Munich Re raises 2026 profit forecast to €6.6 bn after 9M growth

Munich Re increased its full-year 2026 net profit forecast to €6.6 bn from €6.3 bn after reporting a 9.5% increase in net income to €5.67 bn for the first nine months of the year.

The German reinsurer generated a third-quarter net result of €1.74 bn, compared with €2.0 bn a year earlier, as strong operating performance and lower-than-expected major losses supported earnings. The prior-year quarter had benefited from exceptionally low catastrophe claims.

Insurance revenue increased to €16.63 bn in Q3 from €14.58 bn, while 9M revenue reached €46.58 bn, compared with €45.16 bn in 2025.

• Munich Re increased its annual profit target by €300 mn to €6.6 bn after nine-month net income reached €5.67 bn.
• Property-casualty reinsurance recorded an 80.0% combined ratio in Q3, with major losses of €646 mn remaining below the expected level.
• Life and health reinsurance delivered strong growth, while ERGO increased 9M profit to €819 mn and insurance revenue to €17.36 bn.

Munich Re’s Solvency II ratio reached 301% at September 30, up from 298% at year-end 2025 and well above its target of more than 200%.

Munich Re Q3 2026 earnings and Group financial performance

Munich Re’s third-quarter operating result declined to €2.47 bn from €3.04 bn a year earlier, while the total technical result decreased to €2.38 bn from €2.82 bn.

The year-on-year comparison was affected by unusually favorable major-loss experience in Q3 2025 and a lower investment result in the latest quarter.

Currency movements were more favorable. Munich Re recorded a €74 mn foreign exchange gain, compared with a €189 mn loss in the previous year, when the US dollar had negatively affected earnings.

The effective tax rate declined to 27.6% from 32.9%. Annualized return on equity reached 21.9% for the first nine months of 2026, compared with 20.8% in the corresponding period of 2025.

For the third quarter alone, annualized return on equity was 20.2%, down from 24.2% a year earlier.

Group equity stood at €33.37 bn at September 30, slightly below the €33.42 bn reported at the beginning of the year.

Chief Financial Officer Andrew Buchanan said the company’s earnings benefited from contributions across reinsurance and primary insurance, with continued expansion in less volatile business segments.

The increase in our profit target to €6.6bn reflects the very pleasing operating performance across all business segments.

He identified earnings diversification as an important component of Munich Re’s Ambition 2030 strategy.

Reinsurance profit reaches €4.85 bn in the first nine months

Munich Re’s reinsurance operations generated €4.85 bn in net profit during the first nine months, compared with €4.38 bn a year earlier.

Third-quarter profit declined to €1.48 bn from €1.69 bn, although insurance revenue increased to €10.43 bn from €9.26 bn. The quarterly technical result was €1.73 bn, compared with €2.19 bn in Q3 2025, while operating profit declined to €2.11 bn from €2.48 bn.

The result included higher earnings from life and health reinsurance, offset by the less favorable comparison in property-casualty underwriting.

Reinsurance contributed approximately 85% of Munich Re’s nine-month Group net result, with its earnings increasing by roughly €469 mn year over year.

Property-casualty combined ratio rises to 80.0%

Property-casualty reinsurance generated a quarterly net result of €938 mn, compared with €1.19 bn in the previous year.

Insurance revenue increased to €4.45 bn from €4.24 bn, supported by business expansion. The combined ratio reached 80.0% of net insurance revenue, compared with 62.7% in Q3 2025.

The deterioration largely reflected a return to more normal major-loss activity after an exceptionally benign prior-year quarter.

Major-loss expenditure totaled €646 mn in Q3, equivalent to 14.9% of net insurance revenue and below Munich Re’s expected level of 18%.

The corresponding figure for Q3 2025 was €118 mn, or 2.9% of net insurance revenue.

Natural catastrophe losses amounted to €514 mn, compared with a €47 mn release in the previous year. Man-made major losses declined to €132 mn from €165 mn.

