Munich Re sees nat cat burden plummet in Q3 2023

After a difficult Q3 in 2022 which was heavily impacted by Hurricane Ian, Alpine giant Munich Re has seen natural catastrophe losses fall from under EUR2 billion to EUR535 million during the third quarter of this year.

Man-made major losses also fell during the period from EUR460 million in Q3 2022 to EUR235 million in Q3 2023. Munich Re said that the Hawaii wildfires were its costliest event during the quarter at around EUR200 million.

For Q3 and 9M 2023, the group posted a net result of EUR1.2 billion and EUR3.6 billion, respectively, compared with EUR1.1 billion and EUR4.2 billion, respectively, a year earlier.

Group-wide, insurance revenue fell by less than 1% to EUR14.5 billion in the quarter, but rose 3% to EUR42.9 billion in 9M 2023.

Within reinsurance, the segment contributed EUR995 million to the Group net result in the quarter, up from EUR851 million in Q3 2022, while the 9M 2023 result fell from EUR3.6 billion to EUR2.95 billion. Insurance revenue fell 6% year-on-year to EUR9.5 billion in the quarter, while the technical result increased to EUR1.6 billion.

The carrier’s core property casualty reinsurance business produced a net result of EUR664 million in Q3 2023 compared with EUR309 million a year earlier. The P&C reinsurance combined ratio strengthened 6.9 percentage points to 82% in the quarter, but increased 3.1 percentage points to 83% for the nine month period. 

“Munich Re’s outstanding business performance continued seamlessly in the third quarter. Unlike last year, we benefited from a comparatively mild hurricane season in the North Atlantic. Accordingly, major-loss expenditure in property-casualty reinsurance was lower than expected, despite various other natural catastrophes. Strong performance in our other operating segments rounded out the positive results,” said CFO Christoph Jurecka.

“Ultimately, we can report a net result of nearly EUR1.2bn for the third quarter and EUR3.6bn for the first nine months of the year. We are confident that we will surpass our previous annual target of EUR4.0bn and have raised the guidance to EUR4.5bn,” he added.

For Q3 and 9M 2023, the group posted a net result of EUR1.2 billion and EUR3.6 billion, respectively, compared with EUR1.1 billion and EUR4.2 billion, respectively, a year earlier.

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