Munich Re achieved a net profit of €5.67 billion ($9.4 billion) last year, exceeding its €5 billion ($8.3 billion) forecast and its 2023 result of €4.6 billion ($7.6 billion).

Its core reinsurance business posted a 26% rise in profit to €4.88 billion ($8.11 billion) as insurance revenue from contracts issued grew 5.9% to €40 billion ($66.6 billion).

The property and casualty reinsurance operation made a net profit of €3.2 billion ($5.3 billion), up 30.7% on 2023.

Claims expenditure from major loss events totalled €3.88 billion ($6.45 billion), compared with €3.27 billion ($5.44 billion) a year earlier.

Man-made major losses totalled €1.24 billion ($2.06 billion) and major losses from natural catastrophes cost €2.64 billion ($4.39 billion).

Munich Re says Hurricane Helene was its most expensive claims event last year, at €500 million ($832 million).

The Los Angeles fires are expected to result in claims of €1.2 billion ($1.99 billion) against the reinsurer’s P&C reinsurance and global specialty reinsurance businesses.

“Although it is not yet possible to accurately estimate the losses caused by the devastating wildfires in Los Angeles ... they were clearly the most substantial wildfire losses in the history of the insurance industry,” Munich Re said. 

“At this early stage, this estimate is subject to a high degree of uncertainty owing to the complexity of the losses incurred.”

Munich Re says business written at the January renewals fell 2.4% to €15.6 billion ($25 billion).

“We consistently discontinued business that did not meet our expectations with regard to prices or terms and conditions,” the reinsurer said.

“Price development was stable overall, and for the most part compensated for the higher loss estimates in some areas, which were caused primarily by inflation and other loss trends. Overall, the good price level of Munich Re’s portfolio was maintained, with a slight decrease of 0.6%.”

This year the reinsurer is targeting a net profit of €6 billion ($10 billion).