Munich Re forecasts Q1 winter storm & COVID losses, doesn’t say how much

Munich Re forecasts Q1 winter storm & COVID losses, doesn’t say how much

German worldwide reinsurance giant Munich Re is expecting reporting above typical major losses from Februarys US winter season storms and freezing Texas weather condition, in addition to from extra pandemic associated impacts, but still expects a bumper revenue for the first-quarter of 2021. Munich Re expects to report an initial net revenue of around EUR600 million for the first-quarter of 2021, which is significantly above analyst agreement, pointed out as EUR466m, and well above Q1 2020s EUR221m.
This is regardless of what analysts have actually been expecting to be a relatively substantial burden for reinsurance firms such as Munich Re and Swiss Re from the US winter season storms and freezing weather condition in Q1.
Munich Re does not reveal the size of its losses from that event, simply stating that, “In the very first quarter of 2021, Munich Res major-loss expense in property-casualty reinsurance was greater than average, primarily owing to an abnormally serious cold spell in the USA, in specific in the state of Texas.”
Which suggests a fairly meaningful hit, possibly large enough to see a few of the firms retrocession quota share and sidecar partners taking a part of the claims.
On top of this, Munich Re said that both its P&C and life reinsurance units have actually taken extra COVID-19 pandemic associated losses in the first-quarter of this year.
The reinsurer notes that the extra pandemic hit was in-line with its expectations.
Regardless of this, investors will likely be happy with the profits set to be reported, as Munich Re expects to reort the EUR600 million of net earnings thanks to “great functional development overall, an investment result that was within expectations, and ERGOs extremely great performance.”

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