“The higher result during the first half of 2022 was attributable to lower unwinding-of-discount effects and lower major-loss expenditure. Against the backdrop of a mixed macroeconomic environment, the second quarter featured strong business performance both at ERGO and in the reinsurance segment”, as the reinsurer announced in a statement.
Insurance revenue from insurance contracts issued rose y-o-y to EUR 14,175 million (EUR 13,772 million) in Q2, while during January-June the figure increased to EUR 28,448 million (vs. EUR 27,033 million).
At the end of the first six months, Munich Re informed it remains confident in its outlook for further positive business opportunities in the second half of 2023. “The targets communicated for 2023 in Munich Re’s Group Annual Report 2022 and in the Quarterly Statement for Q1/2023 are thus unchanged. Accordingly, Munich Re is still aiming for a net result of EUR 4.0 billion for the 2023 financial year. The probability of surpassing this target has increased given the strong half-year result”.
The reinsurance field of business contributed EUR 904 million (vs. EUR 1,439 million) to the Group’s net result in Q2, while the Q1–2 result was EUR 1,955 million (vs. EUR 2,763 million). “The decrease in Q2 was due in part to intentionally incurred losses from the disposal of fixed-interest securities in property-casualty reinsurance”. Insurance revenue from insurance contracts issued rose to EUR 9,300 million (vs. EUR 9,019 million) in Q2, while the total technical result was EUR 1,560 million (vs. EUR 2,014 million) and the operating result totalled EUR 1,222 million (vs. EUR 2,007 million).
Major-loss expenditure increased year on year to EUR 600 million (464 million) in Q2. These figures include gains and losses from the run-off of major losses from previous years. Although man-made major losses fell to EUR 155 million (308 million), this was more than offset by major-loss expenditure from natural catastrophes increasing to EUR 445 million (156 million). The costliest natural catastrophe for Munich Re in Q2 was flooding in Italy, with losses amounting to some EUR 200 million (nominal value).
In the reinsurance renewals as at 1 July 2023, the volume of business decreased slightly to EUR 3.6 billion (-1.9%), as Munich Re “selectively discontinued business that no longer met expectations with respect to prices, terms and conditions. The primary focus of the July renewals was business in North America, South America, Australia, and with global clients”.
Munich Re generated a very good result of EUR 250 million (vs. EUR 147 million) in its ERGO field of business in Q2 and EUR 470 million (EUR 303 million) in Q1–2. ERGO grew considerably, with insurance revenue from insurance contracts issued climbing to EUR 4,875 million (EUR 4,752 million) in Q2 and to EUR 9,916 million (vs. EUR 9,357 million) in January-June. The total technical result for the ERGO field of business in Q2 increased to EUR 599 million (560 million) and the operating result rose substantially to EUR 350 million (243 million).
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