21 March, 2019 09:30
Photo : Freepik
Munich Re counts to raise its net profit of 200 million euros (M€) to reach € 2.5 billion (€B) for fiscal year 2019 through a redemption of shares. The program plans to purchase a volume of shares representing a billion euros. Munich Re has proposed in annual general meeting a dividend increase to 9.25 €.
“2018 was a successful year for Munich Re, and the good result confirms our ambitious goals and long-term. In response to the significant increase in profits last year, we anticipate that the profits for 2019 and 2020 will continue to increase, reaching our profit target in the medium term 2.8 G€ in 2020. In reinsurance, we continue our ambitious growth targets and the success of the strategic program ERGO become increasingly evident. At the same time, we reduce the complexity of our internal processes and implement decisive digital transformation. Munich Re is on the right track, ” said Joachim Wenning, chairman of the board of directors of the reinsurer by way of a press release.
Thus, Munich Re expects profits to be distributed to 2.1 billion€ for the reinsurance sector and€ 400m for the ERGO group.
In life reinsurance, forecasts of the technical results of Munich Re are now at€500 Million.
The company also believes it is able to reach a combined ratio of approximately 98 % for the year 2019.
Munich Re anticipates that its gross premiums written will be 49 G€, 31€ in reinsurance and about 17.5 G€ for ERGO.
In 2018, the net income of Munich Re amounted to approximately 2.3 billion€, compared to 392 M€ for the year 2017. The underwriting results have reached 3.7 billion€ and the gross premiums subscribed for 49€.
The combined ratio improved to 99.4 per cent, compared to 114.1 % in the previous year. The benefits for the sector of the reinsurance of damages have reached 1,13 G€, while the major losses were 2.2 billion€.