The firm also reported a solid increase in its life and health (L&H) reinsurance business, with a total technical result of €440 million in the quarter.
On the overall insurance revenue, the company has posted a total of €14.5 billion in the quarter, while it has risen 3% to €42.9 billion in the nine months of 2023.
The reinsurer’s reinsurance business contributed €995 million to the Group net result in the quarter, up from €851 million in Q3 2022.
Munich Re has also raised its full-year net result guidance to €4.5 billion, up from €4 billion.
Key Highlights from the Q3 2023 Results:
- Net result of €1.2 billion and an improved combined ratio of 82% in its P&C reinsurance business
- Total technical result of €440 million in its L&H reinsurance business
- Overall insurance revenue of €14.5 billion and €42.9 billion in Q3 and 9M 2023, respectively
The results reveal a positive forecast for Munich Re, which is well positioned to surpass its annual targets. The firm expects to produce a reinsurance profit of €3.8 billion, insurance revenue of around €38 billion, and a combined ratio of 85% (86% previously) in P&C reinsurance. In L&H reinsurance, Munich Re now expects a technical result of around €1.4 billion for 2023.
The reinsurer is also confident in its ERGO business, with insurance revenue expected to reach around €20 billion for the year.
Overall, Munich Re has delivered strong results in Q3 and is well positioned to surpass its annual targets. The firm is benefiting from a strong performance in its reinsurance businesses, which is being driven by favorable underwriting conditions, as well as an improving investment performance.
“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 Christoph Jurecka, Chief Financial Officer (CFO).
“Ultimately, we can report a net result of nearly €1.2bn for the third quarter and €3.6bn for the first nine months of the year. We are confident that we will surpass our previous annual target of €4.0bn and have raised the guidance to €4.5bn,” he added.
