Munich Re has posted a net result of €5.7bn for the 2024 financial year, a 23.4% increase from €4.5bn in 2023.
This exceeds the original profit target of €5bn and is the fourth straight year that the company has surpassed profit expectations.
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Earnings per share for the year increased by 26.3% to €42.78 in 2024, up from €33.88 in the prior year.
Insurance revenue from insurance contracts issued for the year stood at €40bn, a 5.9% rise from €37.7bn in 2023.
The net result of reinsurance for the year was €4.8bn, a 25.9% increase from €3.8bn in 2023.
The board of management has proposed a dividend of €20 per share for 2024, a 33% increase year-on-year.
In the fourth quarter of 2024 (Q4 2024), Munich Re registered a net result of €979m, down 2.5% from €1bn in Q4 2023.
Earnings per share in Q4 2024 reached €7.54, from €7.51 in Q4 2023.
The net result for the reinsurance division stood at €887m, a 4.3% decrease from €926m in Q4 2023.
Revenue from insurance contracts issued during the quarter grew 2.8% to €10bn, from €9.8bn in Q4 2023.
The company estimates around €1.2bn in claims expenditure from the January 2025 wildfires in Los Angeles, for property-casualty reinsurance and Global Specialty Insurance.
Looking ahead, Munich Re is aiming for a net profit of €6bn in 2025, with insurance revenue expected to total €64bn and a projected return on investment exceeding 3%.
In the reinsurance business, the company forecasts insurance revenue to rise to €42bn in 2025, with a higher net profit of €5.1bn.
Munich Re chair of the board of management Joachim Wenning said: “Munich Re’s profit growth has been truly substantial and sustained in the context of our five-year Ambition 2025 strategy programme, which we will conclude at the end of the year. This year’s record dividend of €20 embodies our success.
“Our shareholders will also benefit from a new share buyback with a volume of €2bn, an increase of €500m. What is more, we will remain ambitious as we seek to boost our annual profit to €6bn this year. Our confidence here reflects our successful renewals as at 1 January 2025, among other factors.”
