Munich Re reports improved profitability for 1/1

Munich Re has reported a positive price change for the first time in four years in the preliminary figures January renewals.

The reinsurance giant reported substantial rate increases in loss-affected business due to the natural catastrophes seen in 2017 and stated that the “nat cat losses in 2017 had stopped downward trend”.

According to provisional calculations, in the fourth quarter of 2017 Munich Re posted a profit of €538m, up on the €486m of the previous year.

Nearly half of the reinsurer’s non-life business was up for renewal at 1/1, representing €8.3bn. Munich Re saw considerable top-line growth with a 19% increase in premium to €9.9bn. According to the firm, a number of very large transactions played into this positive outcome.

Munich re chief financial officer Jörg Schneider said: “Thanks to our capital strength, we were able to well withstand the high losses from natural catastrophes. In 2018, we will be pressing ahead with the digital transformation of Munich Re, and also seizing opportunities for profitable growth in traditional business. Reinsurance prices improved slightly in large sections of the market at the January renewals – a trend likely to strengthen in coming renewal rounds.”