FRANKFURT (Reuters) — Munich Re on Tuesday posted a 44% rise in third-quarter net profit, despite heavy demands from Hurricane Ian, and it “stuck” to its full-year profit target.
Net profit in the quarter of 527 million euros ($527.2 million) compared with 366 million euros in the same period last year as giant claims also weighed on earnings.
Last month, the reinsurer already flagged that it expected a profit of around 500 million euros, well above consensus for a loss of 167 million euros.
“Although Hurricane Ian and the macroeconomic environment make it significantly more challenging for us, we are firmly following” the 2022 profit guidance of 3.3 billion euros, said CFO Christoph Jurecka.
Hurricane Ian, which tore through parts of Florida at the end of September, will cost Munich Re an estimated 1.6 billion euros in damages.
As a result, Munich Re now expects the total expense ratio in its property and casualty division – a key measure of profitability – to be a less favorable 97% this year, compared with previous expectations of 94%. Readings below 100% indicate profitability.
But the company raised its full-year guidance for gross premiums in its reinsurance business and in its Ergo primary insurance business.