By Ed Frankl 
 

Muenchener Rueckversicherungs-Gesellschaft AG said Tuesday that its third-quarter profit almost doubled despite high losses from Hurricane Ida and summer floods in Europe, and the lingering impact of the Covid-19 pandemic.

The German reinsurer confirmed generated quarterly net profit of 366 million euros ($424.1 million) compared with EUR199 million for the same pandemic-afflicted period the previous year.

The result is close to preliminary figures issued in October, when the company said it would make a profit of around EUR400 million. At the time, expectations were of a EUR10 million loss, according to analysts' estimates provided by the company.

The quarterly result was hit by higher-than-expected coronavirus-related losses of around EUR170 million in its life & health reinsurance business, the Bavarian insurer said.

While the DAX-listed company confirmed its full-year profit target of EUR2.8 billion, it downgraded its L&H outlook to a technical result of EUR200 million from EUR400 million previously on the back of increased pandemic-related losses.

Munich Re now expects coronavirus-related losses at its reinsurance business of EUR800 million, up from EUR700 million previously. In the first nine months, Covid-19 losses in reinsurance were EUR680 million, the company said.

It also anticipates its 2021 property-casualty combined ratio--which measures expenses and losses versus premiums--at 100%, from 96% beforehand, due to high natural-catastrophe losses in the third quarter.

The third-quarter combined ratio was 112.8%, ahead of the year-to-date figure of 100.9%.

"Our annual target of EUR2.8 billion remains within reach thanks to a gratifying operational performance and high investment results," Chief Financial Officer Christoph Jurecka said.

In the third quarter, Hurricane Ida in the U.S. caused around EUR1.2 billion in property-casualty reinsurance losses, while floods that struck central Europe in July cost it roughly EUR600 million, it said, confirming comments from October.

Gross premiums written rose 9.4% to EUR15.48 billion, while the investment result rose to EUR2.11 billion from EUR1.69 billion.

Munich Re made a currency gain of EUR242 million for the quarter from a loss of EUR100 million for 3Q 2020, mainly due to gains against the U.S. dollar and in several emerging markets, the company added.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

November 09, 2021 03:07 ET (08:07 GMT)

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