“2023 was another successful year for Munich Re. With the exception of systemic risks – such as cyber and pandemic – our appetite for covering existential risks for people and enterprises is far from exhausted, ” said Joachim Wenning, Chair of the Board of Management of Munich Re
Munich:
Renewals as at 1 January 2024
In the reinsurance renewals as at 1 January 2024, Munich Re increased the volume of business written to €15.7bn (+3.5%).
“Thanks to our close relationships with clients and our expertise, we tapped into attractive business opportunities in nearly all regions and classes of business. These involved the expansion of existing client relationships as well as new business. At the same time, we were willing to discontinue business that no longer met our expectations with regard to prices or terms and conditions. It was possible to maintain the high quality of our portfolio thanks to stable or improved contractual terms and conditions,” said Munich Re.
“2023 was another successful year for Munich Re. We beat our annual profit target for the third consecutive time and delivered a strong performance across all business segments. Thanks to a broadly diversified business portfolio, Munich Re is well placed and fully on track to meet the targets specified in its Ambition 2025 strategy programme. With the exception of systemic risks – such as cyber and pandemic – our appetite for covering existential risks for people and enterprises is far from exhausted, ” said Joachim Wenning, Chair of the Board of Management of Munich Re.
Around two-thirds of non-life reinsurance treaty business was renewed – with a focus on Europe, the USA and global business. Price development was stable overall, and for the most part more than compensated for the higher loss estimates in some areas, which were primarily attributable to inflation and other loss trends.
Primary insurance prices also increased in many markets, with Munich Re benefiting as regards proportional reinsurance contracts.
Overall, the high price level of Munich Re’s portfolio was practically unchanged following an increase of just 0.3%. This figure is, as always, risk-adjusted. In other words, price increases are offset if they are associated with increased risk and, consequently, elevated loss expectations.
Despite market pressure increasing slightly, Munich Re expects the environment to remain positive in the upcoming April and July renewal rounds.
Munich Re is aiming to generate a net result of €5bn in 2024. We expect the Group’s insurance revenue to total €59bn and the return on investment to improve markedly, surpassing 2.8%.
Munich Re anticipates that its reinsurance field of business will increase its insurance revenue to €39bn and its contribution to the net result to €4.2bn in 2024.
In a market environment poised to remain favourable, Munich Re will leverage its position of strength to grow once again and generate even more profits.
The combined ratio for property-casualty reinsurance is expected to improve to 82%. In life and health reinsurance, Munich Re projects a slightly improved total technical result of €1.45bn in 2024.