Munich Re says the business performed ahead of expectations last year, underpinned in part by an 8.5% rise in gross premiums written to a record €59.57 billion ($93.1 billion) from 2020.

The reinsurer achieved group-wide net profit of €2.93 billion ($4.57 billion), exceeding its €2.8 billion ($4.37 billion) target and more than twice the amount earned in 2020 – €1.21 billion ($1.89 billion).

For this year the business is aiming for a profit of €3.3 billion ($5.16 billion) which factors in pre-tax covid losses of about €300 million ($468.9 million) in the life and health reinsurance segments, and group premium income of €61 billion ($95.3 billion), which if achieved would mark a new record for the reinsurer.

“The year 2021 was good for Munich Re,” Chair of the Board of Management Joachim Wenning said.

“We beat our profit target, while also making our balance sheet even stronger despite high inflation.”

The reinsurance arm made a profit of €2.3 billion ($3.59 billion) last year, of which €2 billion ($3.12 billion) came from the property and casualty (P&C) segment. P&C premium volume grew to €28.8 billion ($45 billion) from €24.62 billion ($34.48 billion).

Munich Re says the P&C reinsurance profit represents a significant improvement from last year’s €571 million ($892 million) and was achieved despite numerous natural catastrophes.

Major loss events, defined as €10 million ($15.62 million) and above, cost the business €4.3 billion ($6.71 billion) compared with €4.69 billion ($7.33 billion) in 2020. The fourth quarter alone recorded €1 billion ($1.56 billion) in losses from major events.

Loss expenditure from natural catastrophes rose substantially to €3.14 billion ($4.9 billion) last year from €906 million ($1.42 billion), with hurricane Ida the costliest disaster for the business, at €1.2 billion ($1.87 billion).

Munich Re says in the reinsurance renewals at January 1, it was able to increase written business volume by about 14.5% to €14.8 billion ($23.1 billion).

“Around half of property-casualty business was renewed, with a focus on Europe, the USA (mainly excluding hurricane cover) and global business,” the reinsurer said.

“Prices, terms and conditions improved overall. To varying degrees, prices showed an upward trend worldwide.”