For Q4 2019, the earnings per share of Munich Re were down by 12.5% to €1.52 from €1.74 reported in Q4 2018
Main building of Munich Re in Munich, Germany. (Credit: Munich Re / Marcus Buck, München)
Munich Re has reported an 8.7% drop in its fourth quarter 2019 (Q4 2019) profit to €217m compared to €238m made in the same quarter in the previous year.
In the third quarter, the German reinsurance company registered a profit of €865m.
For Q4 2019, the company’s earnings per share were down by 12.5% to €1.52 from €1.74 reported in Q4 2018.
The reinsurance group attributed the decline in numbers in the fourth quarter on major losses caused by natural calamities, especially the typhoons in Japan, and also to high man-made claims. The company was also hit by a foreign exchange loss of €241m during the reported quarter.
Gross premiums written in the reported quarter were up by 8.6% to €8.26bn compared to €7.6bn in the same quarter in 2018.
Munich Re’s reinsurance unit provided €116m to the consolidated result in Q4 2019, which is 37% less than the figure of €185m reported in Q4 2018. The gross premiums written for the unit increased by 8.6% to €8.26bn from €7.6bn in the year before quarter.
ERGO increased its profit to €101m in Q4 2019, which is 89.9% more compared to €53m reported in Q4 2018. The gross premiums written for the business was down by 1.8% from €4.35bn in the fourth quarter of 2018 to €4.27bn in Q4 2019.
Munich Re FY 2019 results
For the full year 2019, Munich Re reported an increase of 19% in its profit at €2.7bn compared to €2.27bn made in the full year 2018.
The reinsurance business saw a 21.7% jump in profit at €2.26bn for FY 2019 compared to €1.86bn made in the year before. Gross premiums of the business in 2019 were up by 8.1% to €33.8bn.
ERGO had seen an increase of 22.6% in its profit for the full year 2019 at €440m compared to the figure of €359m in the year before. Its gross premiums written for FY 2019 were down by 0.7% to €17.65bn compared to the previous year.
Munich Re board of management chairman Joachim Wenning said: “A higher dividend, new share buy-back programme, and profits beating the guidance: Munich Re delivers.
“On our journey to make Munich Re more profitable, more lean and more digital, we took a great step forwards in 2019. With this strategic progress, I am confident that we will reach the profit target of €2.8bn for 2020 that we set out in our multi-year ambition for 2018–2020.”