Munich Re has reported a net result of €2.14bn in Q1 2024, a 68.4% surge in comparison with €1.27bn recorded during the same period of last year.
The company attributed this growth to several factors including a lower-than-average major-loss expenditure, a robust return on investment and strong operational performance across all business segments.
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During the quarter, the company’s insurance revenue from contracts issued was €15.06bn, up from €14.27bn a year ago.
The reinsurance sector’s net result was €1.88bn, and insurance revenue from contracts issued in this segment reached €9.85bn.
The life and health reinsurance division reported a net result of €552m, while the property and casualty reinsurance segment delivered a net result of €1.33bn.
Losses across both divisions totalled €650m, a decrease from the previous year’s €1.03bn.
Man-made major losses, however, increased to €418m from €165m last year, with the most significant individual loss being the collapse of the Francis Scott Key Bridge in Baltimore.
Munich Re’s ERGO business reported a net result of €252m for Q1.
The insurance revenue from contracts issued in this segment increased to €5.20bn from €5.04bn in the year-ago period, with the international business driving this growth.
The company’s investment result for Q1 rose to €2.16bn from €1.61bn a year earlier.
Looking ahead, Munich Re is targeting a net result of €5bn for FY24.
Munich Re CFO Christoph Jurecka said: “Munich Re kicked off the new financial year with great momentum. Our Q1 net result this year is nearly 70% higher than in 2023. Every line of business played a role in this impressive performance.
“In addition, we got a boost from the treaty renewals at 1 April, where we tapped into attractive growth opportunities against a backdrop of continuing high rates. We still expect to generate a profit of €5bn in 2024. In fact, it has become more likely that we will surpass that target.”
