German reinsurer Munich Re has logged a profit of €4.6bn for the 2023 financial year (FY2023), a decline from €5.3bn in FY2022.
During the year, insurance revenue from contracts issued increased to €57.9bn, driven by organic growth in property and casualty (P&C) reinsurance and at ERGO, despite negative currency translation effects.
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The ROE for Munich Re in 2023 was 15.7%.
Company EPS for the year was €33.88.
The solvency ratio, less the proposed dividend, stood at around 267% at the year’s end.
The total technical result for the year rose to €7.5bn and the investment result rose to €5.4bn.
Munich Re’s reinsurance business generated €3.9bn, with €926m attributed to the fourth quarter (Q4) of 2023.
The life and health reinsurance segment contributed €1.4bn, while the P&C reinsurance segment generated €2.4bn.
The company’s ERGO field of business generated €721m in 2023, with €78m in Q4, achieving its profit target of approximately €0.7bn.
The company’s board also proposed a dividend of €15 per share for the financial year, representing a 29.3% increase from the previous year.
Munich Re has set a profit target of €5bn for 2024, with expected insurance revenue of €59bn and a marked improvement in return on investment to more than 2.8%.
The reinsurance field is projected to increase its insurance revenue to €39bn and its contribution to the net result to €4.2bn in 2024.
An improvement of 82% is anticipated in the combined ratio for P&C reinsurance and a slightly better result of €1.45bn in life and health reinsurance for 2024.
Munich Re management board chair Joachim Wenning said: “2023 was another successful year for Munich Re. We beat our annual profit target for the third consecutive time and delivered a strong performance across all business segments.
“Thanks to a broadly diversified business portfolio, Munich Re is well placed and fully on track to meet the targets specified in its Ambition 2025 strategy programme. With the exception of systemic risks – such as cyber and pandemic – our appetite for covering existential risks for people and enterprises is far from exhausted.”
Last year, Munich Re and Boerse Stuttgart Digital partnered to offer a secure one-stop shop for safe staking solutions for institutional and retail investors.
