"In reinsurance, burdens will arise from COVID-19 claims of approximately EUR 500 million. In addition, foregone premiums will further decrease the technical result by about EUR 50 million. The ERGO field of business anticipates negative effects on the net result totalling approx. EUR 100 million due to claims, foregone premiums resulting in a profit setback and capital market effects. Group premium income is expected to set a new record of approx. EUR 55 billiion in 2021, and return on investment to be above 2.5%".
In its reinsurance field of business, MUNICH Re anticipates premium income of approx. EUR 37 billion and a profit of approximately EUR 2.3 billion in 2021. At the same time, despite a negative COVID-19 impact of EUR 100 million on the net result, the ERGO field of business will contribute approximately EUR 500 million to consolidated profit in 2021.
Financial planning for 2021 is subject to the approval of the Supervisory Board.
For 2020, MUNICH Re forecasts a profit of EUR 1.2 billion. A profit of EUR 0.2 billion has been forecast for Q4, of which EUR 0.1 billion is attributable to reinsurance and EUR 0.1 billion to ERGO.
The reinsurance field of business is set to contribute EUR 0.7 billion to the consolidated result in 2020. Premium income is expected to total approximately EUR 36 billion (target for 2020: about EUR 34 billion).
At the sametime, ERGO expects to generate a profit of about EUR 0.5 billion (target for 2020: EUR 530 million) - in spite of a negative impact of COVID-19 on the net result of EUR 65 million due to claims and lower premiums. Premium income is expected to total EUR 17.5 billion (target for 2020: about EUR 17.5 billion).
MUNICH Re will present its business strategy and its medium-term financial ambitions as scheduled on 8 December 2020.