Munich Re profit tumbles in Q4

Munich Re profit tumbles in Q4 | Insurance Business

Munich Re profit tumbles in Q4

Munich Re has released its financial figures for the fourth quarter and for the whole of 2019, with more to smile about in the full-year numbers.

In the 2019 financial year, the global reinsurer posted a €2.7 billion (around SG$4.14 billion) profit. The amount represents not only an improvement from the company’s 2018 result but also the surpassing of its profit guidance.

Broken down into segments, €2.3 billion (around SG$3.53 billion) of Munich Re’s net income for the year came from the reinsurance field of business while €440 million (around SG$675.7 million) was contributed by the group’s ERGO operations. Both units fared better compared to their 2018 performance.

The same can’t be said, however, when it comes to Munich Re’s fourth quarter showing. Profit in the period fell from €238 million (around SG$365.5 million) to €217 million (around SG$333.31 million) due to very high major losses.

Overall, though, chief executive Joachim Wenning is happy with the results.

“A higher dividend, new share buy-back programme, and profits beating the guidance: Munich Re delivers,” stated the CEO. “On our journey to make Munich Re more profitable, more lean, and more digital, we took a great step forwards in 2019.

“With this strategic progress, I am confident that we will reach the profit target of €2.8 billion for 2020 that we set out in our multi-year ambition for 2018–2020.”

Munich Re, which has joined the Net-Zero Asset Owner Alliance and will ensure the firm’s investments are climate-neutral by 2050, said its dividend will increase to €9.80 per share.