Munich Re is aiming for an IFRS net profit of €6bn in 2025. Group insurance revenue is expected to reach €64bn in 2025, and return on investment to improve to above 3%.
In its reinsurance field of business, Munich Re anticipates an expansion of insurance revenue to €42bn and a net profit of €5.1bn in 2025.
In an ongoing favourable market environment, Munich Re will continue to leverage its strong market position. The combined ratio is expected to remain at an attractive profitability level, with a combined ratio of 79% in P&C reinsurance and 90% in Global Specialty Insurance (GSI), the latter of which will become a separate IFRS reporting segment from 2025.
Due to expected strong business growth in GSI and a lower discounting effect compared to 2024, this corresponds to a combined ratio of 83% for P&C reinsurance according to the current segmentation.
In life and health reinsurance, Munich Re projects a total technical result of €1.7bn in 2025.
Munich Re expects a combined ratio of 79 in property/casualty reinsurance and 90 in global specialty insurance next year.
Due to expected strong business growth in GSI and a lower discounting effect compared to 2024, this corresponds to a combined ratio of 83 for property/casualty reinsurance, according to the current segmentation.
Global specialty will become a separate international financial reporting standards reporting segment in the new year.
It was particularly impacted by Hurricane Helene, which made landfall in late-September in Florida then cut a destructive path north through Georgia and the Carolinas, said Jurecka.
Munich Re had higher exposure due to the storm’s “rather unusual” track and nature. GSI’s catastrophe losses should decline next year, although “I could be proven wrong,” the CFO said.
Man-made or natural catastrophe losses must reach about €30 million to be considered a major loss, he added.
The company has taken necessary measures to address auto claims inflation in Germany, but that could be offset by lower interest rates next year. Munich Re projects a combined ratio of 89 at Ergo Germany and 90 at Ergo international next year.
The ERGO field of business is expected to generate insurance revenue of €22bn in 2025, continuing its strong development in recent years with a profit contribution of €0.9bn.
A combined ratio of 89% is envisaged at ERGO Germany, and 90% at ERGO International. From 2025 onwards, Munich Re will disclose ERGO Germany as a single reporting unit, combining the German life and health and property-casualty businesses.
Starting in 2025, Ergo Germany results will also be reported as a single unit that combines property/casualty and life/health business.
Munich Re projects a €1.7 bn technical results for life/health reinsurance next year.
The company’s net result for the first 9 months of 2024 rose to €4.69 bn from €3.59 bn. The group compensated for large property/casualty losses with strong results in life/health reinsurance and investment income
