Munich Re’s third-quarter result was burdened by high losses from natural disasters, the company has announced.
Munich Re estimates that windstorm Bernd, which led to flooding and flash floods in Germany and surrounding countries, will cost about €600 million (about $698 million) in the segments’ property-casualty reinsurance and ERGO Property-casualty Germany. In the US, Hurricane Ida caused losses of about €1.2 billion in property casualty reinsurance.
However, Munich Re achieved a preliminary result of about €0.4 billion in Q3 (consensus: -€10 million), driven by positive performance in all segments and a high investment result. The result was also due in part to large gains on disposals as well as a high currency translation result, the company said.
Munich Re attained a result of about €2.1 billion for the first nine months of the year. For the full year 2021, the company anticipates that it will meet its overall profit target of €2.8 billion.
The forecast accounts for higher COVID-19-related losses for life and health insurance than were expected at the time Q2 results were announced. Munich Re will therefore not reach its technical result target of €400 million for this year, the company said. In P&C reinsurance, there were no noteworthy COVID-19 losses in Q3.
Munich Re will announce its final third-quarter result on Nov. 9.