Munich Re released the third quarter results of 2024, with net result increase in Q1 to Q3 despite losses due to natural catastrophes in the third quarter.
Munich Re generated a net result of €930 million in Q3, down from €1.17 billion year-on-year due to natural disasters during the quarter. In the first three quarters, net profit reached €4.69 billion, up from €3.59 billion in the same period last year.
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Meanwhile, insurance revenue for Q3 rose to €15.49 billion, up from €14.46 billion in Q3 2023, due to organic growth in all segments. Munich's solvency ratio was at 292%, which is above the optimum range of 175% to 220%, while its return on equity (RoE) was 11.7% in Q3, with 20.1% for Q1 to Q3.
Munich's reinsurance segment contributed €766 million in Q3, down from €995 million year-on-year. On the other hand, major losses from natural catastrophes increased to €1.38 billion from Hurricane Helene and three other Canadian catastrophes. Additionally, property-casualty reinsurance generated a Q3 result of €375 million, down from €644 million last year, with an elevated major-loss expenditure of €1.60 billion.
Munich generated €164 million in its ERGO business segment in Q3 and €699 million in Q1 to Q3, thanks to growth in the life, health, and property-casualty divisions. However, the ERGO International segment faced losses connected to flooding from Storm Boris in Poland and Austria.
Munich Re's Q3 investment result rose to €2.09 billion, up from €760 million last year. The increase is owed to gains in equity markets, as well as fixed-interest securities benefiting from declining rates. Overall, the Q3 investment result represented a return of 3.6% on the average market value of the portfolio.
Munich Re is on track to exceed its annual profit target of €5 billion for 2024, with a projected net profit above €4.2 billion in reinsurance and €800 million from ERGO.
