Munich Re's first-quarter results showed a 57% jump in net profit to €1,714 million, with the reinsurance business lifted by a lighter major-loss burden as the group recovered from a year-ago period weighed down by the Los Angeles wildfires.
The figure came in roughly in line with the €1,729 million analyst consensus.
The total technical result climbed to €2,676 million from €2,054 million, while the operating result rose to €2,230 million from €1,465 million. Insurance revenue from contracts issued slipped to €15,018 million from €15,811 million on adverse currency translation.
The currency result improved to –€162 million from –€506 million, with the prior-year figure reflecting greater US dollar exposure and depreciation. The effective tax rate eased to 20.9% from 22.3%, and annualized return on equity rose to 19.7% from 13.3%.
Equity rose to €34,616 million from €33,421 million at year-end 2025. The Solvency II ratio stood at 292%, down from 298%, well above the group's >200% target, and already includes a planned €2.25 billion buyback flagged with the 2025 results.
The reinsurance field of business contributed €1,479 million to the net result. Property-casualty reinsurance posted a net result of €841 million, with the combined ratio improving to 66.8% from 83.9%; the normalized combined ratio was 80.3%.
Major-loss expenditure in P&C reinsurance fell sharply to €130 million from €1,008 million, equivalent to 3.5% of net insurance revenue versus an expected 18%. The prior-year quarter had been weighed down by the Los Angeles wildfires.
Global Specialty Insurance generated a net result of €202 million, with the combined ratio improving to 83.7% from 95.5%. Claims tied to the Iran war totaled roughly €90 million, including about €60 million in Global Specialty Insurance and €30 million in P&C reinsurance.
The €90 million estimate looks modest against wider market disruption since the conflict began in February. Law firm Kennedys notes that US and Israeli strikes on Iran triggered retaliatory action across the Gulf, while the World Economic Forum has reported that Strait of Hormuz traffic fell about 95% and the Lloyd's Joint War Committee widened its high-risk designation across the Persian Gulf.
S&P Global Ratings has flagged specialty lines such as war risk, aviation, energy and political violence as most exposed.
At the April 1, 2026 renewals, written volume fell 18.5% to €2.0 billion as Munich Re declined business that did not meet pricing or terms thresholds. Risk-adjusted prices dipped 3.1%, with the renewals concentrated in Japan and India and accounting for around 11% of P&C reinsurance business.
ERGO contributed €235 million to the group result, with insurance revenue rising to €5,671 million. Combined ratios were 86.7% at Property-casualty Germany and 89.5% at ERGO International.
The investment result increased to €1,682 million from €1,323 million, producing a 2.9% return on average portfolio market value. The reinvestment yield was 4.2%, and the portfolio carrying amount stood at €222,702 million.
Munich Re kept its full-year 2026 guidance of €6.3 billion, set last December under its Ambition 2030 plan targeting return on equity above 18% by decade-end.
The results echoed that trajectory, with chief financial officer Andrew Buchanan saying the group had made "an excellent start to 2026 with a Q1 result of €1.7bn," adding that pricing remains favorable despite a softer April renewal.
