November 27, 2018 09:30
Despite the various disasters that occurred in the third quarter of 2018, Munich Re has recorded a net profit of 483 million euros (M€). The reinsurer showed a loss of € 1.4 billion (€B) in the same period of the previous year. The group combined ratio for the quarter stood at 100.7 %. This is an improvement compared to the third quarter of 2017, which was 160.9 %.
“This good result in the third quarter, enables us to achieve our profit target for 2018, despite the series of major natural disasters, which continues in the fourth quarter, said Jörg Schneider, cfo of Munich Re. The benefits of a coverage primary insurance and reinsurance of first order are manifest in the era of climate change and economic risks growing. “
Munich Re has revealed that the typhoon Jebi in Japan, and hurricane Florence in the United States have cost about€ 300 Million each during the quarter.
Net profit of 309 Million euros in reinsurance
The reinsurance business of Munich Re have contributed to a height of 309 M€ on net income. In the third quarter of 2017, the reinsurer reported a net loss of 1.46 G€ for its reinsurance operations due to significant losses arising from the hurricanes Harvey, Irma and Maria.
The gross premiums increased 6.2 % to $ 8,56 G€. A decline in the premium volume in life reinsurance was offset by an increase in “significant” premiums in the reinsurance of damage, says Munich Re.
The reinsurer also reveals that major expenses excess€ 10 Million amounted to 599 Million euros for the third quarter. Of this total, those for disasters caused by humans reached€ 94 M € and those for natural disasters are 505 M€. Munich Re says that losses for hurricane Michael and typhoon Trami will have an impact of approximately€ 350 Million on the fourth quarter results.