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


(END) Dow Jones Newswires

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

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