Munich Re attributed the incurred losses to the cancellation or postponement of major events, and business interruption in other lines of P&C reinsurance due to Covid-19
Munich Re headquarters with courtyard on Königinstraße. (Credit: Wzwz/Wikipedia.)
Munich Re has reported a profit of €199m for the third quarter of 2020, a 77% decrease compared to €865m for the corresponding quarter in 2019.
Munich Re attributed the losses incurred in the third quarter to the cancellation or postponement of major events, and business interruption in other lines of P&C reinsurance due to Covid-19.
The German reinsurer posted a profit of €999m for the first three quarters in FY 2020, despite losses related to Covid-19 pandemic amounting €2.5bn.
Munich Re reported €29,641m equity, which is slightly lower compared to €30,576m at the beginning of the year.
Reinsurance business of the company generated €63m profit for the Q3 2020, compared to €746m for the Q3 2019. The business arm reported a decreased profit of €619m for the first three quarters in FY 2020, compared to €2.1bn for the same period 2019.
Life and health reinsurance operations reported a declined profit of €86m for the third quarter, compared to €282m in the same quarter of 2019.
P&C reinsurance business generated a loss of €23m for the Q3 2020, compared to €464m for the corresponding quarter of 2019.
Premium volume increased to €6.79bn for the third quarter of 2020, compared to €6.59bn for the same period in 2019.
The company said that apart from Covid-19, man-made losses including the Beirut harbour explosion also affected the results.
The company reported €474m of major-loss expenditure from natural catastrophes, due to windstorm and wildfire losses in the US.
Results of ERGO business
The ERGO business of Munich Re reported an increased profit of €136m for the Q3 2020, compared to €119m in the Q3 2019.
The business reported a profit of €381m for the first three quarters in FY 2020, which increased from €339m for the same period last year.
The ERGO P&C Germany segment booked an increased profit of €48m for the third quarter of 2020, compared to €36m for the same quarter of 2019. ERGO International reported a profit of €57m for Q3 2020, compared to €76m for Q3 2019.
The company attributed positive Q3 result to the International and German P&C segment.
ERGO Life and Health Germany reported a profit of €31m for Q3 2020, compared to €8m for the same period in 2019.
Munich Re CFO Christoph Jurecka said: “In reinsurance, the third quarter is often characterised by above-average losses – and that was again the case this year. On top of manmade major losses and natural catastrophes in the USA, ongoing high Covid-19 claims affected the result.
“A gratifying aspect is that ERGO once again delivered a strong quarter. Given Munich Re’s dynamic growth and the recent considerable price increases for reinsurance cover, we can look to the future with confidence.”