Munich Re’s net profit soars 40.6% YoY in Q2 2024

The company hopes to reach $5.5b by the end of the year.

Munich Re posted a net result of $1.77b (€1.62b) for the second quarter of 2024 (Q2 2024), up 40.6% year-on-year (YoY) from $1.26b (€1.15b) in the same period last year.

For the first six months of the year (H1 2024), net earnings reached $4.10b (€3.76b), compared to $2.64b (€2.43b) in 2023.

Insurance revenue from contracts issued increased to $16.30b (€14.95b) in Q2, from $15.45b (€14.18b) last year, with H1 2024 revenue rising to $32.71b (€30.01b), up from $31.01b (€28.45b).

The Q2 2024 growth was driven by organic expansion in both reinsurance segments, contributing to a total technical result of $2.75b (€2.52b), compared to $2.35b (€2.16b) in Q2 2023.

The currency result declined to –$76.30m (–€70m), primarily due to losses against the Japanese yen and the Mexican peso. The operating result improved to $2.41b (€2.21b) from $1.71b (€1.57b), and the effective tax rate was slightly higher at 24.9%, compared to 24.6% last year.

Equity increased to $33.46b (€30.70b) at the reporting date, up from $32.45b (€29.77b) at the start of the year. Munich Re’s solvency ratio rose to 287%, above the target range of 175% to 220%, compared to 267% at the end of 2023.

The annualised return on equity (RoE) was 20.3% in Q2 2024, up from 15.8% last year, with H1 RoE increasing to 24.3%, compared to 17.0% in the previous year.

“The 2024 targets thus remain the same as communicated in Munich Re’s Group Annual Report 2023 and in the quarterly statement Q1/2024. In other words, Munich Re is still aiming for a net result of $5.45b (€5.00b) for the 2024 financial year. The impressive half-year result increases the likelihood of meeting or even surpassing the full-year target,” the company said.

($1.00 = €0.92)