MUNICH Re quarterly profit down to EUR 790 million

13 May 2015 — Vlad BOLDIJAR
MUNICH Re reported a consolidated profit of EUR 790 million for the first quarter of 2015 - down by 16% from EUR 941 million in 1Q 2014. The operating result of EUR 995 million was below the figure for the same quarter last year (EUR 1,327 million), while the value of GWP grew by 0.9% to EUR 13.0 billion.

The MUNICH Re officials affirmed that the company remains on track to achieve its annual target results: "For the full financial year, MUNICH Re is still aiming for a profit of EUR 2.5-3 billion. (...) The Group now anticipates that for the financial year 2015 its GWP will be in the range of EUR 49-51 billion. The increase of EUR 2 billion compared with its original forecast is chiefly due to positive currency translation effects".

Per divisions, the reinsurance segment contributed with EUR 668 million (vs. EUR 768 million in 1Q2014) to the consolidated result. The operating result fell by EUR 258 million to EUR 758 million, while the value of GWP climbed by 2.2% to EUR 7.0 billion (vs. EUR 6.9 billion).

In the 1Q2015, overall loss expenditure for major losses totaled EUR-255 million (vs. EUR-39 million) of which natural catastrophe losses amounted to around EUR-66 million and man-made major losses to EUR-189 million. "Windstorm NIKLAS, which crossed Europe at the end of March, caused heavy losses, for which MUNICH Re expects expenditure of EUR-40 million in reinsurance. Cyclone PAM, which devastated the South Pacific island nation of Vanuatu in the middle of March, cost MUNICH Re EUR-30 million. The largest man-made individual loss for the period was EUR-35 million for a fire at a US refinery".

The ERGO field of business generated a profit of EUR 99 million in 1Q2015. The operating result fell by 24.8% to EUR 215 million, the total premium income increased slightly by 0.7% to EUR 4,870 million, while gross premiums written were up by 0.4% to EUR 4,585 million. Life and Health Germany segment generates GWP of EUR 2,412 million, Property-casualty Germany - EUR 1,193 million, while in the ERGO International segment, the same indicator increased by 7.2% to EUR 980 million. "The result for the early months of the year is encouraging. We are well on track to meet our targets for the year", commented Torsten OLETZKY, ERGO CEO.

The MUNICH Health field of business generated a profit of EUR 23 million (vs. EUR 20 million a year before), but the operating result declined to EUR 22 million. MUNICH Health's GWP showed a y-o-y decrease of 3.9% to EUR 1,443 million "due to a reduction in its share of a large-volume treaty". The combined ratio totaled 100.4% (vs. 99.7%).

Read the full announcement here.

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