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Jebus4life schreef op 5 februari 2024 12:55:

Munich Re reports preliminary Q3 net result of €1.2bn, sets new annual target

Citing consistently good operational performance in all business segments, Munich Re has disclosed a preliminary net result for Q3 of ca. €1.2bn, as the firm remains “well positioned” to surpass the previous annual target of €4bn.

Munich Re explained that in property-casualty reinsurance, it reported major losses that were slightly below the expected average. Meanwhile, in life and health reinsurance, the total technical result “once again exceeded pro-rata guidance.” Elsewhere, ERGO, the firm’s primary insurance arm, reported “consistently excellent business performance” that, due in part to higher losses from natural catastrophes, yielded a result that was slightly below the very high level seen in the two previous quarters.

In its H1 results released in early August, Munich Re noted that ERGO grew considerably, with insurance revenue from insurance contracts issued climbing to €9.916bn (9.357bn last year). Including this preliminary disclosure, the result for the first nine months of the year now stands at €3.6bn. Thus, the firm has accordingly raised its annual guidance for 2023 to a net result of €4.5bn.

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schreef:

Munich Re, one of Europe’s largest reinsurers, has reported a net result of €4.6 billion for the 2023 financial year, which is above its revised €4.5 billion profit target announced in October, supported by a reinsurance result of €3.9 billion and an improved performance at ERGO.

Despite beating the revised profit target and the initial target of €4 billion, total profit for the year did come in below the €5.3 billion reported in 2022, with a net result of just over €1 billion in Q4 2023, down from €1.1 billion in the prior year quarter. Group-wide, insurance revenue from insurance contracts issued rose to €57.9 billion from €55.4 billion, due in part to organic growth in the property and casualty (P&C) reinsurance segment and at ERGO, offset by currency translation effects.

For 2023, the reinsurer’s return on equity (RoE) amounted to 15.7% compared with 20.2% a year earlier, as the technical result increased to €7.6 billion from €7.1 billion. At the same time, the investment result increased from €2.9 billion to €5.4 billion, while the operating result fell from €6.8 billion in 2022 to €5.7 billion in 2023.

Looking forward, Munich Re has announced a target net result of €5 billion in 2024, with Group insurance revenue of €59 billion and the return on investment to surpass 2.8%.

The company expects its reinsurance business to increase its insurance revenue to €39 billion and its contribution to the net result to €4.2 billion in 2024. The P&C combined ratio is expected to strengthen to 82%, while the L&H technical result is expected to improve to €1.45 billion in 2024. At ERGO, Munich Re expects to generate insurance revenue of €20 billion in 2024, with a higher profit contribution of €800 million.

Joachim Wenning, Chair of the Board of Management, commented: “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.”

Christoph Jurecka, Chief Financial Officer, said: “All KPIs are near or even better than the Ambition 2025 targets at the end of 2023. Our financial strength makes it possible for our shareholders to participate in our success through a substantially higher dividend. They’ll also benefit from a new share buy-back that will likewise be substantially higher. And we remain ambitious, as we seek to boost our annual profit to €5bn this year.”


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