Munich Re announces €850mn result in Q3 despite cats

Despite the costly impacts of catastrophe events in the period, global reinsurance giant Munich Re produced a consolidated result of approximately €850 million in the third-quarter of 2019.

The German reinsurer states that the Q3 result is driven by good operational performance, strong currency gains, and a very good investment result, all of which could have offset the reinsurer’s high major-loss expenditure in the quarter.

For the full-year 2019, Munich Re has said that it expects to beat its target for the consolidated result of €2.5 billion, despite the uncertainty that remains around the development in major losses and the capital markets during the remainder of 2019.

A number of re/insurers have announced expected hits to their third-quarter results from the quarter’s catastrophe experience, most notably driven by Hurricane Dorian and Typhoon Faxai.

Analysts at Barclays said recently that both Munich Re and Swiss Re may exceed their large loss budgets for Q3 2019, and might also be at risk for the final quarter of the year.

The reinsurer is set to publish its third-quarter 2019 results on the 7th of November, so it will be interesting to see how its underwriting units performed in the period, in light of the loss experience.

Source: Reinsurance News