Munich Re has reported an increase in insurance revenue to $16 billion for Q1 2024, attributed to organic growth in its reinsurance business and ERGO International.
Munich Re had previously announced a net profit of $2.2 billion for Q1 2024, a reinsurance combined ratio of 75.3% in property and casualty (P&C), and a total technical result in life and health (L&H) of €586 million.
Munich Re released its full Q1 results, showing a total technical result of $3.3 billion, up from $1.9 billion in Q1 2023, and an operating result of nearly $3.2 billion, compared to $1.9 billion in the previous year (see about Reinsurance rates for property catastrophe business).
In the first quarter of 2023, the reinsurance segment’s net contribution surged to $2 billion from $1.127 billion. Insurance contract revenue increased from $9.8 billion to $10.5 billion. The total technical result expanded by 77%, reaching $2.3 billion, and the operating result similarly rose by 77% to $2.6 billion.
In the first quarter of 2024, the property and casualty (P&C) reinsurance division achieved a net result of $1.4 billion, significantly increasing from $815 million in the same period of 2023. Insurance contract revenue reached €6.831 billion. The combined ratio for P&C reinsurance improved to 75.3% from 86.5%, while the normalized combined ratio stood at 79.5%. (see Reinsurance Renewals at April 2024 by Regions).
Major losses exceeding $32 million each amounted to $697 million for Munich Re, lower than last year’s $1.11 billion, including gains and losses from run-off of major losses from previous years.
- Major loss expenditure corresponded to 9.9% of net insurance revenue, below the average of 14%.
- Man-made major losses increased to $448 million from $177 million, with the largest individual loss being the collapse of the Francis Scott Key Bridge in Baltimore.
- Major losses from natural catastrophes dropped to $248 million from $933 million.
In the life and health reinsurance segment, the technical result increased to $628 million from $343 million in Q1 2023. The segment’s net result rose to $592 million from $312 million, while insurance revenue from contracts increased to $3,245 billion from $2,932 billion.
Munich Re reported a positive experience during the April 1st reinsurance renewals, growing the volume of business written by 6.1% to $2.8 billion. The company capitalised on favourable market conditions to expand business opportunities, particularly in India, Latin America, and Europe.
Munich Re’s primary insurance business, ERGO, recorded a strong net result of $270 million, up from $234 million last year. Insurance revenue from contracts increased to $5,583 billion from $5,408 billion, driven by the International segment.
In the first quarter of 2024, investment results climbed to $2.32 billion, up from $1.73 billion. Regular income from investments also increased to $1.94 billion, compared to $1.72 billion previously. This resulted in a 3.8% return on the average market value of the portfolio, surpassing the firm’s full-year forecast of above 2.8%.
Munich Re expects robust business opportunities to persist and aims for a net result of $5.36 billion for the 2024 financial year.
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