Munich Re weathers Q1 nat cat attack, maintains full-year targets

Munich Re suffered higher than expected Q1 nat cat losses, but escaped the quarter with a P&C combined ratio still within half a point of the full-year target and net profits above consensus expectations and on track to meet or beat the FY target.

P&C reinsurance enjoyed “pleasing” operational results, including a combined ratio of about 86.5%, within eyeshot of the group’s full-year target for 86%.

Major losses from natural catastrophes were called “higher than expected,” but not specified.

Group net profits of around €1.3 billion and further bolstered by “good” investment results, leave the firm on track for a FY net results of about €4 billion and came in above the €1.012 billion average estimate from 11 stock market analysts which Munich Re had compiled.

“Surpassing this target has become more likely due to the Q1 result,” management said of the full-year outlook.

Elsewhere within the group, technical results in life and health reinsurance came to roughly €0.3 billion in Q1, to put the segment ahead of pace on the full-year forecast of €1 billion. The net result at its primary carrier ERGO was near €0.2 billion, likewise more than a quarter of the full-year forecast of €0.7 billion.

Munich Re is currently slated to release its Q1 financial statements on May 17.

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