AM Best expects Munich Re profits to stay resilient

The group posted a net profit of $6.61b (€5.7b) in 2024.

AM Best expects Munich Re’s capital strength and earnings performance to remain solid over the near term, supported by strong diversification and favourable market conditions.

The group posted a net profit of $6.61b (€5.7b) in 2024, up from $5.34b (€4.6b) in 2023, with a return on equity of 18.1%.

Its property/casualty reinsurance unit contributed $3.71b (€3.2b) in profit, whilst life and health reinsurance and ERGO added $1.97b (€1.7b) and $0.93b (€0.8b), respectively. Natural catastrophe and man-made losses were largely in line with expectations at $4.52b (€3.9b).

Munich Re’s capital position remains at the strongest level, based on AM Best’s Capital Adequacy Ratio, and is expected to stay resilient despite high dividends and share buybacks.

The group also maintains low financial leverage and strong financial flexibility.