The costliest natural catastrophe was the El Choco earthquake in Colombia, which generated approximately €300 mn in nominal losses.

Reported major-loss expenditure includes prior-year claims development as well as the effects of discounting and risk adjustment, after retrocession and before tax.

Munich Re expects its full-year property-casualty reinsurance combined ratio to remain below 80%, an improvement from its previous forecast of approximately 80%.

Life and health reinsurance benefits from new business growth

Life and health reinsurance recorded stronger third-quarter earnings, supported by new business expansion and favorable biometric experience.

The segment’s net result increased to €340 mn from €286 mn, while the technical result rose to €493 mn from €314 mn. Insurance revenue increased to €3.77 bn from €2.87 bn, representing growth of approximately 31%.

Business expanded across all major regions, particularly North America, the UK and Asia.

Favorable mortality experience and higher new business volumes were the main drivers of the improvement in life and health reinsurance profitability.

Munich Re also continued expanding its activities in less volatile reinsurance segments, reducing the Group’s dependence on earnings from catastrophe-exposed property-casualty business.

The stronger life and health contribution partly offset the decline in property-casualty profit during the quarter.

Global Specialty Insurance reports 83.9% combined ratio

Munich Re’s Global Specialty Insurance segment generated a third-quarter net result of €201 mn, compared with €221 mn a year earlier. Insurance revenue increased to €2.22 bn from €2.15 bn.

The segment reported a combined ratio of 83.9%, compared with 82.8% in Q3 2025.

Global Specialty Insurance maintained a combined ratio below 85% in Q3, despite a 1.1-percentage-point deterioration from the previous year.

Munich Re now expects the segment’s full-year combined ratio to remain below 90%, improving its previous forecast of approximately 90%.

The revised outlook follows underwriting performance that has remained ahead of the company’s annual expectations.

Munich Re investment result reaches €1.86 bn in Q3

Munich Re generated an investment result of €1.86 bn in the third quarter, compared with €2.39 bn a year earlier.

Regular investment income increased to €2.31 bn from €2.09 bn as higher interest rates supported recurring returns. The decline in the overall investment result was primarily attributable to unfavorable fair-value movements in bonds and equities.

Fair-value changes produced a negative contribution of €280 mn, compared with a positive €215 mn in Q3 2025.

The balance of gains and losses from investment disposals declined to €13 mn from €337 mn, while the balance of write-ups and write-downs improved to a negative €35 mn from a negative €51 mn.

The quarterly investment return was 3.2% on the average market value of the portfolio, while the running yield reached 4.0% and the reinvestment yield stood at 4.7%.

Higher interest rates increased unrealized losses on fixed-income securities, while equity investments recorded losses compared with gains in the prior-year quarter.

Reinsurance operations nevertheless achieved an investment return of 4.7%, supporting their contribution to Group earnings.

Munich Re’s investment portfolio had a carrying value of €223.2 bn at September 30, compared with €222.7 bn at the end of 2025. The equity-backing ratio, including equity-linked derivatives, increased to 3.6% from 3.1%.

Munich Re raises 2026 net profit guidance to €6.6 bn

Munich Re increased its full-year net profit target to €6.6 bn, compared with the previous guidance of €6.3 bn.

The revised forecast reflects stronger-than-expected earnings during the first nine months, favorable underwriting results and contributions from the Group’s diversified insurance businesses.

Munich Re has raised its 2026 earnings target by €300 mn, supported by its €5.67 bn net result through September.

The company also improved its combined ratio expectations for property-casualty reinsurance and Global Specialty Insurance.

Other financial assumptions communicated in the half-year 2026 report remain unchanged.

Munich Re cautioned that achieving its guidance depends on major losses remaining within normal ranges and the absence of severe disruptions in currency and capital markets. The forecast also remains subject to geopolitical and macroeconomic developments, significant tax changes and other exceptional effects.