Munich Re claims big Q1 earnings beat as major claims go absent

Munich Re may have ended the first quarter of 2024 with net profits 42% above analyst expectations and a P&C reinsurance combined ratio more than four points below the market's best guess, the global reinsurer said well ahead of its Q1 release date.

Munich Re left its full-year net profit target of €5 billion intact and said only that the Q1 beat makes the full-year target “more likely.” 

The estimated Q1 net take of approximately €2.1 billion “significantly surpassed” the €1.476 billion consensus of equity market analyst expectations which Munich Re had previously compiled and published. 

The property & casualty reinsurance combined ratio likely landed near 75%, clearly below the 79.3% average of the 11 analysts included in the Munich Re consensus survey. 

Munich Re cited “below average” major-loss expenditure in explaining the beat. Analysts in the survey had put major claims at 10.8% of net earned premium. 

Elsewhere, Munich Re claimed a life and health reinsurance technical result of “around” €600 million, above a consensus estimate of €383 million. 

 Primary insurance division ERGO was attributed a likely net result of approximately €300 million. The consensus estimate had spoken only to sub-sector operating results, not bottom line figures. 

Munich Re will provide its final Q1 2024 tallies on May 8, as initially scheduled.

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