Munich Re has posted a net result of €2.1 billion for the second quarter of 2025, contributing to a half-year profit of €3.2 billion.
Insurance revenue from insurance contracts issued declined slightly to €14.8 billion in Q2, compared to €15 billion in the same period last year. The decrease was attributed to unfavorable foreign exchange movements. For the first half of the year, insurance revenue rose to €30.6 billion from €30 billion.
Munich Re reported a total technical result of €3 billion for the second quarter, up from €2.4 billion a year earlier. Its currency result fell to –€602 million from –€21 million, primarily due to foreign exchange losses linked to the weakening of the US dollar.
The operating result reached €2.9 billion, up from €2.2 billion, and the effective tax rate increased to 27.2% from 24.8%.
Equity stood at €30.8 billion as of the reporting date, down from €32.9 billion at the beginning of the year. The decline was mainly due to dividend payments, share buybacks, and currency translation effects. The solvency ratio remained unchanged at 287%, above the company’s targeted range of 175% to 220%.
The annualized return on equity rose to 25.5% in Q2 from 20.2% in the prior-year period. For the first half of 2025, ROE was 19.7%, compared to 24.1%.
The company’s updated guidance comes after a strong Q2 result that exceeded analyst expectations. Preliminary results released ahead of the official Q2 disclosure surpassed the market consensus of approximately €1.6 billion. The better-than-expected result was attributed to a combination of reserve releases and lower major-loss activity than forecasted.
Chair of the board of management Joachim Wenning (pictured above) said the company saw contributions from all business segments in Q2.
“As the outcomes of the July renewals show, we continue to enjoy an attractive market environment. Our task now is to continue capitalizing on it through stringent discipline,” Wenning said.
The reinsurance business delivered a Q2 net result of €1.8 billion, compared to €1.3 billion in the prior-year period. For the first half of the year, the segment earned €2.7 billion, down from €3.2 billion.
Reinsurance insurance revenue fell slightly in Q2 to €9.6 billion from €9.9 billion. The total technical result for the segment increased to €2.4 billion from €1.9 billion. Operating profit also rose to €2.6 billion, up from €1.8 billion.
Life and health reinsurance reported a Q2 technical result of €305 million, down from €568 million. Net income for the segment fell to €344 million from €514 million due to a number of isolated major losses. Insurance revenue grew to €3.1 billion from €3 billion.
The property-casualty reinsurance segment posted net income of €1.2 billion in Q2, up from €771 million. Insurance revenue declined to €4.5 billion from €4.8 billion. The combined ratio improved to 61.0%, compared to 73.7% in the same period last year. The normalized combined ratio stood at 79.6%.
Major losses totaled –€87 million in Q2 after retrocession and before tax, reflecting lower-than-expected loss activity and reserve releases from previous years. This amount represented –2% of net insurance revenue, compared to 13.8% in the prior-year period, and was below the expected 17%.
Man-made losses led to a release of €107 million, reversing an expenditure of €106 million last year. Natural catastrophe losses were reported at €20 million, down from €539 million.
Global Specialty Insurance (GSI), now reported separately from property-casualty reinsurance as of Q1 2025, posted Q2 net income of €296 million, up from €54 million. Insurance revenue declined slightly to €2.0 billion from €2.1 billion. The combined ratio improved to 77.9% from 93.6%.
Munich Re began reporting GSI as a distinct segment starting in the first quarter. The company stated the adjustment enhances transparency and aligns segment reporting with internal management practices. Management has also outlined expectations for continued improvement in GSI’s combined ratio, with targets set below 90% over the long term.
Munich Re also said that it continues to project a full-year net result of €6 billion. Due to updated business volumes and foreign exchange developments, reinsurance insurance revenue is now expected to total €40 billion, revised down from €42 billion.
Group-wide insurance revenue is projected at €62 billion, previously forecast at €64 billion. All other targets outlined in the company’s 2024 annual report remain unchanged.
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