“The devastating wildfires in California are another example of how climate change is exacerbating the risks of extreme weather events,” said Hannover Re Chief Executive Clemens Jungsthoefel
Germany’s largest reinsurers, Munich Re and Hannover Re, reported sharp declines in first-quarter profit on Tuesday after a combined 1.7 billion euros ($1.89 billion) in claims relating to the Los Angeles wildfires this year.
The wildfires killed nearly 30 people and damaged more than 16,000 structures, charring an area bigger than Paris. (Editor’s note: Munich Re’s wildfire claims were €1.1 billion while Hannover Re reported a price tag of €631 million).
“The devastating wildfires in California are another example of how climate change is exacerbating the risks of extreme weather events,” said Hannover Re Chief Executive Clemens Jungsthoefel.
Nevertheless, both companies said they were sticking to full-year profit forecasts.
Munich Re, the world’s largest reinsurer, said net profit in the reported quarter was 1.094 billion euros, down from 2.115 billion euros a year earlier. Analysts, on average, had forecast net profit of 1.112 billion euros.
The company retained its 2025 net profit forecast, however, projecting a rise to 6 billion euros from 5.7 billion euros in 2024.
Rival Hannover Re reported a 14% profit decline on Tuesday, citing 631 million euros in wildfire-related claims.
Hannover’s quarterly profit dropped to 480 million euros, down from 558 million euros a year earlier. That is slightly above analyst expectations of 447 million euros.