International reinsurance giant Munich Re has reported a solid quarter of earnings for Q1 2021, as it delivered EUR 589 countless revenue, despite the effect of significant losses and catastrophes, the largest of which was the United States winter storms and freezing weather.Munich Re reported above-average loss expense, largely due to the US freeze that especially affected Texas.
The business has likewise reported another roughly EUR 167 countless losses connected to the COVID-19 pandemic that fell to its reinsurance book.
The April reinsurance renewals will help to drive even more strong revenues for Munich Re, as the business reported 17.1% of premium development, along with 2.4% greater rates.
We will do our part at seven Munich Re and ERGO locations in Germany as quickly as our company medical staff is allowed to administer vaccinations. In company terms, we expect that the effect of the pandemic in 2021 will be restricted for Munich Re.
” On top of the awaited COVID-19 losses, there was an unusual cold breeze in the United States early this year. We are however on track to fulfill our yearly target of EUR2.8 bn thanks to robust operating profits. The April renewals verified that the marketplace environment in reinsurance continues to be beneficial, and ERGOs strong outcomes assist enhance the Groups profit.”
The EUR 589 countless Q1 profit was well up on the EUR 221 million reported for the prior year, as COVID effects dented 2020s incomes.
The reinsurance business contributed EUR 410 countless the revenue, with property and casualty reinsurance EUR 358 countless the overall.
Natural disaster losses during Q1 totaled up to EUR 646 million, well up on Q1 2020s EUR 208 million and above-average for the quarter.
The key chauffeur of this was winter season storm Uri and the Texas freeze, which contributed EUR 450 million of the losses.
While Munich Re used development opportunities throughout the April reinsurance renewals, the company likewise said it continues to prune its book, ceasing unprofitable organization at the very same time.
Describing reinsurance prices, the business stated, “Prices were up overall in the sectional markets, with boosts varying in connection with the specific claims experience and situation in each private market. Prices for reinsurance cover rose considerably in some locations, consisting of Japan.
Looking ahead, Munich Re thinks that reinsurance market conditions will persist, saying, “Munich Re anticipates that the marketplace environment will enhance year on year in the next renewal round in July, as was the case with previous renewals.”.
Munich Re has increased its target for reinsurance premiums from EUR37 billion to EUR39 billion for the year since of favorable reinsurance market conditions.
In business terms, we anticipate that the impact of the pandemic in 2021 will be limited for Munich Re.
The April renewals confirmed that the market environment in reinsurance continues to be favourable, and ERGOs strong outcomes help enhance the Groups earnings.”
Describing reinsurance pricing, the business stated, “Prices were up total in the sectional markets, with boosts differing in connection with the particular claims experience and situation in each individual market. Costs for reinsurance cover increased considerably in some locations, consisting of Japan.