A net profit of 3.76 billion euros instead of 2.42 billion a year earlier, an increase of 55%: at the end of this first half-year, Munich Re shows his optimism. “We have never made so much in the first six months of a year, welcomes Joachim Wenningchairman of the board of the German reinsurance company. This result demonstrates our operational strength in reinsurance and direct insurance, both of which generated higher than expected profits. Encouraging renewals in July and the high return on reinvestment provide an optimistic outlook for the rest of 2024. Our 2024 target remains unchanged at $5 billion, but our impressive half-year performance increases our chances of meeting or even exceeding our forecasts for the whole. year. »
THE annualized return on equity (RoE) rose to 24.3% in the first half of the year instead of 17% a year earlier. THE technical result stands at 5.3 billion euros, an increase of 33% compared to the end of June 2023. The group finally shows a profitability of 2.6% on its financial investment portfoliothat exceeded 221 billion euros at the end of June.
Lower than expected reinsurance costs
In reinsurance, the volume of contracts issued generated a small increase in revenue in the first half of the year, which stood at 30 billion euros instead of 28.5 billion euros at the end of June 2023t. Reinsurance contributed 3.22 billion euros to the group’s net profit (1.95 billion euros a year earlier). In the claims branch, the combined ratio also improved to 77.5% in the first half of the year compared to 83.5% a year earlier.
The expenses for major claims in the first half of the year were lower than expected, although losses due to natural disasters has almost doubled, mainly due to floods in southern Germany. The latter cost Munich Re 200 million euros in reinsurance and 44 million euros for its insurance subsidiary. That is.
The insurance provider, for its part, generated a result of 535 million euros in the first half of the year, also up to 470 million at the end of June 2023. Income from insurance contracts issued in the first half of the year instead amounted to 10.3 billion euros out of 9.9 billion a year earlier.
