Firm noted consistently good operational performance across all business segments
Reinsurance
By
Kenneth Araullo
Munich Re has set its sights on achieving a net profit of €5 billion in 2024, bolstered by strong operational performance across its business segments. The company anticipates group insurance revenue to reach €59 billion in the same year, with an expected improvement in return on investment to above 2.8%.
In its reinsurance business, Munich Re projects an increase in insurance revenue to €39 billion, along with a net profit of €4.2 billion for 2024. The company plans to capitalize on the favorable market conditions to drive profitable growth. In the property-casualty reinsurance sector, Munich Re foresees an improved combined ratio of 82%, attributed to operational enhancements from the 2023 renewals and expected outcomes of the 2024 renewals.
Unlike in 2023, Munich Re does not intend to further increase reserve prudency to offset the impact of discounting, given its robust reserving position. In life and health reinsurance, the company expects a technical result of €1.45 billion in 2024, supported by annual releases of Contractual Service Margin (CSM) and risk adjustment, along with a continued strong contribution from business involving non-significant risk transfer.
The ERGO business segment is projected to generate insurance revenue of €20 billion in 2024, continuing its recent positive trend with a profit contribution of €0.8 billion. For the ERGO Property-casualty Germany segment, a combined ratio of 87% is anticipated, and 90% for ERGO International.
As with all forecasts and targets, Munich Re noted that there are heightened uncertainties due to geopolitical and macroeconomic developments. Additionally, these projections also assume that major losses will remain within normal limits and that the income statement will not experience severe fluctuations due to currency or capital market volatility, significant changes in the tax environment, or other one-off effects.
Munich Re will release its full-year financial figures for 2023 on February 27, 2024, as per its scheduled announcement.
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