"In Q3 2021, Munich Re's result was burdened by high losses from natural catastrophes. The company estimates that windstorm Bernd, which led to flooding and flash floods in Germany and neighboring countries, will cost roughly EUR 0.6 billion in the segments property-casualty reinsurance and ERGO Property-casualty Germany. And in the USA, Hurricane Ida caused losses totaling roughly EUR 1.2 billion in property-casualty reinsurance".
Despite the ~ EUR 1.8 billion of losses from these two mentioned events, the Munich Re expects to achieve a Q3 result of ~0.4 billion, which is up on the consensus of a loss of EUR 10 million.
Munich Re thus attained a result of roughly EUR 2.1 billion for the first nine months. For the full year 2021, Munich Re anticipates that it will still meet its overall profit target of EUR 2.8 billion.
"This forecast takes into account higher COVID-19-related losses for life and health reinsurance than expected at the time the Q2 results were announced. As already intimated at the time, Munich Re will therefore not reach its technical result target of EUR 400 million for this year. In property-casualty reinsurance, there were no noteworthy COVID-19 losses in Q3".
Munich Re will announce its final Q3 result, as scheduled, on 9 November.