Munich Re’s Q1 profits hit by €267m from Jebi

In the first quarter of 2019, Munich Re generated a profit of €633 million (US$709 million) compared with €827 million.

The reinsurer said the figures included run-off profits and losses for major claims from previous years, including an additional expenditure of €267 million for losses from Typhoon Jebi in Japan which occurred in September last year; the typhoon has impacted many rivals already this year.

Major-loss expenditure from natural catastrophes amounted to €195 million in the first quarter.

Overall, claims experience was in line with expectations. For the year 2019, Munich Re still projects that the technical result, including the result from business with non-significant risk transfer, will come to approximately €500 million.

P&C reinsurance business contributed €420 million (€591 million) to the consolidated result. Premium volume rose to €5.48 billion (compared with €5.32 billion). The combined ratio was 97.9% (88.6%) of net earned premium, which is on track to achieve the Munich Re target level of around 98% for the full year.

Life and health reinsurance business generated €128 million in the first quarter of 2019 compared with €159 million in profit; premium income rose slightly to €2.9 billion compared with €2.87 billion.

The April renewals saw price increases in the markets and risks affected by natural catastrophes. Price stabilisation with a slightly upward trend was also observed in the third-party liability markets; overall prices rose by 1.4%.

Meanwhile Munich Re’s insurance firm Ergo contributed €85 million in Q1 2019 profits compared with €77 million in Q1 2018.