Frédérique De Simone
August 7, 2019 13:30
Photo : Freepik
The reinsurer had announced : its results in the second quarter of 2019 does not disappoint. Its combined ratio for the period is 87.7 %, an improvement compared to the ratio of 102 % recorded during the 2nd quarter of 2018.
Consolidated earnings for the second quarter was $ 993 million Euros (M€). It is 265 M€ more than at the same date last year where the profit was of 728 M€. The combination of the first two quarters 2019, the reinsurer recorded a net profit of 1.63 billion Euros.
“We’re pleased to have generated our best quarterly result in four years. And we are confident that we will achieve our profit target of € 2.5 billion for 2019 and € 2.8 billion up to 2020, in line with our ambition multi for 2018-2020. Mid-term review of this programme, Munich Re is well on track on the financial and strategic plans “, said Joachim Wenning, chairman of the board of directors of Munich Re.
The reinsurance of damage reports
Munich Re also has good results in non-life reinsurance. The reinsurer has a profit of 704 M€ in the second quarter of 2019, more than double the profit recorded during the same period in 2018. It was then 335 M€.
The combination of the first two quarters, the year 2019 is worth approximately 15.7% more than in 2018. For the first half of 2019, the earnings of 1.07 billion€, compared to 925 M€ for the mid-year 2018.
Lower profit for the life reinsurance
The sector of the life reinsurance business recorded a decrease in profit compared to the second quarter of 2018. At the time, the income of 285 M€, while for the same period in 2019, the earnings of 154 Million euros. A decrease of 45.9 % compared to the previous year.
The combination of the first two quarters, the fall is less important. The area of life reinsurance reported 335€ M Munich Re, in 2019. However, during the same period in 2018, the segment reported 24.7 per cent, or 444 M€.
The reinsurer warns that increased volatility in profits is expected in the coming quarters.
Natural disasters the most expensive
Claims related to natural disasters have led to Munich Re, more losses in 2019 than in 2018. For the first half of 2019, the spending amounted to€ 350 Million and 155 Million euros for the second quarter, compared to€ 104 Million for the second quarter of 2018.