Mild hurricane season drives Munich Re's profit
Above all, the mild hurricane season brought the world's largest reinsurer Munich Re a slight increase in profits in the summer. The bottom line for the third quarter was a profit of just under 1.2 billion euros, around six percent more than a year earlier, as the DAX-listed company announced in Munich on Wednesday. After the first nine months, Munich Re has thus earned around 3.6 billion euros. The Board of Management had already raised its profit forecast for the current year to around 4.5 billion euros when it surprisingly published the first key figures at the end of October.
Despite the severe destruction caused by the forest fire on the Hawaiian island of Maui, Munich Re only had to spend a good third as much on major losses in the third quarter as in the same period last year. Back then, Hurricane Ian had cost Munich Re dearly, driving up major losses in the reinsurance segment to EUR 2.1bn. This time, major losses only cost Munich Re 770 million euros, of which around 200 million was due to the forest fire on Maui. The fact that profits did not rise more strongly was due to the primary insurance subsidiary Ergo and the life/health reinsurance segment, which, after positive special effects in the previous year, posted lower profits this time.
Like other major insurers, Munich Re has been calculating its business figures in accordance with the new IFRS 17 and IFRS 9 accounting standards since this year. The previous year's figures have been adjusted accordingly.
The mild hurricane season resulted in lower major losses for Munich Re in their third quarterly figures, as compared to the previous year. Consequently, Munich Re reported a decrease in major loss expenses, specifically From 2.1 billion euros to 770 million euros, in their quarterly insurance figures.
Source: www.dpa.com
