The reinsurer mentioned that whereas the Q1 result in the previous year had been bolstered in particular by low major losses in property-casualty reinsurance, as well as by currency gains, the result for the first quarter of 2023 was impacted by precisely the opposite effects.
Insurance revenue from insurance contracts issued climbed to EUR 14,273 million (EUR 13,261 million). The total technical result amounted to EUR 1,809 million (EUR 1,863 million).
The operating result was EUR 1,768 million (EUR 1,864 million) and the effective tax rate was 26.4% (18.6%).
The reinsurance field of business contributed EUR 1,051 million (1,324 million) to the Group's net result in Q1. Insurance revenue from insurance contracts issued climbed to EUR 9,232 million (8,656 million). The total technical result amounted to EUR 1,248 million (1,588 million), and the operating result was EUR 1,467 million (1,598 million).
Life and health reinsurance generated a total technical result of EUR 320 million (238 million) in Q1.
Property-casualty reinsurance generated a net result of EUR 760 million (958 million) in Q1. Insurance revenue from insurance contracts issued rose to EUR 6,498 million (5,743 million). The combined ratio was 86.5% (77.0%) of insurance revenue (net). The normalised combined ratio was 85.1%.
Major losses of over EUR 30 million each totalled EUR 1,035 million (618 million). These figures include gains and losses from the run-off of major losses from previous years.
In the reinsurance renewals as at 1 April 2023, Munich Re was able to increase the volume of business written to EUR 2.9 billion (+11.1%). It was possible to leverage growth opportunities, especially in Asia - particularly in Japan and India - as well as in Latin America. Non-proportional natural catastrophe business was expanded, in particular, in view of attractive rate levels. By contrast, Munich Re once again selectively discontinued business that no longer met risk/return expectations.
In the ERGO field of business, Munich Re posted a net result of EUR 219 million (156 million) in Q1. Insurance revenue from insurance contracts issued increased to EUR 5,041 million (4,605 million), driven by all segments.
The ERGO Property-casualty Germany segment made a strong contribution to the net result of EUR 166 million (-64 million).
ERGO Life and Health Germany generated a net result of EUR 41 million (137 million), largely driven by the consistently high amounts released from the contractual service margin in long-term life and health business.
ERGO International generated a net result of EUR 12 million (84 million).
The total technical result for the field of business amounted to EUR 561 million (275 million), and the operating result was EUR 301 million (EUR 267 million). In the Property-casualty Germany segment, the combined ratio was 81.2% (106.3%); for ERGO International, it was 95.4% (88.7%).
Munich Re remains confident in its outlook for positive business opportunities in 2023. The targets communicated for 2023 in Munich Re's Group Annual Report 2022 are thus unchanged. Accordingly, Munich Re is aiming to generate a net result of EUR 4.0 billion for the 2023 financial year.