Munich Re Q1 2022 profit improved to EUR 608 million

18 May 2022 — Andrei Victor
Global reinsurer Munich Re reported Q1 2022 profit of EUR 608 million (vs. EUR 589 million in Q1 2021), while gross premiums written increased substantially by 15.7% year on year to EUR 16.83 billion (EUR 14.55 billion), "supported by strong organic growth across all segments, especially in property-casualty reinsurance".

The operating result totaled EUR 780 million (vs. EUR 798 million), while the other non-operating result amounted to EUR -14 million (vs. EUR -12 million).

In insurance business, ERGO posted a profit of EUR 96 million (178 million), while gross premiums written increased to EUR 5.53 billion (vs. EUR 5.16 billion).

The reinsurance field of business contributed EUR 511 million to the consolidated result in Q1. The operating result rose to EUR 654 million (vs. EUR 558 million) and gross premiums written increased to EUR 11.30 billion (vs. EUR 9.38 billion).

Life and health reinsurance business generated a loss of EUR 78 million (+52 million) in Q1, mainly due to COVID-19-related losses of EUR 150 million, above all from the Omicron wave in the USA. Premium income rose to EUR 3.36 billion.

Property-casualty reinsurance contributed EUR 589 million (358 million) to the result in Q1. Premium volume increased substantially to EUR 7.93 billion (vs. EUR 6.33 billion), while the combined ratio was 91.3% (98.9%) of net earned premium. In Q1, Munich Re posted expenditure related to the war in Ukraine of slightly over EUR 100 million in some specialty lines.

Major losses of over EUR 10 million each totaled EUR 667 million (vs. EUR 892 million). This figure includes gains from the settlement of major losses from previous years of around EUR 100 million. Man-made major losses declined to EUR 185 million (EUR 247 million), while major losses from natural catastrophes came to EUR 481 million (EUR 646 million) in Q1. Major natural catastrophe events included heavy rainfall in eastern Australia, resulting in losses of around EUR 440 million, and the winter storms in Europe, which produced losses of slightly below EUR 120 million for Munich Re.

For FY 2022, the reinsurer mentioned it "expects to see advantageous business prospects in reinsurance". Thus, the projected gross premium in this field of business, has been adjusted upwards from EUR 42.5 billion to EUR 45 billion and, "in turn, raises the forecast for the Munich Re Group as a whole to EUR 64 billion".

At the same time, Munich Re "is still aiming for a consolidated result of EUR 3.3 billion for the 2022 financial year. The achievement of this result target is supported by a remaining major-loss budget in property-casualty reinsurance of around EUR 3.3 billion for the rest of the year".

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