Munich Re
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The shuttering of Munich Re Ventures reflected a focus on the reinsurer’s “core offering”. -
The carrier attributed the results to a significant fall in major-loss expenditure.
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The reinsurer stressed it “did not shy” from cat business in 2023.
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He added that Munich Re does not rely on retro or third-party.
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The target allocation to Munich Re, Elementum and the run-off AlphaCat funds fell in the year to 30 June 2025.
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The reinsurer’s chair said cat pricing reductions are at a “miniscule level”.
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Insured losses produced the second highest first-half tally since records began in 1980.
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CFO Christoph Jurecka will succeed as management board chair.
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The carrier reported preliminary profits of EUR2.1bn, driven by “very low” major-loss expenditure in P&C re.
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Hurricane Milton accounted for 60% of the firm’s Q4 large loss tally.
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The carrier expects the market loss to land at $35bn-40bn.
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Hurricane Milton resulted in the largest insured loss of the year at $25bn.
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The firm said it benefited from favourable retro market conditions.
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The carrier attributed the intensification of storms this season to climate change.
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The carrier said it expected its Milton losses to fall below its EUR500mn ($537mn) Helene loss.
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Assuming Munich Re takes roughly a 3% market share of hurricane losses suggests a ~$20bn industry loss for Helene.
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The peril can no longer be considered secondary, according to Gallagher Re.
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Over 75% of insured losses attributable to severe thunderstorms, flooding and forest fires.
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CFO Christoph Jurecka declined to give a loss estimate for the Baltimore Bridge loss.
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The carrier reported a P&C re net result up 44% to EUR1.8bn.
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Proceeds from the sale will be used to fund sustainable development projects.
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Munich Re said it saw no reason to lower its expectations.
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The carrier announced a capital repatriation plan of EUR3.5bn.
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Munich Re has renewed the first tranche of its Eden Re sidecar for 2024, listing $28.5mn of Class A notes on the Bermuda Stock Exchange, a roughly 62% increase on last year.
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The (re)insurer also predicted its return on investment would improve “noticeably” next year, to more than 2.8%.
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Executives said geopolitical uncertainty, economic stagnation, cyber, cat events and inflation will drive demand on the Continent.
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AM Best said market hardening was likely to continue through 2024, given global market conditions.
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Loss estimates from Aon, Gallagher Re, Swiss Re and Munich Re all point to a significant component of severe convective storm losses.
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The executive also lambasted the growing tide of corporate regulation in Germany and the EU.
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Flooding in Italy during the second quarter cost the German reinsurer around EUR200mn.
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The carrier said a greater number than usual of North Atlantic storms are possible despite El Niño conditions.
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The reinsurer has cat capacity available at 1.6 and 1.7 where pricing meets its margin targets.
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The deal priced 50 basis points below guidance.
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Earlier this week, Munich Re doubled the target size of its Queen Street 2023 Re DAC cat bond to $200mn, after initially seeking to raise $100mn.
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The reinsurer is now hoping to raise $200mn of Class A principal-at-risk variable-rate notes priced at 800bps.
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The reinsurer is seeking indemnity per occurrence for named storms across the US, Washington DC and Puerto Rico.
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Overall the group’s net result is likely to exceed consensus at EUR1.3bn.
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The executive will stand for election at RenRe’s AGM in May.
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The reinsurer’s retro programme was renewed at a smaller size for 2023.
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The reinsurer reported risk-adjusted prices up 2.3% based on conservative inflation and other assumptions.
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The sidecar has stepped down in size over the past three years.
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The full size of the sidecar for 2023 will be known when Class B notes are issued in January.
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The carrier is predicting its insurance revenues to reach around EUR58bn, while ROI will be at least 2.2%.
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The year 2005, which featured the devastating Hurricane Katrina, remains the most expensive storm season.
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The carrier has reduced its full-year projected consolidated result for reinsurance and expects a worse P&C combined ratio.
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The reinsurer said it will be “significantly more challenging” to hit EUR3.3bn 2022 profit target.
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Thomas Blunck has been appointed to succeed Torsten Jeworrek as chair of the board of management’s reinsurance committee, effective 1 January 2023.
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The reinsurer is working to find the right inflation indicators for individual client portfolios.
