Munich Re raised its profit target for the year as lower-than-expected claims helped push earnings in the third quarter past analysts’ estimates.
The reinsurer said it expects a profit of €4.5 billion ($4.8 billion) for this year, up from an earlier guidance of €4 billion euros, according to a statement Monday. Net income of about €1.2 billion in the third quarter exceeded the €1.13 billion estimate of analysts polled by Bloomberg, bringing earnings for the first nine months to €3.6 billion.
Chief Executive Officer Joachim Wenning is in the midst of a five-year strategic plan that calls for earnings per share to increase at least 5% per year on average. He has shown willingness to discontinue businesses that no longer meet expectations in terms of prices and conditions. At the July renewals, the company was able to push through considerable price increases, paving the way for higher net income.
Munich Re said in August that the probability of beating its target for this year had increased. The company posted earnings of €3.4 billion for 2022, though the figure isn’t directly comparable with this year’s because of accounting changes.
Shares of the company were unchanged at 1:36 p.m. in Frankfurt trading, having gained 22% this year.
S&P Global Ratings revised its view of global reinsurers to stable from negative in September, citing favourable pricing conditions in property reinsurance, pre-pandemic earnings levels in life reinsurance and higher net investment income.
Topics Profit Loss Claims
Was this article valuable?
Here are more articles you may enjoy.
Hacker Says AT&T Paid About $400,000 to Erase Sensitive Data 
What Happened to Reinsurance ‘Class of 2023’? Hard Market Defies Age-Old Patterns. 
P/C Premium Growth Likely But Profits Delayed Until 2025: Forecast 
Deere Retreats From Diversity Measures After Online Attacks 
