Munich Re has continued its strong performance in 2025, reporting a net result of €1.997 billion for the third quarter of 2025, up from €907 million in the same period in 2024.
For the first nine months of the year, the net result reached €5.176 billion, compared to €4.623 billion a year earlier. Insurance revenue from contracts issued declined to €14.575 billion in the quarter and €45.162 billion for the first three quarters, with the company attributing the decrease primarily to negative currency translation effects.
The total technical result for the quarter rose to €2.822 billion, while the operating result increased to €3.036 billion. The currency result was negative at –€189 million, mainly due to foreign exchange losses against the US dollar. Munich Re’s effective tax rate for the quarter was 32.9%, up from 17.8% in the prior-year quarter.
At the end of the reporting period, equity stood at €32.414 billion, slightly lower than the €32.901 billion at the start of the year. The company cited dividends, share buy-backs, and currency translation effects as the main factors. The solvency ratio rose to 293% from 287% at the end of 2024, remaining above the target corridor of 175% to 220%.
The annualized return on equity was 24.2% for the quarter and 20.8% for the first nine months, compared to 11.5% and 19.9%, respectively, in the previous year.
Munich Re’s financial momentum was supported by a strong second quarter, when the company posted earnings of €2.1 billion. This figure surpassed analyst expectations and represented a 30% year-over-year increase, which the company attributed to a lower-than-expected burden from major losses.
“Together with the excellent performance at ERGO and a high investment result, we were thus able to more than compensate for a somewhat weaker quarter in life reinsurance, and for currency losses. Our diversification strategy is working,” CFO Christoph Jurecka (pictured above) said.
The reinsurance business contributed €1.693 billion to the net result in the third quarter, up from €766 million a year ago. For the first three quarters, the segment delivered €4.380 billion, compared to €3.993 billion last year.
Insurance revenue from contracts issued in reinsurance declined to €9.262 billion for the quarter. The total technical result increased to €2.190 billion, while the operating result rose to €2.477 billion.
In the life and health reinsurance segment, the total technical result decreased to €314 million, with the segment result at €286 million. Insurance revenue from contracts issued was €2.868 billion. The company said the decline was mainly due to unfavorable claims experience, but noted that it remained within normal fluctuations.
The property-casualty reinsurance segment saw its net result rise to €1.187 billion, which Munich Re attributed to very low major-loss expenditure. Insurance revenue from contracts issued dropped to €4.241 billion, reflecting the impact of a weaker US dollar and the discontinuation of business that did not meet return requirements. The combined ratio improved to 62.7% of net insurance revenue, with a normalized combined ratio of 78.7%.
Major-loss expenditure in property-casualty reinsurance fell to €118 million, or 2.9% of net insurance revenue, well below the expected figure of 17%. This amount includes run-off profits and losses for major claims from previous years.
The company recorded a release of €47 million for major losses from natural catastrophes, compared to an expenditure of €1.137 billion in the prior-year quarter. Man-made major losses were €165 million. The figures account for discounting and risk adjustment effects.
The GSI segment generated a net result of €221 million in the third quarter, with insurance revenue from contracts issued at €2.153 billion. The combined ratio improved to 82.8% of net insurance revenue, mainly due to a decrease in major-loss expenditures to €59 million, or 2.9% of net insurance revenue.
Munich Re confirmed its annual guidance of €6 billion for 2025. The company now expects reinsurance insurance revenue of €39 billion, down from a previous forecast of €40 billion, citing premium adjustments, renewals, and exchange rate developments. Group insurance revenue is forecast at €61 billion, down from €62 billion.
The company expects a combined ratio of around 74% in property-casualty reinsurance, compared to the previous forecast of 79%, and about 87% in the GSI segment, down from approximately 90%.
