Munich Re has posted a net profit of €483m for the third quarter of the year, after a net loss of €1.44bn in the same period last year – a good result that puts the company on track to achieve its profit target for 2018. This is despite losses of around €600m due to Typhoon Jebi and Hurricane Florida.
The increase was largely due to an update of property values – the reinsurer has been able to take advantage of the growth potential in the property/casualty (P&C) reinsurance segment, adding €151m to the coffers in Q3.
A decline in premium volume in life and health reinsurance was compensated for by this growth, contributing to the 6.2% increase in gross premiums written. That said, the life and health reinsurance business has seen a year-on-year increase in profit to €159m. The company’s primary insurance business produced a net profit of €173 million compared to €29 million last year.
Munich Re expects to post a full-year profit of between €2.1-2.5bn. Its combined ratio was 100.7% in the third quarter, indicating increased profitability from 2017.