Munich Re is sticking with its €6 bn full-year target after a powerful third quarter that lifted profit, margin, and returns across the group. The reinsurer said Q3 2025 net income surged 120% year on year to €1.997 bn, while its nine-month total reached €5.176 bn – up 12% from 2024.
Revenue from issued insurance contracts dipped 6% to €14.58 bn in Q3 and fell 1% to €45.16 bn over nine months, mostly due to currency hits.
Still, the technical engine fired. The total technical result jumped to €2.82 bn from €1.70 bn a year earlier, with nine-month performance climbing to €7.91 bn from €6.78 bn.
Foreign exchange losses against the US dollar eased to -€189 mn from -€462 mn, and the net financial result rebounded sharply to €813 mn for the quarter, reversing last year’s €58 mn loss. The operating result spiked 162% to €3.04 bn, while group RoE hit 24.2% for Q3 and 20.8% year to date.
Reinsurance carried the weight again. Segment profit jumped to €1.69 bn in Q3 from €766 mn, with nine-month earnings at €4.38 bn.
The total technical result in reinsurance soared 83% to €2.19 bn, while the operating result climbed 159% to €2.48 bn.
Munich Re’s property and casualty (P&C) arm delivered a standout performance. The division’s net result rocketed 351% to €1.19 bn, supported by sharply lower major loss costs of just €118 mn, down from €1.34 bn.
That’s barely 2.9% of net insurance revenue – far below the expected 17%. The P&C combined ratio fell to 62.7% from 89.5%, and for the nine-month period improved to 69.8% from 77.9%.
Natural catastrophe claims barely registered, with only €47 mn booked after last year’s €1.14 bn, which had included events in the US, Canada, and Europe. Man-made losses dropped to €165 mn from €199 mn.
Life and health (L&H) reinsurance was softer. The total technical result slid to €314 mn from €507 mn in Q3, driven by claims variance, and to €1.23 bn for the nine months from €1.56 bn. Net income in L&H reached €286 mn versus €481 mn last year, and €1.13 bn year to date against €1.48 bn previously.
Group CEO Joachim Wenning can probably breathe easier. Munich Re’s mix of disciplined underwriting, limited catastrophe exposure, and solid investment results leaves it firmly on course to meet – maybe beat – its €6 bn full-year target. The only drag? FX volatility, still lurking in the margins.
The Global Specialty Insurance unit outperformed expectations. Quarterly profit hit €221 mn, up from €22 mn, while the nine-month total climbed to €525 mn from €239 mn.
Revenue stayed stable at €6.46 bn. Its combined ratio improved to 82.8% from 92.6% as large losses plunged to €59 mn from €273 mn.
Christoph Jurecka, Chief Financial Officer, commented: “Munich Re generated a high net result of just under €2bn in the third quarter. We are therefore fully on track to achieve our target of €6bn for the full year”
The main reasons for the outstanding quarterly result were the excellent combined ratios in property-casualty reinsurance and Global Specialty Insurance, in addition to good operating performance overall.
Christoph Jurecka, Munich Re Chief Financial Officer
“These ratios reflect a below-average major-loss expenditure. Together with the excellent performance at ERGO and a high investment result, we were thus able to more than compensate for a somewhat weaker quarter in life reinsurance, and for currency losses. Our diversification strategy is working.”
After delivering these strong results so far in 2025, Munich Re has confirmed its guidance of €6 bn for the year, but in reinsurance, is now expecting insurance revenue of €39 bn, down on the previous €40 bn, due to premium adjustments, the effects of renewals, and exchange rate developments.
