Munich Re's Q3 net falls short at €0.9 billion due to catastrophic losses

Munich Re’s Q3 net falls short at €0.9 billion due to catastrophic losses | Insurance Business Australia

Reinsurance

Munich Re’s Q3 net falls short at €0.9 billion due to catastrophic losses

Company remains on track for annual target

Reinsurance

By
Kenneth Araullo

Munich Re reported a preliminary net result of approximately €0.9 billion for the third quarter of 2024, influenced by higher-than-average major losses from natural catastrophes in property-casualty reinsurance. This figure falls short of market expectations, which anticipated a net result of €1.42 billion.

The company’s largest single claims event in Q3 was Hurricane Helene, which caused severe damage in the southeastern United States, leading to approximately €0.5 billion in losses. In addition, three major loss events in Canada contributed to a similar level of claims expenditure.

Other significant losses during the quarter included damage in Central and Eastern Europe from Storm Boris, which caused flooding, and further losses in the United States and the Caribbean due to Hurricane Beryl.

While the financial impact of Hurricane Milton is expected to be substantial, Munich Re noted that it remains on track to exceed its full-year profit target of €5 billion, having already posted a net result of €4.7 billion for the first nine months of 2024. Finalized third-quarter results will be released on 7 November.

The giant reinsurer also announced that it is preparing to meet the growing demand for reinsurance protection in Europe, following several years of significant market expansion.

Munich Re said that it sees continued demand for property reinsurance, driven by the increasing need for protection against natural catastrophes. With a strong capital base and diversified business model, Munich Re says that it is positioned to provide solutions to its clients while maintaining disciplined underwriting practices.

The company also noted that it is willing to allocate additional capital in European markets where clients demonstrate sound exposure management and maintain risk-adequate pricing in their primary markets. Munich Re’s financial strength enables it to support clients in absorbing shocks from market fluctuations.

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