium volume in travel business owing to COVID-19.

The combined ratios remained below 100% level. In the Property-casualty Germany segment, the combined ratio was 92.5% (2Q2019: 86.2%). In the ERGO International segment, it improved to 90.1% (2Q2019: 95.0%). These improvements were fueled by a lower claims frequency in motor insurance.

ERGO Property-casualty Germany segment generated a solid result of EUR 50 million (-8.8%). Insurance claims stemming from business interruptions and event cancellations were partly offset by stable premium development and lower losses in personal lines business.

ERGO Life and Health Germany reported a lower result of EUR 63 million (-11.9%) on account of the impact of COVID-19 on the capital market and in travel insurance.

ERGO International segment's result greatly expanded to EUR 59 million (+597.2%). The increase is explained largely by improved operational performance and the fact that portfolio optimization was no longer a burden for the group's international business.


More financial information about ERGO can be found at ergo.com or www.munichre.com


Sources: munichre.com, ergo

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