Insurance revenue climbs 5.5% YoY in Munich Re's Q1’24

Man-made major losses rose to $451m, the largest being the bridge collapse in Baltimore.

Munich Re’s first quarter (Q1’24) net profits surged 68.4% YoY year-on-year (YoY) $2.3b (€2.1b), attributable to lower major-loss expenditure, high investment returns, and better operational performance across all segments.

Insurance revenue increased by 5.5% YoY YoY to $16.3b (€15.1b), mainly from organic growth in reinsurance and ERGO International.

Reinsurance contributed a net result of $2.0b (€1.9b) in Q1’24. Insurance revenue from this segment rose to $10.6b (€9.9b).

Property-casualty reinsurance generated a net result of $1.4b (€1.3b), with insurance revenue at $7.3b (€6.8b). The combined ratio was 75.3% YoY (86.5% YoY) of net insurance revenue, normalised to 79.5% YoY.

Major losses over $32.4m (€30m) totalled $701m (€650m), including gains and losses from previous years.

ALSO READ: Munich Re projects $2b net profit in Q1’24

Major-loss expenditure was 9.9% YoY (16.4% YoY) of net insurance revenue, below the expected 14% YoY.

Man-made major losses rose to $451m (€418m), with the largest being the Francis Scott Key Bridge collapse in Baltimore. Natural catastrophe losses fell to $250m (€232m).

In the 1 April 2024 reinsurance renewals, Munich Re increased business volume to $2.8b (€2.6b) (6.1% YoY YoY), leveraging favourable market conditions in India, Latin America, and Europe.

Despite a slight decrease in the overall price level (-0.7% YoY), rates rose by 0.6% YoY when adjusted for portfolio diversification.

Outlook

Munich Re anticipates continued positive market conditions and aims for a $5.4b (€5.0b) net result for the 2024 financial year. The strong Q1’24 results have increased the likelihood of exceeding this target.

The goals set in Munich Re's Group Annual Report 2023 remain unchanged, though the projections are subject to uncertainties from geopolitical and macroeconomic developments, major losses, currency or capital market fluctuations, tax changes, or other one-off effects.

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