Wednesday, October 5th, 2022

Munich Re unveils Q1 2022 outcomes


Munich Re’s solvency ratio was approx. 231% (227% as at 31 December 2021), which is above its optimum vary (175–220%), and contains the deduction of €1 billion share buy-back. Its annualized return on fairness (RoE) for Q1 2022 was 9.8% (in comparison with 10.4% in Q1 2021).

Reinsurance

The group’s reinsurance arm contributed €511 million (up from €410 million in Q1 2021) to the consolidated outcome for the interval whereas its working outcomes rose to €654 million, up from €558 million in the identical interval final 12 months. Its GWP for the unit elevated to €11,307 million in comparison with €9,389 million in Q1 2021.

Life and well being reinsurance enterprise generated a lack of €78 million, in comparison with a revenue of €52 million in Q1 2021, which was largely attributed to COVID-19-related losses of €150 million. In the meantime, premium earnings rose to €3,369 million from €3,058 million final 12 months.

Property-casualty reinsurance contributed €589 million (up from €358 million in Q1 2021) to the lead to Q1. Premium quantity elevated considerably to €7,938 million (in comparison with final 12 months’s €6,330 million). Its mixed ratio was 91.3% (98.9%) of internet earned premium. In Q1, Munich Re posted expenditure associated to the conflict in Ukraine of barely over €100 million in some specialty strains.

Within the reinsurance renewals as of April 01 2022, Munich Re was in a position to enhance the amount of enterprise written to €2.7 billion ( up +7.6%). It tapped into new progress alternatives, particularly in Asia – significantly in Japan and India – in addition to in Latin America. Against this, the reinsurer famous that it as soon as once more selectively discontinued enterprise that now not met danger/return expectations.

Costs rose within the sectional markets, Munich Re stated, and costs for reinsurance cowl rose significantly in some markets, together with the USA. The reinsurance large anticipates that the market atmosphere will stay secure within the subsequent renewal spherical in July, providing engaging progress alternatives.

ERGO

Regardless of risky capital markets and main losses, ERGO posted a revenue of €96 million (down from Q1 2021’s €178 million) for Munich Re in Q1. ERGO noticed substantial progress in Q1 and general premium earnings rose to €5,803 million (up from final 12 months’s €5,362 million) – supported by all segments, whereas GWP rose to €5,526 million (up from final 12 months’s €5,163 million).

Investments

Munich Re noticed an funding results of €987 million in Q1 2022, a lower from Q1 2021’s results of €1,691 million.

Outlook for 2022

The reinsurer’s annual goal is unchanged at €3.3 billion and the group expects to see “advantageous enterprise prospects in reinsurance in 2022” with the projected gross premium of this subject adjusted upwards from €42.5 billion to €45 billion which, in flip, has raised the forecast for the Munich Re Group as a complete to €64 billion.

Commenting on the outcomes, CFO Christoph Jurecka, stated: “Munich Re helps to supply humanitarian support for the folks of Ukraine and totally helps the sanctions in opposition to Russia. The monetary penalties of the conflict and the sanctions severely impacted our outcome within the first quarter:

“We made write-downs for impairment losses on Russian and Ukrainian bonds alike and recorded the primary claims. Regardless of the uncertainties of a difficult atmosphere, Munich Re maintains its annual steerage of €3.3 billion primarily based on a quarterly revenue of greater than €600 million.”



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