Munich Re 3Q Profit Rose Despite High Catastrophe, Covid-19 Losses -- Update
November 09 2021 - 2:22AM
Dow Jones News
By Ed Frankl
Muenchener Rueckversicherungs-Gesellschaft AG said Tuesday that
its third-quarter profit almost doubled despite high losses from
Hurricane Ida and summer floods in Europe, and the lingering impact
of the Covid-19 pandemic.
The German reinsurer confirmed generated quarterly net profit of
366 million euros ($424.1 million) compared with EUR199 million for
the same pandemic-afflicted period the previous year.
The result is close to preliminary figures issued in October,
when the company said it would make a profit of around EUR400
million. At the time, expectations were of a EUR10 million loss,
according to analysts' estimates provided by the company.
The quarterly result was hit by higher-than-expected
coronavirus-related losses of around EUR170 million in its life
& health reinsurance business, the Bavarian insurer said.
While the DAX-listed company confirmed its full-year profit
target of EUR2.8 billion, it downgraded its L&H outlook to a
technical result of EUR200 million from EUR400 million previously
on the back of increased pandemic-related losses.
Munich Re now expects coronavirus-related losses at its
reinsurance business of EUR800 million, up from EUR700 million
previously. In the first nine months, Covid-19 losses in
reinsurance were EUR680 million, the company said.
It also anticipates its 2021 property-casualty combined
ratio--which measures expenses and losses versus premiums--at 100%,
from 96% beforehand, due to high natural-catastrophe losses in the
third quarter.
The third-quarter combined ratio was 112.8%, ahead of the
year-to-date figure of 100.9%.
"Our annual target of EUR2.8 billion remains within reach thanks
to a gratifying operational performance and high investment
results," Chief Financial Officer Christoph Jurecka said.
In the third quarter, Hurricane Ida in the U.S. caused around
EUR1.2 billion in property-casualty reinsurance losses, while
floods that struck central Europe in July cost it roughly EUR600
million, it said, confirming comments from October.
Gross premiums written rose 9.4% to EUR15.48 billion, while the
investment result rose to EUR2.11 billion from EUR1.69 billion.
Munich Re made a currency gain of EUR242 million for the quarter
from a loss of EUR100 million for 3Q 2020, mainly due to gains
against the U.S. dollar and in several emerging markets, the
company added.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
November 09, 2021 03:07 ET (08:07 GMT)
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