Quarterly statement 3/2024
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- Quarterly statement 3/2024
Quarterly statement: Munich Re generates Q3 result of €0.9bn and is set to exceed annual target
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- Net result increases to €4.7bn in Q1-3 despite major losses attributable to natural catastrophes in Q3
- Reinsurance: Above-average major losses in property-casualty business in Q3; life and health business once again posts strong total technical result
- ERGO contributes €164m to Q3 net result
Munich Re expects to surpass its result target of €5bn in 2024
Summary of Q3 figures
Equity amounted to €31,425m, higher than the figure at the start of the year (29,772m). The solvency ratio1 was 292% (
In Q3 2023, the annualised retuon equity2 (RoE) came to 11.7% (16.0%), and in
Q1-3 it reached 20.1% (16.6%).
1 Does not include any transitional measures or deduction for dividends for financial year 2024 to be paid in 2025.2 Prior-year figures restated due to changes in revenue reserves and other reserves.
Reinsurance: Result of €766m
In Q3, the reinsurance field of business contributed €766m (995m) to the net result; the contribution in Q1-3 totalled €3,993m (2,950m). Insurance revenue from insurance contracts issued increased in Q3 to €10,224m (9,456m). The total technical result declined to €1,119m (1,626m), and the operating result decreased to €956m (1,495m).
In Q3, life and health reinsurance generated a total technical result of €428m (440m). The contribution to the result from the release of the contractual service margin was in line with expectations. The net result in the segment moved up to €391m (351m). Insurance revenue from insurance contracts issued swelled to €2,936m (2,610m).
Property-casualty reinsurance generated a Q3 result of €375m (644m). Insurance revenue from insurance contracts issued rose to €7,288m (6,845m). The combined ratio amounted to 90.5% (82.0%) of net insurance revenue. In Q1-3 it was 82.0% (83.0%). In Q3, the normalised combined ratio came to good 81.3%.
Total major-loss expenditure increased significantly compared to the prior-year quarter, to €1,609m (770m). These figures include gains and losses from the run-off of major losses from previous years. The major-loss expenditure reached 23.1% (11.7%) of net insurance revenue, exceeding the expected figure of 14% in both Q3 and Q1-3 (15.9%). Man-made major losses amounted to €225m (235m). Major losses from natural catastrophes surged to €1,384m (535m). The major-loss figures above take account of the effects from discounting and risk adjustment. Hurricane Helene, which caused severe damage in the southeasteUnited States and approximately €0.5bn in losses, was the largest single claims event. Three loss events in
Provisions of €351m (333m) for basic claims from prior years were reversed in Q3; this figure corresponds to 5.0% (5.1%) of net insurance revenue.
ERGO: Result of €164m
In Q3, the result of the
The result generated by the ERGO Property-casualty
In Q3, the segment's total technical result amounted to €532m (595m) and the operating result to €238m (281m). The Property-casualty
Investments: Investment result of €2,091m
Overall, the Q3 investment result represented a retuof 3.6% on the average market value of the portfolio. The running yield was 3.5% and the yield on reinvestment was 4.3%. As at
Outlook: Annual target set to be surpassed
In the reinsurance field of business,
As usual, all projections and targets are subject to increased uncertainties stemming from geopolitical and macroeconomic developments, to major losses remaining within normal bounds, and to the income statement not being impacted by severe fluctuations in the currency or capital markets, significant changes in the tax environment, or other one-off effects.
Disclaimer
This media release contains forward-looking statements that are based on current assumptions and forecasts of the management of
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Earnings Document (MunichRe Quarterly Statement 3 2024 en)
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