Munich Re has flagged pandemic-linked reinsurance losses of €3.4 billion ($5.56 billion) this year.

Property and casualty reinsurance accounts for slightly more than €3 billion ($4.91 billion) of the total, while life and health account for the rest. The forecast implies a further €1.1 billion ($1.8 billion) of COVID-19 losses in the fourth quarter, after €800 million ($1.31 billion) in the third quarter.

“The group expects financial consequences from COVID-19 next year as well, but on a considerably smaller scale than in 2020,” Munich Re says in a bulletin.

“Given the considerable price increases for reinsurance cover, Munich Re will continue to spur its dynamic and profitable growth.”

The 2020 combined ratio in property and casualty reinsurance is estimated at 106%, with the normalised combined ratio 97%, subject to non-COVID losses.

Munich Re forecasts a profit of €1.2 billion ($1.96 billion) for 2020 while group premium income is expected to total a record €54 billion ($88.39 billion).

It is aiming for a profit of €2.8bn ($4.58 billion) next year, with COVID-19 claims of around €500m ($818.17 million) forecast. Foregone premiums will further decrease the result by about €50m ($81.81 million).

The 2021 combined ratio in property-casualty reinsurance is estimated to be 96%.