schreef:
Munich Re, one of Europe’s largest reinsurers, has reported a net result of €4.6 billion for the 2023 financial year, which is above its revised €4.5 billion profit target announced in October, supported by a reinsurance result of €3.9 billion and an improved performance at ERGO.
Despite beating the revised profit target and the initial target of €4 billion, total profit for the year did come in below the €5.3 billion reported in 2022, with a net result of just over €1 billion in Q4 2023, down from €1.1 billion in the prior year quarter. Group-wide, insurance revenue from insurance contracts issued rose to €57.9 billion from €55.4 billion, due in part to organic growth in the property and casualty (P&C) reinsurance segment and at ERGO, offset by currency translation effects.
For 2023, the reinsurer’s return on equity (RoE) amounted to 15.7% compared with 20.2% a year earlier, as the technical result increased to €7.6 billion from €7.1 billion. At the same time, the investment result increased from €2.9 billion to €5.4 billion, while the operating result fell from €6.8 billion in 2022 to €5.7 billion in 2023.
Looking forward, Munich Re has announced a target net result of €5 billion in 2024, with Group insurance revenue of €59 billion and the return on investment to surpass 2.8%.
The company expects its reinsurance business to increase its insurance revenue to €39 billion and its contribution to the net result to €4.2 billion in 2024. The P&C combined ratio is expected to strengthen to 82%, while the L&H technical result is expected to improve to €1.45 billion in 2024. At ERGO, Munich Re expects to generate insurance revenue of €20 billion in 2024, with a higher profit contribution of €800 million.
Joachim Wenning, Chair of the Board of Management, commented: “2023 was another successful year for Munich Re. We beat our annual profit target for the third consecutive time and delivered a strong performance across all business segments. Thanks to a broadly diversified business portfolio, Munich Re is well placed and fully on track to meet the targets specified in its Ambition 2025 strategy programme. With the exception of systemic risks – such as cyber and pandemic – our appetite for covering existential risks for people and enterprises is far from exhausted.”
Christoph Jurecka, Chief Financial Officer, said: “All KPIs are near or even better than the Ambition 2025 targets at the end of 2023. Our financial strength makes it possible for our shareholders to participate in our success through a substantially higher dividend. They’ll also benefit from a new share buy-back that will likewise be substantially higher. And we remain ambitious, as we seek to boost our annual profit to €5bn this year.”
[...]