Munich Re expects solid Q2 profit on low cat losses, despite COVID mortality claims

Munich Re expects solid Q2 profit on low cat losses, despite COVID mortality claims

Worldwide reinsurance giant Munich Re has actually said that its second-quarter result will be assisted by a lower occurrence of natural catastrophe losses, which will help it deliver an above agreement estimate roughly EUR 1.1 billion of revenue for the period.The reinsurance company said that, throughout Q2 2021 thee major-loss expense of its residential or commercial property & & casualty reinsurance service was listed below average.
This is mainly a result of relatively low losses from natural disasters, Munich Re discussed.
Losses from the COVID-19 pandemic continue for the company and while they were considered in-line with expectations in the P&C reinsurance company, Munich Res life and health reinsurance company saw losses surpass expectation due to mortality claims.
The reinsurer said that these raised pandemic life claims are generally due to the high mortality rate in India and South Africa throughout the quarter.
At the exact same time, Munich Re stated that its primary insurance coverage division ERGO felt just minor effects from COVID-19 in the second-quarter of the year.
On a functional basis, all locations saw the result establishing favourably during the period, Munich Re further described.
As an outcome, the business is reporting a preliminary net profit of around EUR 1.1 billion for Q2 alone, well-above an agreement quote of EUR 808 million from across 14 experts.
This puts the reinsurers half-year result at around EUR 1.7 billion, meaning the business feels it is well on track to reach its annual target of EUR 2.8 billion.
Nevertheless, given the ongoing pandemic mortality losses, Munich Re alerted that the probability of missing its target of EUR 400 million for the technical result of its life and health reinsurance service has now increased.

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